Billionaire Mario Gabelli’s 10 Small-Cap Stock Picks with Huge Upside Potential

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7. GATX Corp. (NYSE:GATX)

GAMCO Investors’ Stake: $204.74 million

Number of Hedge Fund Holders: 14

Market Capitalization as of May 8: $5.25 billion

Average Upside Potential as of May 8: 19.70%

GATX Corp. (NYSE:GATX) is a railcar leasing company in the US, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Engine Leasing. The company leases tank & freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services.

In Q1 2025, GATX’s Rail North America segment maintained a high fleet utilization of 99.2% at the end of the quarter. The renewal success rate was strong at 85.1%, which shows continued customer satisfaction and the essential nature of the company’s railcars. GATX is successfully placing new railcars from its 2022 Trinity supply agreement, having placed more than 5,700 railcars with deliveries starting in Q1 2026.

In addition to new builds, GATX invested over $227 million in acquiring railcars in the secondary market during the quarter. The company also capitalized on a secondary market by selectively selling cars and generating over $30 million in asset remarketing income. While the direct impact of tariffs on procurement costs is currently limited, GATX Corp. (NYSE:GATX) acknowledges potential indirect impacts from broader economic conditions and commodity flow changes.

However, GATX Rail North America, with its diverse fleet, over 800 customers, and ability to move over 600 commodity types, is positioned to navigate these uncertainties. The focus remains on leveraging their existing fleet, strategically investing in new and used railcars, and optimizing their portfolio through selective sales to drive continued revenue and growth in this core segment.

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