In this article we discuss the 5 best cheap stocks to buy according to billionaire Mario Gabelli. If you want to read our detailed analysis of Gabelli‘s history and hedge fund performance, go directly to the 10 Best Cheap Stocks to Buy According to Billionaire Mario Gabelli.
5. Tredegar Corporation (NYSE: TG)
Number of Hedge Fund Holders: 9
Tredegar Corporation (NYSE: TG) is a Virginia-based plastic manufacturing company founded in 1955. It is ranked fifth on our list of 10 best cheap stocks to buy according to billionaire Mario Gabelli. The company stock has offered investors returns exceeding 4% in the past four weeks. GAMCO Investors holds more than 2.7 million shares in the manufacturing firm worth over $41 million, representing 0.36% of their investment portfolio. GAMCO has trimmed their Tredegar stake by 5% since last year.
Tredegar Corporation (NYSE: TG) is a solid option for income investors looking for a steady dividend payout. On May 6, the company declared a quarterly dividend of $0.12 per share, in line with previous. The forward yield was 3.11%.
Out of the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in Tredegar Corporation (NYSE: TG) with 304,805 shares worth more than $4.5 million.
4. Grupo Televisa, S.A.B. (NYSE: TV)
Number of Hedge Fund Holders: 15
Grupo Televisa, S.A.B. (NYSE: TV) is a Mexico-based mass media company founded in 1973. It is placed fourth on our list of 10 best cheap stocks to buy according to billionaire Mario Gabelli. Grupo stock has returned more than 124% to investors over the course of the past twelve months. The hedge fund run by Gabelli owns more than 4.7 million shares in the media company worth over $41 million, representing 0.36% of their investment portfolio. GAMCO has increased activity on Grupo stock by 34% in the past few months.
In February, Grupo Televisa, S.A.B. (NYSE: TV) posted earnings results for the last quarter of 2020, reporting earnings per share of Ps 1.30 and a revenue of over Ps 27 billion, down close to 1% compared to the same period in 2019.
At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $752 million in Grupo Televisa, S.A.B. (NYSE: TV), down from 20 in the preceding quarter worth $692 million.
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.”
2. Mueller Water Products, Inc. (NYSE: MWA)
Number of hedge fund holders: 20
Mueller Water Products, Inc. (NYSE: MWA) is a Georgia-based company founded in 1857 that makes and sells hydrants, gate valves, and other water infrastructure products. It is placed second on our list of 10 best cheap stocks to buy according to billionaire Mario Gabelli. The company stock has offered investors more than 53% in returns over the last year. The hedge fund run by Gabelli owns more than 4.1 million shares in the company worth over $57 million, representing 0.5% of their investment portfolio.
On May 3, Mueller Water Products, Inc. (NYSE: MWA) posted earnings results for the second quarter, reporting earnings per share of $0.14 and a revenue of over $267 million. The EPS beat market predictions $0.02.
At the end of the first quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $288 million in Mueller Water Products, Inc. (NYSE: MWA), the same as in the preceding quarter worth $270 million.
Just like The Walt Disney Company (NYSE: DIS), JPMorgan Chase & Co. (NYSE: JPM), and Wells Fargo & Company (NYSE: WFC), Mueller Water Products, Inc. (NYSE: MWA) is one of the best stocks to buy according to billionaire Mario Gabelli.
1. CNH Industrial N.V. (NYSE: CNHI)
Number of Hedge Fund Holders: 23
CNH Industrial N.V. (NYSE: CNHI) is a London-based company that makes and sells agricultural and construction equipment. It is ranked first on our list of 10 best cheap stocks to buy according to billionaire Mario Gabelli. CNH stock has returned more than 180% to investors over the course of the past twelve months. GAMCO Investors holds more than 9.9 million shares in the manufacturing company worth over $154 million, representing 1.35% of their portfolio.
In quarterly earnings results for the first quarter of 2021, posted on May 5, CNH Industrial N.V. (NYSE: CNHI) reported earnings per share of $0.32, beating market estimates by $0.18. The revenue over the period was over $7 billion.
Out of 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 149 million shares worth more than $2.3 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.”
You can also take a peek at Eagle Capital’s Top 10 Stock Picks and Billionaire David Siegel’s Top 10 Stock Picks.
