5 Favorite Stocks of Mario Gabelli

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

GAMCO Investors’ Stake Value: $192,689,000

Percentage of GAMCO Investors’ 13F Portfolio: 1.64%

Number of Hedge Fund Holders: 35

Another notable stock in Mario Gabelli’s Q4 portfolio is CNH Industrial N.V. (NYSE:CNHI), an American manufacturer of agricultural, transportation, and construction equipment. The billionaire owns approximately 10 million shares of CNH Industrial N.V. (NYSE:CNHI) as per the 13F filings from Q4 2021, worth $192.6 million, representing 1.64% of his total 13F portfolio. 

Deutsche Bank analyst Nicole DeBlase on April 14 maintained a Buy rating on CNH Industrial N.V. (NYSE:CNHI) and lowered the firm’s price target on the shares to $20 from $21. For the Q1 results in the multi-industry and machinery sector, the analyst believes estimates are achievable since most companies laid out conservative outlooks. 

According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on CNH Industrial N.V. (NYSE:CNHI), up from 25 funds in the earlier quarter. Harris Associates is the largest shareholder of the company, with almost 98 million shares worth $1.90 billion. 

Here is what Longleaf Partners Fund has to say about CNH Industrial N.V. (NYSE:CNHI) in its Q4 2021 investor letter:

“CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid order books and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprising the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”