In this article, we discuss 5 value stocks to buy according to Mario Gabelli. You can see more of Gabelli’s favorite value stocks by clicking 10 Value Stocks To Buy Today According To Mario Gabelli.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
P/E Ratio as of June 14: 8.46
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services holding company headquartered in New York City. Not only is it the largest bank in the United States, it also boasts a position as the world’s largest bank by market capitalization, with a $335 billion value. Mario Gabelli reported owning 407,073 shares of JPMorgan Chase & Co. (NYSE:JPM) in Q1 2022, worth $55.49 million.
On May 24, Societe Generale analyst Andrew Lim upgraded JPMorgan Chase & Co. (NYSE:JPM) to Buy from Hold with a price target of $150, up from $145. According to Lim, the company at its investor day delivered positive guidance on net interest income, credit quality and investment bank trading revenues, hence painting a more optimistic image of JPMorgan Chase & Co. (NYSE:JPM)’s excess capital generation from 2023.
Hedge fund sentiment around JPMorgan Chase & Co. (NYSE:JPM) was positive at the end of the first quarter, where a total of 110 hedge funds owned positions in the banking firm, in contrast to 107 hedge funds in the previous quarter. Billionaire Ken Fisher’s Fisher Asset Management was the biggest shareholder of JPMorgan Chase & Co. (NYSE:JPM) in the first quarter of 2022, with a position consisting of 7.76 million shares valued at $1.05 billion.
ClearBridge Investments mentioned a few stocks in its Q4 2021 investor letter, and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.”
4. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
P/E Ratio as of June 14: 7.78
Wells Fargo & Company (NYSE:WFC) is an American multinational financial services company with corporate headquarters in, California; operational headquarters in Manhattan; and managerial offices throughout the United States and internationally. The company provides a wide variety of services ranging from consumer, corporate, and investment banking with an asset base of over $1.9 trillion. Mario Gabelli’s fund owns a $68 million stake in Wells Fargo as of the end of Q1.
Earlier this April, Barclays analyst Jason Goldberg raised his price target on Wells Fargo & Company (NYSE:WFC) to $64 from $62 and maintained an Overweight rating on the shares post the Q1 results. Based on the analyst’s notes, the company upped its 2022 net interest income and loan growth outlook and kept its expense forecast unchanged despite Q1 coming in higher than expected.
In its Q1 2022 earnings, Wells Fargo & Company (NYSE:WFC) posted a GAAP EPS of $0.88, which beat analysts’ estimates by $0.07. However, the company’s revenue of $17.5 billion fell short of market expectations and missed the estimates by $230 million.
According to Insider Monkey’s database, 93 hedge funds reported owning stakes in Wells Fargo & Company (NYSE:WFC) in Q1 2022, down from 94 hedge funds holding stakes in the company in the previous quarter. These 93 hedge funds hold a collective stake worth roughly $7 billion in the company.
3. Paramount Global (NASDAQ:PARA)
Number of Hedge Fund Holders: 40
P/E Ratio as of June 14: 4.17
Paramount Global (NASDAQ:PARA) is an American multinational mass media and entertainment conglomerate owned and operated by National Amusements. Citi analyst Jason Bazinet lowered his price target on Paramount Global (NASDAQ:PARA) to $44 from $47 and kept a Buy rating on the shares following the company’s Q1 results this May. The analyst continues to value Paramount Global (NASDAQ:PARA) on a sum-of-the-parts basis.
On May 3, Paramount Global (NASDAQ:PARA) released its earnings report for the fiscal first quarter of 2022, with earnings per share of $0.60 surpassing market estimates by $0.08. On the other hand, revenue for the quarter fell short of estimates by $57.96 million.
Out of the 912 elite hedge funds tracked by Insider Monkey in the first quarter of 2022, 40 were long Paramount Global (NASDAQ:PARA) with stakes worth $3.41 billion. This is compared to 64 funds in the preceding quarter, with stakes amounting to over $1 billion. Michael Weinstock’s Monarch Alternative Capital is one of the leading stakeholders in Paramount Global (NASDAQ:PARA), with over 12.2 million stakes worth approximately $133 million.
2. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 66
P/E Ratio as of June 14: 17.04
Deere & Company (NYSE:DE), operating under the brand name John Deere, is an American corporation that manufactures agricultural machinery, heavy equipment, forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. At the end of Q1 2022, GAMCO Investors held shares worth over $93 million in Deere & Company (NYSE:DE), which represented 0.83% of its 13F portfolio.
Cowen analyst Matt Elkott initiated coverage of Deere & Company (NYSE:DE) with a Market Perform rating and $396 price target on June 9. The analyst believes the company’s precision agriculture exposure to be a “game-changing secular story,” and sees an incremental recurring revenue opportunity for the company from new precision technologies used in U.S. corn.
In its fiscal Q2 2022 report, Deere & Company (NYSE:DE) posted a GAAP EPS of $6.81, beating analysts’ expectations by $0.12. The company’s revenue for the quarter stood at $13.3 billion, showcasing an 11% year-over-year growth.
As per Insider Monkey’s data for Q1 2022, 66 hedge funds held shares in Deere & Company (NYSE:DE), up from 61 in the previous quarter. These stakes hold a collective value of over $2.12 billion. Of these, Jean-Marie Eveillard’s First Eagle Investment Management is a leading shareholder in the company, with stakes valued at $409 million.
ClearBridge Investments mentioned Deere & Company (NYSE:DE) in its Q1 2022 investor letter. Here is what the firm has to say:
“Industrials holding Deere (NYSE:DE) was also a strong contributor to performance during the quarter. Through its unmatched 5,000 dealer network across 160 countries, Deere is a major global player in agricultural, construction and forestry equipment, with a particularly dominant position in U.S. agriculture. Deere’s moat around its core equipment capabilities, coupled with years of substantial investments in technology and innovation, further extends its competitive advantage into precision agriculture, which allows for higher farm yields with lower use of fertilizers, pesticides and water, thereby improving farmers’ bottom lines while reducing their environmental footprint. In addition to drought conditions in Latin America, the war between Russia and Ukraine, two major exporters of corn and wheat, is further disrupting the global agricultural commodities market and pushing prices even higher. This should mean higher farmer revenues and greater demand for Deere’s equipment, which is further supported by some of the lowest levels of inventory of new and used equipment on record.”
1. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 69
P/E Ratio as of June 14: 14.49
American Express Company (NYSE:SXP) is an American multinational corporation that specializes in global credit card payment solutions and services. As of Q1 2022, Mario Gabelli’s GAMCO Investors owns 870,490 shares of the company which amounts to a stake of $162.78 million. It ranks among the top 5 holdings in the fund’s portfolio, and is one of the best value stocks to buy according to the billionaire investor.
On June 6, Edward Jones analyst Kyle Sanders upgraded American Express Company (NYSE:AXP) to Buy from Hold. The analyst says the company’s “loyal base” of affluent customers will be less affected by inflationary pressures, making American Express Company (NYSE:AXP) better positioned to sustain strong spending trends relative to its credit card peers. Further, the company’s recent initiatives to attract younger customers and strengthen its product offerings have led to “robust” new account growth.
Earlier this April, American Express Company (NYSE:AXP) announced a collaboration with Billtrust to enable suppliers to streamline acceptance of American Express virtual cards. With this integration, suppliers will have the ability to automate and accelerate virtual card payments from customers while receiving a real-time view of their outstanding invoices and current cash flow.
A notable stock among investors, 69 hedge funds reported holding stakes in American Express Company (NYSE:AXP) worth $33.18 billion as of the first quarter of 2022. This is compared to 64 hedge funds in Q4 2021 with stakes worth $28.97 billion. Warren Buffett’s Berkshire Hathaway is the leading shareholder in the company, with aggregate stakes valued at $28.35 billion.
You can also take a look at 10 Blue Chip Stocks in Warren Buffett’s Portfolio and Billionaire Ken Fisher’s Top 10 High Dividend Stock Picks.
