5 Best Cheap Stocks to Buy According to Billionaire Mario Gabelli

3. Diebold Nixdorf, Incorporated (NYSE: DBD)

Number of hedge fund holders: 19

Diebold Nixdorf, Incorporated (NYSE: DBD) is an Ohio-based financial services and technology company founded in 1859. It is ranked third on our list of 10 best cheap stocks to buy according to billionaire Mario Gabelli. Diebold stock has offered investors returns exceeding 183% over the course of the past twelve months. GAMCO Investors holds more than 3.7 million shares in the tech firm worth over $53 million, representing 0.46% of their portfolio. GAMCO has trimmed their holdings in the firm by 9% since last year. 

On May 10, Diebold Nixdorf, Incorporated (NYSE: DBD) posted earnings results for the first quarter of 2021, reporting earnings per share of $0.29 and a revenue of over $943 million. The EPS beat market estimates by $0.09. 

Out of the hedge funds being tracked by Insider Monkey, California-based firm Beach Point Capital Management is a leading shareholder in Diebold Nixdorf, Incorporated (NYSE: DBD) with 3.4 million shares worth more than $48 million. 

Just like The Walt Disney Company (NYSE: DIS), JPMorgan Chase & Co. (NYSE: JPM), and Wells Fargo & Company (NYSE: WFC), Diebold Nixdorf, Incorporated (NYSE: DBD) is one of the best stocks to buy according to billionaire Mario Gabelli.

In its Q4 2020 investor letter, Roubaix Capital LLC, an asset management firm, highlighted a few stocks and Diebold Nixdorf, Incorporated (NYSE: DBD) was one of them. Here is what the fund said:

“The largest detractor in the short portfolio during the fourth quarter was Diebold Nixdorf (DBD). The company’s primary business is selling automated teller machines to banks. We view the cash ecosystem as a structural share loser and several companies in this ecosystem are on our short focus list. While electronic payments continue to consistently take share, and while there was some concern about using paper money during the health crisis, DBD was able to post reasonable results. The stock has carried a low valuation as many stocks do when they have secular pressure. This low valuation allowed the stock to rally alongside the market in Q4 and we exited on our risk discipline. We will continue to monitor this stock and others in this ecosystem for opportunities to re-short when the risk-reward is more favorable.”