Billionaire Gabelli’s 5 Stock Picks with Huge Upside Potential

In this article, we will take a look at billionaire Gabelli’s 5 stock picks with huge upside potential. To read our analysis of Gabelli’s investment strategy and GAMCO Investor’s previous performance, you can go to the Billionaire Gabelli’s 10 Stock Picks with Huge Upside Potential.

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

GAMCO Investors’ Stake Value: $106,173,870

Upside Potential as of November 28: 43.88%

CNH Industrial N.V. (NYSE:CNHI) is a world-class capital goods company specializing in equipment and services for Agriculture and Construction. Its brand portfolio includes brands Case IH, New Holland Agriculture, CASE and New Holland Construction Equipment.

According to Insider Monkey data on 910 hedge funds, 29 hedge funds held shares of CNH Industrial N.V. (NYSE:CNHI), valued at $590 million, as of Q3 2023. GAMCO Investors held 8.8 million shares of the company, valued at $106 million. It accounted for 1.23% of the firm’s 13F portfolio, the second highest on our list.

In its Q3 2023 investor letter, Oakmark Funds, advised by Harris Associates, made the following comments about CNH Industrial N.V. (NYSE:CNHI):

“CNH Industrial’s share price fell following its second quarter results, as agriculture equipment sales rose 5% in local currency, a slowdown from the prior quarter. This performance fell below market expectations due to destocking activity in Brazil and some production ramp-up issues for its new Patriot sprayer. We believe the production issues are temporary while the destocking actions will better position the business for the midterm. Pricing power remains quite strong and increased by roughly 7%, and precision agricultural sales grew by 21%. While the market was overly focused on near-term demand and sales growth, the agriculture equipment division produced its highest quarterly margin ever at 16.8%—an encouraging development that supports our view of the company’s long-term profitability. Further, the much smaller construction business delivered strong results, including its own quarterly margin record. Management maintained guidance for the rest of the company’s current fiscal year and indicated it expects to exceed the 2024 targets laid out at a capital markets day in 2022. [. . .] We believe CNH Industrial remains a solid business in an attractive industry that is run by a much-improved management team.”