In this article, we discuss the 5 long-term stocks to buy according to billionaire Mario Gabelli. If you want to read about some more stocks in the Gabelli portfolio, go directly to 10 Long-Term Stocks to Buy According to Billionaire Mario Gabelli.
5. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 19
Mueller Industries, Inc. (NYSE:MLI) manufactures and sells copper, brass, aluminium, and plastic products. Latest data shows that GAMCO Investors owned more than 3 million shares of Mueller Industries, Inc. (NYSE:MLI) at the end of the second quarter of 2022 worth over $162 million, representing 1.77% of the portfolio.
On July 18, Northcoast analyst Ryan Connors initiated coverage of Mueller Industries, Inc. (NYSE:MLI) stock with a Buy rating and a price target of $125, noting that the demand outlook appeared positive for the firm in the coming months.
4. Genuine Parts Company (NYSE:GPC)
Number of Hedge Fund Holders: 32
Genuine Parts Company (NYSE:GPC) supplies automotive replacement parts, industrial parts, and materials. The company is one of the long-term stocks to buy according to billionaire Mario Gabelli. Securities filings show that GAMCO Investors owned 726,255 shares of Genuine Parts Company (NYSE:GPC) at the end of June 2022 worth $96 million, representing a small portion of the portfolio.
On July 28, Wedbush analyst Seth Basham maintained a Neutral rating on Genuine Parts Company (NYSE:GPC) stock and raised the price target to $150 from $140, appreciating the second quarter earnings beat of the firm.
At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $406 million in Genuine Parts Company (NYSE:GPC), compared to 29 in the preceding quarter worth $457 million.
3. Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 38
Bank of New York Mellon Corporation (NYSE:BK) provides a range of financial products and services. Regulatory filings show that GAMCO Investors owned 2.1 million shares of Bank of New York Mellon Corporation (NYSE:BK) at the end of June 2022 worth $87 million, representing a small portion of the portfolio.
On August 12, Deutsche Bank analyst Brian Bedell maintained a Hold rating on Bank of New York Mellon Corporation (NYSE:BK) stock and raised the price target to $46 from $42, noting that alternative asset managers were better positioned for upside.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $3.6 billion in Bank of New York Mellon Corporation (NYSE:BK), compared to 54 in the preceding quarter worth $4.6 billion.
In its Q4 2021 investor letter, Ariel Investments, an asset management firm, highlighted a few stocks and Bank of New York Mellon Corporation (NYSE:BK) was one of them. Here is what the fund said:
“Rising interest rates, after a surprisingly long period of low absolute rates and negative “real” rates, will create a headwind. While there has been much debate about the cause of these low rates, we believe the most important factor has been the $120 billion in monthly federal reserve open market bond purchases and the accumulation of an $8 trillion balance sheet. The former will end, and the latter will shrink. It is not just the Fed that has aggressively purchased bonds, bidding up prices and lowering yields. Bond traders and hedge fund managers have added to positions, confident that being on the same side as the Fed was the wise place to be. Now as the Fed is about to become a seller of bonds rather than a buyer, Wall Street’s “smart money” is likely to follow suit. Against this backdrop, fixed income securities and bond substitutes such as high dividend paying utilities and absolute return hedge funds are substantially overpriced and are not likely to produce attractive returns going forward (…read more)
2. Deere and Company (NYSE:DE)
Number of Hedge Fund Holders: 54
Deere and Company (NYSE:DE) manufactures and distributes various equipment worldwide. Latest data shows that GAMCO Investors owned more than 221,577 shares of Deere and Company (NYSE:DE) at the end of the second quarter of 2022 worth over $66 million, representing 0.72% of the portfolio.
On August 24, Argus analyst John Eade maintained a Buy rating on Deere and Company (NYSE:DE) stock and raised the price target to $420 from $390, noting that the earnings of the firm appeared to be back in growth mode.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Deere and Company (NYSE:DE), with 1.5 million shares worth more than $458 million.
In its Q2 2022 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Deere and Company (NYSE:DE) was one of them. Here is what the fund said:
“Deere & Company (NYSE:DE) manufactures machines and equipment, which help the agriculture and construction industries. The company’s production and precision agriculture segment manufacture global equipment and technology solutions for production-scale growers of large grains, small grains, cotton, and sugar. The small agriculture and turf segment develops equipment for dairy and livestock producers, crop producers, and turf and utility customers. Finally, the construction and forestry segment make a range of machines for the earthmoving, forestry, and roadbuilding production systems (…read more)
1. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 67
American Express Company (NYSE:AXP) provides charge and credit payment card products, as well as travel-related services. According to the latest filings, GAMCO Investors owned over 856,470 shares of American Express Company (NYSE:AXP) at the end of the second quarter of 2022 worth $118 million, representing 1.3% of the portfolio.
On July 26, Citi analyst Arren Cyganovich maintained a Neutral rating on American Express Company (NYSE:AXP) stock and raised the price target to $159 from $148, noting the firm had posted strong sales trends.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in American Express Company (NYSE:AXP), with 151.6 million shares worth more than $2.1 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:
“In financials, American Express Company (NYSE:AXP) has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
You can also take a peek at 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
