Billionaire Mario Gabelli’s Top Picks Include DIRECTV (DTV) and American Express Company (AXP)

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Gabelli and his team maintained most of their stake in National Fuel Gas Co. (NYSE:NFG) through Q2. The company is a $5.6 billion market cap integrated energy company which produces and transports natural gas as well as providing the fuel to utility customers. Both the trailing and forward earnings multiples are a bit above 20, as investors anticipate high growth (potentially as natural gas prices recover as demand, including from exports, increases). Valinor Management, managed by David Gallo, initiated a position in National Fuel Gas in the first few months of this year.

Crane Co. (NYSE:CR), a machinery and engineering company whose products include aerospace and electronics equipment, rounds out our list of GAMCO’s top stock picks. Recent results at the company have been weak, with net income down 12% in the second quarter of 2013 versus a year earlier. Despite this performance the stock is up over 50% in the last year and is currently valued at 13 times forward earnings estimates (though that is with Wall Street analysts forecasting higher EPs next year). Billionaire Steve Cohen’s SAC Capital Advisors had owned 1.2 million shares of Crane in its most recent 13F (see Cohen’s stock picks).

Disclosure: I own no shares of any stocks mentioned in this article.

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