5 Undervalued Stocks Picked by Billionaire Gabelli

3. Mueller Industries Inc (NYSE:MLI)

Number of Hedge Fund Investors: 21

GAMCO’s Stake: $150M

Manufacturing company Mueller Industries Inc (NYSE:MLI) ranks third in our list of the undervalued stock picks of Mario Gabelli.

Gabelli’s hedge fund owns a $150 million stake in Mueller Industries Inc (NYSE:MLI).

Mueller posted third quarter results in October. GAAP EPS in the period came in at $1.17. Revenue in the period fell 13.2% year over year to $819.8 million.

Diamond Hill Long-Short Fund made the following comment about Mueller Industries, Inc. (NYSE:MLI) in its Q3 2023 investor letter:

“We also initiated short positions in Mueller Industries, Inc. (NYSE:MLI), Bank of Hawaii, Alarm.com Holdings and Garmin in Q3. Mueller Industries is a leading producer of copper tubes and pipes for plumbing and HVAC systems — a cyclical industry with largely commoditized products that has seen meaningful margin gains in recent years tied to tailwinds we anticipate will likely reverse in coming years. Further, we expect long-term volume trends will likely remain sluggish as copper piping continues losing share to plastic over time. Given our expectation earnings power will revert to historical levels over time, we initiated a short position during the quarter.”