In this article, we discuss the 5 undervalued stocks to buy according to billionaire Mario Gabelli. If you want to read our detailed analysis of these stocks, go directly to the 10 Undervalued Stocks to Buy According to Billionaire Mario Gabelli.
5. Energizer Holdings, Inc. (NYSE:ENR)
Number of Hedge Fund Holders: 17
PE Ratio: 15.60
Energizer Holdings, Inc. (NYSE:ENR) makes and sells battery products. Hedge funds have been piling into the stock in recent months. At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $184 million in Energizer Holdings, Inc. (NYSE:ENR), compared to 16 in the preceding quarter worth $187 million.
According to the latest filings, GAMCO Investors owned over 1.6 million shares of Energizer Holdings, Inc. (NYSE:ENR) at the end of the fourth quarter of 2021 worth $67 million, representing 0.57% of the portfolio.
4. National Fuel Gas Company (NYSE:NFG)
Number of Hedge Fund Holders: 21
PE Ratio: 14.59
National Fuel Gas Company (NYSE:NFG) is a diversified energy firm. According to the latest filings, GAMCO Investors owned over 1.2 million shares of the company at the end of the fourth quarter of 2021 worth $80 million, representing 0.68% of the portfolio.
National Fuel Gas Company (NYSE:NFG) is one of the favorite energy stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in National Fuel Gas Company (NYSE:NFG) with 382,644 shares worth more than $24 million.
In its Q1 2021 investor letter, Heartland Advisors, an asset management firm, highlighted a few stocks and National Fuel Gas Company (NYSE:NFG) was one of them. Here is what the fund said:
“The ho-hum Utilities sector isn’t typically a place to hunt for strong growth prospects. However, for investors willing to do their homework, opportunities do exist. Portfolio holding National Fuel Gas Company (NYSE:NFG) is a prime example.
National Fuel Gas Company (NYSE:NFG) is a dividend aristocrat—50 consecutive years of dividend increases. Although the business is lumped in with run-of-the-mill power companies, it is much more diverse. In addition to its utility operations, a pipeline and storage division produces almost a quarter of its profits, and the company generates nearly 40% of its bottom line from natural gas exploration and production.
Shares of National Fuel Gas Company (NYSE:NFG) are trading at a mid-teens discount to their historic average based on price/book. Given the state of the energy industry over the past few years, we believe the company’s gas unit could be an overlooked source of growth. Additionally, the utility recently received regulatory approval on a natural gas pipeline expansion in Pennsylvania, which is expected to produce a windfall in free cash flow.”
3. Cavco Industries, Inc. (NASDAQ:CVCO)
Number of Hedge Fund Holders: 25
PE Ratio: 14.31
Cavco Industries, Inc. (NASDAQ:CVCO) makes and sells manufactured homes. Hedge funds have been loading up on the stock. At the end of the fourth quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $256 million in Cavco Industries, Inc. (NASDAQ:CVCO), compared to 20 the preceding quarter worth $208 million.
Regulatory filings show that GAMCO Investors owned 231,155 shares of Cavco Industries, Inc. (NASDAQ:CVCO) at the end of December 2021 worth $73 million, representing 0.62% of the portfolio.
2. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 28
PE Ratio: 14.14
Sony Group Corporation (NYSE:SONY) is a consumer electronics firm. Securities filings reveal that GAMCO Investors owned more than 1.8 million shares of the company at the end of December 2021 worth $233 million, representing 1.99% of the portfolio.
Sony Group Corporation (NYSE:SONY) remains a top electronics stock in the hedge fund universe. At the end of the fourth quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $609 million in Sony Group Corporation (NYSE:SONY), compared to 19 in the previous quarter worth $388 million.
1. Crane Co. (NYSE:CR)
Number of Hedge Fund Holders: 25
PE Ratio: 13.57
Crane Co. (NYSE:CR) markets engineered industrial products. At the end of the fourth quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $310 million in Crane Co. (NYSE: CR), compared to 20 in the previous quarter worth $286 million.
The hedge fund of Mario Gabelli entered the first quarter of 2022 with over 1.4 million shares of Crane Co. (NYSE:CR) in the portfolio worth more than $150 million, representing 1.28% of the portfolio.
You can also take a peek at 10 Micro-Cap Stocks to Buy According to Cathie Wood and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
