5 Best Bargain Stocks Right Now

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Below is the list of the 5 best bargain stocks right now. If you want to read our detailed analysis of Mario Gabelli’s history, and hedge fund performance, go directly to the 10 Best Bargain Stocks Right Now.

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

Gamco Investors look bullish over the future fundamentals of CNH Industrial N.V. (NYSE: CNHI). At the end of the first quarter, the firm held 9.90 million shares of CNH, weighted around 1.33% of the overall portfolio. CNH stock price saw a whopping rally of 141% last year amid stronger than expected demand for industrial products. In the March quarter, its industrial products revenue grew 40% year over year to $7 billion, with expectation for the continuation of strong demand across regions and segments. The company anticipates 14%-18% revenue growth for 2021 compared to the last year.

In the first quarter investor letter, Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned a few stocks including CNH Industrial. Here is what Longleaf Partners Fund stated:

“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.”

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