This article presents an overview of the Billionaires Mario Gabelli and Mason Hawkins Love These 5 Stocks. For a detailed overview of such stocks, read our article, Billionaires Mario Gabelli and Mason Hawkins Love These 14 Stocks.
5. Bio-Rad Laboratories, Inc. Class A Common Stock (NYSE:BIO)
Number of Hedge Fund Investors: 50
Mario Gabelli’s Stake:$8,709,958
Mason Hawkins’ Stake: $117,550,687
Bio-Rad Laboratories, Inc. Class A Common Stock (NYSE:BIO) is one of the top stocks common in Mario Gabelli and Mason Hawkins’ fourth quarter portfolios. Bio-Rad Laboratories, Inc. Class A Common Stock (NYSE:BIO) recently posted fourth quarter results. Adjusted EPS in the period came in at $3.10, surpassing estimates by $0.23. Revenue fell 6.7% year over year to $681.2 million, missing estimates by $5.4 million.
As of the end of the fourth quarter of 2023, 50 hedge funds in Insider Monkey’s database had stakes in Bio-Rad Laboratories, Inc. Class A Common Stock (NYSE:BIO).
4. Warner Bros Discovery Inc (NASDAQ:WBD)
Number of Hedge Fund Investors: 56
Mario Gabelli’s Stake: $36,056,142
Mason Hawkins’ Stake: $110,027,154
Warner Bros Discovery Inc (NASDAQ:WBD) is one of the stocks common in the portfolios of Mario Gabelli and Mason Hawkins.
BofA has a $17 price target on Warner Bros Discovery Inc (NASDAQ:WBD) shares, while the stock was hovering around $9.57 as of February 22.
As of the end of the fourth quarter of 2023, 56 hedge funds tracked by Insider Monkey had stakes in Warner Bros Discovery Inc (NASDAQ:WBD).
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:
“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”
3. Rtx Corp (NYSE:RTX)
Number of Hedge Fund Investors: 61
Mario Gabelli’s Stake: $1,725,375
Mason Hawkins’ Stake: $67,043,594
Rtx Corp (NYSE:RTX), formerly known as Raytheon Technologies, ranks third in our list of the stocks loved by both billionaire Mario Gabelli and Mason Hawkins.
Last month, Bank of America upgraded Rtx Corp (NYSE:RTX) shares to Neutral from Underperform, citing Rtx Corp’s (NYSE:RTX) recovery from a jet-engine recall at its Pratt & Whitney unit last year.
BofA also increased its price target for Rtx shares to $100 from $78.
Carillon Eagle Mid Cap Growth Fund made the following comment about RTX Corporation (NYSE:RTX) in its Q3 2023 investor letter:
“RTX Corporation (NYSE:RTX) lowered its free cash flow guidance for the year due to a new issue in its jet engine business. Although the company’s management has a solution, the total implementation cost remains unknown, which caused the stock to react negatively.”
2. FedEx Corp (NYSE:FDX)
Number of Hedge Fund Investors: 70
Mario Gabelli’s Stake: $309,129
Mason Hawkins’ Stake: $122,719, 035
Earlier this month BofA set a $313 price target on FedEx Corp (NYSE:FDX) shares, which shows a strong upside potential to the current stock price of $241.
As of the end of the fourth quarter of 2023, 70 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in FedEx Corp (NYSE:FDX).
The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its fourth quarter 2023 investor letter:
“FedEx Corporation (NYSE:FDX) – After a very positive start to the year, FDX lagged during 4Q after a weak earnings report and lowered guidance. Fundamentals improved throughout the year as FDX enacted major cost cuts, but a decline in volumes in the quarter was too much for the new cost structure to overcome. Longer term, FDX has the potential to be a strong player in the transportation industry, but it will have to continue adjusting its fleet and network to an evolving marketplace.”
1. Fiserv Inc (NYSE:FI)
Number of Hedge Fund Investors: 73
Mario Gabelli’s Stake: $770,472
Mason Hawkins’ Stake: $54,469,846
Financial technology company Fiserv Inc (NYSE:FI) ranks first in our list of the best stocks to buy according to billionaire Mario Gabelli and Mason Hawkins. Earlier this month Fiserv Inc (NYSE:FI) posted fourth quarter results. Adjusted EPS in the period came in at $2.19, beating estimates by $0.04. Revenue in the quarter jumped 6.3% year over year to $4.92 billion, surpassing estimates by $240 million. Free cash flow increased 14% to $4.02 billion for the full year.
Broyhill Asset Management stated the following regarding Fiserv, Inc. (NYSE:FI) in its fourth quarter 2023 investor letter:
“Shares of Fiserv, Inc. (NYSE:FI) gained 18% during the quarter. We first outlined our investment in Fiserv here. Since then, the company has continued to fire on all cylinders. After reporting a solid third quarter and raising guidance, share gains accelerated following the company’s November Investor Day, where the company reiterated its outlook for the year and introduced preliminary 2024 guidance of 11% – 13% organic top-line growth. Management also sounded quite confident in its new medium-term guidance, calling for 9% – 12% organic revenue growth and 13% – 17% earnings per share growth. Despite the company’s near-flawless execution, shares closed the year trading at 15x earnings, more than a 20% discount to the market.”
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