Mario Gabelli’s Top 5 Stock Picks

In this article, we will take a look at the top 5 stock picks of billionaire Mario Gabelli. If you want to explore similar stocks, you can also take a look at Mario Gabelli Performance, Portfolio, and Top Picks.

5. Crane Holdings, Co. (NYSE:CR)

GAMCO Investors’ Stake Value: $144,131,988

Number of Hedge Fund Holders: 28

Crane Holdings, Co. (NYSE:CR) is a leading manufacturer of industrial products. The company does business through four segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. As of December 31, GAMCO Investors has a stake worth $144 million in the company and the investment covers 1.55% of Mario Gabelli’s 13F portfolio. Crane Holdings, Co. (NYSE:CR) has gained 21.78% over the past 6 months, as of March 17, and is trading at a PE ratio of 15.83.

At the end of the fourth quarter of 2022, 28 hedge funds were eager on Crane Holdings, Co. (NYSE:CR) and disclosed stakes worth $315.9 million in the company. This is compared to 22 hedge funds in the previous quarter with stakes worth $251.7 million. The hedge fund sentiment for the stock is positive.

4. Mueller Industries, Inc. (NYSE:MLI)

GAMCO Investors’ Stake Value: $145,081,531

Number of Hedge Fund Holders: 27

Mueller Industries, Inc. (NYSE:MLI) is an American manufacturer of copper, brass, aluminum, and plastic products. As of March 17, Mueller Industries, Inc. (NYSE:MLI) is trading at a PE multiple of 6x and has gained 14.45% over the past 6 months. The stock is one of Mario Gabelli’s top picks and his hedge fund has a stake worth $145 million in the company, as of December 31.

27 hedge funds were eager on Mueller Industries, Inc. (NYSE:MLI) at the end of Q4 2022. These funds disclosed positions worth $278.4 million in the company, up from $268.6 million in the previous quarter with 23 positions.

3. CNH Industrial N.V. (NYSE:CNHI)

GAMCO Investors’ Stake Value: $151,306,239

Number of Hedge Fund Holders: 32

CNH Industrial N.V. (NYSE:CNHI) is one of Mario Gabelli’s top and favorite stock picks. His hedge fund has a position worth $151.3 million in the company, as of December 31. On February 7, CNH Industrial N.V. (NYSE:CNHI) posted earnings for the fiscal fourth quarter of 2022. The company generated a revenue of $877.58 million and reported an EPS of $2.63, outperforming EPS expectations by $0.45.

CNH Industrial N.V. (NYSE:CNHI) was held by 32 hedge funds at the end of the fourth quarter of 2022. These funds held stakes worth $1.1 billion in the company, up from $755 million in the preceding quarter with 28 positions. The hedge fund sentiment for the stock is positive.

Here is what Artisan Partners had to say about CNH Industrial N.V. (NYSE:CNHI) in its Q4 2022 investor letter:

“Among our top contributors were CNH Industrial N.V. (NYSE:CNHI), Lattice Semiconductor and Ingersoll Rand. CNH Industrial is the second largest global agricultural equipment company (primarily tractors and combines) with leading brands Case IH and New Holland. The company reported top-line growth of 23.9% in the quarter, which was meaningfully ahead of expectations, and shares rallied on the news. After a long period of relatively stagnant technological developments in the agricultural field, CNH is on a journey to meaningfully expand their technological offerings in areas such as precision agriculture and autonomous technology. Our research indicates that the fleet of agricultural equipment in the world is as old as it has ever been going back 40 years, meaning there is pent-up demand at a time when there is new technological innovation. We believe this sets up CNH for a long-term secular growth opportunity. Last, in our view, additional internal catalysts—a new CEO who previously led an impressive turnaround at Polaris, greater pricing discipline and improvements to its supply chain efficiency—will enable it to narrow its margin gap with competitor John Deere in the periods ahead.”

2. GATX Corporation (NYSE:GATX)

GAMCO Investors’ Stake Value: $163,234,984

Number of Hedge Fund Holders: 13

GATX Corporation (NYSE:GATX) is an American railcar leasing company with operations in North America, Asia, and Europe. On January 27, the company declared a quarterly cash dividend of $0.55 per common share, up 5.8% from the company’s prior dividend of $0.52. The dividend is payable on March 31 to stockholder of record on March 3. As of March 17, the stock is offering a forward dividend yield of 2.13%.

GATX Corporation (NYSE:GATX) is one of Mario Gabelli’s top stock picks and his hedge fund has a sizable position in it. As of December 31, GAMCO Investors’ stake in the company is valued at $163.2 million and the investment covers 1.75% of Mario Gabelli’s 13F portfolio.

At the close of the fourth quarter of 2022, 13 hedge funds were long GATX Corporation (NYSE:GATX) and disclosed positions worth $196.3 million in the company. This is compared to 14 hedge funds in the previous quarter with stakes worth $183.1 million.

1. Herc Holdings Inc. (NYSE:HRI)

GAMCO Investors’ Stake Value: $238,776,131

Number of Hedge Fund Holders: 22

Herc Holdings Inc. (NYSE:HRI) is an American provider of rental services for industrial equipment. The stock is one of Mario Gabelli’s top stock picks. As of December 31, Mario Gabelli’s hedge fund has a stake worth $238.7 million in Herc Holdings Inc. (NYSE:HRI). The investment covers 2.56% of GAMCO Investors’ 13 portfolio.

On February 14, Herc Holdings Inc. (NYSE:HRI) announced earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $3.44 and generated a revenue of $786 million, up 35.99% year over year and ahead of Wall Street consensus by $12.71 million.

At the close of Q4 2022, 22 hedge funds held stakes in Herc Holdings Inc. (NYSE:HRI). The total value of these stakes amounted to $1.01 billion. This is compared to 25 hedge funds in the previous quarter with stakes worth $827.2 million.

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