#4 - Deere (NYSE:DE)
Deere (DE) Deere (NYSE:DE) is being ravaged by the coronavirus. At one point, DE stock was down almost 40% for the year. The stock has been part of the recent rally but remains down over 20% for the year.
In addition to removing its previous guidance for 2020, the heavy equipment manufacturer is being forced to shut down some operations as demand erodes in the wake of the virus. Deere has a solid balance sheet with about $8 billion in excess liquidity. J.P. Morgan analyst Ann Duignan upgraded DE stock to a hold and gave the stock a price target of $140. That would essentially mean the stock will be flat from its current price.
However, a recent article in Forbes highlighted that the company had similar fortunes during the financial crisis. When the market began its rebound, DE stock advanced at a pace that was twice the rate of the broader market.
Could it happen again? Investors should certainly pay attention to China. The country has begun to lift the national mitigation regulations even in Wuhan, the epicenter of the virus. Deere makes a substantial number of direct sales in China. If that demand begins to return, it could be a harbinger of renewed demand in the United States once the economy reopens.
Stock #7 is the ultimate risk-reward play
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
- $436.28
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $420.69 (3.6% Downside)
