In this article, we discuss the top 5 stock picks of Mario Gabelli. If you want to read our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Mario Gabelli.
5. GATX Corporation (NYSE:GATX)
Number of Hedge Fund Holders: 12
GATX Corporation (NYSE: GATX) is a railcar leasing firm. According to latest 13F data, the fund holds a stake in the firm worth more than $153 million, consisting of over 1.7 million shares.
In October, investment advisory Wells Fargo reiterated an Overweight rating on GATX Corporation (NYSE: GATX) stock and raised the price target to $110 from $103. Analyst Allison Poliniak-Cusic issued the ratings update.
At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $192 million in GATX Corporation (NYSE:GATX), compared to 17 in the previous quarter worth $216 million.
4. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 57
American Express Company (NYSE:AXP) provides payments and travel-related services. Latest filings show that GAMCO Investors is long on more than 934,333 shares in the firm worth $156 million, representing 1.38% of the portfolio.
Reports indicate that American Express Business Travel, a subsidiary of American Express Company (NYSE:AXP), is set to go public in a SPAC-sponsored merger that values the firm at more than $5.3 billion.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company (NYSE:AXP) with 15.6 million shares worth more than $2.6 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE:AXP) was one of them. Here is what the fund said:
“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
3. CNH Industrial N.V. (NYSE:CNHI)
Number of Hedge Fund Holders: 25
CNH Industrial N.V. (NYSE:CNHI) markets agricultural and farm machinery. In the filings for the third quarter, the fund detailed that it owned 9.9 million shares of the company worth $166 million, representing 1.46% of the portfolio.
Deutsche Bank analyst Nicole DeBlase recently maintained a Buy rating on CNH Industrial N.V. (NYSE:CNHI) stock and raised the price target to $25 from $23, underlining that the macro outlook on the firm remained constructive heading into the new year.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in CNH Industrial N.V. (NYSE:CNHI) with 121 million shares worth more than $2 billion.
In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and CNH Industrial N.V. (NYSE:CNHI) was one of them. Here is what the fund said:
“CNH Industrial (CNH) (23%, 1.19%), one of the world’s largest agriculture machinery manufacturers, was another top contributor. CNH reported strong fourth quarter results, beating the consensus on every metric. The Agricultural Equipment (Ag) business, which represents the majority of our value, posted strong top-line growth of 19% YoY thanks to rising commodity prices, growing trade with China and the replacement of aging machinery fleets. Visibility for the first half of 2021 is strong, given solid Ag order growth across most key end markets, and we expect to see operational turnarounds in CNH’s other businesses. The company is also guiding 8-12% industrial sales growth for 2021, which is better than our initial expectation. The most positive surprise for the quarter was the company’s strong cash generation. CNH generated approximately $2.4bn FCF in the fourth quarter alone, driven by working capital release leading to a strong net cash position for the industrial segment. Due to the recent stock price appreciation, the price-to-value gap has narrowed, but we continue to have a positive view given a more favorable market outlook, the company’s strong execution capability and management’s continued commitments to value accretive transactions, including the planned splitting of the business and potentially other strategic asset sales.”
2. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 19
Sony Group Corporation (NYSE:SONY) makes and sells consumer electronics. GAMCO Investors, as of the end of September, had over 1.8 million shares of the company worth $209 million in the portfolio.
On December 16, news reports indicated that Sony Group Corporation (NYSE:SONY) had bought the recording masters and publishing music of rock legend Bruce Springsteen in a deal worth around $500 million.
At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $388 million in Sony Group Corporation (NYSE:SONY), compared to 20 in the previous quarter worth $409 million.
1. Herc Holdings Inc. (NYSE:HRI)
Number of Hedge Fund Holders: 24
Herc Holdings Inc. (NYSE:HRI) operates as an equipment rental supplier. The hedge fund of Mario Gabelli entered the fourth quarter of 2021 with more than 2.2 million shares of the company in the portfolio worth more than $365 million.
In September, Baird analyst Mircea Dobre raised the price target on Herc Holdings Inc. (NYSE:HRI) stock to $158 from $145 and kept an Outperform rating, lauding a robust three-year growth plan of the firm and guidance raise.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Icahn Capital LP is a leading shareholder in Herc Holdings Inc. (NYSE:HRI) with 4.4 million shares worth more than $734 million.
You can also take a peek at 10 Best Micro-Cap Stocks to Invest In and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
