A co-investment chief at billionaire investor Mario Gabelli’s firm shares 3 stocks with strong pricing power he’s betting on as inflation remains sticky — including one that could surge 53%

• A tight labor market threatens to keep inflation elevated, which could mean high rates for longer.
• In such an environment, pricing power is crucial to a firm’s success, says Kevin Dreyer.
• The Gabelli Funds co-CIO is bullish on stocks like Diageo and BellRing Brands.

The folks at Gabelli Funds are bottom-up investors, says Kevin Dreyer, a co-chief investment officer for value investing at the $29 billion firm founded by Mario Gabelli.

That means they look for stocks that are fundamentally sound, have quality earnings and profit margins, and have secular growth tailwinds based on market demand.