#2 - Deere & Co. (NYSE:DE)
Another iconic industrial stock for investors to consider is Deere & Co. (NYSE: DE). However, investors won’t have to wait for a dip in DE stock, it’s already underway. The stock is down 5.9% in 2024 and 4.7% in the last 12 months.
Like Caterpillar, Deere is struggling on the topline, and that weakness is also leaking into earnings. That’s due to the company’s heavy focus on agriculture, which has shown weak demand as higher interest rates affect the sector.
Companies and sectors that are the most beaten down tend to be the ones to rally the most. That may be the case with Deere, which is trading at 14.8x forward earnings, which is well below the sector average of 21.4x.
Deere also has an attractive dividend with a 17% payout ratio. That speaks to the safety of the dividend even at a time when earnings are expected to drop by approximately 4.5% in the next 12 months.
But if the economy improves, that earnings slump may be overstated. And with a dividend that has generated 20% annualized dividend growth in the last three years, DE stock may offer a rare buying opportunity.
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
- $442.05
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $420.69 (4.8% Downside)
