5 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli

2. TravelCenters of America Inc. (NASDAQ:TA)

Stake Value of GAMCO Investors: $7,539,773

Number of Hedge Fund Holders: 26

TravelCenters of America Inc. (NASDAQ:TA) is an operator of travel centers, truck service facilities, and restaurants in the United States and Canada. In Q1 2023, Mario Gabelli increased his stake in TravelCenters of America Inc. (NASDAQ:TA) by 137%, holding 87,165 shares worth $7.5 million. It is one of the top value picks of the billionaire this year.

On February 17, BMO Capital analyst Ari Klein raised the firm’s price target on TravelCenters of America Inc. (NASDAQ:TA) to $86 from $60 and kept a Market Perform rating on the shares, in light of the company’s agreement to be acquired by BP at $86 per share. According to the analyst, the acquisition is expected to provide increased scale and synergies, and the regulatory risk is anticipated to be minimal due to the fragmented nature of the travel center market.

According to Insider Monkey’s first quarter database, 26 hedge funds were bullish on TravelCenters of America Inc. (NASDAQ:TA), up from 15 funds in the prior quarter. Magnetar Capital is the largest position holder in the company.

Bernzott Capital Advisors US Small Cap Value made the following comment about TravelCenters of America Inc. (NASDAQ:TA) in its Q1 2023 investor letter:

“Consumer Discretionary contributed positively due to the 80.6% gain in TravelCenters of America Inc. (NASDAQ:TA). We initiated the position early in the quarter, finding appeal in enhanced earnings power from internal management initiatives such as upgraded IT systems, better execution in the non-fuel part of the business, and franchising opportunities for capital-light expansion. The stock jumped in February when BP agreed to acquire the company for cash at a significant premium.”