Mario Gabelli Stock Portfolio: 10 Best Stocks to Buy

3) GATX Corporation (NYSE:GATX)

GAMCO Investors’ Stake Value: $183.8 million

Percentage of GAMCO Investors’ 13F Portfolio: 1.99%

Number of Hedge Fund Holders: 12

GATX Corporation (NYSE:GATX) is the provider of railcar leasing and maintenance services. It operates 4 business segments: rail North America, rail international, and portfolio management.

The company released its 2Q 2024 results, wherein, it saw revenues of $386.7 million, while analysts’ estimates were $385.5 million. Its EPS (non-GAAP) sat at $1.43. This compares to the analysts’ expectations of $1.78.

Its stock currently trades at ~19.2x its forward earnings, which is at a discount to the sectoral average of ~24.4x. The higher demand for railcar leasing across numerous industries, such as refining and petroleum, chemicals, plastics, and food and agriculture, should continue to act as the principal growth enabler for GATX Corporation (NYSE:GATX). Through exploiting this demand trend, it should be able to expand its customer base and enhance its market share.

GATX Corporation (NYSE:GATX) continues to place deliveries of new railcars under its existing supply agreement. It also acquired more than 600 railcars in the secondary and spot markets during 2Q 2024.

While the investment pipeline for engines is expected to remain strong throughout the year, it expects stable demand for railcars and aircraft spare engines moving forward.

Susquehanna increased its price objective on the shares of GATX Corporation (NYSE:GATX) from $120.00 to $122.00, giving the stock a “Neutral” rating on 24^th  April. As per Insider Monkey’s 2Q 2024 data, 12 hedge funds reported owning stakes in GATX Corporation (NYSE:GATX).