Gabelli said the infrastructure companies are benefiting from a turn in the economy.
"When we were here last year we said fiscal and monetary policy are going to work, well, they are working. And the reports and earnings that you are getting in now underscore that companies have their break on cost, volume is picking up, gross margins are improving, SG & A* is down, and profits are exploding," said Gabelli.
In the rail industry Gabelli recommends GATX , a small-cap company that manufactures rail cars.
In the airplane industry Gabelli recommends vendors to Boeing , such as Crane and Precision Castparts .
*Selling, general & administrative expenses
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Disclosure information was not available for Gabelli or his company.