In this article, we will look at the 5 best stocks to buy in 2022 according to billionaire Mario Gabelli. If you want to skip our detailed analysis of Gabelli’s history, investment philosophy, and hedge fund performance, you can go directly to 10 Best Stocks to Buy in 2022 According to Billionaire Mario Gabelli.
5. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 69
GAMCO Investors’ Stake Value: $162.78 million
Percentage of GAMCO Investors’ Portfolio: 1.46%
Forbes has named American Express Company (NYSE:AXP) the 28th most valuable brand in the world. Among financial services brands, the company tops the list. According to GAMCO Investors’ first quarter 2022 13F filings, the firm owned 870,490 shares of the company worth $162.78 million. American Express Company (NYSE:AXP) makes up 1.46% of GAMCO Investors’ portfolio.
On June 6, Edward Jones analyst Kyle Sanders upgraded American Express Company (NYSE:AXP)’s shares from Hold to Buy. The analyst mentions that the company’s most recent projects to attract young customers have led the company to significant account growth.
4. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 17
GAMCO Investors’ Stake Value: $167.025 million
Percentage of GAMCO Investors’ Portfolio: 1.5%
Mueller Industries, Inc. (NYSE:MLI) produces and sells copper, brass, aluminum, and plastic products globally. It is one of the most significant companies in GAMCO Investors’ portfolio. In the first quarter of 2022, it made up 1.5% of the firm’s portfolio with 3.08 million shares worth $167.025 million.
Out of the 912 hedge funds tracked by Insider Monkey, 17 had stakes worth $287.24 million in Mueller Industries, Inc. (NYSE:MLI) in the first quarter of 2022. In the previous quarter, 18 hedge funds were bullish on the company, with stakes worth $306.3 billion.
3. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 17
GAMCO Investors’ Stake Value: $167.025 million
Percentage of GAMCO Investors’ Portfolio: 1.5%
Sony Group Corporation (NYSE:SONY) is the largest video game publisher and video game console company. The company has sold 20 million units of the Play Station 5 since its launch in 2020. Sony Group Corporation (NYSE:SONY) is the most cash-rich Japanese company, with approximately $14.87 billion in cash reserves.
On May 18, Oppenheimer analyst Martin Yang issued an Outperform rating on Sony Group Corporation (NYSE:SONY)’s shares. However, the analyst lowered the company’s price target from $150 to $125.
Here is what Aristotle Capital Management had to say about Sony Group Corporation (NYSE:SONY) in their first quarter 2022 investor letter:
“Sony, maker of the PlayStation videogame console, was a leading detractor for the quarter. After a strong year in 2021, a shortfall in PlayStation 5 sales due to continued semiconductor shortages has dampened new console unit sales. Although there are likely to be continued limitations on the supply of components in the short term, consumer demand remains strong, and upcoming releases of major titles such as Horizon Forbidden West and Gran Turismo 7 are likely to further enhance demand. While Sony continues to manage supply-chain headwinds, the company has also again demonstrated its ability to build on the fundamental strength of its business across various segments. During the quarter, Sony acquired Bungie, a U.S.-based videogame developer known for the Destiny franchise and live game services; completed its initial equity investment in Japan Advanced Semiconductor Manufacturing, a foundry service subsidiary of Taiwan Semiconductor Manufacturing Company (TSMC); and acquired Brazilian music label Som Livre. Lastly, Sony announced a partnership with Honda Motor (NYSE:HMC), where the two companies expect to combine Honda’s expertise in manufacturing vehicles with Sony’s proficiency in imaging, sensing, telecommunication, and network technologies to develop and commercialize electric vehicles. We feel these strategic actions demonstrate Sony’s ability to continue to improve on its market positions across its business segments with a long-term, forward-looking approach.”
2. GATX Corporation (NYSE:GATX)
Number of Hedge Fund Holders: 14
GAMCO Investors’ Stake Value: $203 million
Percentage of GAMCO Investors’ Portfolio: 1.83%
GATX Corporation (NYSE:GATX) is a railcar lessor with fleets across North America, Europe, and Asia. GAMCO Investors’ stake in the company was $203 million by the first quarter of 2022. The fund owned around 1.6 million shares of the company.
GATX Corporation (NYSE:GATX)’s EPS for the first quarter of 2022 surpassed the estimates by a whopping 68.10% at $2.34. However, the company’s revenue was $6.15 million below the analyst consensus after generating $316.60 million.
Insider Monkey database reveals that GATX Corporation (NYSE:GATX) was a part of 14 hedge funds’ portfolios in the first quarter of 2022.
1. Herc Holdings Inc. (NYSE:HRI)
Number of Hedge Fund Holders: 25
GAMCO Investors’ Stake Value: $322.42 million
Percentage of GAMCO Investors’ Portfolio: 2.91%
Herc Holdings Inc. (NYSE:HRI) is a global equipment rental and leasing company. GAMCO Investors has given the company the highest weightage in its portfolio, with 1.9 million shares worth $322.42 million.
On April 22, Baird analyst Mircea Dobre slashed the price target of Herc Holdings Inc. (NYSE:HRI) from $158 to $161 and maintained a Neutral rating on its shares.
You can also take a peek at 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital and 10 Stocks to Buy in April According to Jim Cramer.
