GAMCO Investors CEO Mario Gabelli shares two pro stock picks he’s ‘nibbling at’ daily

Value investor Mario Gabelli of GAMCO Investors asserts the recently signed tax-and-spending bill will provide greater clarity for public company CEOs and foster cross-border deals, making stocks broadly more attractive. Gabelli is notably bullish on Textron, citing anticipated increases in NATO defense spending and its current valuation, and National Fuel Gas, highlighting its Marcellus natural gas focus and strategic acquisitions. This view on National Fuel Gas is echoed by Bank of America, which double-upgraded the stock to Buy with a $107 price target, implying significant upside.

Analysis

Veteran investor Mario Gabelli of GAMCO Investors posits that a new tax-and-spending bill enhances the attractiveness of equities by providing greater clarity for corporate leadership and potentially spurring cross-border M&A. This thesis is supported by two specific bullish calls. First, Textron (TXT) is highlighted as an "extraordinarily cheap stock" at $85, with Gabelli actively accumulating a position. The primary catalyst is the expected increase in defense spending from NATO members, which directly benefits Textron's portfolio; the stock has already outperformed the S&P 500 with an 11% year-to-date gain. Second, National Fuel Gas (NFG), which has surged 48% in 2025, is another key pick due to its strategic focus on Marcellus Shale gas and effective acquisitions. The bullish case for NFG is strongly corroborated by a double upgrade from Bank of America to 'buy' from 'underperform'. The bank's analysis points to superior operational execution, with production from assets acquired from Shell in 2020 tracking 16% ahead of management's expectations, leading to a price target increase to $107, which implies a 26% upside from its recent close.

Key Decisions for Investors

• Investors with a bullish view on defense spending should evaluate Textron, given its direct exposure to increased NATO spending and a valuation deemed 'extraordinarily cheap' by a notable value investor.
• National Fuel Gas warrants close attention due to the dual bullish catalysts of strong operational performance, with production exceeding guidance by 16%, and a significant analyst upgrade from Bank of America which set a price target implying 26% upside.
• The new fiscal legislation is viewed as a broad positive for equities, potentially stimulating M&A activity and improving corporate earnings clarity, which could support a risk-on stance.