#6 - Deere & Co. (NYSE:DE)
It’s been a rough year for shareholders of Deere & Co. (NYSE:DE). Normally a stock known for the same reliability of its signature green machines, the stock has been anything but predictable. As of this writing, DE stock is down 11% for the year and the primary reason seems to be that analysts are concerned about the company’s results and, more importantly, its guidance.
I’ve been all over the map when it comes to DE stock, and I won’t pretend to have all the answers now. But I do now that farmers will need to maximize the efficiency of harvesting their crops particularly in areas of the country that are struggling under drought conditions. As I wrote in March, “Deere is trying to address the need to feed a growing population at a time when there is less available land for farming. And there are fewer farmers to do the work.”
DE stock trades at approximately 15x earnings which is down from around 20x earnings in March and analysts currently give the stock an upside of approximately 37% which suggests the sell-off may be nearly over.
About Deere & Company
Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides large and medium tractors, combines, cotton pickers and strippers, sugarcane harvesters and loaders, harvesting front-end equipment, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.
Read More - Current Price
- $446.65
- Consensus Rating
- Hold
- Ratings Breakdown
- 9 Buy Ratings, 13 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $431.61 (3.4% Downside)
