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10 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli

In this article, we discuss 10 best value stocks to buy in 2023 according to billionaire Mario Gabelli. If you want to see more stocks in this selection, check out 5 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli

During his appearance on CNBC’s ‘Squawk Box’ on May 5, Mario Gabelli, the billionaire CEO of GAMCO Investors, acknowledged that he identifies himself as a long-term value investor. Rather than solely considering company fundamentals, he emphasizes a broader perspective. Gabelli praised Warren Buffett’s strategy in the financial sector, noting that Buffett tends to prefer investing in insurance companies over banks due to the volatility and risk associated with bank failures and subsequent financial losses. He also strongly criticized the mishandling that resulted in the collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank. On the other hand, Mario Gabelli noted that the long-term health of businesses seems healthy based on cash flow, reduced double ordering, and inventories coming down. However, in the short-term, these companies are facing staggering interest rates on borrowing.  

Mario Gabelli, in an interview with Markets Insider on April 4, warned that American investors could potentially encounter a recession in the near future. He also expressed concerns about potential stock market declines, a decrease in house prices, and the lingering effects of the banking crisis. The billionaire told Markets Insider

“I see an economic slowdown in the second half of 2023, probably a recession.”

Nonetheless, Gabelli forecasted that the downturn wouldn’t be overly severe due to anticipated federal infrastructure initiatives and increased government spending in preparation for the upcoming presidential election. These measures are expected to boost demand. Additionally, Gabelli pointed out that companies relocating their operations back to the country and the recovery of countries like China could help mitigate the effects of the economic slowdown. He further said: 

“The Fed is unlikely to bend at the moment. They’ll stay the course and raise rates.”

As per Markets Insider, Gabelli emphasized the potential danger of a credit crunch that could arise if customers continue to transfer their deposits from smaller banks to larger ones or money-market funds. He also highlighted the possibility of lenders becoming more cautious and scaling back their lending activities due to concerns about potential bank runs. Gabelli noted that tighter financing conditions could have a significant impact on the housing and commercial real estate sectors, as both heavily rely on loans for their operations.

In this article, we discuss the 10 newest value stocks that billionaire Mario Gabelli added to his Q1 2023 portfolio. Among these additions are Philip Morris International Inc. (NYSE:PM), Univar Solutions Inc. (NYSE:UNVR), and Garrett Motion Inc. (NASDAQ:GTX).

Our Methodology

This list comprises value stocks that Mario Gabelli’s GAMCO Investors added to its portfolio during the first quarter of 2023. The selection criteria focused on stocks with price-to-earnings (P/E) ratios below 20 as of May 23. The list is ranked in ascending order based on the percentage of stake held by GAMCO. We have also mentioned the hedge fund sentiment around the securities as of Q1 2023. 

Mario Gabelli of GAMCO Investors

Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli

10. Caterpillar Inc. (NYSE:CAT)

Stake Value of GAMCO Investors: $310,765

Number of Hedge Fund Holders: 52

Caterpillar Inc. (NYSE:CAT) designs, manufactures, and sells machinery, engines, and related products used in construction, mining, forestry, energy, transportation, and other industries. The company is known for its iconic yellow construction equipment, including bulldozers, excavators, loaders, and motor graders. In the first quarter of 2023, Gabelli added Caterpillar Inc. (NYSE:CAT) to his portfolio by acquiring 1,358 shares worth $310,765. It is one of the best value stocks in GAMCO Investors’ portfolio. 

In light of the recent earnings season for the industrial machinery sector, analyst David Raso from Evercore ISI maintained an Outperform rating on Caterpillar Inc. (NYSE:CAT) on May 9. However, he adjusted the firm’s price target for the company’s shares to $263 from $288. After assessing the first quarter results, the firm increased its earnings per share (EPS) estimates for fiscal year 2023 by an average of 5%-7%. However, they trimmed the estimates for fiscal year 2024 by approximately 2%-3%. Evercore noted that while strong reports were initially well-received, concerns about macroeconomic factors led to expectations of EPS reductions in late 2023 and 2024, potentially resulting in a decline in earnings for those years.

According to Insider Monkey’s first quarter database, 52 hedge funds were bullish on Caterpillar Inc. (NYSE:CAT), compared to 50 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company. 

In addition to Philip Morris International Inc. (NYSE:PM), Univar Solutions Inc. (NYSE:UNVR), and Garrett Motion Inc. (NASDAQ:GTX), Caterpillar Inc. (NYSE:CAT) is one of the best value stocks to buy in 2023 according to Mario Gabelli.

Diamond Hill Large Cap Strategy made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”

9. Titan International, Inc. (NYSE:TWI)

Stake Value of GAMCO Investors: $524,000

Number of Hedge Fund Holders: 20

Titan International, Inc. (NYSE:TWI) engages in the production and distribution of wheels, tires, undercarriage systems, and related components for off-highway vehicles. The company operates within three main segments – Agricultural, Earthmoving/Construction, and Consumer. In Q1 2023, Mario Gabelli’s GAMCO Investors added Titan International, Inc. (NYSE:TWI) to its portfolio by picking up 50,000 shares worth $524,000. It is one of the best value stocks according to Gabelli.

On May 3, Titan International, Inc. (NYSE:TWI) reported a Q1 non-GAAP EPS of $0.53, beating Wall Street estimates by $0.04. However, the revenue of $549 million missed market consensus by $10.52 million. At the close of the first quarter of 2023, the company’s cash and cash equivalents amounted to $164.1 million, as opposed to $159.6 million on December 31, 2022.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on Titan International, Inc. (NYSE:TWI), and Mark Rachesky’s MHR Fund Management held the largest stake in the company, comprising 8 million shares worth approximately $84 million. 

8. Toll Brothers, Inc. (NYSE:TOL)

Stake Value of GAMCO Investors: $642,321

Number of Hedge Fund Holders: 37

Toll Brothers, Inc. (NYSE:TOL) is engaged in the design, construction, promotion, sale, and financing of different types of high-end detached and attached homes within upscale residential neighborhoods across the United States. In Q1 2023, Toll Brothers, Inc. (NYSE:TOL) was a new arrival in Mario Gabelli’s 13F portfolio, with the billionaire purchasing 10,700 shares of the company worth $642,321. 

After Toll Brothers, Inc. (NYSE:TOL) reported fiscal Q1 earnings per share that surpassed both the firm’s and consensus estimates, BofA analyst Rafe Jadrosich increased the firm’s price target on the shares from $68 to $70. Jadrosich maintained a Buy rating on Toll Brothers, Inc. (NYSE:TOL) on February 23, citing better-than-expected orders and a significant improvement in demand year-to-date. Although the firm acknowledged that short-term trends could be influenced by fluctuations in mortgage rates, it expressed increased confidence that Toll Brothers, Inc. (NYSE:TOL) will likely continue to expand its book value and sustain a return-on-equity that surpasses its cost of capital.

According to Insider Monkey’s first quarter database, 37 hedge funds were long Toll Brothers, Inc. (NYSE:TOL), with collective stakes worth $882.2 million. Edgar Wachenheim’s Greenhaven Associates held the largest position in the company, comprising 5.3 million shares worth $321 million. 

Baron Funds made the following comment about Toll Brothers, Inc. (NYSE:TOL) in its Q4 2022 investor letter:

“Toll Brothers, Inc. (NYSE:TOL) is the leading luxury homebuilder in the U.S. with a capable management team as well as a large and valuable owned land portfolio. Toll Brothers is more insulated than its peers from elevated mortgage rates because 20% of the buyers of Toll homes pay 100% in cash.

At its year-end 2022 price of only $49.92/share, the company is valued at only 0.83 times our estimate of 2023 tangible book value of $60/share. Historically, Toll Brothers’ shares have been valued, on average, at 1.4 times book value and a peak multiple of approximately 2.0 times tangible book value. If the shares recover in the next few years and trade only to the company’s long-term average multiple of 1.4 times book value, Toll Brothers’ share price would increase 82% to $91 per share.”

7. Beacon Roofing Supply, Inc. (NASDAQ:BECN)

Stake Value of GAMCO Investors: $654,942

Number of Hedge Fund Holders: 19

Beacon Roofing Supply, Inc. (NASDAQ:BECN) is involved in the distribution of roofing materials for residential and non-residential purposes, as well as other building products that complement roofing, to contractors, home builders, building owners, lumberyards, and retailers in the United States and Canada. Beacon Roofing Supply, Inc. (NASDAQ:BECN) is a new addition in Mario Gabelli’s Q1 2023 portfolio, with the billionaire buying 11,129 shares worth $654,942. 

On May 5, Deutsche Bank analyst Joe Ahlersmeyer raised the firm’s price target on Beacon Roofing Supply, Inc. (NASDAQ:BECN) to $86 from $85 and reiterated a Buy rating on the shares following the Q1 results.

According to Insider Monkey’s first quarter database, 19 hedge funds were bullish on Beacon Roofing Supply, Inc. (NASDAQ:BECN), compared to 24 funds in the earlier quarter. David Cohen and Harold Levy’s Iridian Asset Management is the biggest position holder in the company, with 438,549 shares worth $25.80 million. 

Here is what Fiduciary Management has to say about Beacon Roofing Supply, Inc. (NASDAQ:BECN) in its Q3 2021 investor letter:

“Beacon is the largest publicly traded (#2 overall) distributor of roofing materials and complementary building products in the U.S. and Canada. Beacon serves more than 90,000 customers and offers 140,000 SKUs from over 400 branches throughout all 50 states (97% of sales) and 6 Canadian provinces (3% of sales). Beacon makes 1.7 million annual deliveries (within a two-hour radius) using its fleet of specialized trucks. Since the sale of the non-core Interiors division (2021), their run-rate sales have been 53% Residential Roofing; 25% Commercial Roofing; and 22% Complementary Building Products (siding, windows, specialty exterior building products, insulation, and waterproofing systems). (Click here to continue reading)

6. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Stake Value of GAMCO Investors: $660,424

Number of Hedge Fund Holders: 37

GE HealthCare Technologies Inc. (NASDAQ:GEHC) is involved in the advancement, production, and promotion of different products, services, and digital solutions that support the diagnosis, treatment, and monitoring of patients. It operates through four segments – Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. GE HealthCare Technologies Inc. (NASDAQ:GEHC) is one of the best value stocks to buy according to Mario Gabelli. The billionaire acquired a position worth $660,424 in the company during the first quarter of 2023. 

On May 15, Oppenheimer analyst Suraj Kalia initiated coverage of GE HealthCare Technologies Inc. (NASDAQ:GEHC) with an Outperform rating and a $97 price target. The analyst described GE HealthCare Technologies Inc. (NASDAQ:GEHC) as a global leader in healthcare diagnostics, imaging, and intervention, emphasizing its extensive range of products in areas such as X-rays, CT scans, MRI scans, ultrasound, services, and digital solutions. The analyst believes that GE HealthCare Technologies Inc. (NASDAQ:GEHC)’s forward price-to-earnings (P/E) multiple of 22 times is lower than the average applied to large-cap medical technology companies, but considers this valuation appropriate given the current stage of GE Healthcare’s development as an independent entity.

According to Insider Monkey’s first quarter database, 37 hedge funds were bullish on GE HealthCare Technologies Inc. (NASDAQ:GEHC), up from 8 funds in the prior quarter. 

Like Philip Morris International Inc. (NYSE: PM), Univar Solutions Inc. (NYSE: UNVR), and Garrett Motion Inc. (NASDAQ:GTX), GE HealthCare Technologies Inc. (NASDAQ:GEHC) is one of the top value stocks in Mario Gabelli’s Q1 portfolio.

Vulcan Value Partners made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q1 2023 investor letter:

“We sold GE HealthCare Technologies Inc. (NASDAQ:GEHC) during the quarter. GE HealthCare is a recent spin-off from General Electric Company and provides imaging, ultrasound, patient care solutions and pharmaceutical diagnostics to customers around the world. The company is a leader in a global oligopoly and has a massive installed base. Half of the company’s revenue is recurring, margins are stable to rising, and it generates significant free cash flow. As a recent operating unit inside of GE, we believe the market has been undervaluing this asset. Although the spin price reflected this under-valuation, after the spin-off, its stock price rose to meet our estimate of its intrinsic value, and we sold the position. GE HealthCare remains on our MVP list.”

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Disclosure: None. 10 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
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Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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