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721000.0
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2022-10-26 00:00:00 UTC
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Will Caterpillar Stock Rise After Q3 Results?
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DE
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https://www.nasdaq.com/articles/will-caterpillar-stock-rise-after-q3-results
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nan
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nan
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Caterpillar (NYSE: CAT) is scheduled to report its Q3 2022 results on Thursday, October 27. We expect CAT stock to trade lower post-Q3, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. . That said, our forecast indicates that CAT stock has ample room for growth from its current levels, as we discuss below. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q3 2022 revenues to be around $14.4 billion, reflecting a 16% y-o-y growth but below the $14.6 billion consensus estimate.
All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q3 as well, driven by strong end-user demand and a robust pricing environment.
However, supply chain disruptions and forex headwinds may have weighed on the overall revenue growth.
Looking back at Q2 2022, total revenues grew by 11% y-o-y to $14.2 billion, with gains across the company’s businesses.
Energy & Transportation and Resource industries segments both saw mid-teens sales growth.
Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
(2) EPS likely to be below the consensus estimates
Caterpillar’s Q3 2022 adjusted earnings per share (EPS) is expected to be $3.07 per Trefis analysis, compared to the consensus estimate of $3.20.
Caterpillar’s adjusted net income of $1.7 billion in Q2 2022 reflected a considerable 18% y-o-y rise, compared to $1.4 billion in the prior-year quarter.
Higher revenues and a lower effective tax rate primarily drove this profit increase. The company’s operating margin declined 30 bps to 13.8% in Q2, compared to 14.1% in the year-ago quarter. Higher freight costs weighed on the manufacturing costs as well; a trend that likely continued in Q3.
Looking forward, we expect the full-year 2022 adjusted EPS to be higher at $12.48, compared to $10.81 in 2021.
(3) Stock price estimate above the current market price
We estimate Caterpillar’s Valuation to be around $235 per share, which is 21% above its current market price of $195.
This represents a forward P/E multiple of 19x based on our EPS forecast of $12.48 for 2022, in line with the last three-year average and higher than the 16x CAT stock currently trades at.
If the company reports upbeat results, with sales growth and outlook better than the street estimates, the P/E multiple will likely be revised upward, resulting in even higher levels for CAT stock.
While CAT stock has more room for growth, it is helpful to see how Caterpillar’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Marine Products vs. Tempur Sealy.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 19% -6% 110%
S&P 500 Return 8% -19% 72%
Trefis Multi-Strategy Portfolio 6% -22% 209%
[1] Month-to-date and year-to-date as of 10/26/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q3 as well, driven by strong end-user demand and a robust pricing environment. This represents a forward P/E multiple of 19x based on our EPS forecast of $12.48 for 2022, in line with the last three-year average and higher than the 16x CAT stock currently trades at.
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We expect CAT stock to trade lower post-Q3, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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We expect CAT stock to trade lower post-Q3, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments. We expect CAT stock to trade lower post-Q3, with revenue and earnings falling below the consensus estimates. While a strong pricing environment and robust demand for resource and energy industries equipment will likely drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and forex headwinds.
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1b0e876e-f9e9-444b-818f-accaa7f39098
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721001.0
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2022-10-25 00:00:00 UTC
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Deere (DE) Gains But Lags Market: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-gains-but-lags-market%3A-what-you-should-know-5
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nan
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nan
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Deere (DE) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.
Heading into today, shares of the agricultural equipment manufacturer had gained 16.15% over the past month, outpacing the Industrial Products sector's gain of 6.37% and the S&P 500's gain of 2.94% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. In that report, analysts expect Deere to post earnings of $7.09 per share. This would mark year-over-year growth of 72.09%. Meanwhile, our latest consensus estimate is calling for revenue of $13.48 billion, up 31.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.89 per share and revenue of $47.04 billion, which would represent changes of +20.54% and +18.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 16.86. For comparison, its industry has an average Forward P/E of 14.39, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%. Investors will be hoping for strength from Deere as it approaches its next earnings release.
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Deere (DE) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%. Investors will be hoping for strength from Deere as it approaches its next earnings release.
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Deere (DE) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%. Investors will be hoping for strength from Deere as it approaches its next earnings release.
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Deere (DE) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%. Investors will be hoping for strength from Deere as it approaches its next earnings release.
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c4d01afc-7587-49d6-8658-05064ac379fb
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721002.0
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2022-10-25 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, V, DLTR
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-de-v-dltr
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 7,936 contracts have traded so far, representing approximately 793,600 underlying shares. That amounts to about 62.4% of DE's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $350 strike put option expiring November 18, 2022, with 369 contracts trading so far today, representing approximately 36,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $350 strike highlighted in orange:
Visa Inc (Symbol: V) options are showing a volume of 41,505 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 56.7% of V's average daily trading volume over the past month, of 7.3 million shares. Particularly high volume was seen for the $205 strike call option expiring October 28, 2022, with 2,326 contracts trading so far today, representing approximately 232,600 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $205 strike highlighted in orange:
And Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 11,624 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 55.1% of DLTR's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $144 strike put option expiring October 28, 2022, with 891 contracts trading so far today, representing approximately 89,100 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $144 strike highlighted in orange:
For the various different available expirations for DE options, V options, or DLTR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $350 strike put option expiring November 18, 2022, with 369 contracts trading so far today, representing approximately 36,900 underlying shares of DE. Particularly high volume was seen for the $205 strike call option expiring October 28, 2022, with 2,326 contracts trading so far today, representing approximately 232,600 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $205 strike highlighted in orange: And Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 11,624 contracts thus far today. Especially high volume was seen for the $144 strike put option expiring October 28, 2022, with 891 contracts trading so far today, representing approximately 89,100 underlying shares of DLTR.
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Below is a chart showing DE's trailing twelve month trading history, with the $350 strike highlighted in orange: Visa Inc (Symbol: V) options are showing a volume of 41,505 contracts thus far today. That number of contracts represents approximately 4.2 million underlying shares, working out to a sizeable 56.7% of V's average daily trading volume over the past month, of 7.3 million shares. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 55.1% of DLTR's average daily trading volume over the past month, of 2.1 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 7,936 contracts have traded so far, representing approximately 793,600 underlying shares. Particularly high volume was seen for the $205 strike call option expiring October 28, 2022, with 2,326 contracts trading so far today, representing approximately 232,600 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $205 strike highlighted in orange: And Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 11,624 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 55.1% of DLTR's average daily trading volume over the past month, of 2.1 million shares.
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Particularly high volume was seen for the $205 strike call option expiring October 28, 2022, with 2,326 contracts trading so far today, representing approximately 232,600 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $205 strike highlighted in orange: And Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 11,624 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 55.1% of DLTR's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing DLTR's trailing twelve month trading history, with the $144 strike highlighted in orange: For the various different available expirations for DE options, V options, or DLTR options, visit StockOptionsChannel.com.
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626c0b11-4586-439a-a467-8d5bfde383e8
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721003.0
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2022-10-25 00:00:00 UTC
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These 3 Hot Stocks Have Beaten the Market by 28% to 52% In 2022
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DE
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https://www.nasdaq.com/articles/these-3-hot-stocks-have-beaten-the-market-by-28-to-52-in-2022
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nan
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nan
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It's been a difficult year for investors, with the S&P 500 down nearly 20% on the year and many stocks in that index trading down much further. But there are also a select group of stocks in that index that are trading up in 2022 and, therefore, are massively ahead of the market. Moreover, in that select group of positive 2022 stocks are some with even more room to run.
Three of these select stocks are in the agricultural sector: Machinery company Deere (NYSE: DE), seed and crop protection company Corteva (NYSE: CTVA), and insecticide and herbicide producer FMC (NYSE: FMC). Deere is up nearly 13% year to date, Corteva is trading up a whopping 35% year to date and FMC is up 6.3%. Let's find out more about these three stocks and why they are attractive to investors right now.
1. Deere
This agricultural machinery company's stock is often seen as a cyclical play on the fortunes of the farming industry. The idea is that high crop prices usually result in more income for farmers and a greater willingness to invest in upgrading machinery. That argument still stands, but over the years, Deere has added another growth arrow to its quiver.
Simply put, its leadership in investment in smart farming technologies, or "precision ag," has revolutionized the farming industry. Whether it's automated guidance for machinery, precision planting, fertilizer spraying, and harvesting, or even the use of advanced analytics to improve crop yields and maximize profitability, Deere has a solution to help.
As such, Deere's technological solutions are likely to engender customer loyalty leading to more revenue growth, a margin expansion opportunity, and increased service revenue. All told, Deere is still a cyclical play on the farming industry, but it's also demonstrated an ongoing ability to outperform its industry, and that makes it an attractive stock for long-term investors.
2. FMC
Speaking of agricultural products, insecticide (control of insects that damage crops) and herbicide (control of unwanted plants in a field) company FMC is having a strong year. It's no secret that food prices have soared this year in line with inflationary trends exacerbated by the war in Ukraine.
FMC's key markets are soybeans (20% of 2021 revenue) and fruit and vegetables (19%), but rice, sugar, corn, and cereals also contribute around 9% of revenue apiece. The good news is that when the price of these commodities rises, farmers tend to plant more, and they invest more in yield-enhancing crop protection solutions.
That's where FMC comes in. At the midpoint of its full-year guidance, management expects 11% revenue growth in 2022, with the company being able to pass through price increases to its customers.
The latter point is important because, alongside much of the chemical sector, FMC suffered cost increases this year. The cost of sales and services is up 17.7% in the first six months. However, if food prices remain high while a slowdown across the rest of the economy leads to a moderation in raw material prices, then FMC could see a margin expansion opportunity.
3. Corteva
Agriscience company Corteva is also a beneficiary of soaring food prices, but the seed and crop protection company has its own internal growth prospects. Putting its end markets aside for a moment, Corteva can grow earnings in two related ways. First, it can increase its profit margin by cutting costs. It's an opportunity that many investors, including Starboard Value, feel management hasn't fully taken advantage of in the past.
As a reminder, Corteva was created as a spinoff from the DowDuPont merger in 2017 and married Dow's seed-heavy business with DuPont's crop protection focus. One key benefit of merging the businesses was the ability to generate cost synergies due to operating in overlapping markets and sharing technology.
Second, Corteva has a significant opportunity to cut royalty costs by selling relatively more solutions under its own technology, obviating royalty payments to other companies.
Indeed, the company's recent investor day presentation saw management outline aggressive plans to do both. For example, management believes it can expand its earnings before interest, taxation, depreciation, and amortization (EBITDA) margin from 17.4% in 2022 to 21% to 23% in 2025, largely as a consequence of cutting costs and royalty payments. All told, Corteva is one of the most exciting stocks in the agriscience sector.
10 stocks we like better than Deere & Company
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Whether it's automated guidance for machinery, precision planting, fertilizer spraying, and harvesting, or even the use of advanced analytics to improve crop yields and maximize profitability, Deere has a solution to help. For example, management believes it can expand its earnings before interest, taxation, depreciation, and amortization (EBITDA) margin from 17.4% in 2022 to 21% to 23% in 2025, largely as a consequence of cutting costs and royalty payments. It's been a difficult year for investors, with the S&P 500 down nearly 20% on the year and many stocks in that index trading down much further.
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Three of these select stocks are in the agricultural sector: Machinery company Deere (NYSE: DE), seed and crop protection company Corteva (NYSE: CTVA), and insecticide and herbicide producer FMC (NYSE: FMC). As such, Deere's technological solutions are likely to engender customer loyalty leading to more revenue growth, a margin expansion opportunity, and increased service revenue. It's been a difficult year for investors, with the S&P 500 down nearly 20% on the year and many stocks in that index trading down much further.
|
Three of these select stocks are in the agricultural sector: Machinery company Deere (NYSE: DE), seed and crop protection company Corteva (NYSE: CTVA), and insecticide and herbicide producer FMC (NYSE: FMC). 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. It's been a difficult year for investors, with the S&P 500 down nearly 20% on the year and many stocks in that index trading down much further.
|
It's been a difficult year for investors, with the S&P 500 down nearly 20% on the year and many stocks in that index trading down much further. But there are also a select group of stocks in that index that are trading up in 2022 and, therefore, are massively ahead of the market. Three of these select stocks are in the agricultural sector: Machinery company Deere (NYSE: DE), seed and crop protection company Corteva (NYSE: CTVA), and insecticide and herbicide producer FMC (NYSE: FMC).
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1fcab7e0-110c-4406-a61c-a58680676df8
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721004.0
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2022-10-20 00:00:00 UTC
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3 Bargain Stocks Cathie Wood Loves
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DE
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https://www.nasdaq.com/articles/3-bargain-stocks-cathie-wood-loves-2
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nan
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nan
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When you hear the name Cathie Wood, you immediately gravitate to next-gen growth stocks with sky-high multiples and boom-or-bust prospects. It's a fair assessment. The CEO, co-founder, and chief stock picker for the ARK Invest family of exchange-traded funds (ETFs) had a spectacular run in 2020 when the market rallied around disruptive growth stocks.
Her returns have lagged the market badly over most of these last two years, but it doesn't mean that you want to dismiss her shot at pulling another 2020 out of her pocket. She continues to buy some of the most dynamic publicly traded companies, but she also has some investments that could be considered bargains right now. Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and Zoom Video Communications (NASDAQ: ZM) are three of her holdings that I think are bargains right now.
Image source: Getty Images.
1. Roku
If you define bargains solely on profit multiples, you might be tempted to change the channel when it comes to Roku. The once-profitable leader of streaming video is in the red, and Wall Street pros see the losses continuing until 2026.
But the stock has never been cheaper based on its revenue multiple. Toss in a strong cash-rich balance sheet, and Roku is trading at an enterprise value that is less than two times trailing revenue for the first time in its history.
Roku is still growing. Active users, hours streamed on the platform, and average revenue per user all increased by healthy double-digit percentages in its latest quarter. Its latest guidance suggests that there will be some near-term challenges to its ad-dependent business model, but the loudest bear argument -- that we won't stream as much with the pandemic fading in the rearview mirror -- has proved to be toothless. Roku stock is down nearly 90% from last year's peak, but its business is holding up a lot better than its stock chart.
2. Deere
Wood doesn't mind buying an old company if it's teaching the world new tricks. Deere has been a titan in agricultural, commercial, and construction equipment for generations.
Unlike many of her investments, this one packs a dividend and a reasonable earnings multiple into its value proposition. The 1.2% yield isn't going to turn heads these days, but Deere is trading for less than 17 times the midpoint of its earnings guidance for the current fiscal year. Wall Street analysts have it trading at just 14 times next year's profit target.
Deere's business initially took a hit at the first whiff of the pandemic, but it's been rolling ever since. At the end of this month, it will conclude its second fiscal year of double-digit revenue growth. Margins are holding up despite all of the world's distractions. The outlook is positive for the next few years despite all of the current global calamity. Farms still need to be tended to, since we all have to eat.
There may be a cyclical bent to its smaller forestry and heavy construction equipment segments, but money will eventually be spent on those fronts.
3. Zoom Video
Let's close out with the videoconferencing leader that has a bit of the bargain traits of the two stocks I mentioned earlier.
Like Roku, Zoom Video is a bargain because it's trading well below its high-water mark. The shares have fallen 87% since peaking two years ago. Like Deere, this stock fetches a reasonable earnings multiple. Zoom Video can be had for just 15 times last fiscal year's earnings, but -- and this is important -- unlike Deere, the bottom line is going the wrong way. Zoom Video is trading for less than 20 times forward earnings expectations.
Deceleration has been brutal at Zoom Video since the initial popularity burst when shelter-in-place mandates kicked in. It helped us learn, work, and socialize when getting together in person wasn't safe or feasible. Zoom Video will want to get its brake pads checked after how quickly the former speedster slammed on the brakes. The past six quarters of year-over-year revenue deceleration have been brutal.
Q4 2021: 369%
Q1 2022: 191%
Q2 2022: 54%
Q3 2022: 35%
Q4 2022: 21%
Q1 2023: 12%
Q2 2023: 8%
Guidance it issued last time out calls for the slowdown to continue, as it eyes a mere 5% increase in revenue for the current fiscal quarter. Profitability has been contracting, but companies keep investing in a healthy Zoom presence given a net dollar-based expansion rate above 120%.
Casual users might have forgotten their Zoom log-ins, but the high-tech telecom stock is still investing on platform enhancements. The company also has a cash-rich balance sheet, so it's already-low P/E ratio is even lower if we go by enterprise value instead of market capitalization.
10 stocks we like better than Roku
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 30, 2022
Rick Munarriz has positions in Roku. The Motley Fool has positions in and recommends Roku and Zoom Video Communications. The Motley Fool recommends Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its latest guidance suggests that there will be some near-term challenges to its ad-dependent business model, but the loudest bear argument -- that we won't stream as much with the pandemic fading in the rearview mirror -- has proved to be toothless. The 1.2% yield isn't going to turn heads these days, but Deere is trading for less than 17 times the midpoint of its earnings guidance for the current fiscal year. The CEO, co-founder, and chief stock picker for the ARK Invest family of exchange-traded funds (ETFs) had a spectacular run in 2020 when the market rallied around disruptive growth stocks.
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Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and Zoom Video Communications (NASDAQ: ZM) are three of her holdings that I think are bargains right now. The Motley Fool has positions in and recommends Roku and Zoom Video Communications. The Motley Fool recommends Deere & Company.
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Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and Zoom Video Communications (NASDAQ: ZM) are three of her holdings that I think are bargains right now. Zoom Video can be had for just 15 times last fiscal year's earnings, but -- and this is important -- unlike Deere, the bottom line is going the wrong way. The CEO, co-founder, and chief stock picker for the ARK Invest family of exchange-traded funds (ETFs) had a spectacular run in 2020 when the market rallied around disruptive growth stocks.
|
Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and Zoom Video Communications (NASDAQ: ZM) are three of her holdings that I think are bargains right now. The CEO, co-founder, and chief stock picker for the ARK Invest family of exchange-traded funds (ETFs) had a spectacular run in 2020 when the market rallied around disruptive growth stocks. She continues to buy some of the most dynamic publicly traded companies, but she also has some investments that could be considered bargains right now.
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920d1282-6f34-4e85-9c9e-168049b51147
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721005.0
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2022-10-19 00:00:00 UTC
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Deere (DE) Flat As Market Sinks: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-flat-as-market-sinks%3A-what-you-should-know
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nan
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nan
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Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. This move was narrower than the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the agricultural equipment manufacturer had gained 4.42% over the past month, outpacing the Industrial Products sector's loss of 1.04% and the S&P 500's loss of 3.76% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. In that report, analysts expect Deere to post earnings of $7.10 per share. This would mark year-over-year growth of 72.33%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 31.43% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.90 per share and revenue of $47.07 billion. These results would represent year-over-year changes of +20.59% and +18.45%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 16.21. This valuation marks a premium compared to its industry's average Forward P/E of 13.98.
Also, we should mention that DE has a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. DE's full-year Zacks Consensus Estimates are calling for earnings of $22.90 per share and revenue of $47.07 billion. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day.
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a54094cc-fd6f-466d-b8d7-cb24ef5a4382
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721006.0
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2022-10-19 00:00:00 UTC
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Deere (DE) Flat As Market Sinks: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-flat-as-market-sinks%3A-what-you-should-know-0
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nan
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nan
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Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. This move was narrower than the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the agricultural equipment manufacturer had gained 4.42% over the past month, outpacing the Industrial Products sector's loss of 1.04% and the S&P 500's loss of 3.76% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. In that report, analysts expect Deere to post earnings of $7.10 per share. This would mark year-over-year growth of 72.33%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 31.43% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.90 per share and revenue of $47.07 billion. These results would represent year-over-year changes of +20.59% and +18.45%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 16.21. This valuation marks a premium compared to its industry's average Forward P/E of 13.98.
Also, we should mention that DE has a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. DE's full-year Zacks Consensus Estimates are calling for earnings of $22.90 per share and revenue of $47.07 billion. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $371.32 in the latest trading session, marking no change from the prior day.
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3fcc4bd8-39bc-4405-bc50-523f43e0bcb8
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721007.0
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2022-10-18 00:00:00 UTC
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If You Own These 3 Growth Stocks, You Might Want to Rethink Your Position
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DE
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https://www.nasdaq.com/articles/if-you-own-these-3-growth-stocks-you-might-want-to-rethink-your-position-4
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nan
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nan
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In this crazy market environment, it's easy to make a rushed investment decision or hold a stock too long without realizing things have changed. All of us are busy, and the past couple of years have been incredibly distracting. That's why it's possible you're sitting on some stock positions right now that could end up burning you in the very near future.
With this in mind, here's a closer look at three stocks you'll most definitely want to scrutinize closely in case you're currently holding any of them.
1. Deere & Company
A spectacular 2021 for farm machinery manufacturer Deere & Company (NYSE: DE) looks like it's extending into this year. Specifically, last year's 24% top-line uptick more than doubled 2020's pandemic-suppressed profits, and analysts expect revenue growth of 18% for 2022 to drive per-share earnings up from $18.99 to $22.99. Revenue growth is projected to slow a bit in 2023, but earnings growth is expected to stay close to its current pace.
It's all part of the bigger reason Deere shares have held their ground this year while the broad market lost ground.
These forward-looking expectations, however, may be more than a little too optimistic.
It's not the sort of data most investors consider -- or even know about -- when they're thinking about which stocks to buy or sell. But, the fact that Creighton University's Rural Mainstreet Index of Farm Equipment Sales fell every month from April to August (following 20 consecutive months of growth in the midst of the pandemic) is telling. The index showed a slight improvement for September, but only a slight one. Farmland prices are also weakening in a big way.
Connect the dots. The buying boom and subsequent sky-high prices for farming equipment seen in 2021 are quietly but dramatically cooling off.
Things could get worse before they get better, too. As farmer and trade publication Successful Farming's contributing editor penned late last year in the midst of the boom that boosted Deere & Company's stock, "In two to three years I predict we will see prices of late-model large machinery soften and then fall as more new iron sales from 2022 and 2023 hit the used market as trade-ins."
Deere's construction business is in a similar situation, facing a comparable slowdown and reduction in pricing power.
2. Royalty Pharma
Royalty Pharma (NASDAQ: RPRX) is anything but your typical pharmaceutical company.
Just as the name suggests, the organization acquires the rights to royalty payments on sales of certain drugs. It will also provide funding for drugs currently in development, securing part of their revenue stream if and when they're approved. Last week it announced an agreement with Merck, for instance, offering partial funding of Merck's phase 3 trial for schizophrenia treatment MK-8189 in exchange for a portion of sales the drug may eventually generate. All told, Royalty Pharma is capturing a portion of the revenue generated by a few dozen different drugs, with a dozen more still in development.
It's a rather clever business model, working more times than not over the course of the past several years. It's volatile and capital-intensive. But, broadly speaking, it works.
There's a potentially fatal flaw with the model, though. If federal regulators or legislators clamp down on drug pricing, drug companies may rethink the value of such a partner and opt to stop sharing costs and royalties with third-party players like this one. After all, it's possible for most pharmaceutical companies to fully fund all of their own R&D and ultimately keep all of a drug's future profits; Royalty Pharma doesn't bring any developmental value or IP of its own to the R&D table.
And don't think for a minute this headwind isn't already blowing. A big piece of the recently enacted Inflation Reduction Act takes aim at the burgeoning costs of prescription drugs by allowing Medicare to negotiate prices for them. Also, just last week, President Joe Biden ordered the Department of Health and Human Services to explore other ways of lowering consumers' costs for prescription drugs. These are just small hints of a much bigger effort that could be adverse to Royalty Pharma's bottom line.
3. Erie Indemnity
Finally, add insurer Erie Indemnity (NASDAQ: ERIE) to your list of growth stocks you might want to think about shedding if you currently own it.
As far as property and life insurance providers go, Erie isn't exactly a household name. The $12 billion company turned $2.6 billion worth of revenue into a net income of just under $300 million last year, which is respectable but hardly head-turning. Neither are its relatively flat top and bottom lines. Analysts are calling for stronger top-line growth of 5.6% this year and 4.4% next year, matched with improved per-share earnings. Namely, last year's bottom line of $5.69 per share is projected to swell to $5.94 this year and $6.50 per share for 2023. That's an improvement on recent results but still modest, even by the slow-moving insurance industry standards.
So why are Erie Indemnity shares moving like a growth stock even when it isn't one (the stock is up more than 40% since May's low)? That's a good question. There is no good answer.
And there's the rub. Without a good answer, Erie Indemnity shares are too subject to the same sort of sell-offs we saw back in early 2021 and way back in 2019.
Bolstering this potential bearishness is the stock's valuation. Erie shares are now trading at 39 times this year's expected earnings and nearly 36 times next year's projected per-share profits. That's well beyond the average insurance stock's earnings-based pricing, leaving this one uncomfortably vulnerable to a corrective move.
10 stocks we like better than Deere & Company
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See the 10 stocks
*Stock Advisor returns as of September 30, 2022
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck & Co. The Motley Fool recommends Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, it's possible for most pharmaceutical companies to fully fund all of their own R&D and ultimately keep all of a drug's future profits; Royalty Pharma doesn't bring any developmental value or IP of its own to the R&D table. Also, just last week, President Joe Biden ordered the Department of Health and Human Services to explore other ways of lowering consumers' costs for prescription drugs. In this crazy market environment, it's easy to make a rushed investment decision or hold a stock too long without realizing things have changed.
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After all, it's possible for most pharmaceutical companies to fully fund all of their own R&D and ultimately keep all of a drug's future profits; Royalty Pharma doesn't bring any developmental value or IP of its own to the R&D table. Erie Indemnity Finally, add insurer Erie Indemnity (NASDAQ: ERIE) to your list of growth stocks you might want to think about shedding if you currently own it. In this crazy market environment, it's easy to make a rushed investment decision or hold a stock too long without realizing things have changed.
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As farmer and trade publication Successful Farming's contributing editor penned late last year in the midst of the boom that boosted Deere & Company's stock, "In two to three years I predict we will see prices of late-model large machinery soften and then fall as more new iron sales from 2022 and 2023 hit the used market as trade-ins." So why are Erie Indemnity shares moving like a growth stock even when it isn't one (the stock is up more than 40% since May's low)? In this crazy market environment, it's easy to make a rushed investment decision or hold a stock too long without realizing things have changed.
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After all, it's possible for most pharmaceutical companies to fully fund all of their own R&D and ultimately keep all of a drug's future profits; Royalty Pharma doesn't bring any developmental value or IP of its own to the R&D table. So why are Erie Indemnity shares moving like a growth stock even when it isn't one (the stock is up more than 40% since May's low)? In this crazy market environment, it's easy to make a rushed investment decision or hold a stock too long without realizing things have changed.
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e933dfb2-d854-44e2-945b-03fe57e24c3e
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721008.0
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2022-10-17 00:00:00 UTC
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Should You Invest in the Global X U.S. Infrastructure Development ETF (PAVE)?
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DE
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https://www.nasdaq.com/articles/should-you-invest-in-the-global-x-u.s.-infrastructure-development-etf-pave-3
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nan
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nan
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Looking for broad exposure to the Utilities - Infrastructure segment of the equity market? You should consider the Global X U.S. Infrastructure Development ETF (PAVE), a passively managed exchange traded fund launched on 03/06/2017.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Infrastructure is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $3.22 billion, making it one of the largest ETFs attempting to match the performance of the Utilities - Infrastructure segment of the equity market. PAVE seeks to match the performance of the INDXX U.S. Infrastructure Development Index before fees and expenses.
The INDXX U.S. Infrastructure Development Index measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.47%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.77%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 69.50% of the portfolio. Materials and Utilities round out the top three.
Looking at individual holdings, Nucor Corp (NUE) accounts for about 4.28% of total assets, followed by Sempra Energy (SRE) and Deere & Co (DE).
The top 10 holdings account for about 30.35% of total assets under management.
Performance and Risk
So far this year, PAVE has lost about -17.26%, and is down about -10.88% in the last one year (as of 10/17/2022). During this past 52-week period, the fund has traded between $22.45 and $29.01.
The ETF has a beta of 1.27 and standard deviation of 32.03% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X U.S. Infrastructure Development ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PAVE is a good option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
IShares U.S. Infrastructure ETF (IFRA) tracks NYSE FACTSET U.S. INFRASTRUCTURE INDEX and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. IShares U.S. Infrastructure ETF has $1.50 billion in assets, iShares Global Infrastructure ETF has $3.11 billion. IFRA has an expense ratio of 0.30% and IGF charges 0.40%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global X U.S. Infrastructure Development ETF (PAVE): ETF Research Reports
Sempra Energy (SRE): Free Stock Analysis Report
Nucor Corporation (NUE): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
iShares Global Infrastructure ETF (IGF): ETF Research Reports
iShares U.S. Infrastructure ETF (IFRA): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You should consider the Global X U.S. Infrastructure Development ETF (PAVE), a passively managed exchange traded fund launched on 03/06/2017. Looking at individual holdings, Nucor Corp (NUE) accounts for about 4.28% of total assets, followed by Sempra Energy (SRE) and Deere & Co (DE). Index Details The fund is sponsored by Global X Management.
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IShares U.S. Infrastructure ETF (IFRA) tracks NYSE FACTSET U.S. INFRASTRUCTURE INDEX and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. You should consider the Global X U.S. Infrastructure Development ETF (PAVE), a passively managed exchange traded fund launched on 03/06/2017. Index Details The fund is sponsored by Global X Management.
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IShares U.S. Infrastructure ETF (IFRA) tracks NYSE FACTSET U.S. INFRASTRUCTURE INDEX and the iShares Global Infrastructure ETF (IGF) tracks S&P Global Infrastructure Index. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. You should consider the Global X U.S. Infrastructure Development ETF (PAVE), a passively managed exchange traded fund launched on 03/06/2017.
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Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Global X U.S. Infrastructure Development ETF (PAVE): ETF Research Reports Deere & Company (DE): Free Stock Analysis Report
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5a2da007-ca71-4e57-bb58-5356579578d0
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721009.0
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2022-10-13 00:00:00 UTC
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Noteworthy ETF Outflows: IWY, DE, ADP, TJX
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-iwy-de-adp-tjx
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $59.1 million dollar outflow -- that's a 1.4% decrease week over week (from 35,400,000 to 34,900,000). Among the largest underlying components of IWY, in trading today Deere & Co. (Symbol: DE) is down about 2.4%, Automatic Data Processing Inc. (Symbol: ADP) is down about 2.3%, and TJX Companies (Symbol: TJX) is lower by about 1.7%. For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average:
Looking at the chart above, IWY's low point in its 52 week range is $114.66 per share, with $176.10 as the 52 week high point — that compares with a last trade of $115.92. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $114.66 per share, with $176.10 as the 52 week high point — that compares with a last trade of $115.92. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $114.66 per share, with $176.10 as the 52 week high point — that compares with a last trade of $115.92. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $59.1 million dollar outflow -- that's a 1.4% decrease week over week (from 35,400,000 to 34,900,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $59.1 million dollar outflow -- that's a 1.4% decrease week over week (from 35,400,000 to 34,900,000). For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $114.66 per share, with $176.10 as the 52 week high point — that compares with a last trade of $115.92. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Growth ETF (Symbol: IWY) where we have detected an approximate $59.1 million dollar outflow -- that's a 1.4% decrease week over week (from 35,400,000 to 34,900,000). For a complete list of holdings, visit the IWY Holdings page » The chart below shows the one year price performance of IWY, versus its 200 day moving average: Looking at the chart above, IWY's low point in its 52 week range is $114.66 per share, with $176.10 as the 52 week high point — that compares with a last trade of $115.92. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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36056fef-c997-4b66-8fec-c409a737258d
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721010.0
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2022-10-13 00:00:00 UTC
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Implied Volatility Surging for Deere & Company (DE) Stock Options
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DE
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https://www.nasdaq.com/articles/implied-volatility-surging-for-deere-company-de-stock-options
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nan
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nan
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Investors in Deere & Company DE need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 14, 2022 $200.00 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Deere & Company shares, but what is the fundamental picture for the company? Currently, Deere & Company is a Zacks Rank #3 (Hold) in the Manufacturing - Farm Equipment industry that ranks in the Bottom 12% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $7.04 per share to $7.12 in that period.
Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Deere & Company (DE): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Deere & Company DE need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Clearly, options traders are pricing in a big move for Deere & Company shares, but what is the fundamental picture for the company?
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. Deere & Company (DE): Free Stock Analysis Report
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Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. Clearly, options traders are pricing in a big move for Deere & Company shares, but what is the fundamental picture for the company? Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there’s a trade developing.
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Given the way analysts feel about Deere & Company right now, this huge implied volatility could mean there’s a trade developing. Investors in Deere & Company DE need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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721011.0
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2022-10-12 00:00:00 UTC
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At US$363, Is Deere & Company (NYSE:DE) Worth Looking At Closely?
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DE
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https://www.nasdaq.com/articles/at-us%24363-is-deere-company-nyse%3Ade-worth-looking-at-closely
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nan
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Today we're going to take a look at the well-established Deere & Company (NYSE:DE). The company's stock saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Deere’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is Deere Still Cheap?
According to my valuation model, Deere seems to be fairly priced at around 4.81% above my intrinsic value, which means if you buy Deere today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $346.66, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Deere’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
Can we expect growth from Deere?
NYSE:DE Earnings and Revenue Growth October 12th 2022
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Deere's earnings over the next few years are expected to increase by 32%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder? It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping tabs on DE, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Deere, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Deere you should know about.
If you are no longer interested in Deere, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since Deere’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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Today we're going to take a look at the well-established Deere & Company (NYSE:DE). NYSE:DE Earnings and Revenue Growth October 12th 2022 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value.
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According to my valuation model, Deere seems to be fairly priced at around 4.81% above my intrinsic value, which means if you buy Deere today, you’d be paying a relatively reasonable price for it. Since Deere’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. Today we're going to take a look at the well-established Deere & Company (NYSE:DE).
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Today we're going to take a look at the well-established Deere & Company (NYSE:DE). According to my valuation model, Deere seems to be fairly priced at around 4.81% above my intrinsic value, which means if you buy Deere today, you’d be paying a relatively reasonable price for it. It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value.
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721012.0
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2022-10-12 00:00:00 UTC
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2 Cathie Wood Investments That Could Deliver Superior Returns
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DE
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https://www.nasdaq.com/articles/2-cathie-wood-investments-that-could-deliver-superior-returns
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nan
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Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects. One good way to find such stocks comes from looking at renowned investors, in this case, Cathie Wood and her ARK Invest ETFs. Wood does invest in many small-cap technology stocks, but Deere (NYSE: DE) and Caterpillar (NYSE: CAT) are slightly different -- heavyweight industrials using technology to improve their offerings. Moreover, those changes result in tangible improvements in their fundamentals and operating metrics. Here's the how and why.
John Deere
Deere and Caterpillar are in the ARK Autonomous Technology & Robotics ETF. Deere's inclusion comes down to its embrace of smart farming, or precision ag technology. That embrace has made smart farming an integral part of Deere's agricultural operations.
Crop farming is an industry traditionally characterized by decisions made under uncertainty. For example, when should a farmer prepare the soil, and what with? What crop should be planted, and how best to nurture it? When to harvest it? How best to service agricultural equipment needed at critical times? All these issues impact crop yields and, ultimately, farmers' income.
The good news is Deere's precision ag technologies are here to help. AutoTrac provides automated guidance for tractors, therefore increasing productivity. Meanwhile, AutoPath uses data gathered from planting to spray and harvest crops more accurately. Deere's connected support helps farmers receive remote support in servicing equipment. Harvest Profit provides software tools to help farmers improve profitability on a field-by-field basis. ExactRate and ExactApply make fertilizer application more precise, and See & Spray uses camera technology to only spray targeted weeds with herbicides. ExactEmerge increases the accuracy and precision in planting. Meanwhile, Deere continues to invest heavily in creating autonomous tractors.
The benefits of Deere's 20-year investment in technology can be seen in its stock performance -- $10,000 invested in Deere 20 years ago would now be worth $170,000. It also helps to increase customer loyalty and improve aftermarket revenue, and its software solutions give added value to its equipment. For example, management recently said that the take-up rate on ExactApply on its sprayers is now 65%, and for ExactEmerge on its planters its 60%. Both are clear demonstrations of how its differentiated precision ag solutions make its overall product more attractive.
Moreover, it is enhancing Deere's earnings quality and giving it an edge over its rivals. As such, Deere deserves a place in the portfolio of any investor who's excited about autonomous technology.
Caterpillar
There's no way to hide that Caterpillar is a highly cyclical company. For example, when construction markets turn down, Caterpillar's construction equipment machinery sales get hit. Similarly, when mining commodities (such as iron ore and copper) turn down, then resource customers will hold back investment in mining machinery, and it's a similar story for Caterpillar's oil and gas equipment sales.
As such, Caterpillar's revenue and earnings will always be subject to volatility governed by end market conditions.
Data by YCharts
However, management is seeking to reduce the volatility in its earnings by increasing its services revenue. In fact, its aim is to double its services revenue from $14 billion in 2016 to $28 billion in 2026. Services revenue tends to hold up stronger in a slowdown, as equipment users are more willing to hold back on new equipment purchases, but are unable to avoid servicing equipment in use. Similarly, running older equipment longer tends to lead to more need for servicing.
A big part of Caterpillar's effort to increase services sales comes from its investments in digital technology. For example, through the use of advanced telematics and machine learning Caterpillar can monitor the condition of equipment and ensure the adequate and timely servicing of it. In addition, Caterpillar's online platforms can help customers better source and order replacement parts from Caterpillar's dealers.
As such, Caterpillar's earnings and cash flows are becoming less cyclical. As a result, management believes its free cash flow through the cycle will move between $4 billion to $8 billion. The lower end of that range is significantly above the current dividend payout of $2.4 billion. It implies that Caterpillar can continue to grow its dividend (current yield 2.8%) even if the economy slows down further in 2023.
Stocks to buy
Although Wood is known for investing in smaller companies with disruptive technology, both of these companies are large entities using disruptive technology to improve their offerings and grab market share. In doing so, Deere and Caterpillar are improving their underlying profitability and growth prospects.
10 stocks we like better than Caterpillar
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also helps to increase customer loyalty and improve aftermarket revenue, and its software solutions give added value to its equipment. For example, through the use of advanced telematics and machine learning Caterpillar can monitor the condition of equipment and ensure the adequate and timely servicing of it. Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects.
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That embrace has made smart farming an integral part of Deere's agricultural operations. Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects. Wood does invest in many small-cap technology stocks, but Deere (NYSE: DE) and Caterpillar (NYSE: CAT) are slightly different -- heavyweight industrials using technology to improve their offerings.
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Wood does invest in many small-cap technology stocks, but Deere (NYSE: DE) and Caterpillar (NYSE: CAT) are slightly different -- heavyweight industrials using technology to improve their offerings. The benefits of Deere's 20-year investment in technology can be seen in its stock performance -- $10,000 invested in Deere 20 years ago would now be worth $170,000. Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects.
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Given the S&P 500's 20% decline this year, it's fair to say that there may be some opportunities to pick up stocks with excellent long-term growth prospects. Wood does invest in many small-cap technology stocks, but Deere (NYSE: DE) and Caterpillar (NYSE: CAT) are slightly different -- heavyweight industrials using technology to improve their offerings. John Deere Deere and Caterpillar are in the ARK Autonomous Technology & Robotics ETF.
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2022-10-11 00:00:00 UTC
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Here's Why Deere Has a Multi-Decade Growth Runway
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DE
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https://www.nasdaq.com/articles/heres-why-deere-has-a-multi-decade-growth-runway
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nan
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In the years leading up to the COVID-19 pandemic, Deere (NYSE: DE) was struggling to grow profits consistently. 2013 had remained its record-high year for net income, and the stock price had never exceeded $200 per share. Today, it trades for around $345 per share -- double three years ago -- even though it is down from its spring high of $446.
Deere has proven to be a subtle yet effective growth story. It is now the largest farm and heavy construction equipment company by market capitalization -- even bigger than Caterpillar. And in its latest quarterly report, the company is guiding for full-year earnings of $7 billion to $7.2 billion -- which would easily eclipse its record high of just under $6 billion in 2021.
It's no wonder the stock has done so well. Here's why Deere is still worth considering today.
Image source: Getty Images.
Business is booming
It's been a good year so far for Deere. For its fiscal third quarter (ended July 31), the company was able to increase overall sales by 22%, operating profit by 18%, and net income by 13% on a year-over-year basis. Put another way: Deere is doing an excellent job translating sales growth into earnings growth.
Let's take a closer look at each of its three main businesses.
The largest segment, production and precision agriculture, makes up about 40% of overall revenue. Sales for this area grew by 22% for the first nine months of the year. In Q3 alone, sales reached an all-time high of $6.1 billion -- up a staggering 43% from a year ago -- and the operating margin came in at 21%. Thanks to an improved volume mix paired with higher prices, Deere is now guiding for 14% growth in that segment in fiscal 2022.
Deere is having no problem implementing price hikes to offset its higher costs -- thanks to its premium brand, strong dealership network, and full suite of offerings. This pricing power also shows that demand for new agricultural machinery and equipment is at some of the highest levels seen in several years.
Its second segment -- small agriculture and turf -- represents 27% of revenue. This area saw sales grow by 9% for the first nine months. For all of fiscal 2022, Deere forecasts that prices will increase 9% and net sales will rise 10% to 15%.
Deere's third segment -- construction and forestry equipment -- brings in 26% of revenue. Its sales grew 10% for the nine-month period, and the company is expecting about the same for the year. Thanks to strong construction equipment demand in the U.S. and Canada and and a 10% lift in prices, that segment is on pace for a record 2022. Operating profit for the first nine months was up 31% compared to just a 3% increase in production and precision agriculture and a 15% decline in small agriculture and turf.
A strong sector of the U.S. economy
A look at Deere can't ignore more general trends. According to the U.S. Department of Commerce, agriculture, food, and related industries contributed 5% of U.S. gross domestic product (GDP) in 2020 and provided 10.3% of U.S. employment. These industries are often perceived to ebb and flow with broader GDP growth.
Yet even as U.S. real GDP growth turned negative in the first and second quarters of 2022, Deere's performance indicates that despite exposure to these industries, it has been able to grow meaningfully and offset inflation.
Let's see if that continues. As good as Deere's latest report was, investors would be wise to tune into the final quarterly report of fiscal 2022 in late November to make sure the company hits its full-year goals. Deere will also comment on its outlook for fiscal 2023, which will likely provide a valuable glimpse into the strength of capital spending in the agriculture, forestry, and construction industries.
Several good reasons to like Deere
Despite challenges throughout many of the sectors that comprise the U.S. economy, the key industries that Deere serves are doing very well. And years of underinvestment mean that customers are eager to upgrade fleets and purchase premium equipment and machinery.
On top of its continued growth potential, Deere offers investors a 1.3% dividend yield. That may not look like much, but Deere isn't a typical dividend stock. Rather, it prioritizes its balance sheet and growth over its dividend and share repurchases.
Deere's earnings growth will likely face tough comparisons compared to a strong fiscal 2022. But Deere's reasonable valuation paired with excellent management and a market-leading position make it a stock worth owning for years to come.
10 stocks we like better than Deere & Company
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
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Generating a disclosure failed. 500 Server Error: Internal Server Error for url: https://api.fool.com/disclosures/?uids=2033070475&instrument_ids=203294%2C203043&service_id=0&profile=usmf-free
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is having no problem implementing price hikes to offset its higher costs -- thanks to its premium brand, strong dealership network, and full suite of offerings. Yet even as U.S. real GDP growth turned negative in the first and second quarters of 2022, Deere's performance indicates that despite exposure to these industries, it has been able to grow meaningfully and offset inflation. Deere will also comment on its outlook for fiscal 2023, which will likely provide a valuable glimpse into the strength of capital spending in the agriculture, forestry, and construction industries.
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And in its latest quarterly report, the company is guiding for full-year earnings of $7 billion to $7.2 billion -- which would easily eclipse its record high of just under $6 billion in 2021. On top of its continued growth potential, Deere offers investors a 1.3% dividend yield. In the years leading up to the COVID-19 pandemic, Deere (NYSE: DE) was struggling to grow profits consistently.
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Several good reasons to like Deere Despite challenges throughout many of the sectors that comprise the U.S. economy, the key industries that Deere serves are doing very well. But Deere's reasonable valuation paired with excellent management and a market-leading position make it a stock worth owning for years to come. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen.
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It's no wonder the stock has done so well. Thanks to an improved volume mix paired with higher prices, Deere is now guiding for 14% growth in that segment in fiscal 2022. Operating profit for the first nine months was up 31% compared to just a 3% increase in production and precision agriculture and a 15% decline in small agriculture and turf.
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2022-10-10 00:00:00 UTC
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Take the Zacks Approach to Beat the Market: Automatic Data Processing, Fiserv, Deere in Focus
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DE
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https://www.nasdaq.com/articles/take-the-zacks-approach-to-beat-the-market%3A-automatic-data-processing-fiserv-deere-in
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nan
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Wall Street closed a winning week after three straight weeks of losses. All three major indexes ended the week with gains. The Dow, the S&P 500 and the tech-heavy Nasdaq rose 2%, 1.5% and 0.7%, respectively.
The week’s activities were dominated by multiple reports on the economy's labor side. With a cool-down suggested by the reports, investors expected the Fed would go easy on the monetary policy moving forward. But hopes dissipated with multiple Fed officials hinting that steep rate hikes would continue until economic data gave a clearer picture of slowing down the job market and, more importantly, inflation.
The losses in the last three days offset the gains made in the first two days of the week, but the market managed to end in the green. Bond yields rose, adversely impacting growth stocks.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
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Liberty Energy, Patterson-UTI Energy Soar Following Zacks Rank Upgrade
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While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
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Zacks Focus List Model Portfolio Stocks Axon, Deere Rise
Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 30.8% over the past three months. The stock was added to the Focus List on Jun 3, 2020. Another Focus-List holding, Deere & Company DE, which was added to the portfolio on Jul 25,2017, has returned 19.6% over the past three months.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
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Fiserv, Inc. FISV, a component of our Earnings Certain Admiral Portfolio (ECAP), has gained 4.8% over the past three months. FactSet Research Systems Inc. FDS has followed Fiserv with 3.4% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
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Zacks ECDP Stocks Automatic Data Processing, Illinois Tool Works Outperform
Automatic Data Processing, Inc. ADP, part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.1% over the past three months. Another ECDP stock, Illinois Tool Works Inc. ITW, has returned 3.8% over the same time frame.
Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
Check Automatic Data Processing’s dividend history here>>>
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With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk. The ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.
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Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
PattersonUTI Energy, Inc. (PTEN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance. All three major indexes ended the week with gains.
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Image Source: Zacks Investment Research Zacks Recommendation Upgrade Drives Home Bancorp, Aviat Networks Higher Shares of Home Bancorp, Inc. HBCP and Aviat Networks, Inc. AVNW have gained 7.9% and 6.3% since their Zacks Recommendation was upgraded to Outperform on Jul 20 and Jul 18, respectively. To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stocks Axon, Deere Rise Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 30.8% over the past three months. Zacks ECDP Stocks Automatic Data Processing, Illinois Tool Works Outperform Automatic Data Processing, Inc. ADP, part of our Earnings Certain Dividend Portfolio (ECDP), has returned 6.1% over the past three months.
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To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stocks Axon, Deere Rise Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 30.8% over the past three months. All three major indexes ended the week with gains. The week’s activities were dominated by multiple reports on the economy's labor side.
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To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stocks Axon, Deere Rise Shares of Axon Enterprise, Inc. AXON, which belongs to the Zacks Focus List, have gained 30.8% over the past three months. The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. All three major indexes ended the week with gains.
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34906d7e-752c-4ce2-96ba-a1cb16b611a1
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721015.0
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2022-10-06 00:00:00 UTC
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Deere & Company (DE) Is a Trending Stock: Facts to Know Before Betting on It
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DE
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https://www.nasdaq.com/articles/deere-company-de-is-a-trending-stock%3A-facts-to-know-before-betting-on-it
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Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this agricultural equipment manufacturer have returned -2.8%, compared to the Zacks S&P 500 composite's -3.5% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has lost 1.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Deere is expected to post earnings of $7.14 per share, indicating a change of +73.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $22.94 points to a change of +20.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $26.67 indicates a change of +16.2% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Deere, the consensus sales estimate for the current quarter of $13.49 billion indicates a year-over-year change of +31.3%. For the current and next fiscal years, $47.57 billion and $52.53 billion estimates indicate +19.7% and +10.4% changes, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $13 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $6.16 for the same period compares with $5.32 a year ago.
Compared to the Zacks Consensus Estimate of $12.9 billion, the reported revenues represent a surprise of +0.76%. The EPS surprise was -7.23%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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For the next fiscal year, the consensus earnings estimate of $26.67 indicates a change of +16.2% from what Deere is expected to report a year ago. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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b68cad56-16c2-4364-b205-7d3254102c83
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721016.0
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2022-10-06 00:00:00 UTC
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My Top Agriculture Dividend Stock to Buy in October (and It's Not Even Close)
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DE
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https://www.nasdaq.com/articles/my-top-agriculture-dividend-stock-to-buy-in-october-and-its-not-even-close
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Deere (NYSE: DE) is one of the largest and best-known U.S.-based industrial and agriculture companies. The equipment manufacturer is set to report its fourth-quarter (ending Oct. 31) and full-year fiscal 2022 results in late November. For the third quarter of fiscal 2022 (ended July 31), Deere's revenue came in at $13 billion versus $12.95 billion expected, and adjusted earnings per share came in at $6.16 versus $6.65 expected. Deere needs a record quarter in the fourth quarter to hit its full-year 2022 net income guidance of $7 billion to $7.2 billion.
A record year for Deere in fiscal 2022 would be impressive considering the slowdown across many sectors of the economy. However, the bigger question is whether Deere can sustain its momentum heading into fiscal 2023. Let's break down where Deere stands and where the company could be headed from here.
Image source: Getty Images.
Understanding the nuances of the economy
If you followed the last earnings season, chances are you're aware of declines in consumer spending, especially on discretionary goods. Target and Walmart have implemented steep discounts to try and move existing inventory out and make way for the fall and the holiday season. Even consumer staples titan Procter & Gamble -- which traditionally has strong pricing power -- is experiencing declines in growth and weaker margins.
Deere's performance is a reminder that consumer spending and industrial, agricultural, construction, and forestry spending are not the same. And in today's circumstances, the retail and industrial economies are performing in completely different ways. While the consumer may feel the effects of higher inflation, Deere's customers are benefiting from higher commodity prices and near-10-year highs in U.S. wheat, soy, corn, and grain prices. Deere's customers are experiencing multiyear growth after a pandemic-induced decline -- making now a good time to invest in new equipment and machinery. Strong performance in oil and gas and support for infrastructure spending also bodes well for Deere. And while Deere's construction business will deteriorate if the real estate market weakens, it has plenty of levers to pull in other segments to sustain growth.
Putting a record year into context
Even though Deere's stock price is down over 20% from its all-time high, the stock has crushed the broader industrial sector and the S&P 500 over the last one, three, five, and 10 years.
DE Total Return Level data by YCharts
Looking at the 10-year chart, you'll notice that Deere was actually underperforming the S&P 500 when its earnings we falling between 2014 and 2016, only to begin drastically outperforming the S&P 500 and the industrial sector as represented by the Industrial Select Sector SPDR ETF over the last two to three years.
Impressive profitability
Deere's red-hot outperformance in the last few years isn't just a sector-wide growth story. Rather, it's a testament to Deere's pricing power and margin expansion across a diversified portfolio that touches multiple industries and geographies.
My favorite Deere chart shows the company's 10-year trailing-12-month operating margin overlaid with its trailing-12-month revenue.
DE Operating Margin (TTM) data by YCharts
You'll notice that Deere's sales and operating margin peaked in 2013 before declining between 2014 and 2016, were trending up before the pandemic began, suffered a hiccup in 2020, and have since been off to the races. Many of Deere's peers enjoyed impressive revenue growth and record sales. But few are boosting margins and growing sales at the pace Deere is, let alone sporting a 16% operating margin.
DE Operating Margin (TTM) data by YCharts
In the above chart, you'll notice that Deere currently sports a higher operating margin than peers Caterpillar, Cummins, CNH Industrial, Komatsu, and Kubota. Not only that, Deere's trailing-12-month operating margin is the highest operating margin out of these six companies over the last decade.
A well-rounded investment opportunity
Deere is outperforming its peers in almost every category, which is a testament to its market position. It also validates why the company is able to invest aggressively for multidecade growth even in a challenging business environment.
Deere has successfully offset higher input costs with greater production and deliveries paired with price increases, which have resulted in a higher operating margin in an inflationary environment.
With just a 1.3% dividend yield, there's no denying that Deere sports a much lower yield than many companies in its peer group. However, Deere makes up for that shortfall with higher margins and faster growth. Quality dividend stocks can get away with low yields if the company has a track record for allocating capital effectively. Deere falls into that category and is, therefore, the perfect agriculture dividend stock for folks willing to sacrifice a bit of yield.
Investors looking for a company that can continue performing in a high-inflation environment at a reasonable valuation -- with a dividend to boot -- should look no further than Deere stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even consumer staples titan Procter & Gamble -- which traditionally has strong pricing power -- is experiencing declines in growth and weaker margins. Deere's customers are experiencing multiyear growth after a pandemic-induced decline -- making now a good time to invest in new equipment and machinery. And while Deere's construction business will deteriorate if the real estate market weakens, it has plenty of levers to pull in other segments to sustain growth.
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For the third quarter of fiscal 2022 (ended July 31), Deere's revenue came in at $13 billion versus $12.95 billion expected, and adjusted earnings per share came in at $6.16 versus $6.65 expected. DE Operating Margin (TTM) data by YCharts You'll notice that Deere's sales and operating margin peaked in 2013 before declining between 2014 and 2016, were trending up before the pandemic began, suffered a hiccup in 2020, and have since been off to the races. DE Operating Margin (TTM) data by YCharts In the above chart, you'll notice that Deere currently sports a higher operating margin than peers Caterpillar, Cummins, CNH Industrial, Komatsu, and Kubota.
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Putting a record year into context Even though Deere's stock price is down over 20% from its all-time high, the stock has crushed the broader industrial sector and the S&P 500 over the last one, three, five, and 10 years. DE Operating Margin (TTM) data by YCharts In the above chart, you'll notice that Deere currently sports a higher operating margin than peers Caterpillar, Cummins, CNH Industrial, Komatsu, and Kubota. Not only that, Deere's trailing-12-month operating margin is the highest operating margin out of these six companies over the last decade.
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Deere's performance is a reminder that consumer spending and industrial, agricultural, construction, and forestry spending are not the same. DE Operating Margin (TTM) data by YCharts In the above chart, you'll notice that Deere currently sports a higher operating margin than peers Caterpillar, Cummins, CNH Industrial, Komatsu, and Kubota. Deere (NYSE: DE) is one of the largest and best-known U.S.-based industrial and agriculture companies.
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721017.0
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2022-10-06 00:00:00 UTC
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Deere (DE) Stock Moves -0.08%: What You Should Know
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https://www.nasdaq.com/articles/deere-de-stock-moves-0.08%3A-what-you-should-know
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In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.39%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 2.78% over the past month. This has was narrower than the Industrial Products sector's loss of 3.14% and the S&P 500's loss of 3.51% in that time.
Deere will be looking to display strength as it nears its next earnings release. In that report, analysts expect Deere to post earnings of $7.14 per share. This would mark year-over-year growth of 73.3%. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 31.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.94 per share and revenue of $47.57 billion, which would represent changes of +20.8% and +19.71%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Deere is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 15.51. This represents a premium compared to its industry's average Forward P/E of 14.05.
Meanwhile, DE's PEG ratio is currently 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Deere will be looking to display strength as it nears its next earnings release.
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In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. Deere & Company (DE): Free Stock Analysis Report Deere will be looking to display strength as it nears its next earnings release.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. Deere will be looking to display strength as it nears its next earnings release.
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In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. In that report, analysts expect Deere to post earnings of $7.14 per share. Deere will be looking to display strength as it nears its next earnings release.
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ca96cc3b-8156-4de7-b51e-24ee03f44281
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721018.0
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2022-10-05 00:00:00 UTC
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Deere (DE) Rides on Strong Agriculture & Construction Markets
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https://www.nasdaq.com/articles/deere-de-rides-on-strong-agriculture-construction-markets
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Deere & Company’s DE results so far this fiscal have been impressive considering the ongoing supply-chain and inflationary pressures. For the first nine months of fiscal 2022, net income attributable to Deere & Company was $4.885 billion ($15.88 per share) compared with $4.680 billion ($14.86 per share) last year. This upside was led by improving conditions in both the farm and construction sectors. Backed by strong order books and positive fundamentals, DE expects demand to remain strong in fiscal 2023.
Net sales amounted to $33.565 billion in the first nine months of fiscal 2022, up 6% year over year. Production and Precision Agriculture saw a 23% increase in sales, and Small Agriculture and Turf’s segment sales rose 9% on higher shipment volumes and price realization. The Construction and Forestry segment posted a 7% increase in sales on price realization. Deere expects net income for fiscal 2022 to be between $7.0 billion and $7.2 billion.
Improving farm income, driven by recovering agricultural commodity prices, led farmers to resume investment in new equipment. This apart, the need to replace aging equipment has also been supporting farm equipment demand for a while. Deere and other agricultural equipment makers like AGCO Corporation AGCO and Lindsay Corporation LNN are benefiting from this trend.
The USDA (U.S Department of Agriculture) projects net farm income at $147.7 billion for 2022, the highest since 2013 and up 5.2% year over year. Cash receipts for agricultural commodities are expected at record levels. Receipts for soybeans are expected to be up 30.6%, for corn 16.7% and for wheat 33.7% from the prior-year levels, all led by higher prices. Combined receipts for corn, soybeans and wheat are forecast to increase $30.7 billion, accounting for the maximum rise in crop cash receipts. The upbeat outlook for corn and soybeans, the most important grains for cash crop farming, bodes well for farmer sentiment and will likely translate into better order levels for the likes of DE, AGCO and LNN.
Deere expects the Production and Precision Agriculture segment’s sales to be up between 25% and 30% in fiscal 2022 on positive price/cost. The segment’s operating margin is expected between 20% and 21%, reflecting a solid financial performance across various geographical regions. The Small Agriculture and Turf segment’s net sales are expected to be up 10-15%, while its operating margin is forecast between 14% and 15% in fiscal 2022.
DE expects industry sales of large agricultural equipment in the United States and Canada to be up roughly 15% for fiscal 2022, reflecting strong farm fundamentals. In South America, industry sales of tractors and combines are likely to go up 10-15%.
Deere is also witnessing a steady improvement in the Construction & Forestry segment. In North America, industry sales of earthmoving equipment are expected to be up approximately 10% in fiscal 2022, while the compact construction market is forecast to be flat to down 5%. Sales for the Construction & Forestry segment are projected to be up 10%, while the operating margin is likely to be 15.5-16.5% in fiscal 2022.
Gains from the Deere-Hitachi transaction and an improved price and volume will aid the segment’s margin. With the U.S. Infrastructure Investment and Jobs Act earmarking $110 billion to fund road repairs and other transformational projects over the next five years, this represents a massive opportunity for the segment. Deere’s peer Caterpillar Inc. CAT is also expected to be a major beneficiary of this stepped-up investment.
However, Deere anticipates supply-chain pressures to persist in the near term. Rising demand and COVID-19 disruptions caused capacity constraints all along the supply chain, which left Deere and other manufacturers like AGCO, LNN and CAT short of raw materials. Further, all these companies are facing significant inflation for rising material, labor and logistical costs. They have been implementing price increases for sometime to combat these headwinds.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE expects industry sales of large agricultural equipment in the United States and Canada to be up roughly 15% for fiscal 2022, reflecting strong farm fundamentals. Rising demand and COVID-19 disruptions caused capacity constraints all along the supply chain, which left Deere and other manufacturers like AGCO, LNN and CAT short of raw materials. Deere & Company’s DE results so far this fiscal have been impressive considering the ongoing supply-chain and inflationary pressures.
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Deere & Company (DE): Free Stock Analysis Report Deere & Company’s DE results so far this fiscal have been impressive considering the ongoing supply-chain and inflationary pressures. For the first nine months of fiscal 2022, net income attributable to Deere & Company was $4.885 billion ($15.88 per share) compared with $4.680 billion ($14.86 per share) last year.
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Deere expects the Production and Precision Agriculture segment’s sales to be up between 25% and 30% in fiscal 2022 on positive price/cost. Deere & Company (DE): Free Stock Analysis Report Deere & Company’s DE results so far this fiscal have been impressive considering the ongoing supply-chain and inflationary pressures.
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Deere expects net income for fiscal 2022 to be between $7.0 billion and $7.2 billion. Deere & Company’s DE results so far this fiscal have been impressive considering the ongoing supply-chain and inflationary pressures. For the first nine months of fiscal 2022, net income attributable to Deere & Company was $4.885 billion ($15.88 per share) compared with $4.680 billion ($14.86 per share) last year.
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721019.0
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2022-10-05 00:00:00 UTC
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3 Ingredients That Make Up Deere's Secret Sauce for Growth
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https://www.nasdaq.com/articles/3-ingredients-that-make-up-deeres-secret-sauce-for-growth
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Deere (NYSE: DE) stock continues to outperform the industrial sector and the broader indices. In fact, Deere's year-to-date performance turned positive on Monday despite the S&P 500 and the Nasdaq Composite still languishing in a bear market.
When the company reported its third-quarter fiscal 2022 results in late August, it also lowered its full-year net-income guidance from a prior range of $7 billion to $7.4 billion to a new range of $7 billion to $7.2 billion. But positive customer demand in its end markets could spill over into 2023, casting an optimistic outlook for the farm and heavy construction machinery company.
Here are three reasons why Deere is putting up record results during a business environment in which so many companies are failing to counteract inflation.
Image source: Getty Images.
1. Industry growth
Deere is a cyclical company whose results tend to ebb and flow to the tune of the broader economy. Although primarily driven by North and South America, Deere does have a large presence in Europe and Asia as well. Deere does best when the global economy is in growth mode, whether through new agricultural equipment investment, construction industries like residential and commercial real estate, infrastructure spending and road building, or forestry development to meet growing timber demand.
Before 2021, Deere's all-time high net-income year was 2013 when the company booked a profit of $3.54 billion. Net income fell yearly between 2014 and 2016 before resuming an uptrend in 2017. However, the COVID-19 pandemic threw a wrench in that growth and resulted in a collapse in capital spending in Deere's end markets. That all changed in 2021 and has continued into 2022.
Like the boom in oil and gas, a simple reason for Deere's success is that its core industries are doing well thanks to generally strong economies and high commodity prices. Although U.S. wheat, soy, corn, and grain prices received have come down off their highs, they are still close to 10-year highs and have been up over 75% in the last three years.
US Soybean Farm Price Received data by YCharts
2. Market-leading position
Despite the strong tailwinds, data reported by the Association of Equipment Manufactures and featured in Deere's Q3 investor presentation suggests mixed results for retail sales and inventories. Rolling three-month retail sales in July 2022 for U.S. and Canadian agriculture slowed for low-horsepower, two-wheel drive (2WD) tractors but rose double digits for high-horsepower 2WD tractors and rose slightly for four-wheel drive (4WD) tractors and combines. However, Deere was able to generally outperform industry trends thanks to prioritizing lowering its partially completed inventory and getting products into customers' hands.
Deere noted on its Q3 fiscal 2022 conference call that it incurred expedited shipping and freight costs as well as higher input costs as it ramped production and focused on sales and market-share growth. However, the move looks like a good one long term in that customers can count on Deere and its dealers to have products in stock when they need them most when so much of the industry is struggling to procure parts and hold onto talent in a tight labor market.
3. Pricing power
Deere's ability to lean into healthy consumer demand by increasing production even with higher costs has been a net positive for the company. Deere forecasts a full-year 2022 price realization of 14% for production and precision agriculture, 9% for small agriculture and turf, and 10% for construction and forestry. Higher unit sales combined with price increases are a one-two punch for offsetting inflation. Deere has proved once again that its product portfolio has incredible pricing power, which should help it even as the business cycle turns.
Deere did note during its Q3 conference call that it is trying to make its business and its cash flows more resilient to changes in the business cycle. In the meantime, dealer inventories are relatively low because Deere sells a high percentage of the products it produces.
Fiscal 2022 orders are full, and first-half fiscal 2023 order books are already full in certain product categories as Deere plans to keep its production high to satisfy demand. Deere believes that its customer fleets are still older than average levels, indicating demand for new equipment and machinery could remain high in fiscal 2023.
Deere is a long-term winner
The million-dollar question for cyclical industries is knowing when the cycle will turn from boom to bust. However, long-term investors care less about timing a cycle and more about choosing companies that can outperform their peers during good times and bad, command pricing power, and grow their business over time. In this vein, Deere continues to be one of the best industrial companies to buy. Throw in a reasonable valuation with a roughly 16 forward price-to-earnings ratio and a 1.2% dividend yield, and you have an industry-leading company at the top of its game that can add stability to a diversified portfolio.
10 stocks we like better than Deere & Company
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 17, 2022
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere does best when the global economy is in growth mode, whether through new agricultural equipment investment, construction industries like residential and commercial real estate, infrastructure spending and road building, or forestry development to meet growing timber demand. Market-leading position Despite the strong tailwinds, data reported by the Association of Equipment Manufactures and featured in Deere's Q3 investor presentation suggests mixed results for retail sales and inventories. However, the move looks like a good one long term in that customers can count on Deere and its dealers to have products in stock when they need them most when so much of the industry is struggling to procure parts and hold onto talent in a tight labor market.
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Fiscal 2022 orders are full, and first-half fiscal 2023 order books are already full in certain product categories as Deere plans to keep its production high to satisfy demand. Deere (NYSE: DE) stock continues to outperform the industrial sector and the broader indices. In fact, Deere's year-to-date performance turned positive on Monday despite the S&P 500 and the Nasdaq Composite still languishing in a bear market.
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Pricing power Deere's ability to lean into healthy consumer demand by increasing production even with higher costs has been a net positive for the company. Fiscal 2022 orders are full, and first-half fiscal 2023 order books are already full in certain product categories as Deere plans to keep its production high to satisfy demand. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen.
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Industry growth Deere is a cyclical company whose results tend to ebb and flow to the tune of the broader economy. Before 2021, Deere's all-time high net-income year was 2013 when the company booked a profit of $3.54 billion. Deere did note during its Q3 conference call that it is trying to make its business and its cash flows more resilient to changes in the business cycle.
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2022-10-04 00:00:00 UTC
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Top Stocks To Buy Now? 3 Industrial Stocks To Check Out
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Industrial stocks are a type of investment that refers to stocks in companies that are involved in the production of goods and services. This can include manufacturing, transportation, and energy companies, among others. For example, some of the more notable industrial companies among stock market investors today are names such as Caterpillar Inc. (NYSE: CAT), Boeing (NYSE: BA), and Honeywell International (NYSE: HON) Industrial stocks tend to be less volatile than other types of stocks. Resulting in making them a popular choice for investors who are looking for stability.
Additionally, industrial stocks also tend to pay higher dividends than other stocks. As such, making them an attractive option for income-seeking investors. However, these stocks may also be sensitive to economic cycles. This means it’s important to monitor the health of the overall economy when making investment decisions. Because of this, investors might be keen to put top industrial stocks on watch in thestock market today Should that be the case for you, check out three more industrial companies to take note of.
Industrial Stocks To Watch In October 2022
United Parcel Service Inc. (NYSE: UPS)
Deere & Company (NYSE: DE)
Lockheed Martin Corporation (NYSE: LMT)
1. United Parcel Services (UPS Stock)
Kicking off the list today is United Parcel Services Inc. (UPS). Simply put, United Parcel Service (UPS) is an American multinational package delivery and supply chain management company. For a sense of size, UPS manages a fleet of more than 500 planes and 100,000 vehicles. As well as delivering an average of approximately 25 million packages per day to residences and businesses worldwide.
UPS Recent Stock News
At the beginning of August, UPS announced its quarterly dividend of $1.52 per share. As a result, UPS shareholders are currently getting an annual dividend yield of 3.75%.
Aside from that, at the end of July, the company announced better-than-expected second-quarter 2022 earnings results. In Q2 2022, United Parcel Services posted earnings of $3.29 per share with revenue of $24.8 billion. This is compared with Wall Street’s consensus estimates for the 2nd quarter of 2022, which were earnings of $3.14 per share, and revenue of $24.6 billion. In addition, the company reaffirmed its full-year 2022 revenue estimates of approximately $102 billion.
Carol Tomé, UPS chief executive officer commented, “While the external environment is ever-changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance.”
UPS Stock Chart
As of Tuesday morning’s trading session, shares of UPS stock are trading at $165.72 a share. Though, UPS stock is still down over 22% in 2022 thus far. With all this being said, could now be the ideal time to pick up shares of UPS stock at potential discounted price levels?
Source: TD Ameritrade TOS
[Read More] Best Semiconductor Stocks To Invest In 2022? 4 To Watch This Week
2. Deere & Company (DE Stock)
Second, we have Deere & Company (DE). The company is an American corporation that manufactures and markets agricultural, construction, and forestry machinery, diesel engines, and drivetrains for trucks, tractors, and other heavy equipment. Deere & Company is one of the largest manufacturers of agricultural equipment in the world and is a major player in the construction and forestry equipment markets.
DE Recent Stock News
At the end of August, Deere & Company’s announced its Board of Directors declared a quarterly dividend of $1.13 per share on common stock. This results in an annual dividend yield for DE shareholders of 1.31%. Also in August, the company reported weaker-than-expected third-quarter 2022 financial results.
Getting straight into it, in the 3rd quarter of 2022 Deere & Company reported earnings of $6.16 per share, with revenue of $14.1 billion. Meanwhile, the consensus estimate was earnings of $6.64 per share with revenue of $12.9 billion. The company also reported a 22.3% increase in revenue during the same period, a year prior. Furthermore, DE said it now estimates a full-year 2022 net income of $7 billion to $7.2 billion, or earnings of an estimated $22.90 to $23.55 per share.
John C. May, Chairman, and CEO said this in the company’s release to shareholders, “Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs. We are working closely with our factories and suppliers to meet higher levels of customer demand next year. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.“
DE Stock Chart
Year-to-date Deere & Company stock has outperformed the broader markets as shares are relatively flat on the year so far. With that, shares of DE stock are trading higher on Tuesday morning up over 2% at $352.77 a share. Given all of this, should you be adding Deere & Company (DE) stock to your list of industrial stocks to watch in thestock market today
Source: TD Ameritrade TOS
[Read More] 2 Dividend Stocks To Watch In October 2022
3. Lockheed Martin Corporation (LMT Stock)
Closing out this list of industrial stocks, let’s dive into Lockheed Martin Corporation (LMT). In brief, Lockheed Martin is one of the world’s leading aerospace, defense, and security companies. In addition, LMT is mainly engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. Specifically, the company’s products and services include aircraft engines, integrated air, and missile defense systems, cybersecurity solutions, satellite communications systems, and space exploration technologies.
LMT Recent Stock News
In recent news, on September 30, 2022, the company announced its fourth-quarter 2022 dividend. Diving in, LMT’s Board of Directors has declared the 4th quarter of 2022 dividend of $3.00 per share. This dividend represents an increase of $0.20 per share from the previous quarter. What’s more, the dividend is payable on December 30, 2022, to shareholders of record as of the close of business on December 1, 2022. As a result, Lockheed Martin shareholders get an annual dividend yield of 2.82%.
LMT Stock Chart
On a separate note, LMT stock has also outperformed the broader markets in 2022 so far. Shares of LMT stock are up over 14% in 2022 so far and are currently trading at $404.48 a share as of Tuesday morning. Given all of this, is LMT stock worth investing in today?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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John C. May, Chairman, and CEO said this in the company’s release to shareholders, “Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs. Source: TD Ameritrade TOS If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. This can include manufacturing, transportation, and energy companies, among others.
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Industrial Stocks To Watch In October 2022 United Parcel Service Inc. (NYSE: UPS) Deere & Company (NYSE: DE) Lockheed Martin Corporation (NYSE: LMT) 1. Given all of this, should you be adding Deere & Company (DE) stock to your list of industrial stocks to watch in thestock market today Source: TD Ameritrade TOS [Read More] 2 Dividend Stocks To Watch In October 2022 3. This can include manufacturing, transportation, and energy companies, among others.
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Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.“ DE Stock Chart Year-to-date Deere & Company stock has outperformed the broader markets as shares are relatively flat on the year so far. Given all of this, should you be adding Deere & Company (DE) stock to your list of industrial stocks to watch in thestock market today Source: TD Ameritrade TOS [Read More] 2 Dividend Stocks To Watch In October 2022 3. This can include manufacturing, transportation, and energy companies, among others.
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Industrial Stocks To Watch In October 2022 United Parcel Service Inc. (NYSE: UPS) Deere & Company (NYSE: DE) Lockheed Martin Corporation (NYSE: LMT) 1. UPS Recent Stock News At the beginning of August, UPS announced its quarterly dividend of $1.52 per share. Given all of this, should you be adding Deere & Company (DE) stock to your list of industrial stocks to watch in thestock market today Source: TD Ameritrade TOS [Read More] 2 Dividend Stocks To Watch In October 2022 3.
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2022-10-04 00:00:00 UTC
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Stock Market Sell-Off: 3 Fantastic Choices to Buy Ahead of the Recovery
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https://www.nasdaq.com/articles/stock-market-sell-off%3A-3-fantastic-choices-to-buy-ahead-of-the-recovery
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The stock market has had a rough go of it this year. In the first half of 2022, the S&P 500 index fell 20.6%. That's its worst six-month performance to open a year in over half a century. Year to date, the index is down 25%, putting it firmly in bear market territory.
But every bear market since 1928 has been followed by a recovery. Buying shares of outstanding companies whose shares have been beaten down by a bear market can produce market-beating returns and make investors richer in the long run.
Buying stocks when everyone else is selling can be a mental challenge. Those who can overcome the internal barrier and buy ahead of the recovery will likely have an incredible story to tell when the market recovers. As Warren Buffett famously once said, "When it's raining gold, reach for a bucket, not a thimble."
Johnson Controls' technology will surprise you
Johnson Controls' (NYSE: JCI) high-efficiency heating and air-conditioning units play a critical role for customers like fast-growing data centers, significantly reducing energy costs and keeping tenants happy. For example, data center companies need to keep a massive amount of computer hardware cool, healthcare facilities need to keep patients warm and medicines at their optimal temperature, and apartment buildings need to keep residential customers comfortable. At the same time, Johnson Controls' energy-efficient units reduce greenhouse gas emissions and enable customers to meet increasingly stringent energy conservation regulations.
In addition to selling into growing industries like data centers, Johnson Controls is rolling out OpenBlue, its newest Internet-of-Things platform. OpenBlue remotely monitors equipment for preventative maintenance and warns customers before failures occur. The service is quickly becoming a vital service for grocery chains, pharmaceutical companies, and data centers that need cooling. Otherwise, they face the risk of massive spoilage or hardware breakdown costs.
Moreover, OpenBlue is system-agnostic, meaning it can be attached to any heating and air-conditioning unit on the market. Therefore, Johnson Controls can take business from competitors by selling its replacement parts to their units.
Johnson Controls stock has retreated 39% from its 52-week high based on fears of a slowing economy, which could hinder new construction. But the company has an $11.1 billion backlog of orders.
Image source: Johnson Controls company presentation.
Despite the current macro environment, the company still expects to generate organic revenue growth of 8% to 9% and adjusted earnings per share of $2.98 to $3.02 this year. Given the company's adjusted earnings per share forecast, the stock is trading at a forward price-earnings (P/E) ratio of 16.7. That's an attractive price for a stock with Johnson Controls' growth potential.
Deere's autonomous tractors could quickly grow
Deere & Company (NYSE: DE) and its famous green and yellow brand have dominated the U.S. tractor and combine markets. Deere commands 53% of the tractor market and 60% of the combine market at home, but less internationally.
Deere's premier autonomous tractor will be rolled out as a GPS-guided version of the R8 model this fall. The tractor includes 12 cameras that will enable 360-degree obstacle detection. The cameras and GPS run in tandem with a geofence that operates the tractor within an inch of accuracy.
Deere is investing in the software that runs its autonomous tractors and can also be used to run traditional tractors without a driver. The software carries an 85% gross margin compared to around 25% for equipment. Deere projects that software subscriptions will make up 10% of its revenue by the end of the decade.
International competitors CNH Industrial and AGCO are also working to bring their versions to market. AGCO said it will begin marketing them sometime in the next five years, while CNH doesn't have a timeline for its autonomous equipment. Deere, on the other hand, expects to begin selling its autonomous tractors this fall and to sell autonomous models of its entire equipment line by 2030.
While international competitors stand flat-footed, Deere's first-mover advantage can enable it to take an increasing share of the international market over the next several years. Yet, the stock is down 24% from its 52-week high and trades at a P/E ratio of about 17. That's a more compelling bargain than the stock has seen in over two years.
Watsco dominates its industry
Watsco (NYSE: WSO) is an under-the-radar company that sells replacement parts for air-conditioner units to local repair companies through its massive distribution network. The company has made $804 million in acquisitions to bolster its product portfolio and expand its network since 2001. Watsco has made a practice of quickly and efficiently upselling newly acquired products into its sprawling U.S. distribution network. The results have been unbelievable.
Image source: Watsco company presentation.
Watsco's industry is highly fragmented, meaning it is made up of a large number of smaller competitors. The company plans to repeat its proven acquisition strategy for the foreseeable future.
More recently, Watsco has implemented an e-commerce platform that allows field technicians to order replacement parts faster than traditional channels. The platform enables its repair company customers to complete more jobs per day and become more profitable. The platform also allows for easier integration of future acquisitions.
Watsco's stock is one of only 29 to achieve a 20% annualized total return over the last 30 years. But today's bear market has caused it to come down 22% from its 52-week high. The stock now trades at a P/E ratio of 19.4, dramatically more appealing than its five-year average of nearly 30.
Buy now or wait?
There is no telling when today's bear market will give way to the bulls. But the stock market is always forward-looking. So, waiting for rosy macroeconomic news may mean the recovery is already upon us. Buying the stocks of great companies at depressed prices is a recipe for market-beating returns. Even if it means the bear market persists for a while, it's better than suffering from the regret of missing out on opportunities like these.
10 stocks we like better than Johnson Controls International
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson Controls International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 17, 2022
BJ Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Watsco. The Motley Fool recommends Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite the current macro environment, the company still expects to generate organic revenue growth of 8% to 9% and adjusted earnings per share of $2.98 to $3.02 this year. In the first half of 2022, the S&P 500 index fell 20.6%. Year to date, the index is down 25%, putting it firmly in bear market territory.
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Deere's autonomous tractors could quickly grow Deere & Company (NYSE: DE) and its famous green and yellow brand have dominated the U.S. tractor and combine markets. In the first half of 2022, the S&P 500 index fell 20.6%. Year to date, the index is down 25%, putting it firmly in bear market territory.
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Deere's autonomous tractors could quickly grow Deere & Company (NYSE: DE) and its famous green and yellow brand have dominated the U.S. tractor and combine markets. Watsco dominates its industry Watsco (NYSE: WSO) is an under-the-radar company that sells replacement parts for air-conditioner units to local repair companies through its massive distribution network. In the first half of 2022, the S&P 500 index fell 20.6%.
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Deere is investing in the software that runs its autonomous tractors and can also be used to run traditional tractors without a driver. In the first half of 2022, the S&P 500 index fell 20.6%. Year to date, the index is down 25%, putting it firmly in bear market territory.
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2022-10-04 00:00:00 UTC
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Down Between 19% and 40%: 3 Passive-Income Powerhouse Stocks to Buy in October
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https://www.nasdaq.com/articles/down-between-19-and-40%3A-3-passive-income-powerhouse-stocks-to-buy-in-october
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With the broader indices hovering around their 52-week lows, investors are likely wondering when the market will stop going down. And although no one knows when the sell-off will end, it can be comforting to know that bear markets tend to be some of the best buying opportunities for patient investors.
One of the simplest ways to outlast a bear market is to do nothing. But that's easier said than done. However, dividend stocks incentivize patience by providing passive income without the need to sell stock. Cummins (NYSE: CMI), Allegion PLC (NYSE: ALLE), and Watsco (NYSE: WSO) stand out as three excellent companies that also pay growing dividends.
Investing in equal parts of each stock produces a dividend yield of 2.8% -- which isn't a particularly high yield. However, each of these companies more than makes up for a lower yield with consistency. Here's what makes each company a good buy now.
Image source: Getty Images.
A reliable machinery maker with a good dividend yield
Daniel Foelber (Cummins): Cummins is one of the largest industrial machinery manufacturers in the U.S. Unlike companies like Deere or Caterpillar that provide full packaged solutions in construction, agriculture, and other industries (like the software and hardware for a tractor or an excavator), Cummins specializes in engines, powertrains, and components. Its engines are mainly used in the transportation sector through trucking, light-duty automotive, and off-highway applications. It also has a large aftermarket segment, provides emissions solutions, and is involved in power generation through integrated power systems and generators.
In Q2 2022, 58% of sales were in the U.S. and Canada. But the company has a global distribution network that spans around 190 countries and territories. Due to the nature of its business and its international exposure, Cummins' performance can be cyclical. But the company looks like a great buy for long-term investors.
Cummins sees an ample opportunity in decarbonizing the industries it serves. The company was early to the "net-zero by 2050" trend. In fact, it launched its Planet 2050 strategy in November 2019, which was ahead of its industry peers. In addition to its 2050 net-zero pledge, the company has several goals it wants to accomplish by 2030, such as generating 25% less waste in facilities and operations, reusing or recycling 100% of packaging plastics, and eliminating single-use plastics.
Cummins was founded over 100 years ago, so it has plenty of experience that can be instrumental in developing and implementing low-carbon solutions. There's no denying that the transportation segment remains heavily dependent on diesel and is a primary contributor to greenhouse gas emissions. Transitioning its legacy diesel and natural gas business toward alternative fuels and hydrogen will take time. But Cummins is one of the best-positioned companies to make that transition a reality. Down 26% from its all-time high, the company has just a 14.3 price-to-earnings ratio and a dividend yield of 3.1%, making it an inexpensive stock that can provide a reliable passive income stream.
A safe way to play a powerful secular trend
Lee Samaha (Allegion): The doors, locks, and access system controls company's stock is down a whopping 40% from its all-time high. However, falling stock prices often create good buying opportunities, and Allegion currently trades at a rarely seen valuation. This chart shows its enterprise value (market cap plus net debt) to earnings before interest, taxation, depreciation, and amortization (EBITDA) valuation.
Data by YCharts
The reason why Allegion usually trades on a higher valuation multiple comes down to the convergence of mechanical and electrical security products. The increasing adoption of electronic and wireless-enabled locks and doors brings significant benefits to users. For example, with digitally interconnected locks, commercial building managers can monitor, control, and grant access to personnel within a building. This helps increase security and productivity and can cut back on theft. Similarly, the proliferation of digital technology can increase accessibility in the home environment without a corresponding security compromise.
Meanwhile, the addition of Stanley Black & Decker's access technologies (security doors) adds complementary solutions to Allegion's existing doors, locks, and security software.
Trading on less than 15 times estimated 2023 earnings, Allegion looks like a good value stock, and investors can enjoy a 1.8% dividend yield while they wait for Allegion's long-term growth prospects to be realized.
Now's the time to warm up to this leader in air conditioning
Scott Levine (Watsco): With the first days of autumn upon us, turning on the air conditioning is most likely not the thing on most people's minds right now. But that doesn't mean that it's not worth taking a look at a leader in heating, ventilation, and air conditioning (HVAC) like Watsco -- especially considering the fact that the market has cooled on bidding the stock higher in 2022. Down 19% from its all-time high, shares of Watsco are currently on sale, making it a smart choice for investors who can keep a cool head while this HVAC stock and its forward-yielding dividend of 3.3% remains out of favor.
Skeptics may question the appeal of a stock that has plunged nearly 20% in 2022. But savvy investors know that some of the most profitable investments are made when equities are out of favor. And being out of favor seems to be the situation that Watsco finds itself in -- not some fundamental flaw in the company's business.
Besides the overall bearish sentiment pervading the market recently, the decline in Watsco's stock can be attributed to the company coming up short of analysts' second-quarter 2022 revenue and earnings per share estimates. An analyst's downgrade of the stock in June, moreover, provided fodder for the bears to click the sell button.
Taking the long view, however, investors will find that Watsco has outperformed the market considerably. Over the past 10 years, for example, the S&P 500 has provided a total return of 214%, while Watsco has provided a total return of more than 403%. Watsco's resilient business model is illustrated by its strong presence in providing aftermarket products; for example, the company has relationships with more than 1,200 original equipment manufacturers and suppliers. With the installed base of HVAC units rising at a compound annual growth rate of 3.5% since 1980, there are plenty of opportunities for Watsco to provide replacement parts.
Naturally, the stock's previous performance doesn't mean that it will continue to trounce the S&P 500 in the same way, but then again, there's no such guarantee with any stock. Management's track record of success and dedication to rewarding shareholders, as well as the company's strong balance sheet, suggests that Watsco is a smart consideration for income investors right now.
10 stocks we like better than Cummins
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Cummins wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Watsco. The Motley Fool recommends Cummins and Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unlike companies like Deere or Caterpillar that provide full packaged solutions in construction, agriculture, and other industries (like the software and hardware for a tractor or an excavator), Cummins specializes in engines, powertrains, and components. Besides the overall bearish sentiment pervading the market recently, the decline in Watsco's stock can be attributed to the company coming up short of analysts' second-quarter 2022 revenue and earnings per share estimates. With the broader indices hovering around their 52-week lows, investors are likely wondering when the market will stop going down.
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A reliable machinery maker with a good dividend yield Daniel Foelber (Cummins): Cummins is one of the largest industrial machinery manufacturers in the U.S. Meanwhile, the addition of Stanley Black & Decker's access technologies (security doors) adds complementary solutions to Allegion's existing doors, locks, and security software. With the broader indices hovering around their 52-week lows, investors are likely wondering when the market will stop going down.
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Down 19% from its all-time high, shares of Watsco are currently on sale, making it a smart choice for investors who can keep a cool head while this HVAC stock and its forward-yielding dividend of 3.3% remains out of favor. With the broader indices hovering around their 52-week lows, investors are likely wondering when the market will stop going down. However, dividend stocks incentivize patience by providing passive income without the need to sell stock.
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Down 19% from its all-time high, shares of Watsco are currently on sale, making it a smart choice for investors who can keep a cool head while this HVAC stock and its forward-yielding dividend of 3.3% remains out of favor. With the broader indices hovering around their 52-week lows, investors are likely wondering when the market will stop going down. However, dividend stocks incentivize patience by providing passive income without the need to sell stock.
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2022-10-02 00:00:00 UTC
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3 Recession-Resistant Agriculture Dividend Stocks That Can Steer Your Portfolio Toward Greener Pastures
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https://www.nasdaq.com/articles/3-recession-resistant-agriculture-dividend-stocks-that-can-steer-your-portfolio-toward
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nan
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nan
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Fluctuating commodity prices and varying demand for new equipment and machinery add cyclicality to the agriculture industry. However, the industry also has a great deal of recession resistance. The agriculture industry may not make up a large percentage of the U.S. economy. But it is an essential industry people simply can't live without. A growing population can only be supported by increased food production, which provides a secular tailwind for long-term growth in farming.
Deere (NYSE: DE), Archer-Daniels-Midland (NYSE: ADM), and Corteva (NYSE: CTVA) each specialize in a different part of the agriculture industry. Deere through the design, manufacturing, distribution, and servicing of farm and heavy construction machinery. Archer-Daniels-Midland through the purchase, procurement, and storage of agriculture commodities, products, and ingredients. And Corteva through specialty chemicals designed for seed and crop protection. Together, this basket of agriculture stocks provides a diversified starting position if you're interested in the industry. Here's what makes each stock a great buy now.
Image source: Getty Images.
Deere is investing in the next era of agriculture
Daniel Foelber (Deere): Deere is the largest U.S.-based farm and heavy construction machinery or specialty industrial machinery company by market cap. And for good reason. Deere is the undisputed market leader in several key industries, including precision agriculture and small-scale agriculture. It also operates a sizable construction and forestry division.
Even after the recent sell-off, Deere stock has more than doubled over the last three years and is on track to produce record profits for full-year 2022. Deere's competitive advantages include its well-known brand and premium pricing, distribution network, vertical integration, and investments in technology. The company has been leading the push toward smart farming and automation in agriculture, which involves using software and artificial intelligence to drive efficiency, boost crop yield, and reduce costs.
In the below chart, you can see that Deere's operating margin, return on capital employed, trailing-12-month (TTM) research and development expense, and trailing-12-month net income are at or near five-year highs.
DE Operating Margin (TTM) data by YCharts
The metrics indicate that Deere is growing profit margins and profits, using its capital wisely, and making sizable long-term investments. Investors may look at Deere's 1.4% dividend yield and overlook the company. But what Deere lacks in yield, it more than makes up for with growth.
Deere has a lower dividend yield than other U.S.-based heavy and specialty industrial machinery manufacturing stocks -- such as Caterpillar, Cummins, and Illinois Tool Works. But it is far more specialized and could be a faster grower over the long term. In sum, Deere is an excellent choice for investors looking for exposure to the agriculture industry and who believe that the Industrial Internet of Things will play a growing role in established industries.
Position your portfolio for passive income growth with this noble agriculture stock
Scott Levine (Archer-Daniels-Midland): Finding stocks that can endure downturns in economic cycles is a great way to fortify your portfolio. But identifying recession-resistant stocks that also are reliable dividend payers? Now, that's a cash crop that can provide much-appreciated passive income during challenging market conditions. Fortunately, investors need not look much farther than Archer-Daniels-Midland and its forward-yielding dividend of 2%.
Archer-Daniels-Midland, a leading agriculture and human nutrition stock, has rewarded shareholders with a dividend for 90 years. That's no easy feat, considering the numerous recessions the country has endured during that time. Even more impressive, however, is that the company has maintained a streak of raising its dividend to shareholders, helping it to achieve the noble rank of Dividend Aristocrat. In fact, the company has 49 consecutive years of hiking its distribution to shareholders, making it one of the longest-tenured members of the distinguished group of dividend stocks.
Looking beyond the dividend, investors will find that the company's rock-solid balance sheet suggests it's well positioned to withstand a potentially tumultuous time in the economy. Archer-Daniels-Midland sports an investment-grade balance sheet as rated by Fitch Ratings, Moody's, and S&P Global. On a more granular level, investors will find evidence of the company's strong financial position in its conservative approach to leverage. Archer-Daniels-Midland, for example, ended the second quarter of 2022 with a ratio of net debt to earnings before interest, taxation, depreciation, and amortization (EBITDA) of 1.6. Furthermore, the company is well positioned to cover its current liabilities with a current ratio of 1.5.
For investors looking to sow their portfolio with the seeds of a stalwart agriculture stock, Archer-Daniels-Midland is an ideal choice, offering investors the opportunity to reap passive income while they wait out a possible recession.
This agriscience company is recession resistant
Lee Samaha (Corteva): It's not easy to find stocks that are up more than 22% in 2022 (not least because it implies a 45% outperformance over the S&P 500), but agriscience company Corteva is one of them. The reason for this is that the economy at large doesn't determine Corteva's end markets; they are driven by crop prices (high crop prices induce farmers to lay crops) and Corteva's ability to sell its seeds and crop protection products.
The good news is, despite a correction over the summer, the price of key crops like wheat, corn, and soybeans remains higher than it was at the start of the year.
On top of the revenue growth opportunity, Corteva has a margin expansion opportunity through implementing a much-anticipated restructuring plan focused on reducing exposure to less attractive end markets and simplifying its organizational structure. In addition, Corteva is expanding sales of its seed and crop protection systems under its patents. As a result, management plans to reduce the royalties it pays other companies to license their technology. One such product is Corteva's Enlist system, which is now planted on 45% of U.S. soybean acres after being on the market for only three years.
It's all expected to lead to its EBITDA margin rising from 17.4% in 2022 to between 21% and 23% in 2025. Ultimately, a combination of recession-resistant growth and margin expansion prospects makes Corteva an attractive stock in the current environment.
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Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and S&P Global. The Motley Fool recommends Cummins and Deere & Company. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the below chart, you can see that Deere's operating margin, return on capital employed, trailing-12-month (TTM) research and development expense, and trailing-12-month net income are at or near five-year highs. Deere has a lower dividend yield than other U.S.-based heavy and specialty industrial machinery manufacturing stocks -- such as Caterpillar, Cummins, and Illinois Tool Works. Fluctuating commodity prices and varying demand for new equipment and machinery add cyclicality to the agriculture industry.
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Deere is investing in the next era of agriculture Daniel Foelber (Deere): Deere is the largest U.S.-based farm and heavy construction machinery or specialty industrial machinery company by market cap. Fluctuating commodity prices and varying demand for new equipment and machinery add cyclicality to the agriculture industry. However, the industry also has a great deal of recession resistance.
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Deere is investing in the next era of agriculture Daniel Foelber (Deere): Deere is the largest U.S.-based farm and heavy construction machinery or specialty industrial machinery company by market cap. The reason for this is that the economy at large doesn't determine Corteva's end markets; they are driven by crop prices (high crop prices induce farmers to lay crops) and Corteva's ability to sell its seeds and crop protection products. Fluctuating commodity prices and varying demand for new equipment and machinery add cyclicality to the agriculture industry.
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DE Operating Margin (TTM) data by YCharts The metrics indicate that Deere is growing profit margins and profits, using its capital wisely, and making sizable long-term investments. Investors may look at Deere's 1.4% dividend yield and overlook the company. Fluctuating commodity prices and varying demand for new equipment and machinery add cyclicality to the agriculture industry.
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8be972b5-7469-400a-8948-00fa936cbe5d
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721024.0
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2022-09-30 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, NCLH, TWTR
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-nclh-twtr
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 11,207 contracts have traded so far, representing approximately 1.1 million underlying shares. That amounts to about 88.7% of DE's average daily trading volume over the past month of 1.3 million shares. Particularly high volume was seen for the $260 strike put option expiring January 20, 2023, with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange:
Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) saw options trading volume of 175,529 contracts, representing approximately 17.6 million underlying shares or approximately 87.3% of NCLH's average daily trading volume over the past month, of 20.1 million shares. Especially high volume was seen for the $12.50 strike put option expiring September 30, 2022, with 15,481 contracts trading so far today, representing approximately 1.5 million underlying shares of NCLH. Below is a chart showing NCLH's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
And Twitter Inc (Symbol: TWTR) saw options trading volume of 85,729 contracts, representing approximately 8.6 million underlying shares or approximately 77% of TWTR's average daily trading volume over the past month, of 11.1 million shares. Particularly high volume was seen for the $43.50 strike call option expiring September 30, 2022, with 5,535 contracts trading so far today, representing approximately 553,500 underlying shares of TWTR. Below is a chart showing TWTR's trailing twelve month trading history, with the $43.50 strike highlighted in orange:
For the various different available expirations for DE options, NCLH options, or TWTR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $260 strike put option expiring January 20, 2023, with 1,102 contracts trading so far today, representing approximately 110,200 underlying shares of DE. Especially high volume was seen for the $12.50 strike put option expiring September 30, 2022, with 15,481 contracts trading so far today, representing approximately 1.5 million underlying shares of NCLH. Particularly high volume was seen for the $43.50 strike call option expiring September 30, 2022, with 5,535 contracts trading so far today, representing approximately 553,500 underlying shares of TWTR.
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Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) saw options trading volume of 175,529 contracts, representing approximately 17.6 million underlying shares or approximately 87.3% of NCLH's average daily trading volume over the past month, of 20.1 million shares. Especially high volume was seen for the $12.50 strike put option expiring September 30, 2022, with 15,481 contracts trading so far today, representing approximately 1.5 million underlying shares of NCLH. Below is a chart showing NCLH's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Twitter Inc (Symbol: TWTR) saw options trading volume of 85,729 contracts, representing approximately 8.6 million underlying shares or approximately 77% of TWTR's average daily trading volume over the past month, of 11.1 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 11,207 contracts have traded so far, representing approximately 1.1 million underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) saw options trading volume of 175,529 contracts, representing approximately 17.6 million underlying shares or approximately 87.3% of NCLH's average daily trading volume over the past month, of 20.1 million shares. Below is a chart showing NCLH's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Twitter Inc (Symbol: TWTR) saw options trading volume of 85,729 contracts, representing approximately 8.6 million underlying shares or approximately 77% of TWTR's average daily trading volume over the past month, of 11.1 million shares.
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Especially high volume was seen for the $12.50 strike put option expiring September 30, 2022, with 15,481 contracts trading so far today, representing approximately 1.5 million underlying shares of NCLH. Below is a chart showing NCLH's trailing twelve month trading history, with the $12.50 strike highlighted in orange: And Twitter Inc (Symbol: TWTR) saw options trading volume of 85,729 contracts, representing approximately 8.6 million underlying shares or approximately 77% of TWTR's average daily trading volume over the past month, of 11.1 million shares. Particularly high volume was seen for the $43.50 strike call option expiring September 30, 2022, with 5,535 contracts trading so far today, representing approximately 553,500 underlying shares of TWTR.
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404517ca-79ae-4463-8156-89c146a66e22
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721025.0
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2022-09-30 00:00:00 UTC
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John Deere Horicon Works Employees Approve New Contract
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DE
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https://www.nasdaq.com/articles/john-deere-horicon-works-employees-approve-new-contract
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nan
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nan
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(RTTNews) - The International Association of Machinists and Aerospace Workers has informed Deere & Co. (DE) that its production and maintenance employees have ratified a new four-year collective bargaining agreement that covers 900 workers at the John Deere Horicon Works in Horicon, WI.
Negotiations between the company and the International Association of Machinists and Aerospace Local 873 began on July 27. The current agreement expires October 1, 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The International Association of Machinists and Aerospace Workers has informed Deere & Co. (DE) that its production and maintenance employees have ratified a new four-year collective bargaining agreement that covers 900 workers at the John Deere Horicon Works in Horicon, WI. Negotiations between the company and the International Association of Machinists and Aerospace Local 873 began on July 27. The current agreement expires October 1, 2022.
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(RTTNews) - The International Association of Machinists and Aerospace Workers has informed Deere & Co. (DE) that its production and maintenance employees have ratified a new four-year collective bargaining agreement that covers 900 workers at the John Deere Horicon Works in Horicon, WI. Negotiations between the company and the International Association of Machinists and Aerospace Local 873 began on July 27. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The International Association of Machinists and Aerospace Workers has informed Deere & Co. (DE) that its production and maintenance employees have ratified a new four-year collective bargaining agreement that covers 900 workers at the John Deere Horicon Works in Horicon, WI. Negotiations between the company and the International Association of Machinists and Aerospace Local 873 began on July 27. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - The International Association of Machinists and Aerospace Workers has informed Deere & Co. (DE) that its production and maintenance employees have ratified a new four-year collective bargaining agreement that covers 900 workers at the John Deere Horicon Works in Horicon, WI. Negotiations between the company and the International Association of Machinists and Aerospace Local 873 began on July 27. The current agreement expires October 1, 2022.
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442ca613-1cd3-4662-afdb-d0fded2b7fac
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721026.0
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2022-09-29 00:00:00 UTC
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Noteworthy ETF Outflows: XLI, UNP, UPS, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xli-unp-ups-de
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $482.6 million dollar outflow -- that's a 3.9% decrease week over week (from 144,930,000 to 139,280,000). Among the largest underlying components of XLI, in trading today Union Pacific Corp (Symbol: UNP) is off about 1.4%, United Parcel Service Inc (Symbol: UPS) is off about 0.8%, and Deere & Co. (Symbol: DE) is lower by about 1.3%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $82.87 per share, with $107.88 as the 52 week high point — that compares with a last trade of $83.68. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $482.6 million dollar outflow -- that's a 3.9% decrease week over week (from 144,930,000 to 139,280,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $82.87 per share, with $107.88 as the 52 week high point — that compares with a last trade of $83.68. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $482.6 million dollar outflow -- that's a 3.9% decrease week over week (from 144,930,000 to 139,280,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $482.6 million dollar outflow -- that's a 3.9% decrease week over week (from 144,930,000 to 139,280,000). For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $82.87 per share, with $107.88 as the 52 week high point — that compares with a last trade of $83.68. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $82.87 per share, with $107.88 as the 52 week high point — that compares with a last trade of $83.68. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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bdc0aeb3-61f6-4750-a86f-1ab69118e4a5
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721027.0
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2022-09-29 00:00:00 UTC
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Deere (DE) Stock Moves -1.42%: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-moves-1.42%3A-what-you-should-know
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nan
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nan
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In the latest trading session, Deere (DE) closed at $341, marking a -1.42% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the agricultural equipment manufacturer had lost 5.3% over the past month, outpacing the Industrial Products sector's loss of 9.6% and the S&P 500's loss of 8.19% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. The company is expected to report EPS of $7.14, up 73.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 31.31% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.94 per share and revenue of $47.57 billion. These results would represent year-over-year changes of +20.8% and +19.71%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Deere currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Deere is holding a Forward P/E ratio of 15.08. For comparison, its industry has an average Forward P/E of 13.47, which means Deere is trading at a premium to the group.
It is also worth noting that DE currently has a PEG ratio of 1.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.2 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Deere (DE) closed at $341, marking a -1.42% move from the previous day. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988.
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This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. In the latest trading session, Deere (DE) closed at $341, marking a -1.42% move from the previous day. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere & Company (DE): Free Stock Analysis Report In the latest trading session, Deere (DE) closed at $341, marking a -1.42% move from the previous day.
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Deere & Company (DE): Free Stock Analysis Report In the latest trading session, Deere (DE) closed at $341, marking a -1.42% move from the previous day. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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8d440f17-33a9-4ec4-98dc-d8dc9ef9f6c7
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721028.0
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2022-09-29 00:00:00 UTC
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The 7 Best Agriculture Stocks to Buy Now
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DE
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https://www.nasdaq.com/articles/the-7-best-agriculture-stocks-to-buy-now-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The U.S. Department of Agriculture (USDA) announced on Sept. 14 that it would invest up to $2.8 billion in 70 smart-farming initiatives selected as part of the Partnerships for Climate-Smart Commodities. While these 70 projects won’t give investors an answer regarding The 7 Best Agriculture Stocks to Buy Now, it does reinforce why the agriculture industry is a smart bet for future growth.
The 70 projects in this first funding pool include the following:
Climate-Smart Agriculture Innovative Finance Initiative
Scaling Methane Emissions Reductions and Soil Carbon Sequestration
The Soil Inventory Project Partnership for Impact and Demand
The Grass is Greener on the Other Side: Developing Climate-Smart Beef and Bison Commodities, and
Traceable Reforestation for America’s Carbon and Timber
All 70 projects aim to help farmers, academics, agriculture-related companies, and government agencies work together to produce a more efficient, innovative, and climate-friendly industry.
The seven agriculture stocks to buy should all benefit from the investment the Biden Administration and the USDA are making in smart farming.
While it will take years to assess the success of these projects, you can invest in these seven agriculture stocks today.
ADM Archer-Daniels-Midland $84.07
CTVA Corteva $58.27
DE Deere & Co. $342.55
TSCO Tractor Supply $192.45
AGM Federal Agricultural Mortgage $102.46
TSN Tyson Foods $68.81
SMG Scotts Miracle-Gro $48.38
Archer Daniels Midland (ADM)
Source: Shutterstock
The Des Moines Register reported in mid-September that Archer-Daniels-Midland (NYSE:ADM) CEO Juan Luciano made $14.8 million by selling 284,531 shares of the world’s leading producer of human and animal nutrition company.
At the time, Luciano exercised options between $33.18 and $40.65 on Sep. 9, netting an extra $2 million on his stock options because the ADM share price had fallen by 12% since. The sale was part of Luciano’s Rule 10b5-1 trading plan. It’s not an indication that he knows something bad about the company. Instead, CEOs, like Luciano have financial obligations requiring them to sell shares for cash.
As a company, Archer-Daniels-Midland continues to innovate for the future. On Aug. 17, for example, it announced it was collaborating with New Culture, a company that makes animal-free cheese products that look and feel like the real thing.
The partnership gives New Culture the scale necessary to make an indent in the animal-free dairy products industry. Meanwhile, ADM gains access to one of the industry’s most innovative developers of animal-free dairy products.
It doesn’t hurt that ADM generates a trailing 12-month operating income of $3.82 billion from $94.36 billion in revenue. ADM is a major player in agriculture.
Corteva (CTVA)
Source: Max_555 / Shutterstock.com
Agriculture stocks are performing well in 2022. The iShares Global Agriculture Index ETF — listed on the Toronto Stock Exchange as COW– is up nearly 2% year-to-date, almost 26% better than the S&P 500. Not surprisingly, Corteva (NYSE:CTVA) is up more than 22% YTD.
In March 2021, I suggested Corteva was one of seven safe stocks that wouldn’t bleed your portfolio. I liked the stock because I believed Corteva would do well in 2021 and beyond. After all, agriculture is wise place to put your money.
This was despite the threat from activist investor Starboard Value to shake things up. Starboard advocated for the dismissal of CEO Jim Collins in early 2021. While they didn’t get their wish, they did get three of their proposed independent board members added to Corteva’s board in March 2021 as part of the activist investor’s agreement with the company. All three are still on the board.
Starboard continues to own more than one million shares of CTVA stock. Of the 25 analysts covering its stock, 17 rate it Buy or Overweight, with a median target price of $70, 22% higher than its current share price.
Deere & Co. (DE)
Source: Jim Lambert / Shutterstock.com
In August 2019, I identified 10 companies using artificial intelligence (AI) to grow their businesses. Deere & Co. (NYSE:DE) was one of the names on my list.
“However, starting in 2013, Deere began to plot a vision of the future farm where all the machinery would be autonomously operated with the farmer monitoring everything from his home” I wrote. “Since then, it has evolved to include AI, computer vision, and machine learning. Agriculture is surprisingly well-suited to technology despite its low-tech reputation.”
Using AI to save its customers money, Deere was betting farmers would buy newer equipment. Deere stock is up more than 128% since then.
Many have a problem with John Deere’s dominance of the farm equipment market and how it got that way, but that’s a story for another day.
There’s no denying the company’s size and scale. It is the largest farm equipment company in the world after all. In addition, it also sells more equipment globally than the next two largest competitors combined. It controls 53% of the U.S. market for large tractors and 60% of the U.S. combine market.
Its TTM revenue through Q3 2023 is $47.93 billion, with an operating profit of $7.75 billion. That’s an operating margin of 16.2%. CNH Industrial’s (NYSE:CNHI) is 11.4%, 480 basis points lower.
Tractor Supply (TSCO)
Source: Matthew Troke / Shutterstock.com
I mentioned the iShares Global Agriculture Index ETF in the Corteva section. One of its top 10 holdings is Tennessee-based specialty retailer Tractor Supply (NASDAQ:TSCO), the largest retail farm and ranch store operator in the U.S. However, it targets recreational farmers, not the kind John Deere supplies.
I first recommended TSCO for InvestorPlace in September 2014. It was one of 3 Great Stocks to Buy With No Debt and Great Prospects. It’s up 209% in the eight years since 2.5x the S&P 500. Charlie Bilello recently pointed out that TSCO was the third best-performing S&P 500 stock over the past 20 years, up 35,087%.
While I don’t know if it can keep up such a blistering pace, it continues to deliver beneficial results. That is, even though, over those 20 years, there’s been at least four different CEOs and two recessions.
The current CEO, Hal Lawton was hired away from Macy’s (NYSE:M) in December 2019. Since then, its shares have nearly doubled.
In July, Tractor Supply reported Q2 2022 results that included a 5.5% increase in same-store sales and a 10.7% increase in earnings per share. In addition, it raised its 2022 outlook. On the top line, it now expects at least $13.95 billion in revenue, up from its previous guidance of $13.6 billion. On the bottom line, it now expects EPS of at least $9.48, 28 cents higher than its previous guidance.
Down 20% YTD, it currently trades at 1.6x sales, right at its five-year average, so it’s not overpriced.
Federal Agricultural Mortgage (AGM)
Source: wutzkohphoto / Shutterstock
Affectionately known as Farmer Mac, the Federal Agricultural Mortgage Corp. (NYSE:AGM) provides low-cost financing to agricultural lenders and those participating in agribusiness.
A few highlights from its Q2 2022 presentation suggest it’s an excellent stock to own for the long haul.
For example, more than 90% of its revenue is recurring, a figure tech companies would die for. On a cumulative basis, just 0.11% of its Agricultural Finance Mortgage Loans have soured. Lastly, its business continues to grow. Between 2000 and 2021, its outstanding business volume achieved a compound annual growth rate of 10%.
Recurring revenue multiplied by rock-solid growth is a recipe for success. I guess that’s why AGM stock’s gained 3,200% since the March 2009 lows during the financial crisis.
On page 7 of its presentation, Farmer Mac points out that it has just 6% of the farm sector real estate debt of $302 billion. The mortgage market is a big one, and it intends to keep gobbling up more of it in the years to come.
In August, it reported its Q2 2022 results that included adding $1.9 billion of gross business volume ($236 million net growth), a 12% sequential increase in net interest income to $69.4 million, and a core EPS of $2.83, 19% higher sequentially and 2% year-over-year.
Yielding 3.71%, get paid to wait for the stock’s next leg up.
Tyson Foods (TSN)
Source: rblfmr / Shutterstock.com
The processor of chicken, beef and pork has not done well by shareholders over the past five years. Tyson Foods (NYSE:TSN) stock is down nearly 3%, more than 47 percentage points worse than the S&P 500.
So, why am I including TSN on my list? If nothing else, reversion to the mean suggests Tyson is due for a relief rally.
Tyson recently made some organizational changes that will help the company grow. Included in the moves was the announcement that fourth-generation Tyson family member John R. Tyson is the company’s new Chief Financial Officer. Current CFO Stewart Glendinning moves over to Group President, Prepared Foods.
The company hopes Glendinning’s financial and operational background will help its Prepared Foods business come into its own — they currently account for 18.1% of revenue and 17.4% of operating income — while John Tyson appears to be in the running to become CEO in the future.
Analysts are lukewarm about its stock. Of the 15 covering it, 10 rate it a Hold. However, the average target price is $92.72, 35% higher than where it’s currently trading.
Tyson expects 2022 revenues of $53 billion at the midpoint of its guidance. At an operating margin of 9%, it should generate $4.8 billion in operating income for the year.
If you’re an income investor, it has an above-average yield of 2.7%, has grown the annual dividend for 10 consecutive years, and averaged a 17.2% compound annual growth rate over the past five years.
It’s an excellent stock to own in turbulent times.
Scotts Miracle-Gro (SMG)
Source: monticello/ShutterStock.com
If you bought Scotts Miracle-Gro (NYSE:SMG) stock at the beginning of 2022, I feel your pain. It’s down more than 70% YTD, and there are still three months left of the year.
I would put SMG on your watchlist if you’re an aggressive investor. It hasn’t traded this low since June 2013. If you bought back then and didn’t sell at its all-time high of $180.43 in April 2021, I feel your pain times two.
The company’s shares lost 25% in August alone as margins crumbled as retailers reduced inventory levels.
However, weighing more heavily on the share price could be the implosion of its Hawthorne Gardening business. Sales fell 63% in Q3 2022 to $154.5 million from $421.9 million a year earlier. Through the third quarter, Hawthorne’s sales were down 50% due to oversupply issues. As a result, it took a $632.4 million impairment charge on its goodwill and intangible assets.
To counter the slide, the company announced Project Springboard when it released its third-quarter results in early August. It is intended to return Scotts Miracle-Gro to the level of profitability that shareholders have become accustomed to. Over the past five years, the company’s average gross margin was 32.1%. In Q3 2022, it was 19.9% and 27.5% YTD.
It trades at o.67x sales, one-third of its five-year average. SMG is the value play of these seven agricultural stocks.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post The 7 Best Agriculture Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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“However, starting in 2013, Deere began to plot a vision of the future farm where all the machinery would be autonomously operated with the farmer monitoring everything from his home” I wrote. Agriculture is surprisingly well-suited to technology despite its low-tech reputation.” Using AI to save its customers money, Deere was betting farmers would buy newer equipment. Tractor Supply (TSCO) Source: Matthew Troke / Shutterstock.com I mentioned the iShares Global Agriculture Index ETF in the Corteva section.
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ADM Archer-Daniels-Midland $84.07 CTVA Corteva $58.27 DE Deere & Co. $342.55 TSCO Tractor Supply $192.45 AGM Federal Agricultural Mortgage $102.46 TSN Tyson Foods $68.81 SMG Scotts Miracle-Gro $48.38 Archer Daniels Midland (ADM) Source: Shutterstock The Des Moines Register reported in mid-September that Archer-Daniels-Midland (NYSE:ADM) CEO Juan Luciano made $14.8 million by selling 284,531 shares of the world’s leading producer of human and animal nutrition company. Federal Agricultural Mortgage (AGM) Source: wutzkohphoto / Shutterstock Affectionately known as Farmer Mac, the Federal Agricultural Mortgage Corp. (NYSE:AGM) provides low-cost financing to agricultural lenders and those participating in agribusiness. In August, it reported its Q2 2022 results that included adding $1.9 billion of gross business volume ($236 million net growth), a 12% sequential increase in net interest income to $69.4 million, and a core EPS of $2.83, 19% higher sequentially and 2% year-over-year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The U.S. Department of Agriculture (USDA) announced on Sept. 14 that it would invest up to $2.8 billion in 70 smart-farming initiatives selected as part of the Partnerships for Climate-Smart Commodities. The 70 projects in this first funding pool include the following: Climate-Smart Agriculture Innovative Finance Initiative Scaling Methane Emissions Reductions and Soil Carbon Sequestration The Soil Inventory Project Partnership for Impact and Demand The Grass is Greener on the Other Side: Developing Climate-Smart Beef and Bison Commodities, and Traceable Reforestation for America’s Carbon and Timber All 70 projects aim to help farmers, academics, agriculture-related companies, and government agencies work together to produce a more efficient, innovative, and climate-friendly industry. ADM Archer-Daniels-Midland $84.07 CTVA Corteva $58.27 DE Deere & Co. $342.55 TSCO Tractor Supply $192.45 AGM Federal Agricultural Mortgage $102.46 TSN Tyson Foods $68.81 SMG Scotts Miracle-Gro $48.38 Archer Daniels Midland (ADM) Source: Shutterstock The Des Moines Register reported in mid-September that Archer-Daniels-Midland (NYSE:ADM) CEO Juan Luciano made $14.8 million by selling 284,531 shares of the world’s leading producer of human and animal nutrition company.
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ADM Archer-Daniels-Midland $84.07 CTVA Corteva $58.27 DE Deere & Co. $342.55 TSCO Tractor Supply $192.45 AGM Federal Agricultural Mortgage $102.46 TSN Tyson Foods $68.81 SMG Scotts Miracle-Gro $48.38 Archer Daniels Midland (ADM) Source: Shutterstock The Des Moines Register reported in mid-September that Archer-Daniels-Midland (NYSE:ADM) CEO Juan Luciano made $14.8 million by selling 284,531 shares of the world’s leading producer of human and animal nutrition company. Deere stock is up more than 128% since then. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The U.S. Department of Agriculture (USDA) announced on Sept. 14 that it would invest up to $2.8 billion in 70 smart-farming initiatives selected as part of the Partnerships for Climate-Smart Commodities.
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5791a78b-4c08-4d64-aa8b-26caf5b94768
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721029.0
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2022-09-29 00:00:00 UTC
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2 Top Stocks with Perfect TipRanks Smart Scores
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DE
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https://www.nasdaq.com/articles/2-top-stocks-with-perfect-tipranks-smart-scores
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nan
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nan
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In this piece, we used TipRanks' Comparison Tool to compare two "perfect" Smart Score stocks — Home Depot (NYSE:HD) and Deere (NYSE:DE) — that may be worth a second look. TipRanks' proprietary Smart Scores are a great way for self-guided investors to gauge the quality of investments at any given time. With such a rocky bear market and a looming recession, emphasis on quality fundamentals is vital.
Looking ahead, many firms will have to prepare to sail through a hailstorm as a result of higher interest rates. As inflation levels remain elevated, it's the "wonderful" businesses at a fair price that may be worth nabbing, rather than the fallen knives that are less likely to bounce back quickly.
I think it's safe to say that many speculative (and unprofitable) growth stocks that slipped last year will never see their peaks anytime this decade. Some fallen stars may never flirt with highs again in their lifetimes. As bleak as that may sound, investors should mute their expectations as we inch into one of the longest-lasting recessions since 2008.
Amid waves of analyst downgrades, many firms have seen their Smart Scores take a step back. Indeed, how Wall Street views a stock is just one of many intriguing factors that go into yielding a Smart Score.
A "perfect 10" Smart Score is quite rare, but they do exist, even in today's volatile market environment. Though such scores could drag as we enter a recession year, investors should view such names as top-of-the-line stocks worthy of your radar.
Home Depot
Home Depot is a home improvement stock that's endured quite a nasty slip this year, tanking almost 30% year-to-date. That's a decline that's much larger than the S&P 500. As consumers delay big home renovations and improvement projects until after the recession, it's Home Depot that could see sales erode suddenly.
Though it will be hard for Home Depot to "manage" its way out of an economic hailstorm, it's worth noting that management has done so many things right. The long-term growth profile is still intact. The coming recession will just act as a temporary but deep pothole that Home Depot must drive through. Investors will feel the bump. However, beyond the pothole is a fairly pleasant road to higher levels.
Regent Atlantic's Andy Kapyrin stated that Home Depot is one of the "best managed" big-box retailers out there. It's hard to disagree, even as the housing market begins to cool off and discretionary firms look to take a larger tumble than the market averages.
At writing, shares of Home Depot trade at a modest 17.3 times trailing earnings and 1.8 times sales. Undoubtedly, margin-enhancing initiatives could take a backseat as sales look to take another turn lower. Regardless, strong stewardship and a wide moat in the home improvement space should allow HD stock to see new highs again, irrespective of how severe and long-lasting the next economic downturn is. The same can't be said for many speculative companies whose fundamentals pale compared to the blue chip.
Is HD Stock Overvalued?
Home Depot doesn't just have a perfect TipRanks Smart Score; it has the confidence of Wall Street. The consensus rating on the name is a "Strong Buy." This is based on 15 Buys and three Holds assigned in the past three months. In the face of a recession, it's remarkable that analysts are standing by the firm. With an HD stock price target of $362.53, a solid 28.5% gain is projected for the next year.
Deere
Deere is another discretionary that sports a perfect Smart Score grade. The legendary farming-equipment maker has been on a choppy ride since peaking back in March 2022. Down around 21% from its peak, Deere seems to be weighed down by forces outside management's control.
A recession never bodes well for durable equipment demand. Though Deere equipment is top-of-the-line, it's tough to justify a hefty expenditure in the face of market chaos. Despite the recession, I view Deere and the farming industry as less correlated to the broader economy.
At the end of the day, crop prices and efficiency gains to be had from farming equipment purchases can help Deere power through a downturn. If a new piece of machinery can help improve productivity or lower costs, such an investment makes sense in any environment through the eyes of a farmer.
Further, Deere is differentiating itself as a pioneer within the niche agri-tech scene. Morgan Stanley recently praised Deere for its "durable growth path." They expect farm profitability to come in on the higher end in two years. In addition, Morgan Stanley sees replacement machinery demand higher than consensus estimates.
Indeed, it may not seem to make much sense to buy a durable discretionary like Deere in the face of a recession. Given prudent tech investments to save farmers time and money, though, I do view Deere as a candidate that could be spared from further market carnage this time around.
The stock trades at 17.3 times trailing earnings and 2.1 times sales. That's cheap for such a fundamentally-sound company with strong catalysts ahead of it.
Is DE Stock a Buy?
Wall Street loves Deere, assigning it a "Strong Buy" consensus rating based on 12 Buys and five Holds assigned in the past three months. The average DE stock price target of $407.50 implies 17.8% upside potential from here. Clearly, Morgan Stanley isn't the only firm upbeat on the farm equipment kingpin.
Conclusion: Investors Expect More from HD Stock
Home Depot and Deere are fundamentally-sound firms that deserve their perfect 10 Smart Scores, in my opinion. Between the two, investors expect more upside potential from HD stock.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As inflation levels remain elevated, it's the "wonderful" businesses at a fair price that may be worth nabbing, rather than the fallen knives that are less likely to bounce back quickly. Regardless, strong stewardship and a wide moat in the home improvement space should allow HD stock to see new highs again, irrespective of how severe and long-lasting the next economic downturn is. Conclusion: Investors Expect More from HD Stock Home Depot and Deere are fundamentally-sound firms that deserve their perfect 10 Smart Scores, in my opinion.
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In this piece, we used TipRanks' Comparison Tool to compare two "perfect" Smart Score stocks — Home Depot (NYSE:HD) and Deere (NYSE:DE) — that may be worth a second look. Wall Street loves Deere, assigning it a "Strong Buy" consensus rating based on 12 Buys and five Holds assigned in the past three months. Conclusion: Investors Expect More from HD Stock Home Depot and Deere are fundamentally-sound firms that deserve their perfect 10 Smart Scores, in my opinion.
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In this piece, we used TipRanks' Comparison Tool to compare two "perfect" Smart Score stocks — Home Depot (NYSE:HD) and Deere (NYSE:DE) — that may be worth a second look. Home Depot Home Depot is a home improvement stock that's endured quite a nasty slip this year, tanking almost 30% year-to-date. Conclusion: Investors Expect More from HD Stock Home Depot and Deere are fundamentally-sound firms that deserve their perfect 10 Smart Scores, in my opinion.
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Home Depot Home Depot is a home improvement stock that's endured quite a nasty slip this year, tanking almost 30% year-to-date. Indeed, it may not seem to make much sense to buy a durable discretionary like Deere in the face of a recession. Conclusion: Investors Expect More from HD Stock Home Depot and Deere are fundamentally-sound firms that deserve their perfect 10 Smart Scores, in my opinion.
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6d77777b-d08a-4b50-80cb-789c99f2eafd
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721030.0
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2022-09-27 00:00:00 UTC
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Ex-Dividend Reminder: Illinois Tool Works, CTS and Deere
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DE
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-illinois-tool-works-cts-and-deere
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 9/29/22, Illinois Tool Works, Inc. (Symbol: ITW), CTS Corp (Symbol: CTS), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Illinois Tool Works, Inc. will pay its quarterly dividend of $1.31 on 10/14/22, CTS Corp will pay its quarterly dividend of $0.04 on 11/4/22, and Deere & Co. will pay its quarterly dividend of $1.13 on 11/8/22. As a percentage of ITW's recent stock price of $188.70, this dividend works out to approximately 0.69%, so look for shares of Illinois Tool Works, Inc. to trade 0.69% lower — all else being equal — when ITW shares open for trading on 9/29/22. Similarly, investors should look for CTS to open 0.10% lower in price and for DE to open 0.33% lower, all else being equal.
Below are dividend history charts for ITW, CTS, and DE, showing historical dividends prior to the most recent ones declared.
Illinois Tool Works, Inc. (Symbol: ITW):
CTS Corp (Symbol: CTS):
Deere & Co. (Symbol: DE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.78% for Illinois Tool Works, Inc., 0.39% for CTS Corp, and 1.34% for Deere & Co..
In Tuesday trading, Illinois Tool Works, Inc. shares are currently up about 0.8%, CTS Corp shares are up about 0.5%, and Deere & Co. shares are up about 1.8% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of ITW's recent stock price of $188.70, this dividend works out to approximately 0.69%, so look for shares of Illinois Tool Works, Inc. to trade 0.69% lower — all else being equal — when ITW shares open for trading on 9/29/22. If they do continue, the current estimated yields on annualized basis would be 2.78% for Illinois Tool Works, Inc., 0.39% for CTS Corp, and 1.34% for Deere & Co.. Looking at the universe of stocks we cover at Dividend Channel, on 9/29/22, Illinois Tool Works, Inc. (Symbol: ITW), CTS Corp (Symbol: CTS), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends.
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Looking at the universe of stocks we cover at Dividend Channel, on 9/29/22, Illinois Tool Works, Inc. (Symbol: ITW), CTS Corp (Symbol: CTS), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Illinois Tool Works, Inc. will pay its quarterly dividend of $1.31 on 10/14/22, CTS Corp will pay its quarterly dividend of $0.04 on 11/4/22, and Deere & Co. will pay its quarterly dividend of $1.13 on 11/8/22. Illinois Tool Works, Inc. (Symbol: ITW): CTS Corp (Symbol: CTS): Deere & Co. (Symbol: DE): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 9/29/22, Illinois Tool Works, Inc. (Symbol: ITW), CTS Corp (Symbol: CTS), and Deere & Co. (Symbol: DE) will all trade ex-dividend for their respective upcoming dividends. Illinois Tool Works, Inc. will pay its quarterly dividend of $1.31 on 10/14/22, CTS Corp will pay its quarterly dividend of $0.04 on 11/4/22, and Deere & Co. will pay its quarterly dividend of $1.13 on 11/8/22. Illinois Tool Works, Inc. (Symbol: ITW): CTS Corp (Symbol: CTS): Deere & Co. (Symbol: DE): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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As a percentage of ITW's recent stock price of $188.70, this dividend works out to approximately 0.69%, so look for shares of Illinois Tool Works, Inc. to trade 0.69% lower — all else being equal — when ITW shares open for trading on 9/29/22. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.78% for Illinois Tool Works, Inc., 0.39% for CTS Corp, and 1.34% for Deere & Co..
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3e56b059-21db-46fb-98bd-b7abc3e51047
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721031.0
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2022-09-24 00:00:00 UTC
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Four Days Left Until Deere & Company (NYSE:DE) Trades Ex-Dividend
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DE
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https://www.nasdaq.com/articles/four-days-left-until-deere-company-nyse%3Ade-trades-ex-dividend
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nan
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nan
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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, Deere investors that purchase the stock on or after the 29th of September will not receive the dividend, which will be paid on the 8th of November.
The company's upcoming dividend is US$1.13 a share, following on from the last 12 months, when the company distributed a total of US$4.52 per share to shareholders. Based on the last year's worth of payments, Deere has a trailing yield of 1.4% on the current stock price of $334.22. If you buy this business for its dividend, you should have an idea of whether Deere's dividend is reliable and sustainable. So we need to investigate whether Deere can afford its dividend, and if the dividend could grow.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Deere has a low and conservative payout ratio of just 21% of its income after tax. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Over the past year it paid out 196% of its free cash flow as dividends, which is uncomfortably high. We're curious about why the company paid out more cash than it generated last year, since this can be one of the early signs that a dividend may be unsustainable.
Deere paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend. Were this to happen repeatedly, this would be a risk to Deere's ability to maintain its dividend.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:DE Historic Dividend September 24th 2022
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's comforting to see Deere's earnings have been skyrocketing, up 33% per annum for the past five years. Earnings have been growing quickly, but we're concerned dividend payments consumed most of the company's cash flow over the past year.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Deere has delivered 11% dividend growth per year on average over the past 10 years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
To Sum It Up
Is Deere worth buying for its dividend? We're glad to see the company has been improving its earnings per share while also paying out a low percentage of income. However, it's not great to see it paying out what we see as an uncomfortably high percentage of its cash flow. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.
In light of that, while Deere has an appealing dividend, it's worth knowing the risks involved with this stock. Case in point: We've spotted 1 warning sign for Deere you should be aware of.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next 4 days. Earnings have been growing quickly, but we're concerned dividend payments consumed most of the company's cash flow over the past year. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Deere & Company (NYSE:DE) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. NYSE:DE Historic Dividend September 24th 2022 Have Earnings And Dividends Been Growing?
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So we need to investigate whether Deere can afford its dividend, and if the dividend could grow. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Deere paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend.
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Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Earnings have been growing quickly, but we're concerned dividend payments consumed most of the company's cash flow over the past year.
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77c31806-6fe9-48cf-a3be-f99b84e528f6
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721032.0
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2022-09-22 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, RNG, OTTR
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-de-rng-ottr
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,328 contracts have traded so far, representing approximately 832,800 underlying shares. That amounts to about 64.2% of DE's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $330 strike put option expiring September 30, 2022, with 363 contracts trading so far today, representing approximately 36,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange:
RingCentral Inc (Symbol: RNG) saw options trading volume of 11,680 contracts, representing approximately 1.2 million underlying shares or approximately 63.7% of RNG's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $200 strike put option expiring October 21, 2022, with 2,130 contracts trading so far today, representing approximately 213,000 underlying shares of RNG. Below is a chart showing RNG's trailing twelve month trading history, with the $200 strike highlighted in orange:
And Otter Tail Corp. (Symbol: OTTR) saw options trading volume of 1,013 contracts, representing approximately 101,300 underlying shares or approximately 63.6% of OTTR's average daily trading volume over the past month, of 159,305 shares. Particularly high volume was seen for the $75 strike put option expiring March 17, 2023, with 500 contracts trading so far today, representing approximately 50,000 underlying shares of OTTR. Below is a chart showing OTTR's trailing twelve month trading history, with the $75 strike highlighted in orange:
For the various different available expirations for DE options, RNG options, or OTTR options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $330 strike put option expiring September 30, 2022, with 363 contracts trading so far today, representing approximately 36,300 underlying shares of DE. Particularly high volume was seen for the $200 strike put option expiring October 21, 2022, with 2,130 contracts trading so far today, representing approximately 213,000 underlying shares of RNG. Particularly high volume was seen for the $75 strike put option expiring March 17, 2023, with 500 contracts trading so far today, representing approximately 50,000 underlying shares of OTTR.
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Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: RingCentral Inc (Symbol: RNG) saw options trading volume of 11,680 contracts, representing approximately 1.2 million underlying shares or approximately 63.7% of RNG's average daily trading volume over the past month, of 1.8 million shares. Below is a chart showing RNG's trailing twelve month trading history, with the $200 strike highlighted in orange: And Otter Tail Corp. (Symbol: OTTR) saw options trading volume of 1,013 contracts, representing approximately 101,300 underlying shares or approximately 63.6% of OTTR's average daily trading volume over the past month, of 159,305 shares. Below is a chart showing OTTR's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for DE options, RNG options, or OTTR options, visit StockOptionsChannel.com.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,328 contracts have traded so far, representing approximately 832,800 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: RingCentral Inc (Symbol: RNG) saw options trading volume of 11,680 contracts, representing approximately 1.2 million underlying shares or approximately 63.7% of RNG's average daily trading volume over the past month, of 1.8 million shares. Below is a chart showing RNG's trailing twelve month trading history, with the $200 strike highlighted in orange: And Otter Tail Corp. (Symbol: OTTR) saw options trading volume of 1,013 contracts, representing approximately 101,300 underlying shares or approximately 63.6% of OTTR's average daily trading volume over the past month, of 159,305 shares.
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Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: RingCentral Inc (Symbol: RNG) saw options trading volume of 11,680 contracts, representing approximately 1.2 million underlying shares or approximately 63.7% of RNG's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $200 strike put option expiring October 21, 2022, with 2,130 contracts trading so far today, representing approximately 213,000 underlying shares of RNG. Particularly high volume was seen for the $75 strike put option expiring March 17, 2023, with 500 contracts trading so far today, representing approximately 50,000 underlying shares of OTTR.
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9223c8ad-4b76-49dd-9674-8b388f9b58c5
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721033.0
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2022-09-22 00:00:00 UTC
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Where Will Deere Be in 10 Years?
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DE
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https://www.nasdaq.com/articles/where-will-deere-be-in-10-years
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nan
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nan
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Deere & Company (NYSE: DE) has long been a leader in equipment that farmers across the globe use to produce the food that feeds the world. At home in the U.S., Deere commands 53% of the tractor market and 60% of the combine market, but the international market is more competitive.
Carmakers have autonomous cars to put on the road, but accounting for chaotic traffic creates significant barriers to their actual use. Fortunately for Deere, corn fields have no traffic, and its autonomous tractors and farm equipment are ready to plant, spray, and harvest as early as this fall. Its autonomous tractors, backed by its globally recognized green and yellow branding, could easily vault the company ahead in theglobal marketover the next 10 years.
Leading the next leg in farm equipment
Deere's premier autonomous tractor will be rolled out as a GPS-guided version of its R8 model. The tractor includes 12 cameras, which will enable 360-degree obstacle detection. The cameras and GPS run in tandem with a geofence that operates the tractor within an inch of accuracy.
Its driverless technology goes beyond just tractors, though. The company enhanced its sprayer technology through its 2017 acquisition of Blue River Technology. Blue River discovered that traditional continuous sprayers apply about two-thirds of herbicide to something other than weeds. To solve this money-wasting practice, the company developed a software and camera platform to identify weeds and spray only the areas where weeds exist. Deere has installed the tech in its self-propelled crop sprayers equipped with a 120-foot spray boom where the camera system is mounted.
Image source: Getty Images.
Deere is also investing in software that makes its autonomous fleet more productive and increases crop yields. Its software can also be used to retrofit traditional tractors into driverless versions. Perhaps the most significant advantage of Deere's software ambitions is that software typically has an 85% gross margin compared to around 25% for equipment. Deere projects that software subscriptions will make up 10% of its revenue by the end of the decade.
The company hopes to connect 1.5 million machines and half a billion acres to its John Deere Center by 2026. The center will collect and store crop data to help farmers run their operations more efficiently and cost-effectively.
Conquering the international market
Deere is not alone in its autonomous farm equipment endeavors. Farm equipment makers CNH Industrial and AGCO are also working to bring their versions to market. AGCO said it will begin marketing them sometime in the next five years, and CNH, which makes Case IH-branded farm equipment, doesn't have a timeline for its autonomous fleet.
Deere, on the other hand, expects to begin selling its autonomous tractors this fall and plans to sell autonomous models of its entire equipment line by 2030.
Since AGCO and CNH are two of the most prominent players in the international market, Deere can reap the rewards of being one of the first large-scale companies to introduce driverless technology.
The farming industry is competitive, and big farming companies seeking to gain an efficiency advantage in their commodity businesses may have few choices, including Deere, to facilitate the move for a few years. When AGCO and CNH come to market, they'll have to compete with an already trusted brand.
Where will Deere be in 10 years?
The global population is expected to grow from 8 billion to around 10 billion by 2050. So farmers across the globe will be tasked with providing food for all those people with less land. Over the next 10 years, farmers may have no choice but to be as efficient as possible with their capital and land. It might not surprise readers that the market for autonomous tractors is forecast to grow by nearly 21% annually through 2030.
Farmers will be forced to do more with less over the next decade, and Deere is one of the first branded movers in autonomous tractors and farming equipment. Those two things should give the company a significant leg up on other companies, giving the stock a great chance to outperform over the next decade and possibly beyond.
10 stocks we like better than Deere & Company
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BJ Cook has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fortunately for Deere, corn fields have no traffic, and its autonomous tractors and farm equipment are ready to plant, spray, and harvest as early as this fall. Since AGCO and CNH are two of the most prominent players in the international market, Deere can reap the rewards of being one of the first large-scale companies to introduce driverless technology. Deere & Company (NYSE: DE) has long been a leader in equipment that farmers across the globe use to produce the food that feeds the world.
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Leading the next leg in farm equipment Deere's premier autonomous tractor will be rolled out as a GPS-guided version of its R8 model. Deere, on the other hand, expects to begin selling its autonomous tractors this fall and plans to sell autonomous models of its entire equipment line by 2030. Those two things should give the company a significant leg up on other companies, giving the stock a great chance to outperform over the next decade and possibly beyond.
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At home in the U.S., Deere commands 53% of the tractor market and 60% of the combine market, but the international market is more competitive. Deere, on the other hand, expects to begin selling its autonomous tractors this fall and plans to sell autonomous models of its entire equipment line by 2030. Farmers will be forced to do more with less over the next decade, and Deere is one of the first branded movers in autonomous tractors and farming equipment.
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AGCO said it will begin marketing them sometime in the next five years, and CNH, which makes Case IH-branded farm equipment, doesn't have a timeline for its autonomous fleet. Farmers will be forced to do more with less over the next decade, and Deere is one of the first branded movers in autonomous tractors and farming equipment. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen.
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5e747614-3ad3-4d3f-9358-b069e001fc69
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721034.0
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2022-09-22 00:00:00 UTC
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Investors Heavily Search Deere & Company (DE): Here is What You Need to Know
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DE
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https://www.nasdaq.com/articles/investors-heavily-search-deere-company-de%3A-here-is-what-you-need-to-know
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nan
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nan
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Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this agricultural equipment manufacturer have returned -8.3% over the past month versus the Zacks S&P 500 composite's -10.2% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has lost 5.6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Deere is expected to post earnings of $7.14 per share for the current quarter, representing a year-over-year change of +73.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
For the current fiscal year, the consensus earnings estimate of $22.94 points to a change of +20.8% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $26.68 indicates a change of +16.3% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Deere.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Deere, the consensus sales estimate of $13.57 billion for the current quarter points to a year-over-year change of +32%. The $47.64 billion and $52.69 billion estimates for the current and next fiscal years indicate changes of +19.9% and +10.6%, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $13 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $6.16 for the same period compares with $5.32 a year ago.
Compared to the Zacks Consensus Estimate of $12.9 billion, the reported revenues represent a surprise of +0.76%. The EPS surprise was -7.23%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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Last Reported Results and Surprise History Deere reported revenues of $13 billion in the last reported quarter, representing a year-over-year change of +24.8%. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Deere. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Deere. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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b2124f1b-0e3b-434c-b355-6b9b6523771c
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721035.0
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2022-09-21 00:00:00 UTC
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The Zacks Analyst Blog Highlights Deere, Starbucks, SAP, Mondelez International and Intuitive Surgical
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-deere-starbucks-sap-mondelez-international-and-intuitive
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For Immediate Release
Chicago, IL – September 21, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Deere & Co. DE, Starbucks Corp. SBUX, SAP SE SAP, Mondelez International, Inc. MDLZ and Intuitive Surgical, Inc. ISRG.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Deere & Co., Starbucks and SAP
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Deere & Co., Starbucks Corp. and SAP SE. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%). The rally in commodity prices will continue to fuel agricultural equipment demand, encouraging farmers to boost spending on new farm equipment.
Replacement demand to upgrade old equipment will support Deere's top-line results in fiscal 2022. Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices and increased infrastructure spending in fiscal 2022. Focus on investing in new products equipped with the latest technology will make farming automated, which will drive Deere's growth.
However, higher material and labor costs will dent margins while uncertainty related to the pandemic remains a concern. Deere’s earnings estimates for the fiscal 2022 have thus undergone downward revisions lately.
(You can read the full research report on Deere & Company here >>>)
Starbucks shares have declined -17.9% over the past year against the Zacks Retail - Restaurants industry’s decline of -11.5%. The company’s performance continues to be negatively impacted by dismal China results, higher-than-expected inflationary pressures, increased costs and a tight labor market.
The company believes that performance will be under massive pressure for the rest of the year. The company has suspended guidance for the fourth quarter. However, on a year-over-year basis, earnings declined but revenues improved, given higher U.S. comparable sales.
Starbucks has been benefiting from operating fundamentals such as a solid global footprint, successful innovations and digital offerings. North America comps continue to impress investors.
(You can read the full research report on Starbucks here >>>)
SAP’s shares have declined -40.6% over the past year against the Zacks Computer - Software industry’s decline of -24.2% on the back of a challenging operating environment in Europe. The company lowered full-year operating profit guidance due to the €350-million negative impact from the war in Ukraine and expectations of a continued decline in software licenses revenue.
Stiff competition and increasing costs to enhance cloud-based offerings is likely to exert pressure on the company’s profitability in the near term. Nevertheless, SAP’s performance is gaining from continued strength in its cloud business, especially the new Rise with SAP solution.
Momentum in SAP’s Business Process Intelligence platform, particularly the S/4HANA solutions along with healthy traction witnessed in SuccessFactors Employee Central, Ariba and Fieldglass, Qualtrics and other cloud-based offerings is noteworthy. The company also announced an additional share buyback plan.
(You can read the full research report on SAP here >>>)
Other noteworthy reports we are featuring today include Mondelez International, Inc. and Intuitive Surgical, Inc.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company lowered full-year operating profit guidance due to the €350-million negative impact from the war in Ukraine and expectations of a continued decline in software licenses revenue. Stocks recently featured in the blog include: Deere & Co. DE, Starbucks Corp. SBUX, SAP SE SAP, Mondelez International, Inc. MDLZ and Intuitive Surgical, Inc. ISRG. Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Deere & Co., Starbucks and SAP The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Deere & Co. DE, Starbucks Corp. SBUX, SAP SE SAP, Mondelez International, Inc. MDLZ and Intuitive Surgical, Inc. ISRG. Today's Research Daily features new research reports on 16 major stocks, including Deere & Co., Starbucks Corp. and SAP SE. (You can read the full research report on SAP here >>>) Other noteworthy reports we are featuring today include Mondelez International, Inc. and Intuitive Surgical, Inc. Why Haven’t You Looked at Zacks' Top Stocks?
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Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Deere & Co., Starbucks and SAP The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Deere & Co., Starbucks Corp. and SAP SE. (You can read the full research report on SAP here >>>) Other noteworthy reports we are featuring today include Mondelez International, Inc. and Intuitive Surgical, Inc. Why Haven’t You Looked at Zacks' Top Stocks?
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You can see all of today’s research reports here >>> Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%). Stocks recently featured in the blog include: Deere & Co. DE, Starbucks Corp. SBUX, SAP SE SAP, Mondelez International, Inc. MDLZ and Intuitive Surgical, Inc. ISRG. Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Deere & Co., Starbucks and SAP The Zacks Research Daily presents the best research output of our analyst team.
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f10cd2d9-9df2-41f7-a827-58b81214938e
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721036.0
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2022-09-20 00:00:00 UTC
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Top Research Reports for Deere & Company, Starbucks & SAP
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DE
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https://www.nasdaq.com/articles/top-research-reports-for-deere-company-starbucks-sap
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nan
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nan
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Tuesday, September 20, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%). The rally in commodity prices will continue to fuel agricultural equipment demand, encouraging farmers to boost spending on new farm equipment.
Replacement demand to upgrade old equipment will support Deere's top-line results in fiscal 2022. Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices and increased infrastructure spending in fiscal 2022. Focus on investing in new products equipped with the latest technology will make farming automated, which will drive Deere's growth.
However, higher material and labor costs will dent margins while uncertainty related to the pandemic remians a concern. Deere’s earnings estimates for the fiscal 2022 have thus undergone downward revisions lately.
(You can read the full research report on Deere & Company here >>>)
Starbucks shares have declined -17.9% over the past year against the Zacks Retail - Restaurants industry’s decline of -11.5%. The company’s performance continues to be negatively impacted by dismal China results, higher-than-expected inflationary pressures, increased costs and a tight labor market.
The company believes that performance will be under massive pressure for the rest of the year. The company has suspended guidance for the fourth quarter. However, on a year-over-year basis, earnings declined but revenues improved, given higher U.S. comparable sales.
Starbucks has been benefiting from operating fundamentals such as a solid global footprint, successful innovations and digital offerings. North America comps continue to impress investors.
(You can read the full research report on Starbucks here >>>)
SAP’s shares have declined -40.6% over the past year against the Zacks Computer - Software industry’s decline of -24.2% on the back of a challenging operating environment in Europe. The company lowered full-year operating profit guidance due to the €350-million negative impact from the war in Ukraine and expectations of a continued decline in software licenses revenue.
Stiff competition and increasing costs to enhance cloud-based offerings is likely to exert pressure on the company’s profitability in the near term. Nevertheless, SAP’s performance is gaining from continued strength in its cloud business, especially the new Rise with SAP solution.
Momentum in SAP’s Business Process Intelligence platform, particularly the S/4HANA solutions along with healthy traction witnessed in SuccessFactors Employee Central, Ariba and Fieldglass, Qualtrics and other cloud-based offerings is noteworthy. The company also announced an additional share buyback plan.
(You can read the full research report on SAP here >>>)
Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Airbnb, Inc. (ABNB), and Intuitive Surgical, Inc. (ISRG).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Improving End Markets to Drive Deere (DE), Input Costs Ail
Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts
Solid Momentum in Cloud Business Driving SAP's Performance
Featured Reports
Mondelez (MDLZ) Hurt by Cost Inflation, Pricing a Breather
Per the Zacks analyst, Mondelez is seeing input cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. Increased pricing actions to fight inflation, bode well.
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Per the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like COVID-19 resurgences and rising costs.
RF Power & Communication Business Strength Aids NXP (NXPI)
Per the Zacks analyst, NXP is benefiting from solid momentum in RF power for base stations. Further, rising 5G network deployments are driving growth in its communication business.
Investments Aid Consolidated Edison (ED), Weak Solvency Woe
Per the Zacks analyst, systematic investment plan for infrastructure development and reliability tend to boost Consolidated Edison's growth. Yet, its weak solvency position remains a bottleneck.
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.
Efficient Hire Buyout, Technology Strength Aid Equifax (EFX)
Per the Zacks analyst, the acquisition of Efficient Hire boosts Equifax's ability to help clients manage their hiring and employment needs. Also, cloud data and technology transformation is a boon.
Improving Top line, Solid Cash Flows Benefit Allstate (ALL)
Per the Zacks analyst, Allstate benefits from a healthy revenue stream, courtesy of a broad product suite and pricing discipline. A strong capital position enables investment in business.
New Upgrades
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Per the Zacks analyst, strengthening gross nights booked in non-urban areas, and recovery in both long-distance and cross-border travel are benefiting Airbnb's Nights & Experience bookings.
Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst believes that Imperial Oil's financial backing by majority owner ExxonMobil adds to the company's financial stability and helps it to access cheap capital.n
Higher Rates, Restructuring Efforts to Aid Bank OZK (OZK)
Per the Zacks analyst, Bank OZK is poised for top-line growth supported by decent rise in loans and business-restructuring efforts. The interest rate hikes will aid margin growth in the near term.
New Downgrades
Huge Debt Load, Rising Costs Hurt Sunoco's (SUN) Margins
The Zacks analyst is worried about Sunoco's increasing debt load, which could lead to volatile earnings. The partnership's rising cost of sales remains concerning.
Worsening Asset Quality, Costs Hurt Ally Financial (ALLY)
Per the Zacks analyst, poor asset quality amid deteriorating economic outlook is major headwind for Ally Financial. Steadily rising expenses are expected to hurt its bottom-line growth to some extent.
Xifaxan Patent Litigation, Macro Challenges Hurt Bausch (BHC)
Per the Zacks analyst, the ongoing patent litigation for one of the top drugs Xifaxan will remain an overhang and an earlier-than-expected generic entry will adversely impact the top line.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
Mondelez International, Inc. (MDLZ): Free Stock Analysis Report
Airbnb, Inc. (ABNB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company lowered full-year operating profit guidance due to the €350-million negative impact from the war in Ukraine and expectations of a continued decline in software licenses revenue. Today's Research Daily features new research reports on 16 major stocks, including Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP). You can see all of today’s research reports here >>> Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%).
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Today's Research Daily features new research reports on 16 major stocks, including Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Improving End Markets to Drive Deere (DE), Input Costs Ail Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts Solid Momentum in Cloud Business Driving SAP's Performance Featured Reports Mondelez (MDLZ) Hurt by Cost Inflation, Pricing a Breather Per the Zacks analyst, Mondelez is seeing input cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. You can see all of today’s research reports here >>> Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%).
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Today's Research Daily features new research reports on 16 major stocks, including Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Improving End Markets to Drive Deere (DE), Input Costs Ail Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts Solid Momentum in Cloud Business Driving SAP's Performance Featured Reports Mondelez (MDLZ) Hurt by Cost Inflation, Pricing a Breather Per the Zacks analyst, Mondelez is seeing input cost inflation, especially for energy, transportation, packaging, wheat, dairy and edible oils. Imperial (IMO) to Gain from Majority Holding by ExxonMobil The Zacks analyst believes that Imperial Oil's financial backing by majority owner ExxonMobil adds to the company's financial stability and helps it to access cheap capital.n Higher Rates, Restructuring Efforts to Aid Bank OZK (OZK) Per the Zacks analyst, Bank OZK is poised for top-line growth supported by decent rise in loans and business-restructuring efforts.
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You can see all of today’s research reports here >>> Deere & Company’s shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+7.7% vs. +5.2%). (You can read the full research report on SAP here >>>) Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Airbnb, Inc. (ABNB), and Intuitive Surgical, Inc. (ISRG). Today's Research Daily features new research reports on 16 major stocks, including Deere & Company (DE), Starbucks Corporation (SBUX) and SAP SE (SAP).
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55464463-a0e7-4517-a48f-cc250904a939
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721037.0
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2022-09-17 00:00:00 UTC
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3 Stocks to Buy During a Recession
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DE
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https://www.nasdaq.com/articles/3-stocks-to-buy-during-a-recession-7
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nan
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nan
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There are many different ways to invest during a recession. So let's discuss three different ways and suggest three stocks, along with some alternatives for investors. The three stocks, Watsco (NYSE: WSO), Corteva (NYSE: CTVA), and Cognex (NASDAQ: CGNX), have nothing in common, but they all represent investing themes that might work in a downturn.
Three ways to invest in a recession
There isn't one sure-fire way to invest in a recession, but here are some solid options:
Stocks with solid balance sheets and the ability to improve long-term prospects during a recession, like Watsco and Honeywell International.
Stocks whose end markets aren't necessarily affected by the direction of the economy. An example of this is the agriculture sector, with companies like Corteva, Deere, and FMC.
Long-term growth stocks that get beaten up during a recession, providing investors with an opportunistic entry point. There are many options here, including Cognex, PTC, and Fortive.
1. Watsco
The heating, ventilation, air-conditioning, and refrigeration (HVACR) parts distributor's incredible success story over the last couple of decades comes down to its "buy and build" strategy. Its business is relatively simple but highly successful. Service contractors visit to repair/service HVACR equipment and order parts from a distributor like Watsco.
The company has grown by consolidating a highly fragmented market characterized by companies operating in local markets. Via an ongoing series of acquisitions, Watsco has grown geographically and expanded its product range. Since the acquired companies are operating locally, there's little cannibalization. In addition, being part of the Watsco network helps them run more efficiently, with access to more parts and Watsco's digital platforms (e-commerce-enabled websites, etc.).
The key to its "buy in a recession" argument is that any economic weakness may encourage smaller distributors to sell up. Given Watsco's strong balance sheet and leading market position, the company is ideally placed to take advantage.
Data by YCharts
2. Corteva
The agriculture sector tends to march to the beat of its own drum. The earnings of stocks in the sector don't depend on the direction of the economy -- a good quality in a recession. As you can see below, the volatility in the price of key crops like wheat, soybeans, and corn over the years doesn't really reflect the volatility in the global economy.
Data by YCharts
In this line of thought, buying stock in seed and crop protection company Corteva makes sense. The company is interesting because management has a significant margin expansion opportunity through cutting costs and selling more products under its own technology rather than paying costly royalty payments to other companies for complimentary products (for example, another company's herbicide alongside Corteva's herbicide-resistant seeds).
So far, it's going well on that front, with its own Enlist system (crop protection and seeds resistant to said crop protection) being planted on 45% of U.S. soybean acres in 2022. That gives Wall Street the confidence to forecast a big pick up in profit margin in the coming years, and Corteva has plenty of long-term earnings potential.
3. Cognex Corporation
Not much has gone right for machine vision company Cognex in 2022. However, faced with significant supply chain issues and component shortages going into the year, management made the conscious decision to invest (at the expense of profit margins) to deliver products to customers. That's a good thing to do for a company establishing its technology with major customers like Apple (and possibly Amazon).
However, that's where the good news stops, because its three major end markets, logistics (e-commerce warehousing), consumer electronics, and automotive, have all suffered this year. Following a few years of torrid growth, e-commerce companies are scaling back investment, while consumer electronics and automotive production will be weaker than expected at the start of the year due to a slowdown in consumer spending and ongoing supply chain issues. Throw in a fire at its primary contractor (damaging Cognex inventory), and it's been a year to forget.
Unsurprisingly, Cognex stock is down 43% in 2022 and 50% over the last year, and if a recession comes, it could go down even more. However, nothing's really changed about its long-term growth prospects, so if you are willing to buy a stock and ride out some potential near-term volatility, then Cognex is attractive. In addition, the company is establishing strong relationships with leading companies, likely leading to greater adoption of machine vision technology.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lee Samaha has positions in Honeywell International. The Motley Fool has positions in and recommends Amazon, Apple, Cognex, and Watsco. The Motley Fool recommends PTC and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Watsco The heating, ventilation, air-conditioning, and refrigeration (HVACR) parts distributor's incredible success story over the last couple of decades comes down to its "buy and build" strategy. That gives Wall Street the confidence to forecast a big pick up in profit margin in the coming years, and Corteva has plenty of long-term earnings potential. However, faced with significant supply chain issues and component shortages going into the year, management made the conscious decision to invest (at the expense of profit margins) to deliver products to customers.
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Given Watsco's strong balance sheet and leading market position, the company is ideally placed to take advantage. An example of this is the agriculture sector, with companies like Corteva, Deere, and FMC. Watsco The heating, ventilation, air-conditioning, and refrigeration (HVACR) parts distributor's incredible success story over the last couple of decades comes down to its "buy and build" strategy.
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The company is interesting because management has a significant margin expansion opportunity through cutting costs and selling more products under its own technology rather than paying costly royalty payments to other companies for complimentary products (for example, another company's herbicide alongside Corteva's herbicide-resistant seeds). An example of this is the agriculture sector, with companies like Corteva, Deere, and FMC. Watsco The heating, ventilation, air-conditioning, and refrigeration (HVACR) parts distributor's incredible success story over the last couple of decades comes down to its "buy and build" strategy.
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An example of this is the agriculture sector, with companies like Corteva, Deere, and FMC. Watsco The heating, ventilation, air-conditioning, and refrigeration (HVACR) parts distributor's incredible success story over the last couple of decades comes down to its "buy and build" strategy. Service contractors visit to repair/service HVACR equipment and order parts from a distributor like Watsco.
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cbec8963-8c8a-4049-9683-530d2eb22130
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721038.0
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2022-09-15 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAL, DE, CRM
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aal-de-crm
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 143,495 contracts has been traded thus far today, a contract volume which is representative of approximately 14.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54.7% of AAL's average daily trading volume over the past month, of 26.3 million shares. Particularly high volume was seen for the $5 strike put option expiring January 19, 2024, with 47,200 contracts trading so far today, representing approximately 4.7 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 8,169 contracts, representing approximately 816,900 underlying shares or approximately 51.4% of DE's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $395 strike call option expiring September 16, 2022, with 887 contracts trading so far today, representing approximately 88,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange:
And Salesforce Inc (Symbol: CRM) saw options trading volume of 39,381 contracts, representing approximately 3.9 million underlying shares or approximately 51.3% of CRM's average daily trading volume over the past month, of 7.7 million shares. Especially high volume was seen for the $210 strike put option expiring September 16, 2022, with 3,800 contracts trading so far today, representing approximately 380,000 underlying shares of CRM. Below is a chart showing CRM's trailing twelve month trading history, with the $210 strike highlighted in orange:
For the various different available expirations for AAL options, DE options, or CRM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $5 strike put option expiring January 19, 2024, with 47,200 contracts trading so far today, representing approximately 4.7 million underlying shares of AAL. Especially high volume was seen for the $395 strike call option expiring September 16, 2022, with 887 contracts trading so far today, representing approximately 88,700 underlying shares of DE. Especially high volume was seen for the $210 strike put option expiring September 16, 2022, with 3,800 contracts trading so far today, representing approximately 380,000 underlying shares of CRM.
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Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 8,169 contracts, representing approximately 816,900 underlying shares or approximately 51.4% of DE's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $395 strike call option expiring September 16, 2022, with 887 contracts trading so far today, representing approximately 88,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange: And Salesforce Inc (Symbol: CRM) saw options trading volume of 39,381 contracts, representing approximately 3.9 million underlying shares or approximately 51.3% of CRM's average daily trading volume over the past month, of 7.7 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 143,495 contracts has been traded thus far today, a contract volume which is representative of approximately 14.3 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 8,169 contracts, representing approximately 816,900 underlying shares or approximately 51.4% of DE's average daily trading volume over the past month, of 1.6 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange: And Salesforce Inc (Symbol: CRM) saw options trading volume of 39,381 contracts, representing approximately 3.9 million underlying shares or approximately 51.3% of CRM's average daily trading volume over the past month, of 7.7 million shares.
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Particularly high volume was seen for the $5 strike put option expiring January 19, 2024, with 47,200 contracts trading so far today, representing approximately 4.7 million underlying shares of AAL. Especially high volume was seen for the $395 strike call option expiring September 16, 2022, with 887 contracts trading so far today, representing approximately 88,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $395 strike highlighted in orange: And Salesforce Inc (Symbol: CRM) saw options trading volume of 39,381 contracts, representing approximately 3.9 million underlying shares or approximately 51.3% of CRM's average daily trading volume over the past month, of 7.7 million shares.
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6b45c05d-84a9-4ab2-8116-8b6acf8c2e63
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721039.0
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2022-09-14 00:00:00 UTC
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Is Caterpillar Stock A Better Pick Over Its Competitor?
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DE
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https://www.nasdaq.com/articles/is-caterpillar-stock-a-better-pick-over-its-competitor
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nan
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nan
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We believe that industrial companies Caterpillar stock (NYSE: CAT) and Deere stock (NYSE: DE) will likely offer similar returns over the next three years. Although CAT is trading at a slightly lower valuation of 1.9x, trailing revenues vs. 2.3x for DE, this gap in the valuation is justified given Deere’s superior revenue growth and profitability, as discussed below.
If we look at stock returns, Deere, with 9% gains this year, has fared much better than the -7% return for Caterpillar stock and -14% returns for the broader S&P 500 index. There is more to the comparison, and in the sections below, we discuss the possible stock returns for CAT and DE in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Caterpillar vs. Deere: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Deere’s Revenue Growth Over The Recent Years Has Been Better
Both companies posted double-digit sales growth over the last twelve months. Still, Caterpillar’s revenue growth of 17.7% is slightly higher than 14.0% for Deere.
However, looking at a longer time frame, Deere fares better. While Caterpillar’s sales declined at an average annual rate of 0.7% to $51.0 billion in 2021, compared to $54.7 billion in 2018, Deere saw its revenue rise at an average growth rate of 6.5% to $44.0 billion in 2021, vs. $37.4 billion in 2018.
Caterpillar’s revenue growth over the recent past has been driven by a recovery in construction and a better pricing environment.
Caterpillar is also benefiting from the rise in commodity prices. Higher commodity prices translate into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment. In fact, the resource industries was the best performing segment for Caterpillar in the first half of this year, led by a high end-user demand for heavy construction and mining equipment.
Deere is seeing higher demand for construction and agriculture equipment. The company benefits from the above-average age of farming equipment in the U.S. The demand has also been buoyed by rising agricultural income and better price realization.
Our Caterpillar Revenue and Deere Revenue dashboards provide more insight into the companies’ sales.
Looking forward, Deere’s revenue is expected to grow faster than Caterpillar’s over the next three years. The table below summarizes our revenue expectations for the two companies over the next three years. It points to a CAGR of 8.7% for Caterpillar, compared to a 10.5% CAGR for Deere, based on Trefis Machine Learning analysis.
Note that we have different methodologies for companies that are negatively impacted by Covid and those that are not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively affected by Covid, we consider the quarterly revenue recovery trajectory to forecast recovery to the pre-Covid revenue run rate. Beyond the recovery point, we apply the average annual growth observed three years before Covid to simulate a return to normal conditions. For companies registering positive revenue growth during Covid, we consider yearly average growth before Covid with a certain weight to growth during Covid and the last twelve months.
2. Deere Is More Profitable But Comes At Higher Risk
Caterpillar’s operating margin of 12.3% over the last twelve-month period is lower than 20.1% for Deere.
This compares with 14.6% and 17.9% figures seen in 2019, before the pandemic, respectively.
Caterpillar’s free cash flow margin of 10.5% is better than 7.9% for Deere.
Our Caterpillar Operating Income and Deere Operating Income dashboards have more details.
Looking at financial risk, Caterpillar fares better. Its 4.9% debt as a percentage of equity is much lower than 45.1% for Deere, while its 7.4% cash as a percentage of assets is higher than 5.8% for the latter, implying that CAT has a better debt position and more cash cushion, making it a comparatively less risky bet.
3. The Net of It All
We see that Deere has demonstrated better revenue growth in recent years and is more profitable. On the other hand, Caterpillar is trading at a slightly lower valuation and comes at a lower risk.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both Caterpillar and Deere are likely to offer similar returns over the next three years.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 17% for Caterpillar over this period and a 14% expected return for Deere, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Caterpillar vs. Deere – which also provides more details on how we arrive at these numbers.
While CAT stock and DE stock may offer similar returns, it is helpful to see how Caterpillar’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Deere vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 4% -7% 107%
DE Return 2% 9% 263%
S&P 500 Return 4% -14% 84%
Trefis Multi-Strategy Portfolio 6% -10% 254%
[1] Month-to-date and year-to-date as of 9/13/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Caterpillar vs. Deere: Which Stock Is A Better Bet? In fact, the resource industries was the best performing segment for Caterpillar in the first half of this year, led by a high end-user demand for heavy construction and mining equipment. We believe that industrial companies Caterpillar stock (NYSE: CAT) and Deere stock (NYSE: DE) will likely offer similar returns over the next three years.
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We believe that industrial companies Caterpillar stock (NYSE: CAT) and Deere stock (NYSE: DE) will likely offer similar returns over the next three years. While Caterpillar’s sales declined at an average annual rate of 0.7% to $51.0 billion in 2021, compared to $54.7 billion in 2018, Deere saw its revenue rise at an average growth rate of 6.5% to $44.0 billion in 2021, vs. $37.4 billion in 2018. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 17% for Caterpillar over this period and a 14% expected return for Deere, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Caterpillar vs. Deere – which also provides more details on how we arrive at these numbers.
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If we look at stock returns, Deere, with 9% gains this year, has fared much better than the -7% return for Caterpillar stock and -14% returns for the broader S&P 500 index. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 17% for Caterpillar over this period and a 14% expected return for Deere, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Caterpillar vs. Deere – which also provides more details on how we arrive at these numbers. Total [2] CAT Return 4% -7% 107% DE Return 2% 9% 263% S&P 500 Return 4% -14% 84% Trefis Multi-Strategy Portfolio 6% -10% 254% [1] Month-to-date and year-to-date as of 9/13/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If we look at stock returns, Deere, with 9% gains this year, has fared much better than the -7% return for Caterpillar stock and -14% returns for the broader S&P 500 index. Still, Caterpillar’s revenue growth of 17.7% is slightly higher than 14.0% for Deere. The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 17% for Caterpillar over this period and a 14% expected return for Deere, implying that investors can pick either of the two for similar returns, based on Trefis Machine Learning analysis – Caterpillar vs. Deere – which also provides more details on how we arrive at these numbers.
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4019acb7-79fd-41c3-add7-c0589be642a9
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721040.0
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2022-09-13 00:00:00 UTC
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Should You Be Excited About Deere & Company's (NYSE:DE) 32% Return On Equity?
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DE
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https://www.nasdaq.com/articles/should-you-be-excited-about-deere-companys-nyse%3Ade-32-return-on-equity
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nan
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nan
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Deere & Company (NYSE:DE), by way of a worked example.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
How Is ROE Calculated?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Deere is:
32% = US$6.2b ÷ US$19b (Based on the trailing twelve months to July 2022).
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.32 in profit.
Does Deere Have A Good Return On Equity?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. Pleasingly, Deere has a superior ROE than the average (13%) in the Machinery industry.
NYSE:DE Return on Equity September 13th 2022
That is a good sign. However, bear in mind that a high ROE doesn’t necessarily indicate efficient profit generation. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk.
How Does Debt Impact ROE?
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
Combining Deere's Debt And Its 32% Return On Equity
It's worth noting the high use of debt by Deere, leading to its debt to equity ratio of 2.70. Its ROE is pretty impressive but, it would have probably been lower without the use of debt. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Summary
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
Of course Deere may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. We'll use ROE to examine Deere & Company (NYSE:DE), by way of a worked example. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Deere is: 32% = US$6.2b ÷ US$19b (Based on the trailing twelve months to July 2022). Combining Deere's Debt And Its 32% Return On Equity It's worth noting the high use of debt by Deere, leading to its debt to equity ratio of 2.70. A company that can achieve a high return on equity without debt could be considered a high quality business.
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Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Deere is: 32% = US$6.2b ÷ US$19b (Based on the trailing twelve months to July 2022). Combining Deere's Debt And Its 32% Return On Equity It's worth noting the high use of debt by Deere, leading to its debt to equity ratio of 2.70. We'll use ROE to examine Deere & Company (NYSE:DE), by way of a worked example.
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Does Deere Have A Good Return On Equity? Combining Deere's Debt And Its 32% Return On Equity It's worth noting the high use of debt by Deere, leading to its debt to equity ratio of 2.70. A company that can achieve a high return on equity without debt could be considered a high quality business.
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721041.0
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2022-09-12 00:00:00 UTC
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DE January 2025 Options Begin Trading
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https://www.nasdaq.com/articles/de-january-2025-options-begin-trading
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the January 2025 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 858 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new January 2025 contracts and identified one put and one call contract of particular interest.
The put contract at the $370.00 strike price has a current bid of $61.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $370.00, but will also collect the premium, putting the cost basis of the shares at $309.00 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $373.15/share today.
Because the $370.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 16.49% return on the cash commitment, or 7.01% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $80.50. If an investor was to purchase shares of DE stock at the current price level of $373.15/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $380.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 23.41% if the stock gets called away at the January 2025 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red:
Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 21.57% boost of extra return to the investor, or 9.18% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $373.15) to be 37%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the January 2025 expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the January 2025 expiration.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $80.50. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new January 2025 contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the January 2025 expiration.
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721042.0
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2022-09-12 00:00:00 UTC
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Deere (NYSE:DE): Fires on All Cylinders to Bolster Smart Equipment Portfolio
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DE
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https://www.nasdaq.com/articles/deere-nyse%3Ade%3A-fires-on-all-cylinders-to-bolster-smart-equipment-portfolio
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Illinois-based Deere & Company (NYSE:DE) is making huge investments to increase the application of software and automate farm equipment. The company is expected to roll out two revolutionary pieces of equipment: self-driving tractors, and smart-crop sprayers this year.
Deere appears upbeat about the contribution of automation initiatives to its top-line growth. According to a WSJ report, the company believes that 10% of its annual revenues will be attributable to the fees charged for using Deere’s software by the end of the decade.
Further, Deere aims to link its cloud-based John Deere Operations Center to 1.5 million machines that are already in service and a half billion acres in use by 2026. This move should aid in building a crop database for better application.
Notably, the company bought Bear Flag Robotics last year for $250 million. This California-based startup was acquired with the objective of providing Deere with software for automating older tractors.
Market experts are of the opinion that software subscriptions may help this equipment maker expand profit margins. This idea has been further substantiated by a 2021 report from Bernstein analysts. According to this report, the average gross margin from equipment sales is expected to come in at just 25%, in comparison to roughly 85% projected from the farming software.
Is Deere Stock a Good Buy?
The equipment maker could be a good investment option for long-term investors. It is worth mentioning here that financial bloggers are 90% Bullish on DE stock versus the sector average of 67%. The news sentiment is also positive for Deere stock. Hedge funds have also raised their holdings of DE stock, as they purchased 77,600 shares of DE stock in the last quarter.
Meanwhile, analysts are both cautious and optimistic about the growth prospects of Deere, which commands a Moderate Buy consensus rating based on 12 Buys and five Holds.
Final Thoughts
Deere expects to introduce autonomous models for its complete equipment portfolio by 2030. Moreover, with the third-quarter Fiscal 2022 earnings results, Deere announced that it expects strength in order books and positive customer fundamentals to support demand for its products in 2023. Further, DE’s average price forecast of $407.50 suggests a 9.47% upside potential from the current level.
Read full Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Illinois-based Deere & Company (NYSE:DE) is making huge investments to increase the application of software and automate farm equipment. According to a WSJ report, the company believes that 10% of its annual revenues will be attributable to the fees charged for using Deere’s software by the end of the decade. Moreover, with the third-quarter Fiscal 2022 earnings results, Deere announced that it expects strength in order books and positive customer fundamentals to support demand for its products in 2023.
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Illinois-based Deere & Company (NYSE:DE) is making huge investments to increase the application of software and automate farm equipment. Is Deere Stock a Good Buy? Deere appears upbeat about the contribution of automation initiatives to its top-line growth.
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Illinois-based Deere & Company (NYSE:DE) is making huge investments to increase the application of software and automate farm equipment. According to a WSJ report, the company believes that 10% of its annual revenues will be attributable to the fees charged for using Deere’s software by the end of the decade. Further, Deere aims to link its cloud-based John Deere Operations Center to 1.5 million machines that are already in service and a half billion acres in use by 2026.
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Illinois-based Deere & Company (NYSE:DE) is making huge investments to increase the application of software and automate farm equipment. Is Deere Stock a Good Buy? Deere appears upbeat about the contribution of automation initiatives to its top-line growth.
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aa9c4882-3f68-4109-8de4-62ba32205f03
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721043.0
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2022-09-10 00:00:00 UTC
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Is Deere Stock a Buy?
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https://www.nasdaq.com/articles/is-deere-stock-a-buy
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As ever with cyclical stocks like Deere & Company (NYSE: DE), it's essential to understand their earnings' and valuations' up-and-down nature. Unfortunately, many investors have been caught out by thinking valuations look cheap because earnings are soaring, only to watch in disappointment as earnings collapse and the valuation suddenly looks expensive. So with that warning in mind, is Deere still a good value, or is the company's strong run in recent years (up 134% in three years) about to come to an end?
What you need to know before buying Deere stock
The agricultural, construction, and road building machinery stock is defined as a cyclical stock because sales of its key product (agricultural machinery) are tied to trends in farmers' income, which in turn relies on crop prices. It's a relationship that generally holds up -- in case you are wondering, the jump in revenue in 2018 is partly down to the acquisition of road building equipment company Wirtgen at the end of 2017. Wirtgen had $3.4 billion in revenue in 2017.
Data by YCharts
Armed with this knowledge, it's safe to say that if you think crop prices are heading sharply lower, Deere is a stock to avoid. On the other hand, if you think they will move higher and are positive on infrastructure and road building investment, then Deere is in the early innings of a long cycle of growth in its earnings.
What it means for Deere's valuation
Investors can see how these points play out in the valuations given to the company by the market. As you can see below, the increase in crop prices in 2020 resulted in a significant increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow (FCF). Given the strength in Deere's order book and its success in rolling out its precision agriculture technology (embedded in its hardware), Wall Street analysts believe Deere will report strong results in 2022 and also in 2023.
It's a view backed up by Deere's manager of investor communications, Rachel Bach, on the recentearnings callwhen talking about its agriculture and turf end markets. "Our order books for the remainder of the current fiscal year are full, and we see signs of robust demand into 2023 with some order books already full through the first half of next year," she said.
For reference, FCF is dipping in 2022 because management is investing more in working capital to ensure strong production growth to meet demand. A combination of supply chain issues easing in 2023 should see strong growth in EBITDA and robust growth in FCF. Due to significant supply chain issues in the first half of its fiscal year, Deere is facing an unusual year in which it's ramping production to unseasonably high levels in its fiscal fourth quarter to catch up and complete its already partially built equipment.
Data source: marketscreener.com, 2022-2024 are Wall Street analyst consensus, millions of U.S. Dollars.
All of which plays out in the valuations of the company. The above-mentioned EBITDA and FCF figures translate into the following enterprise value (market cap plus net debt), or EV, to EBITDA multiples and price to FCF multiples. As the chart demonstrates, buying Deere on a high multiple was a good trade: As crop prices rose, so did Deere's earnings. Thus, buying Deere on a favorable multiple in 2023 could be an even better deal.
Data source: author's analysis based on Wall Street consensus.
Is Deere stock a buy?
On balance, Deere looks like a good value. While it's tough to predict where crop prices and global farmers' income are heading, it would be a mistake to automatically assume they are about to fall off a cliff. Moreover, the company's progress in winning market share amid high take-up rates for its precision agriculture technology means it can continue to outperform its end markets. In addition, Deere's attractiveness as a stock with growth drivers unaligned to the global economy makes it even more desirable in the current environment.
10 stocks we like better than Deere & Company
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's a relationship that generally holds up -- in case you are wondering, the jump in revenue in 2018 is partly down to the acquisition of road building equipment company Wirtgen at the end of 2017. On the other hand, if you think they will move higher and are positive on infrastructure and road building investment, then Deere is in the early innings of a long cycle of growth in its earnings. It's a view backed up by Deere's manager of investor communications, Rachel Bach, on the recentearnings callwhen talking about its agriculture and turf end markets.
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What you need to know before buying Deere stock The agricultural, construction, and road building machinery stock is defined as a cyclical stock because sales of its key product (agricultural machinery) are tied to trends in farmers' income, which in turn relies on crop prices. Due to significant supply chain issues in the first half of its fiscal year, Deere is facing an unusual year in which it's ramping production to unseasonably high levels in its fiscal fourth quarter to catch up and complete its already partially built equipment. As ever with cyclical stocks like Deere & Company (NYSE: DE), it's essential to understand their earnings' and valuations' up-and-down nature.
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What you need to know before buying Deere stock The agricultural, construction, and road building machinery stock is defined as a cyclical stock because sales of its key product (agricultural machinery) are tied to trends in farmers' income, which in turn relies on crop prices. As the chart demonstrates, buying Deere on a high multiple was a good trade: As crop prices rose, so did Deere's earnings. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen.
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What it means for Deere's valuation Investors can see how these points play out in the valuations given to the company by the market. As the chart demonstrates, buying Deere on a high multiple was a good trade: As crop prices rose, so did Deere's earnings. Is Deere stock a buy?
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6698762a-e5b6-4e5c-ae51-ab46fef409c5
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721044.0
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2022-09-09 00:00:00 UTC
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3 Agriculture Stocks To Watch In The Stock Market Today
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https://www.nasdaq.com/articles/3-agriculture-stocks-to-watch-in-the-stock-market-today
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Are These The Best Agriculture Stocks To Invest In Right Now?
Agriculture stocks have been on the rise in the stock market in recent years. This comes as the industry has started to rebound from the global recession. However, there are still many challenges facing the sector, and it remains to be seen if the current trend will continue into the second half of 2022. One major challenge is the ongoing war between Russia and Ukraine. This has led to challenges that are making it more difficult and expensive for companies to export their goods. In addition, weather conditions have been increasingly unpredictable in recent years, which can lead to crop failures and lower yields.
Despite these challenges, agriculture stocks have outperformed the overall broader markets so far in 2022. Notably, agriculture stocks such as CF Industries Holdings Inc. (NYSE: CF) and Archer-Daniels-Midland Company (NYSE: ADM). Shares of both companies have seen their share price jump so far in 2022 by 46.81%, and 33.22% respectively. The sector is expected to benefit from continued growth in emerging markets, as well as increasing demand for healthy and organic food products.
In addition, government policies in many countries are supportive of the agriculture industry, and this is expected to continue. As a result, agriculture stocks could remain a good investment throughout the rest of 2022 and beyond. With this in mind, here are three top agriculture stocks to watch in the stock market today.
Agriculture Stocks To Watch Right Now
Deere & Company (NYSE: DE)
Nutrien Ltd. (NYSE: NTR)
The Mosaic Company (NYSE: MOS)
Deere & Company (DE Stock)
First up, Deere & Company (DE) is an American corporation that manufactures agricultural, construction, and forestry equipment. For a sense of scale, Deere & Company is the world’s largest manufacturer of agricultural equipment and also produces construction equipment, engines, and drivetrains for a variety of applications. Today, DE offers its shareholders an annual dividend yield of 1.23%. Just last month, the company reported its third-quarter 2022 financial results.
Diving in, Deere & Company reported Q3 2022 earnings per share of $6.16, with revenue of $14.1 billion. For context, Wall Street’s consensus estimates for the quarter were earnings of $6.64 per share, along with revenue of $12.9 billion. In addition, the company was able to grow revenue by 22.3% during the same period, in 2021. The company contributed this increase to higher rates of production. What’s more, DE revised its full-year earnings outlook to a range of $7.0 to $7.2 billion.
Continuing on, the company’s Chairman & CEO John May commented, “Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs. We are working closely with our factories and suppliers to meet higher levels of customer demand next year. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.”
So far in 2022, DE stock has outperformed the overall broad markets as shares are up over 5% year-to-date. Meanwhile, ahead of Friday’s opening bell shares of DE stock are trading at $368.48 per share. With this in mind, will you be keeping close tabs on Deere & Company stock in thestock market today
Source: TD Ameritrade TOS
[Read More] Good Stocks To Invest In Right Now? 4 Fertilizer Stocks In Focus
Nutrien (NTR Stock)
Next, Nutrien Ltd. (NTR) is one of the world’s largest providers of crop nutrients, specialty chemicals, and agronomic solutions. The company serves farmers in more than 40 countries across six continents. Aside from that, Nutrien produces and distributes nitrogen, phosphate, and potash products, as well as sulfur-based Nutritionals and micronutrients. In addition to crop nutrition products, Nutrien also offers a wide range of crop protection products, including herbicides, insecticides, and fungicides. Currently, NTR shareholders enjoy an annual dividend yield of 2.07%.
In August, Nutrien announced its second quarter 2022 financial results. Getting straight to it, the company posted second-quarter 2022 earnings per share of $5.85, with revenue coming in at $14.5 billion. This is compared with the consensus earnings estimate of $5.90 per share and revenue estimates of $15.0 billion. Moreover, Nutrien posted a 48.6% increase in revenue during the same period, in 2021. revenue grew 48.6% on a year-over-year basis. What’s more, the company also reported it estimates full-year 2022 earnings of $15.80 to $17.80 per share.
In addition, Nutrien’s Interim President and CEO stated in his letter to shareholders, “Nutrien delivered record earnings in the first half of 2022 due to the strength of market fundamentals, strong operating performance, the advantaged position of our global production assets and the excellent results of Retail. We generated strong results across our integrated business and demonstrated our unmatched capability to efficiently supply our customers with the products they need to help sustainably feed a growing world.”
Moving on, shares of NTR have also outperformed the broader stock market so far in 2022, with its share price increasing by over 30% year-to-date. Meanwhile, on Friday morning shares of NTR are trading at $119.42 per share. Given NTR stock’s momentum so far this year, do you think Nutrien is a good agriculture stock to buy now?
Source: TD Ameritrade TOS
[Read More] 2 Top Undervalued Stocks To Watch In September 2022
The Mosaic Company (MOS Stock)
Following that, The Mosaic Company (MOS) is one of the world’s leading producers of phosphate and potash, two essential nutrients for plant growth. The company’s products are used in agriculture, industry, and consumer goods. Today, MOS has an annual dividend yield of 1.11%. Separate from that, at the beginning of last month Mosaic Company reported its second quarter 2022 financial results.
Diving in, the company reported earnings per share of $3.64, with revenue of $5.4 billion. For context, analysts’ consensus estimates for Q2 2022 were earnings of $3.93 per share and revenue of $5.7 billion. Additionally, Mosaic Company posted a 91.8% jump in revenue during the same period, a year prior. What’s more, the company announced that its year-to-date capital return amounted to $1.1 billion, of which $1.0 billion of that was share repurchases. Also, Mosaic’s Board of Directors approved a new $2.0 billion share repurchase authorization.
“Mosaic’s second quarter results demonstrate the strength of the business,” commented Joc O’Rourke, President and CEO. “We are expanding production to help meet global demand and returning significant capital to shareholders. We expect strong fundamentals will continue for the rest of the year and into 2023.“
Similar to the other names mentioned in this article, shares of MOS stock are up over 34% so far in 2022. Meanwhile, just this week MOS stock is up another 2.67% as of Friday morning at $54.16 per share. All in all, do you think MOS stock deserves a spot on your agriculture stocks watchlist now?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The sector is expected to benefit from continued growth in emerging markets, as well as increasing demand for healthy and organic food products. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.” So far in 2022, DE stock has outperformed the overall broad markets as shares are up over 5% year-to-date. Source: TD Ameritrade TOS If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel.
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Agriculture Stocks To Watch Right Now Deere & Company (NYSE: DE) Nutrien Ltd. (NYSE: NTR) The Mosaic Company (NYSE: MOS) Deere & Company (DE Stock) First up, Deere & Company (DE) is an American corporation that manufactures agricultural, construction, and forestry equipment. With this in mind, will you be keeping close tabs on Deere & Company stock in thestock market today Source: TD Ameritrade TOS [Read More] Good Stocks To Invest In Right Now? Source: TD Ameritrade TOS [Read More] 2 Top Undervalued Stocks To Watch In September 2022 The Mosaic Company (MOS Stock) Following that, The Mosaic Company (MOS) is one of the world’s leading producers of phosphate and potash, two essential nutrients for plant growth.
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Agriculture Stocks To Watch Right Now Deere & Company (NYSE: DE) Nutrien Ltd. (NYSE: NTR) The Mosaic Company (NYSE: MOS) Deere & Company (DE Stock) First up, Deere & Company (DE) is an American corporation that manufactures agricultural, construction, and forestry equipment. Additionally, we are confident the company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere’s advanced technologies and solutions.” So far in 2022, DE stock has outperformed the overall broad markets as shares are up over 5% year-to-date. Source: TD Ameritrade TOS [Read More] 2 Top Undervalued Stocks To Watch In September 2022 The Mosaic Company (MOS Stock) Following that, The Mosaic Company (MOS) is one of the world’s leading producers of phosphate and potash, two essential nutrients for plant growth.
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Despite these challenges, agriculture stocks have outperformed the overall broader markets so far in 2022. Agriculture Stocks To Watch Right Now Deere & Company (NYSE: DE) Nutrien Ltd. (NYSE: NTR) The Mosaic Company (NYSE: MOS) Deere & Company (DE Stock) First up, Deere & Company (DE) is an American corporation that manufactures agricultural, construction, and forestry equipment. Diving in, Deere & Company reported Q3 2022 earnings per share of $6.16, with revenue of $14.1 billion.
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721045.0
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2022-09-08 00:00:00 UTC
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Here is What to Know Beyond Why Deere & Company (DE) is a Trending Stock
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DE
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https://www.nasdaq.com/articles/here-is-what-to-know-beyond-why-deere-company-de-is-a-trending-stock
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Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this agricultural equipment manufacturer have returned +3.9% over the past month versus the Zacks S&P 500 composite's -3.8% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has gained 6% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Deere is expected to post earnings of $7.14 per share, indicating a change of +73.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $22.94 for the current fiscal year indicates a year-over-year change of +20.8%. This estimate has changed -1.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $26.68 indicates a change of +16.3% from what Deere is expected to report a year ago. Over the past month, the estimate has changed +1.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Deere, the consensus sales estimate of $13.57 billion for the current quarter points to a year-over-year change of +32%. The $47.64 billion and $52.69 billion estimates for the current and next fiscal years indicate changes of +19.9% and +10.6%, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $13 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $6.16 for the same period compares with $5.32 a year ago.
Compared to the Zacks Consensus Estimate of $12.9 billion, the reported revenues represent a surprise of +0.76%. The EPS surprise was -7.23%.
Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Deere is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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Last Reported Results and Surprise History Deere reported revenues of $13 billion in the last reported quarter, representing a year-over-year change of +24.8%. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold). While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately.
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However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Deere (DE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
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721046.0
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2022-09-07 00:00:00 UTC
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Why I Own John Deere Stock
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DE
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https://www.nasdaq.com/articles/why-i-own-john-deere-stock
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nan
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nan
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John Deere (NYSE: DE) has been around for over a century, yet it is still innovating like a start-up. Check out what new products this company is working on as well as the reasons I own this stock!
*Stock prices used were the midday prices of August 30, 2022. The video was published on Sept. 3, 2022.
10 stocks we like better than Deere & Company
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Connor Allen has positions in Deere & Company. The Motley Fool recommends The Toro Company. The Motley Fool has a disclosure policy. Connor Allen is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! John Deere (NYSE: DE) has been around for over a century, yet it is still innovating like a start-up.
|
After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Connor Allen has positions in Deere & Company. John Deere (NYSE: DE) has been around for over a century, yet it is still innovating like a start-up.
|
10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Connor Allen has positions in Deere & Company.
|
* They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! See the 10 stocks *Stock Advisor returns as of August 17, 2022 Connor Allen has positions in Deere & Company. John Deere (NYSE: DE) has been around for over a century, yet it is still innovating like a start-up.
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ce4d9bad-71d3-48bc-b4fd-6d7aa400784c
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721047.0
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2022-09-07 00:00:00 UTC
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Zacks Industry Outlook Highlights Deere & Co, AGCO, Lindsay, Alamo Group and Titan International
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DE
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-deere-co-agco-lindsay-alamo-group-and-titan
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nan
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nan
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For Immediate Release
Chicago, IL – September 7, 2022 – Today, Zacks Equity Research discusses Deere & Co. DE, AGCO Corp. AGCO, Lindsay Corp. LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI
Industry: Farm Equipment
Link: https://www.zacks.com/commentary/1977000/5-farm-equipment-stocks-to-watch-in-a-promising-industry
The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which will boost farm income and lead to higher spending on agricultural equipment that will support the industry in the days ahead. The industry is focused on revolutionizing agriculture with technology in an effort to make farming automated, easy to use and more precise across the production process.
Players like Deere & Co., AGCO Corp., Lindsay Corp., Alamo Group Inc. and Titan International, Inc. are well-poised to gain from their investment in technologies, strong demand and cost-control efforts.
Industry Description
The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. These include tractors, combines, cotton pickers, harvesting equipment; tillage, seeding and application equipment, consisting of sprayers, nutrient management and soil preparation machinery; hay and forage equipment, comprising self-propelled forage harvesters and attachments, balers and mowers.
Some of these companies produce turf and utility equipment, consisting of riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers. Some participants also manufacture irrigation equipment. The industry players sell their equipment and related parts through independent retail dealer networks and retail outlets. This industry caters to agriculture, golf and landscape markets.
Trends Shaping the Future of the Manufacturing - Farm Equipment Industry
Improving Farm Income Bodes Well: The USDA (U.S Department of Agriculture) projects net farm income at $147.7 billion for 2022 – the highest since 2013 and indicating a 5.2% year-over-year increase. Cash receipts for agricultural commodities are expected at record levels. Receipts for soybeans are expected to be up 30.6%, corn by 16.7% and wheat by 33.7% compared to the prior-year levels, all led by higher prices.
Combined receipts for corn, soybeans and wheat are forecast to increase by $30.7 billion, accounting for most of the rise in crop cash receipts. The upbeat outlook for corn and soybeans, which are the most important grains for cash crop farming, bodes well for farmer sentiment and will likely translate into improved order levels. High commodity prices will drive farm income and persuade farmers to continue spending on agricultural equipment. Apart from this, the need to replace aging equipment will sustain demand.
High Costs & Supply Chain Woes Remain: Even though commodity prices have been gaining lately, renewed coronavirus-induced lockdowns in China fueled concerns of weakening demand that might impact prices again. Farmers will again adopt a cautious stance regarding their spending on equipment, which will hurt the industry's top-line performance. Also, farmers are witnessing higher production costs, particularly fertilizers. This might impede their purchasing power if commodity prices decline again.
The industry is also facing raw material cost inflation, particularly steel and increased transportation costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Labor shortage might affect their production levels and impair their ability to meet demand. Consequently, the industry players are making every effort to bolster their financial condition, conserve cash and improve profitability. The companies have been implementing cost-reduction actions, which are likely to help sustain margins amid the current scenario.
Advancement in Latest Technology: Customers are increasingly relying on advanced technology, smart farming solutions and mechanization to run their operations. Thus, the industry participants are enhancing investments in launching products equipped with advanced technologies and features to keep up with customers' evolving demands. Initiatives to expand in precision agriculture technology will be a game-changer for the industry players, given its productivity-enhancing and sustainability benefits.
Demand continues to grow for popular features, which include automatic guide machines in the field and equipment that plants seeds and applies chemicals and fertilizers with exceptional accuracy. Over the long term, rising population and elevated global demand for food and efficient water use will fuel demand for the industry's equipment.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #69, which places it at the top 27% of more than 250 Zacks industries.
The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. The Manufacturing - Farm Equipment industry's 2022 earnings estimates have improved 3% so far this year.
Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation.
Industry Outperforms Sector and S&P 500
The Zacks Manufacturing - Farm Equipment industry has outperformed its own sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have fallen 4.6% in the past 12 months compared with the S&P 500's decline of 14.4%. The Industrial Products sector has declined 21.7% in the said time frame.
Industry's Current Valuation
On the basis of the forward 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing farm equipment stocks, we see that the industry is currently trading at 23.59X compared with the S&P 500's 19.92X. The Industrial Products sector's forward 12-month EV/EBITDA is 19.07X.
Over the last five years, the industry has traded as high as 26.92X and as low as 13.35X, with the median being at 16.40X.
5 Manufacturing - Farm Equipment Stocks to Keep an Eye On
Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company's irrigation equipment. This momentum, along with increased concerns around food security, will drive growth in the company's international markets. Lindsay is benefiting from increased selling prices and higher unit sales volumes in most international irrigation markets.
The company's infrastructure business is positioned to grow on strong momentum in the Road Zipper System in the future. The business is well-poised for growth in the long run, backed by strong demand for transportation safety products and higher infrastructure spending. A strong balance sheet, focus on introducing technologically advanced products and acquisitions will drive growth. Shares of the company have gained 15% over the past six months.
The Zacks Consensus Estimate for Lindsay's earnings for fiscal 2022 is currently pegged at $5.95, suggesting year-over-year growth of 44.1%. The estimates have moved north by 20.7% in the past 60 days. The company has a trailing four-quarter earnings surprise of 25.7%, on average. It carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today's Zacks #1 Rank stocks here.
Alamo Group: Customer demand has been strong in the company's end markets, which resulted in ALG achieving the highest quarterly sales and earnings in its history. The company's Vegetation Management Division is benefiting from strong retail demand for agricultural, forestry, tree care and governmental mowing products in both North America and Europe.
The Industrial Equipment segment is gaining from higher sales of its excavators and vacuum truck products. The improvement in efficiency, combined with better pricing, supported gross margin performance and helped the company deliver double-digit income from operations growth for the first time since the third quarter of 2020.
The stock has declined 9.1% in the past six months, mainly due to the continued higher material and transportation costs and supply chain disruptions, which have resulted in material shortages lately.
The Zacks Consensus Estimate for the Seguin, TX-based company's ongoing-year earnings has been revised 5.9% upward in 60 days' time to $8.61. It currently carries a Zacks Rank #2 (Buy).
Deere: The company will continue to benefit from its focus on launching products with advanced technologies and features that provide it with a competitive edge. Efforts to expand in precision agriculture will be a significant growth driver. Deere, the world's largest producer of agricultural equipment, is well-poised to benefit from the improving agricultural commodity prices.
Replacement demand triggered by the need to upgrade old equipment will continue to support its revenues. Considering that it also makes construction equipment, it will benefit from strong demand in the residential and non-residential construction markets. Its cost-control actions will drive margins. Its shares have declined 1.8% in the past six months.
The Zacks Consensus Estimate for the Moline, IL-based company's fiscal 2022 earnings is currently pegged at $22.94. The estimate implies year-over-year growth of 20.8%. DE has a trailing four-quarter earnings surprise of 7.8%, on average. Deere has an estimated long-term earnings growth rate of 12.6%. DE currently carries a Zacks Rank #3 (Hold).
AGCO: The company has been gaining from improved farm dynamics and increasing replacement demand for old equipment. AGCO continues to invest in products, precision farming technology and smart farming solutions to improve distribution and enhance digital capabilities in order to drive margins and strengthen product offerings.
These efforts, along with favorable market demand and its cost-control efforts, have driven margin expansion across all regions over the past few quarters. The stock has declined 9.3% in the past six months.
The Zacks Consensus Estimate for the company's fiscal 2022 earnings currently stands at $11.87 and suggests growth of 14.3% year over year. The estimate has moved north by 0.4% in the past 60 days. This Duluth, GA-based leading manufacturer and distributor of agricultural equipment and related replacement parts currently carries a Zacks Rank of 3. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average. The company has an estimated long-term earnings growth rate of 9.6%.
Titan International: Both of the company's agriculture and earthmoving construction segments have been witnessing strong sales volume growth over the past few quarters. Farm commodity prices and the necessity to replace old equipment continue to support improved order levels for the agricultural segment.
The earthmoving and construction end markets look promising as the undercarriage business sustains a strong momentum with increased infrastructure and ramping construction activities acting as key catalysts. Backed by this traction, the company's shares have gained 22% in the past six months. Its continued cost reduction and cash preservation measures position it well for growth.
The Zacks Consensus Estimate for the company's earnings for fiscal 2022 currently stands at $2.19 per share, suggesting a year-over-year improvement of 158%. It has a trailing four-quarter earnings surprise of 47%, on average. TWI currently carries a Zacks Rank #3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Lindsay Corporation (LNN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Demand continues to grow for popular features, which include automatic guide machines in the field and equipment that plants seeds and applies chemicals and fertilizers with exceptional accuracy. The company's Vegetation Management Division is benefiting from strong retail demand for agricultural, forestry, tree care and governmental mowing products in both North America and Europe. The improvement in efficiency, combined with better pricing, supported gross margin performance and helped the company deliver double-digit income from operations growth for the first time since the third quarter of 2020.
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For Immediate Release Chicago, IL – September 7, 2022 – Today, Zacks Equity Research discusses Deere & Co. DE, AGCO Corp. AGCO, Lindsay Corp. LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI Industry: Farm Equipment Link: https://www.zacks.com/commentary/1977000/5-farm-equipment-stocks-to-watch-in-a-promising-industry The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which will boost farm income and lead to higher spending on agricultural equipment that will support the industry in the days ahead. Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. 5 Manufacturing - Farm Equipment Stocks to Keep an Eye On Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company's irrigation equipment.
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For Immediate Release Chicago, IL – September 7, 2022 – Today, Zacks Equity Research discusses Deere & Co. DE, AGCO Corp. AGCO, Lindsay Corp. LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI Industry: Farm Equipment Link: https://www.zacks.com/commentary/1977000/5-farm-equipment-stocks-to-watch-in-a-promising-industry The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which will boost farm income and lead to higher spending on agricultural equipment that will support the industry in the days ahead. Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector.
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For Immediate Release Chicago, IL – September 7, 2022 – Today, Zacks Equity Research discusses Deere & Co. DE, AGCO Corp. AGCO, Lindsay Corp. LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI Industry: Farm Equipment Link: https://www.zacks.com/commentary/1977000/5-farm-equipment-stocks-to-watch-in-a-promising-industry The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which will boost farm income and lead to higher spending on agricultural equipment that will support the industry in the days ahead. 5 Manufacturing - Farm Equipment Stocks to Keep an Eye On Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company's irrigation equipment. Players like Deere & Co., AGCO Corp., Lindsay Corp., Alamo Group Inc. and Titan International, Inc. are well-poised to gain from their investment in technologies, strong demand and cost-control efforts.
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721048.0
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2022-09-06 00:00:00 UTC
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5 Farm Equipment Stocks to Watch in a Promising Industry
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DE
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https://www.nasdaq.com/articles/5-farm-equipment-stocks-to-watch-in-a-promising-industry
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nan
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nan
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The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which will boost farm income and lead to higher spending on agricultural equipment that will support the industry in the days ahead. The industry is focused on revolutionizing agriculture with technology in an effort to make farming automated, easy to use and more precise across the production process.
Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI are well-poised to gain from their investment in technologies, strong demand and cost-control efforts.
Industry Description
The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. These include tractors, combines, cotton pickers, harvesting equipment; tillage, seeding and application equipment, consisting of sprayers, nutrient management and soil preparation machinery; hay and forage equipment, comprising self-propelled forage harvesters and attachments, balers and mowers. Some of these companies produce turf and utility equipment, consisting of riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers. Some participants also manufacture irrigation equipment. The industry players sell their equipment and related parts through independent retail dealer networks and retail outlets. This industry caters to agriculture, golf and landscape markets.
Trends Shaping the Future of the Manufacturing - Farm Equipment Industry
Improving Farm Income Bodes Well: The USDA (U.S Department of Agriculture) projects net farm income at $147.7 billion for 2022 – the highest since 2013 and indicating a 5.2% year-over-year increase. Cash receipts for agricultural commodities are expected at record levels. Receipts for soybeans are expected to be up 30.6%, corn by 16.7% and wheat by 33.7% compared to the prior-year levels, all led by higher prices. Combined receipts for corn, soybeans and wheat are forecast to increase by $30.7 billion, accounting for most of the rise in crop cash receipts. The upbeat outlook for corn and soybeans, which are the most important grains for cash crop farming, bodes well for farmer sentiment and will likely translate into improved order levels. High commodity prices will drive farm income and persuade farmers to continue spending on agricultural equipment. Apart from this, the need to replace aging equipment will sustain demand.
High Costs & Supply Chain Woes Remain: Even though commodity prices have been gaining lately, renewed coronavirus-induced lockdowns in China fueled concerns of weakening demand that might impact prices again. Farmers will again adopt a cautious stance regarding their spending on equipment, which will hurt the industry’s top-line performance. Also, farmers are witnessing higher production costs, particularly fertilizers. This might impede their purchasing power if commodity prices decline again. The industry is also facing raw material cost inflation, particularly steel, and increased transportation costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Labor shortage might affect their production levels and impair their ability to meet demand. Consequently, the industry players are making every effort to bolster their financial condition, conserve cash and improve profitability. The companies have been implementing cost-reduction actions, which are likely to help sustain margins amid the current scenario.
Advancement in Latest Technology: Customers are increasingly relying on advanced technology, smart farming solutions and mechanization to run their operations. Thus, the industry participants are enhancing investments in launching products equipped with advanced technologies and features to keep up with customers' evolving demands. Initiatives to expand in precision agriculture technology will be a game-changer for the industry players, given its productivity-enhancing and sustainability benefits. Demand continues to grow for popular features, which include automatic guide machines in the field and equipment that plants seeds and applies chemicals and fertilizers with exceptional accuracy. Over the long term, rising population and elevated global demand for food and efficient water use will fuel demand for the industry’s equipment.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #69, which places it at the top 27% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The Manufacturing - Farm Equipment industry’s 2022 earnings estimates have improved 3% so far this year.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation.
Industry Outperforms Sector and S&P 500
The Zacks Manufacturing - Farm Equipment industry has outperformed its own sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have fallen 4.6% in the past 12 months compared with the S&P 500’s decline of 14.4%. The Industrial Products sector has declined 21.7% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing farm equipment stocks, we see that the industry is currently trading at 23.59X compared with the S&P 500’s 19.92X. The Industrial Products sector’s forward 12-month EV/EBITDA is 19.07X. This is shown in the charts below.
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Over the last five years, the industry has traded as high as 26.92X and as low as 13.35X, with the median being at 16.40X.
5 Manufacturing - Farm Equipment Stocks to Keep an Eye on
Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company’s irrigation equipment. This momentum, along with increased concerns around food security, will drive growth in the company’s international markets. Lindsay is benefiting from increased selling prices and higher unit sales volumes in most international irrigation markets. The company’s infrastructure business is positioned to grow on strong momentum in Road Zipper System in the future. The business is well-poised for growth in the long run, backed by strong demand for transportation safety products and higher infrastructure spending. A strong balance sheet, focus on introducing technologically advanced products and acquisitions will drive growth. Shares of the company have gained 15% over the past six months.
The Zacks Consensus Estimate for Lindsay’s earnings for fiscal 2022 is currently pegged at $5.95, suggesting year-over-year growth of 44.1%. The estimates have moved north by 20.7% in the past 60 days. The company has a trailing four-quarter earnings surprise of 25.7%, on average. It carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: LNN
Alamo Group: Customer demand has been strong in the company’s end markets, which resulted in ALG achieving the highest quarterly sales and earnings in its history. The company’s Vegetation Management Division is benefiting from strong retail demand for agricultural, forestry, tree care and governmental mowing products in both North America and Europe. The Industrial Equipment segment is gaining from higher sales of its excavators and vacuum truck product. The improvement in efficiency, combined with better pricing, supported gross margin performance and helped the company deliver double-digit income from operations growth for the first time since the third quarter of 2020.
The stock has declined 9.1% in the past six months, mainly due to the continued higher material and transportation costs and supply chain disruptions, which have resulted in material shortages lately.
The Zacks Consensus Estimate for the Seguin, TX-based company’s ongoing-year earnings has been revised 5.9% upward in 60 days’ time to $8.61. It currently carries a Zacks Rank #2 (Buy).
Price & Consensus: ALG
Deere: The company will continue to benefit from its focus on launching products with advanced technologies and features that provide it with a competitive edge. Efforts to expand in precision agriculture will be a significant growth driver. Deere, the world’s largest producer of agricultural equipment, is well-poised to benefit from the improving agricultural commodity prices. Replacement demand triggered by the need to upgrade old equipment will continue to support its revenues. Considering that it also makes construction equipment, it will benefit from strong demand in the residential and non-residential construction markets. Its cost-control actions will drive margins. Its shares have declined 1.8% in the past six months.
The Zacks Consensus Estimate for the Moline, IL-based company’s fiscal 2022 earnings is currently pegged at $22.94. The estimate implies year-over-year growth of 20.8%. DE has a trailing four-quarter earnings surprise of 7.8%, on average. Deere has an estimated long-term earnings growth rate of 12.6%. DE currently carries a Zacks Rank #3 (Hold).
Price & Consensus: DE
AGCO: The company has been gaining from improved farm dynamics and increasing replacement demand for old equipment. AGCO continues to invest in products, precision farming technology and smart farming solutions to improve distribution and enhance digital capabilities in order to drive margins and strengthen product offerings. These efforts, along with favorable market demand and its cost-control efforts, have driven margin expansion across all regions over the past few quarters. The stock has declined 9.3% in the past six months.
The Zacks Consensus Estimate for the company’s fiscal 2022 earnings currently stands at $11.87 and suggests growth of 14.3% year over year. The estimate has moved north by 0.4% in the past 60 days. This Duluth, GA-based leading manufacturer and distributor of agricultural equipment and related replacement parts currently carries a Zacks Rank of 3. AGCO has a trailing four-quarter earnings surprise of 37.5%, on average. The company has an estimated long-term earnings growth rate of 9.6%.
Price & Consensus: AGCO
Titan International: Both of the company’s agriculture and earthmoving construction segments have been witnessing strong sales volume growth over the past few quarters. Farm commodity prices and the necessity to replace old equipment continue to support improved order levels for the agricultural segment. The earthmoving and construction end markets look promising as the undercarriage business sustains a strong momentum with increased infrastructure and ramping construction activities acting as key catalysts. Backed by this traction, the company’s shares have gained 22% in the past six months. Its continued cost reduction and cash preservation measures position it well for growth.
The Zacks Consensus Estimate for the company’s earnings for fiscal 2022 currently stands at $2.19 per share, suggesting a year-over-year improvement of 158%. It has a trailing four-quarter earnings surprise of 47%, on average. TWI currently carries a Zacks Rank #3.
Price & Consensus: TWI
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
Alamo Group, Inc. (ALG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Demand continues to grow for popular features, which include automatic guide machines in the field and equipment that plants seeds and applies chemicals and fertilizers with exceptional accuracy. Price & Consensus: LNN Alamo Group: Customer demand has been strong in the company’s end markets, which resulted in ALG achieving the highest quarterly sales and earnings in its history. The company’s Vegetation Management Division is benefiting from strong retail demand for agricultural, forestry, tree care and governmental mowing products in both North America and Europe.
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Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI are well-poised to gain from their investment in technologies, strong demand and cost-control efforts. Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment.
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Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI are well-poised to gain from their investment in technologies, strong demand and cost-control efforts.
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Zacks Industry Rank Indicates Bright Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. Price & Consensus: DE AGCO: The company has been gaining from improved farm dynamics and increasing replacement demand for old equipment. Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN, Alamo Group Inc. ALG and Titan International, Inc. TWI are well-poised to gain from their investment in technologies, strong demand and cost-control efforts.
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16d5dcc3-41ee-417a-aa0d-bb80099c681a
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721049.0
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2022-09-01 00:00:00 UTC
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Daily Dividend Report: DE,DRE,BRC,PWR,CTS
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DE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-dedrebrcpwrcts
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nan
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nan
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The Deere Board of Directors today declared a quarterly dividend of $1.13 per share on the company's common stock. The dividend is payable November 8, 2022 to stockholders of record on September 30, 2022.
The Board of Directors of Duke Realty today declared a quarterly cash distribution on its common stock of $0.28 per share, or $1.12 per share on an annualized basis. The third quarter dividend will be payable on September 30, 2022, to shareholders of record at the close of business on September 15, 2022.
On August 30, 2022, Brady's Board of Directors approved an increase in the annual dividend to shareholders of the Company's Class A Common Stock from $0.90 per share to $0.92 per share. A quarterly dividend to shareholders of the Company's Class A Common Stock of $0.23 per share will be paid on October 28, 2022, to shareholders of record at the close of business on October 7, 2022. This dividend represents the 37th consecutive annual increase in dividends.
Quanta Services, announced today that its Board of Directors has declared a quarterly cash dividend to stockholders of $0.07 per share. The dividend is payable on October 14, 2022, to stockholders of record as of October 3, 2022.
The Board of Directors of CTS declared a cash dividend of $0.04 per share, payable November 4, 2022, to shareholders of record at the close of business on September 30, 2022.
VIDEO: Daily Dividend Report: DE,DRE,BRC,PWR,CTS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Deere Board of Directors today declared a quarterly dividend of $1.13 per share on the company's common stock. Quanta Services, announced today that its Board of Directors has declared a quarterly cash dividend to stockholders of $0.07 per share. The Board of Directors of CTS declared a cash dividend of $0.04 per share, payable November 4, 2022, to shareholders of record at the close of business on September 30, 2022.
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The Deere Board of Directors today declared a quarterly dividend of $1.13 per share on the company's common stock. On August 30, 2022, Brady's Board of Directors approved an increase in the annual dividend to shareholders of the Company's Class A Common Stock from $0.90 per share to $0.92 per share. The Board of Directors of CTS declared a cash dividend of $0.04 per share, payable November 4, 2022, to shareholders of record at the close of business on September 30, 2022.
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On August 30, 2022, Brady's Board of Directors approved an increase in the annual dividend to shareholders of the Company's Class A Common Stock from $0.90 per share to $0.92 per share. A quarterly dividend to shareholders of the Company's Class A Common Stock of $0.23 per share will be paid on October 28, 2022, to shareholders of record at the close of business on October 7, 2022. The Board of Directors of CTS declared a cash dividend of $0.04 per share, payable November 4, 2022, to shareholders of record at the close of business on September 30, 2022.
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On August 30, 2022, Brady's Board of Directors approved an increase in the annual dividend to shareholders of the Company's Class A Common Stock from $0.90 per share to $0.92 per share. A quarterly dividend to shareholders of the Company's Class A Common Stock of $0.23 per share will be paid on October 28, 2022, to shareholders of record at the close of business on October 7, 2022. The Board of Directors of CTS declared a cash dividend of $0.04 per share, payable November 4, 2022, to shareholders of record at the close of business on September 30, 2022.
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c1ed4d85-8757-44cd-b206-a8777a0870a8
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721050.0
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2022-09-01 00:00:00 UTC
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FOCUS-Fewer U.S. tractor dealerships raise costs for farmers as sector consolidates
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DE
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https://www.nasdaq.com/articles/focus-fewer-u.s.-tractor-dealerships-raise-costs-for-farmers-as-sector-consolidates-0
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nan
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nan
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By Bianca Flowers
CHICAGO, Sept 1 (Reuters) - More farm equipment dealers are going out of business, leaving a handful of companies with control of a large swathe of the market and greater ability to set prices for selling and repairing equipment, according to interviews with farmers, equipment dealers and analysts.
Buyouts of local mom-and-pop dealers have reduced farmers' options for purchasing machinery and repairing aging equipment.
In Montana, a state the size of Germany, only three Deere & Co. DE.N dealerships remain compared to around 30 two decades ago, according to the state Farmers Union. Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N.
Somerfeld has had to travel out of state to get parts for his equipment when they aren't in stock at his local dealership 25 miles (40 km) from his home.
"The dealership that's 110 miles away normally has anything I want at a lower price," Somerfeld said.
Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites.
Larger dealers' pursuit of regional dominance began in the 1980s. Merger momentum increased during the COVID-19 pandemic, when supply chain snarls limited parts and labor available and smaller dealers were unable to compete with larger rivals, said John Schmeiser, chief operating officer of the North American Equipment Dealers Association, a trade group.
Fewer dealers to service millions of acres of farmland means U.S. farmers are paying more for equipment and gas at a time they also face higher costs of seeds, fertilizer, and other crop care chemicals. Increased costs are threatening their profits and ability to expand plantings next season at a time of growing concern over global food security.
Roughly 65% of farmers in the United States have access to fewer equipment dealerships than they did five years ago, according to a survey conducted in late 2021 by the U.S. Public Interest Research Group (PIRG) and the National Farmers Union, based on interviews with 74 farmers.
For Deere, more than 80% of authorized dealer locations are now part of larger chains, defined as owning seven or more stores, according to the survey and dealership location data analyzed by Reuters. CNH and AGCO Corp AGCO.N have a smaller percentage of their dealerships owned by larger chains -- at 37% for CNH's Case IH brand and 22% for AGCO as of December 2021.
Deere, best-known for its green tractors that have been the workhorse of agriculture for decades, CNH, and AGCO declined to comment on dealership consolidation.
Ag-Pro, Deere's largest privately owned dealer chain, added 59 dealerships to its portfolio through 20 acquisitions since 2017, according to data from the company's website.
Ag-Pro and Titan Machinery also declined to comment.
Farmers say the scarcity of local dealers, on the other hand, has cost them time and money hauling in machinery.
An oil pressure issue with Tony Lourey's 20-year-old tractor put him out of commission at the beginning of hay bailing season last July.
With the only independent repair shop near him estimating a three-week wait to get the tractor up and running, the Duluth, Minnesota, farmer ended up driving over 150 miles to a Wisconsin-based AGCO dealer to purchase a brand-new $75,000 tractor. The delivery fee added another $1,200 to the bill.
After getting the new machine onto his field, the high-horsepower tractor malfunctioned minutes after he put it into gear.
"At this point, I'm pulling my hair out," Lourey said.
RIGHT TO REPAIR
At the same time farmers lack bargaining power to get better purchase prices on equipment due to fewer dealers, they are also facing higher prices to repair equipment. As the industry accelerates its adoption of technology, high-tech machinery has made it nearly impossible for them to fix their own equipment, or go to independent technicians.
U.S. President Joe Biden's administration has tried to address the so-called right-to-repair with machinery-makers through a sweeping executive order signed last summer aimed at promoting more competition in the economy amid rising inflation, and manufacturers have made some concessions in response to lawsuits from consumers.
Until recently, Deere only gave authorized dealers the gateway to access the complex computerized systems of their tractors and other machinery. This has translated into a solid bottom line for its parts and services business. Financial filings from the Moline-based company showed that annual sales of parts have increased from $4.5 billion in 2011 to $6.8 billion in 2020.
In March, the company announced that it would make a diagnostics software tool available to farmers and independent repair shops that could be purchased online.
Other machinery makers are also raising prices for repairs after consolidating dealership ownership in an effort to boost sales, mechanics and farmers said.
An independent technician, who declined to be named and used to work at a dealership that was bought by Titan Machinery, the largest dealer chain for CNH Industrial, said he often gets calls from customers he believes are being overcharged.
For example, he said changing gear fluids on a quadtrac tractor, a machine used for planting and harvesting in muddy conditions, should cost around $2,000.
"I would get calls from farmers telling me that Titan has billed them $12,000," he said.
Titan Machinery did not respond to request for comment.
The pressure from machinery makers for dealers to grow their market share has increased, meaning further consolidation in the industry is likely, said Ken Wagner, president of Kansas-based Heritage Tractor Inc, which sells Deere equipment.
"Deere demands performance from their dealers - it's all about size and scope now," he said.
Deere cashes in on partshttps://tmsnrt.rs/3B1GqfD
Large farm dealerships dominatehttps://tmsnrt.rs/3CTW4e6
(Reporting by Bianca Flowers; Editing by Caroline Stauffer and Nick Zieminski)
((Bianca.Flowers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fewer dealers to service millions of acres of farmland means U.S. farmers are paying more for equipment and gas at a time they also face higher costs of seeds, fertilizer, and other crop care chemicals. U.S. President Joe Biden's administration has tried to address the so-called right-to-repair with machinery-makers through a sweeping executive order signed last summer aimed at promoting more competition in the economy amid rising inflation, and manufacturers have made some concessions in response to lawsuits from consumers. The pressure from machinery makers for dealers to grow their market share has increased, meaning further consolidation in the industry is likely, said Ken Wagner, president of Kansas-based Heritage Tractor Inc, which sells Deere equipment.
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Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites. Ag-Pro, Deere's largest privately owned dealer chain, added 59 dealerships to its portfolio through 20 acquisitions since 2017, according to data from the company's website.
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By Bianca Flowers CHICAGO, Sept 1 (Reuters) - More farm equipment dealers are going out of business, leaving a handful of companies with control of a large swathe of the market and greater ability to set prices for selling and repairing equipment, according to interviews with farmers, equipment dealers and analysts. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites. At the same time farmers lack bargaining power to get better purchase prices on equipment due to fewer dealers, they are also facing higher prices to repair equipment.
|
In Montana, a state the size of Germany, only three Deere & Co. DE.N dealerships remain compared to around 30 two decades ago, according to the state Farmers Union. Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites.
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f2f86ba0-4126-4316-9236-2135266509ba
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721051.0
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2022-09-01 00:00:00 UTC
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Deere & Co. Elects Joshua Jepsen As New Finance Chief, To Replace Rajesh Kalathur
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DE
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https://www.nasdaq.com/articles/deere-co.-elects-joshua-jepsen-as-new-finance-chief-to-replace-rajesh-kalathur
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nan
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nan
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(RTTNews) - Deere & Company (DE), machinery and equipment maker, said Thursday it has elected Joshua Jepsen as its Senior Vice President and Chief Financial Officer or CFO, with effect from September 16. The company said Rajesh Kalathur will step down as CFO and will continue as President of John Deere Financial and resume the role of Chief Information Officer of the company.
Jepsen has served as the company's Deputy Financial Officer since March. Prior to this role, he served as Director, Investor Relations from 2018 to 2022, and Manager, Investor Communications from 2015 to 2018.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere & Company (DE), machinery and equipment maker, said Thursday it has elected Joshua Jepsen as its Senior Vice President and Chief Financial Officer or CFO, with effect from September 16. The company said Rajesh Kalathur will step down as CFO and will continue as President of John Deere Financial and resume the role of Chief Information Officer of the company. Jepsen has served as the company's Deputy Financial Officer since March.
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(RTTNews) - Deere & Company (DE), machinery and equipment maker, said Thursday it has elected Joshua Jepsen as its Senior Vice President and Chief Financial Officer or CFO, with effect from September 16. The company said Rajesh Kalathur will step down as CFO and will continue as President of John Deere Financial and resume the role of Chief Information Officer of the company. Jepsen has served as the company's Deputy Financial Officer since March.
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(RTTNews) - Deere & Company (DE), machinery and equipment maker, said Thursday it has elected Joshua Jepsen as its Senior Vice President and Chief Financial Officer or CFO, with effect from September 16. The company said Rajesh Kalathur will step down as CFO and will continue as President of John Deere Financial and resume the role of Chief Information Officer of the company. Jepsen has served as the company's Deputy Financial Officer since March.
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(RTTNews) - Deere & Company (DE), machinery and equipment maker, said Thursday it has elected Joshua Jepsen as its Senior Vice President and Chief Financial Officer or CFO, with effect from September 16. The company said Rajesh Kalathur will step down as CFO and will continue as President of John Deere Financial and resume the role of Chief Information Officer of the company. Jepsen has served as the company's Deputy Financial Officer since March.
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9b3c31c8-14dc-4402-b1d4-5e5cfa0cb2f9
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721052.0
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2022-09-01 00:00:00 UTC
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FOCUS-Fewer U.S. tractor dealerships raise costs for farmers as sector consolidates
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DE
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https://www.nasdaq.com/articles/focus-fewer-u.s.-tractor-dealerships-raise-costs-for-farmers-as-sector-consolidates
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nan
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nan
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By Bianca Flowers
CHICAGO, Sept 1 (Reuters) - More farm equipment dealers are going out of business, leaving a handful of companies with control of a large swathe of the market and greater ability to set prices for selling and repairing equipment, according to interviews with farmers, equipment dealers and analysts.
Buyouts of local mom-and-pop dealers have reduced farmers' options for purchasing machinery and repairing aging equipment.
In Montana, a state the size of Germany, only three Deere & Co. DE.N dealerships remain compared to around 30 two decades ago, according to the state Farmers Union. Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N.
Somerfeld has had to travel out of state to get parts for his equipment when they aren't in stock at his local dealership 25 miles (40 km) from his home.
"The dealership that's 110 miles away normally has anything I want at a lower price," Somerfeld said.
Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites.
Larger dealers' pursuit of regional dominance began in the 1980s. Merger momentum increased during the COVID-19 pandemic, when supply chain snarls limited parts and labor available and smaller dealers were unable to compete with larger rivals, said John Schmeiser, chief operating officer of the North American Equipment Dealers Association, a trade group.
Fewer dealers to service millions of acres of farmland means U.S. farmers are paying more for equipment and gas at a time they also face higher costs of seeds, fertilizer, and other crop care chemicals. Increased costs are threatening their profits and ability to expand plantings next season at a time of growing concern over global food security.
Roughly 65% of farmers in the United States have access to fewer equipment dealerships than they did five years ago, according to a survey conducted in late 2021 by the U.S. Public Interest Research Group (PIRG) and the National Farmers Union, based on interviews with 74 farmers.
For Deere, more than 80% of authorized dealer locations are now part of larger chains, defined as owning seven or more stores, according to the survey and dealership location data analyzed by Reuters. CNH and AGCO Corp AGCO.N have a smaller percentage of their dealerships owned by larger chains -- at 37% for CNH's Case IH brand and 22% for AGCO as of December 2021.
Deere, best-known for its green tractors that have been the workhorse of agriculture for decades, CNH, and AGCO declined to comment on dealership consolidation.
Ag-Pro, Deere's largest privately owned dealer chain, added 59 dealerships to its portfolio through 20 acquisitions since 2017, according to data from the company's website.
Ag-Pro and Titan Machinery also declined to comment.
Farmers say the scarcity of local dealers, on the other hand, has cost them time and money hauling in machinery.
An oil pressure issue with Tony Lourey's 20-year-old tractor put him out of commission at the beginning of hay bailing season last July.
With the only independent repair shop near him estimating a three-week wait to get the tractor up and running, the Duluth, Minnesota, farmer ended up driving over 150 miles to a Wisconsin-based AGCO dealer to purchase a brand-new $75,000 tractor. The delivery fee added another $1,200 to the bill.
After getting the new machine onto his field, the high-horsepower tractor malfunctioned minutes after he put it into gear.
"At this point, I'm pulling my hair out," Lourey said.
RIGHT TO REPAIR
At the same time farmers lack bargaining power to get better purchase prices on equipment due to fewer dealers, they are also facing higher prices to repair equipment. As the industry accelerates its adoption of technology, high-tech machinery has made it nearly impossible for them to fix their own equipment, or go to independent technicians.
U.S. President Joe Biden's administration has tried to address the so-called right-to-repair with machinery-makers through a sweeping executive order signed last summer aimed at promoting more competition in the economy amid rising inflation, and manufacturers have made some concessions in response to lawsuits from consumers.
Until recently, Deere only gave authorized dealers the gateway to access the complex computerized systems of their tractors and other machinery. This has translated into a solid bottom line for its parts and services business. Financial filings from the Moline-based company showed that annual sales of parts have increased from $4.5 billion in 2011 to $6.8 billion in 2020.
In March, the company announced that it would make a diagnostics software tool available to farmers and independent repair shops that could be purchased online.
Other machinery makers are also raising prices for repairs after consolidating dealership ownership in an effort to boost sales, mechanics and farmers said.
An independent technician, who declined to be named and used to work at a dealership that was bought by Titan Machinery, the largest dealer chain for CNH Industrial, said he often gets calls from customers he believes are being overcharged.
For example, he said changing gear fluids on a quadtrac tractor, a machine used for planting and harvesting in muddy conditions, should cost around $2,000.
"I would get calls from farmers telling me that Titan has billed them $12,000," he said.
Titan Machinery did not respond to request for comment.
The pressure from machinery makers for dealers to grow their market share has increased, meaning further consolidation in the industry is likely, said Ken Wagner, president of Kansas-based Heritage Tractor Inc, which sells Deere equipment.
"Deere demands performance from their dealers - it's all about size and scope now," he said.
(Reporting by Bianca Flowers; Editing by Caroline Stauffer)
((Bianca.Flowers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fewer dealers to service millions of acres of farmland means U.S. farmers are paying more for equipment and gas at a time they also face higher costs of seeds, fertilizer, and other crop care chemicals. U.S. President Joe Biden's administration has tried to address the so-called right-to-repair with machinery-makers through a sweeping executive order signed last summer aimed at promoting more competition in the economy amid rising inflation, and manufacturers have made some concessions in response to lawsuits from consumers. The pressure from machinery makers for dealers to grow their market share has increased, meaning further consolidation in the industry is likely, said Ken Wagner, president of Kansas-based Heritage Tractor Inc, which sells Deere equipment.
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Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites. Ag-Pro, Deere's largest privately owned dealer chain, added 59 dealerships to its portfolio through 20 acquisitions since 2017, according to data from the company's website.
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By Bianca Flowers CHICAGO, Sept 1 (Reuters) - More farm equipment dealers are going out of business, leaving a handful of companies with control of a large swathe of the market and greater ability to set prices for selling and repairing equipment, according to interviews with farmers, equipment dealers and analysts. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites. At the same time farmers lack bargaining power to get better purchase prices on equipment due to fewer dealers, they are also facing higher prices to repair equipment.
|
In Montana, a state the size of Germany, only three Deere & Co. DE.N dealerships remain compared to around 30 two decades ago, according to the state Farmers Union. Local barley farmer Erik Somerfeld said one dealer network dominates all sales and repairs for rival equipment maker CNH Industrial CNHI.N. Just two dealer groups, Ag-Pro and Titan Machinery TITN.O, own the bulk of stores in North America selling farm equipment made by Deere -- the largest U.S. farm equipment maker -- and CNH Industrial, according to Ag-Pro and Titan Machinery websites.
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d7e9c556-6ac6-4291-b6a1-bf5e6257c1ee
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721053.0
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2022-08-31 00:00:00 UTC
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Noteworthy ETF Outflows: IWF, LLY, ACN, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-iwf-lly-acn-de
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $176.7 million dollar outflow -- that's a 0.3% decrease week over week (from 263,600,000 to 262,850,000). Among the largest underlying components of IWF, in trading today Eli Lilly (Symbol: LLY) is down about 0.6%, Accenture plc (Symbol: ACN) is off about 0.2%, and Deere & Co. (Symbol: DE) is lower by about 0.9%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $207.97 per share, with $311.95 as the 52 week high point — that compares with a last trade of $235.56. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.97 per share, with $311.95 as the 52 week high point — that compares with a last trade of $235.56. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.97 per share, with $311.95 as the 52 week high point — that compares with a last trade of $235.56. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $176.7 million dollar outflow -- that's a 0.3% decrease week over week (from 263,600,000 to 262,850,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $176.7 million dollar outflow -- that's a 0.3% decrease week over week (from 263,600,000 to 262,850,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.97 per share, with $311.95 as the 52 week high point — that compares with a last trade of $235.56. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $176.7 million dollar outflow -- that's a 0.3% decrease week over week (from 263,600,000 to 262,850,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.97 per share, with $311.95 as the 52 week high point — that compares with a last trade of $235.56. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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b39ebc42-89f9-49aa-ba99-cd8826dda569
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721054.0
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2022-08-29 00:00:00 UTC
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Up 19% In A Month, Can Deere Stock Continue Its Run?
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DE
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https://www.nasdaq.com/articles/up-19-in-a-month-can-deere-stock-continue-its-run
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Deere stock (NYSE: DE) reported its Q2FY22 results last week, with revenue falling slightly ahead but earnings well below our estimates. DE stock has risen 8% in a week, while it’s up 19% in a month. After the recent rise, we believe DE stock is fully valued, as discussed below.
Deere’s revenue (Q3FY22 equipment revenue) of $13.2 billion was up 25%, while its EPS of $6.16 was up 16% y-o-y, compared to our estimates of $13.0 billion and $6.70, respectively. The revenue growth was driven by solid demand for agriculture equipment, which saw sales rise a significant 32%, while the construction equipment sales were up 8% y-o-y. The operating margin contracted 70 bps due to supply chain issues and inflation.
The company lowered its full-fiscal year guidance with net income expected to be between $7 and $7.2 billion, vs. its prior guidance the $7 and $7.4 billion range. Despite an earnings miss, DE stock has rallied due to a solid performance of its agriculture equipment segment, a trend expected to continue in the near term. The company benefits from the above-average age of farming equipment in the U.S. The demand has also been buoyed by rising agricultural income.
We have updated our model to reflect the latest results. We expect full-fiscal 2022 revenue to be $47.1 billion and earnings to be $23.02 on a per share and adjusted basis. We have revised Deere’s Valuation to be around $396 per share (vs. $410 earlier), which is just 2% above the current market price of $388. At its current levels, DE stock is trading around 17x its expected forward earnings, compared to the last three-year average of 16x, implying that DE stock is fully valued now.
But what about the near-term outlook based on Deere’s recent stock price move?
Now that DE stock has seen a significant rise of 19% in a month, will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of an increase in DE stock over the next month. A move of 19% or more in a month for Deere has occurred only 34 times in the past ten years. Of those, 22 instances resulted in DE stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 22 out of 34, or a 65% chance of a rise in DE stock over the coming month. See our analysis on Deere Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving 6% or more over five days, the stock rose on 58% of the occasions in the next five days.
After moving 7% or more over ten days, the stock rose in the next ten days on 55% of the occasions
After moving 19% or more over a twenty-one-day period, the stock rose on 65% of the occasions in the next twenty-one days.
This pattern suggests a higher chance of a rise in DE stock over the next five days, ten days, and one month.
Deere (DE) Return (Recent) Comparison With Peers
Five-Day Return: DE highest at 5.5%; ASTE lowest at -5.6%
Ten-Day Return: DE highest at 7.2%; ASTE lowest at -7.3%
Twenty-One Day Return: DE highest at 19.0%; ASTE lowest at -11.9%
Although DE stock is fully valued in our view, its rise may continue in the near term based on its historical performance. It is helpful to see how Deere’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Corning vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DE Return 13% 13% 277%
S&P 500 Return 2% -12% 88%
Trefis Multi-Strategy Portfolio 2% -12% 254%
[1] Month-to-date and year-to-date as of 8/26/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere stock (NYSE: DE) reported its Q2FY22 results last week, with revenue falling slightly ahead but earnings well below our estimates. Despite an earnings miss, DE stock has rallied due to a solid performance of its agriculture equipment segment, a trend expected to continue in the near term. Of those, 22 instances resulted in DE stock rising over the subsequent one-month period (twenty-one trading days).
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The revenue growth was driven by solid demand for agriculture equipment, which saw sales rise a significant 32%, while the construction equipment sales were up 8% y-o-y. Deere (DE) Return (Recent) Comparison With Peers Five-Day Return: DE highest at 5.5%; ASTE lowest at -5.6% Ten-Day Return: DE highest at 7.2%; ASTE lowest at -7.3% Twenty-One Day Return: DE highest at 19.0%; ASTE lowest at -11.9% Although DE stock is fully valued in our view, its rise may continue in the near term based on its historical performance. Total [2] DE Return 13% 13% 277% S&P 500 Return 2% -12% 88% Trefis Multi-Strategy Portfolio 2% -12% 254% [1] Month-to-date and year-to-date as of 8/26/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) Return (Recent) Comparison With Peers Five-Day Return: DE highest at 5.5%; ASTE lowest at -5.6% Ten-Day Return: DE highest at 7.2%; ASTE lowest at -7.3% Twenty-One Day Return: DE highest at 19.0%; ASTE lowest at -11.9% Although DE stock is fully valued in our view, its rise may continue in the near term based on its historical performance. Total [2] DE Return 13% 13% 277% S&P 500 Return 2% -12% 88% Trefis Multi-Strategy Portfolio 2% -12% 254% [1] Month-to-date and year-to-date as of 8/26/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere stock (NYSE: DE) reported its Q2FY22 results last week, with revenue falling slightly ahead but earnings well below our estimates.
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The revenue growth was driven by solid demand for agriculture equipment, which saw sales rise a significant 32%, while the construction equipment sales were up 8% y-o-y. This pattern suggests a higher chance of a rise in DE stock over the next five days, ten days, and one month. Deere (DE) Return (Recent) Comparison With Peers Five-Day Return: DE highest at 5.5%; ASTE lowest at -5.6% Ten-Day Return: DE highest at 7.2%; ASTE lowest at -7.3% Twenty-One Day Return: DE highest at 19.0%; ASTE lowest at -11.9% Although DE stock is fully valued in our view, its rise may continue in the near term based on its historical performance.
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7c053111-2b3f-4673-ac9d-e85f11b38fe3
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721055.0
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2022-08-29 00:00:00 UTC
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Beat the Market Like Zacks: Avis Budget Group (CAR), Deere (DE), Novo Nordisk (NVO) in Focus
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https://www.nasdaq.com/articles/beat-the-market-like-zacks%3A-avis-budget-group-car-deere-de-novo-nordisk-nvo-in-focus
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Each of the three most widely followed indexes closed last week in the red, falling for the second straight week. The tech-heavy Nasdaq, the Dow Jones Industrial Average and the S&P 500 declined 4.4%, 4.2% and 4%, respectively.
Investors were apprehensive throughout last week about Fed Chair Jerome Powell’s speech at the economic symposium at Jackson Hole. Fear was rife that Powell would re-iterate the Fed’s commitment to tackle inflation by continuing to hike interest rates in the foreseeable future. Bond yields rose early in the week, taking a toll on large-cap growth stocks, and sessions were choppy.
In fact, even an encouraging PCE inflation report did not deter the Fed from its hawkish stance. As expected, Powell said in his eight-minute speech on Friday that there would be “some pain” ahead as the Fed would continue to raise rates. The jury is out on whether the planned September hike would be 50 bps or 75 bps.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
Zacks Research guided investors last week with its time-tested methodologies as usual. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements from last week:
Vermilion Energy, Tencent Holdings Rise Following Zacks Rank Upgrade
Shares of Vermilion Energy Inc. VET have gained 9.4% since it was upgraded to a Zacks Rank #1 (Strong Buy) on August 23. The rating upgrade was primarily driven by an upward trend in earnings estimates, one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating.
For VET, the consensus EPS estimate of $5.55 for the current year has increased 23.1% over the past month.
Rising earnings estimates and the consequent Zacks Rank upgrade for VET imply an improvement in the company's underlying business. Investors have started showing their appreciation for this improving business trend by pushing the stock higher.
Check Vermilion Energy’s historical EPS and Sales here>>>
Tencent Holdings Limited TCEHY, another stock upgraded to a Zacks Rank #1 on August 20, has returned 4.2% over the past week. Over the past month, a 12% increase in the current-year consensus EPS estimate has driven the rating upgrade.
Check Tencent Holdings’ historical EPS and Sales here>>>
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives Avis Budget Group, Reservoir Media Higher
Shares of Avis Budget Group, Inc. CAR and Reservoir Media, Inc. RSVR have gained 7.6% and 4.2% since their Zacks Recommendation was upgraded to Outperform on August 23 and August 22, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Model Portfolio Stock Deere & Company Gains
Shares of Deere & Company DE, which belongs to the Zacks Focus List, have gained 2.6% over the past week. The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Deere was added to the Focus List on July 25, 2017, at $126.55 per share. The stock has gained 199.8% since then to close the last trading session at $379.38.
Since its inception on February 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stock Novo Nordisk Unscathed in the Bloodbath
Novo Nordisk A/S NVO, a component of our Earnings Certain Admiral Portfolio (ECAP), surged 4% last week. ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stock J. M. Smucker Witnesses Price Increase
The J. M. Smucker Company SJM, which is part of our Earnings Certain Dividend Portfolio (ECDP), grew 1.3% last week. The inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance. Check J. M. Smucker’s dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps mitigate risk significantly. The ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Novo Nordisk AS (NVO): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The J. M. Smucker Company (SJM): Free Stock Analysis Report
Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report
Vermilion Energy Inc. (VET): Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Reservoir Media, Inc. (RSVR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Check Vermilion Energy’s historical EPS and Sales here>>> Tencent Holdings Limited TCEHY, another stock upgraded to a Zacks Rank #1 on August 20, has returned 4.2% over the past week. The inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance. Each of the three most widely followed indexes closed last week in the red, falling for the second straight week.
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Image Source: Zacks Investment Research Zacks Recommendation Upgrade Drives Avis Budget Group, Reservoir Media Higher Shares of Avis Budget Group, Inc. To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stock Deere & Company Gains Shares of Deere & Company DE, which belongs to the Zacks Focus List, have gained 2.6% over the past week. Each of the three most widely followed indexes closed last week in the red, falling for the second straight week.
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To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stock Deere & Company Gains Shares of Deere & Company DE, which belongs to the Zacks Focus List, have gained 2.6% over the past week. Each of the three most widely followed indexes closed last week in the red, falling for the second straight week. The tech-heavy Nasdaq, the Dow Jones Industrial Average and the S&P 500 declined 4.4%, 4.2% and 4%, respectively.
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To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>> Zacks Focus List Model Portfolio Stock Deere & Company Gains Shares of Deere & Company DE, which belongs to the Zacks Focus List, have gained 2.6% over the past week. The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. Each of the three most widely followed indexes closed last week in the red, falling for the second straight week.
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b21a3d5a-5e15-4329-8664-7448718dded8
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721056.0
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2022-08-29 00:00:00 UTC
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3 Monster Blue Chip Dividend Stocks That Are Bursting With Passive Income Potential
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DE
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https://www.nasdaq.com/articles/3-monster-blue-chip-dividend-stocks-that-are-bursting-with-passive-income-potential
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In times of high market volatility, it can be reassuring to fall back on timeless investing fundamentals. One of the simplest ways to compound wealth over time is by investing in quality companies in growing industries. Large companies like Deere (NYSE: DE), Emerson Electric (NYSE: EMR), and Eaton (NYSE: ETN) may not pay the highest dividends. But they have proven that they can grow earnings and their payouts over time.
Long-term investors care less about what a stock's dividend yield is today and more about the company's relevance and prospects. Here's what makes these three industrial stocks worth owning now.
Image source: Getty Images.
Deere is firing on all cylinders
Daniel Foelber (Deere): Deere reported an excellent fiscal 2022 third quarter and is on track to deliver record net income of $7 billion to $7.2 billion for the full fiscal year. At face value, Deere's record year can be attributed to strong commodity prices, which have boosted investment in Deere's end markets across agriculture, forestry, and construction. However, the bigger story is Deere's pricing power, which has successfully offset inflation headwinds.
For the full-year fiscal 2022, Deere is forecasting 14% higher price realization in its largest segment, production and precision agriculture, as well as 9% higher price realization in small agriculture and turf, and 10% higher price realization in construction and forestry.
As excellent as Deere's business is performing now, one single banner year isn't enough to justify a long-term investment thesis. But Deere has much more going for it than its fiscal 2022 results. The company's research and development expense is at an all-time high as it puts capital to work in automation, electrification, and artificial intelligence solutions.
Deere's 2022 investor presentation centered around the company's belief that farmers are going to have to do more with less. Past growth was centered around expanding out. Deere believes future growth will be about efficiency. Put another way, generating higher crop yield from the same parcel of land and sustainably developing that land for longer.
Deere's blend of short-term success, in-house software and hardware, and premium brand power make it one of the more unique companies in that it combines legacy industrial roots with aggressive investments in technology. Investors should note that Deere prioritizes a strong balance sheet and growth investments over dividends and share buybacks. For folks who like dividend stocks but are more focused on a company's growth than its passive income stream, Deere could be a great buy now. And in the long run, its growing dividend could prove to be an even greater source of passive income than companies with a higher yield today but weaker growth prospects.
Emerson Electric is a good value stock
Lee Samaha (Emerson Electric): Down 6.5% in 2022, and with some poetic symmetry that is lost on me, the Dividend Aristocrat is in its 65th year of raising its dividend. However, poetry isn't just the reason for buying Emerson Electric. There are three other key reasons to buy the stock. First, Emerson is a good value stock trading at 17 times the midpoint of management's earnings guidance for 2022. Moreover, the forecast earnings per share of $5.05 to $5.15 mean its dividend of $2.05 per share is covered 2.5 times.
Second, Emerson's end markets have substantial long-term growth prospects. Its automation-solutions business benefits from the ongoing need for investment in energy, refining, and heavy industries. Meanwhile, its commercial and residential-solutions business (a loose collection of heating, ventilation, and air conditioning, or HVAC, solutions and tools and home-products businesses) benefits from global growth in HVAC. The latter is driven by increased urbanization (urban areas tend to be warmer than rural ones) and demand for HVAC from the growing middle classes in the emerging world.
Finally, Emerson has an opportunity to improve profitability by divesting its non-core businesses. For example, CEO Lal Karsanbhai wants to divest some of its upstream oil and gas-focused businesses. Another example comes from the recent announcement of an intent to sell its food waste disposal business, InSinkErator, to Whirlpool for $3 billion. All told, there's plenty of opportunity for growth, and the modest valuation makes Emerson look like a good-growth-at-a-reasonable-price candidate.
Buying this blue chip can charge up your portfolio
Scott Levine (Eaton Corporation): Falling nearly 16% since the start of the year, shares of Eaton haven't been on the same trajectory that saw them rise 44% in 2021. That's not to say that anything is fundamentally wrong with the company. Instead, the stock's drop is largely tied to the same issues plaguing so many other businesses this year: supply chain challenges and inflation.
But this isn't Eaton's first rodeo. With a history stretching back more than 110 years, this power management company has seen some ups and downs over the past century, and it's still thriving -- and will likely continue to thrive in the coming years. And blue chip investors who choose to pick up shares and go along for the ride can enjoy a nice forward-dividend yield of 2.2% while the story plays out.
What's powering this power management company's growth? One of the greatest tailwinds that is energizing Eaton is the growing enthusiasm for electric vehicles (EVs). The passage of the Inflation Reduction Act and news that California -- and potentially other states to follow -- intends to ban the sale of cars powered by only gasoline by 2035 are merely two signals that demand for EVs is poised to drive higher. Since those EV batteries won't charge themselves, Eaton will be there to help keep the wheels turning. From the powertrains that help the EVs move to charging infrastructure, the company has a variety of products and solutions that meet the various needs of EV drivers.
Increased focus on improving the nation's grid resiliency represents another substantial growth opportunity. The infrastructure bill signed by President Biden last November includes $65 billion in funding for clean energy transmission and improving the nation's aging electrical grid -- areas in which Eaton specializes.
10 stocks we like better than Deere & Company
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's blend of short-term success, in-house software and hardware, and premium brand power make it one of the more unique companies in that it combines legacy industrial roots with aggressive investments in technology. The passage of the Inflation Reduction Act and news that California -- and potentially other states to follow -- intends to ban the sale of cars powered by only gasoline by 2035 are merely two signals that demand for EVs is poised to drive higher. The infrastructure bill signed by President Biden last November includes $65 billion in funding for clean energy transmission and improving the nation's aging electrical grid -- areas in which Eaton specializes.
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Large companies like Deere (NYSE: DE), Emerson Electric (NYSE: EMR), and Eaton (NYSE: ETN) may not pay the highest dividends. Emerson Electric is a good value stock Lee Samaha (Emerson Electric): Down 6.5% in 2022, and with some poetic symmetry that is lost on me, the Dividend Aristocrat is in its 65th year of raising its dividend. Long-term investors care less about what a stock's dividend yield is today and more about the company's relevance and prospects.
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Deere is firing on all cylinders Daniel Foelber (Deere): Deere reported an excellent fiscal 2022 third quarter and is on track to deliver record net income of $7 billion to $7.2 billion for the full fiscal year. For folks who like dividend stocks but are more focused on a company's growth than its passive income stream, Deere could be a great buy now. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen.
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* They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! Large companies like Deere (NYSE: DE), Emerson Electric (NYSE: EMR), and Eaton (NYSE: ETN) may not pay the highest dividends. Long-term investors care less about what a stock's dividend yield is today and more about the company's relevance and prospects.
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721057.0
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2022-08-26 00:00:00 UTC
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Institutional investors must be pleased after a 5.5% gain last week that adds to Deere & Company's (NYSE:DE) one-year returns
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https://www.nasdaq.com/articles/institutional-investors-must-be-pleased-after-a-5.5-gain-last-week-that-adds-to-deere
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A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 71% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And last week, institutional investors ended up benefitting the most after the company hit US$117b in market cap. The one-year return on investment is currently 3.5% and last week's gain would have been more than welcomed.
Let's take a closer look to see what the different types of shareholders can tell us about Deere.
NYSE:DE Ownership Breakdown August 26th 2022
What Does The Institutional Ownership Tell Us About Deere?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Deere already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Deere's earnings history below. Of course, the future is what really matters.
NYSE:DE Earnings and Revenue Growth August 26th 2022
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Deere is not owned by hedge funds. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 7.2%. In comparison, the second and third largest shareholders hold about 6.5% and 6.2% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Deere
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that Deere & Company insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$135m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Deere. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 6.5%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Deere better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Deere you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:DE Earnings and Revenue Growth August 26th 2022 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful.
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NYSE:DE Earnings and Revenue Growth August 26th 2022 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful.
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A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful. Our information suggests that Deere & Company insiders own under 1% of the company. And last week, institutional investors ended up benefitting the most after the company hit US$117b in market cap.
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And last week, institutional investors ended up benefitting the most after the company hit US$117b in market cap. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. A look at the shareholders of Deere & Company (NYSE:DE) can tell us which group is most powerful.
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721058.0
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2022-08-26 00:00:00 UTC
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3 Reasons Deere Can Continue to Outperform the Industrials Sector
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https://www.nasdaq.com/articles/3-reasons-deere-can-continue-to-outperform-the-industrials-sector
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Deere & Company (NYSE: DE) just reported fiscal 2022 third-quarter (ended July 31) numbers that struck a similar tone to those of other industrial companies this year. Higher costs, supply chain issues, and decreased guidance are themes that have been common throughout the first and second quarters of 2022. This sort of earnings reporting is a big part of why the Dow Jones Industrial Average (DJIA) is down about 9.3% for the year.
Deere's stock, however, is up 11.7% over the same timeframe, bucking the trend and outperforming the index. Here's why the stock could continue to outperform going forward.
High crop prices in 2022 helped Deere
Like most other commodities this year, crop prices are elevated. Corn and soybean prices are well above what they were in 2020 and 2021. Though farmers face the same inflationary costs as anyone else this year, higher crop prices (and the added revenue they generate) have allowed more farmers to update their fleets. Deere pointed out in its third-quarter earnings report that sales and profit from large farm equipment were up 43% year over year.
Image source: Getty Images.
Though management modestly reduced its full-year earnings guidance from between $7 billion and $7.4 billion to between $7 billion and $7.2 billion, it's still an admirable increase from the $6 billion it earned in 2021. This year's bumper profit could be why the stock has outperformed the DJIA this year. Crop prices will undoubtedly bounce around each year as they always do. As long-term investors, the focus is on how the company can perform after this year's harvest. Deere has long-term trends going in its favor also.
Deere benefits from domination in top markets
Deere's easily recognizable green and yellow tractors and combines are primarily sold in North America, where the farm equipment manufacturer has built a powerful brand based on a long history of reliability and quality. That has helped the company generate plenty of loyalty among its U.S. customers.
Though Deere's largest market is North America, in 2021, the company sold more farm equipment than any other company on the globe by a wide margin. Deere's position of strength will come in handy in a global agricultural equipment industry that is forecast to grow 8.5% annually through 2030.
Infrastructure spending should help Deere
Beyond farm equipment, Deere also makes construction equipment, including bulldozers and excavators predominantly used in road building. The bipartisan Infrastructure Investment and Jobs Act passed this year will provide $110 billion to help fund road repairs and other transformational projects over the next five years. On the third-quarterearnings call Deere management told investors that, despite weakness in some foreign markets, its U.S. roadbuilding is being helped by the oil and gas industry, and U.S. infrastructure is beginning to ramp up.
Sustainable outperformance
Deere is well positioned to take advantage of short- and long-term catalysts that could help it continue to outperform the DJIA. In addition to its market-related advantages, Deere will introduce its fully autonomous tractors later this year. The tractors come with six pairs of cameras that allow them to operate within less than an inch of accuracy and can be configured and monitored from a mobile phone. The new technology could fuel another leg of growth for Deere in the coming years. Any active investors looking for long-term outperformance should have their sights set on Deere & Company stock.
10 stocks we like better than Deere & Company
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 17, 2022
BJ Cook has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's position of strength will come in handy in a global agricultural equipment industry that is forecast to grow 8.5% annually through 2030. On the third-quarterearnings call Deere management told investors that, despite weakness in some foreign markets, its U.S. roadbuilding is being helped by the oil and gas industry, and U.S. infrastructure is beginning to ramp up. Deere & Company (NYSE: DE) just reported fiscal 2022 third-quarter (ended July 31) numbers that struck a similar tone to those of other industrial companies this year.
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Though farmers face the same inflationary costs as anyone else this year, higher crop prices (and the added revenue they generate) have allowed more farmers to update their fleets. Deere pointed out in its third-quarter earnings report that sales and profit from large farm equipment were up 43% year over year. Though Deere's largest market is North America, in 2021, the company sold more farm equipment than any other company on the globe by a wide margin.
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Deere pointed out in its third-quarter earnings report that sales and profit from large farm equipment were up 43% year over year. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. Deere & Company (NYSE: DE) just reported fiscal 2022 third-quarter (ended July 31) numbers that struck a similar tone to those of other industrial companies this year.
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Sustainable outperformance Deere is well positioned to take advantage of short- and long-term catalysts that could help it continue to outperform the DJIA. Any active investors looking for long-term outperformance should have their sights set on Deere & Company stock. Deere & Company (NYSE: DE) just reported fiscal 2022 third-quarter (ended July 31) numbers that struck a similar tone to those of other industrial companies this year.
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2022-08-23 00:00:00 UTC
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Notable Tuesday Option Activity: NEOG, RLMD, DE
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-neog-rlmd-de
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Neogen Corp (Symbol: NEOG), where a total volume of 38,422 contracts has been traded thus far today, a contract volume which is representative of approximately 3.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 96.3% of NEOG's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $30 strike call option expiring September 16, 2022, with 19,091 contracts trading so far today, representing approximately 1.9 million underlying shares of NEOG. Below is a chart showing NEOG's trailing twelve month trading history, with the $30 strike highlighted in orange:
Relmada Therapeutics Inc (Symbol: RLMD) saw options trading volume of 2,368 contracts, representing approximately 236,800 underlying shares or approximately 95.1% of RLMD's average daily trading volume over the past month, of 248,905 shares. Particularly high volume was seen for the $7.50 strike call option expiring January 20, 2023, with 1,766 contracts trading so far today, representing approximately 176,600 underlying shares of RLMD. Below is a chart showing RLMD's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 14,291 contracts, representing approximately 1.4 million underlying shares or approximately 93.7% of DE's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $425 strike call option expiring September 16, 2022, with 960 contracts trading so far today, representing approximately 96,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $425 strike highlighted in orange:
For the various different available expirations for NEOG options, RLMD options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $30 strike call option expiring September 16, 2022, with 19,091 contracts trading so far today, representing approximately 1.9 million underlying shares of NEOG. Particularly high volume was seen for the $7.50 strike call option expiring January 20, 2023, with 1,766 contracts trading so far today, representing approximately 176,600 underlying shares of RLMD. Especially high volume was seen for the $425 strike call option expiring September 16, 2022, with 960 contracts trading so far today, representing approximately 96,000 underlying shares of DE.
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Particularly high volume was seen for the $30 strike call option expiring September 16, 2022, with 19,091 contracts trading so far today, representing approximately 1.9 million underlying shares of NEOG. Below is a chart showing NEOG's trailing twelve month trading history, with the $30 strike highlighted in orange: Relmada Therapeutics Inc (Symbol: RLMD) saw options trading volume of 2,368 contracts, representing approximately 236,800 underlying shares or approximately 95.1% of RLMD's average daily trading volume over the past month, of 248,905 shares. Below is a chart showing RLMD's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,291 contracts, representing approximately 1.4 million underlying shares or approximately 93.7% of DE's average daily trading volume over the past month, of 1.5 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Neogen Corp (Symbol: NEOG), where a total volume of 38,422 contracts has been traded thus far today, a contract volume which is representative of approximately 3.8 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing NEOG's trailing twelve month trading history, with the $30 strike highlighted in orange: Relmada Therapeutics Inc (Symbol: RLMD) saw options trading volume of 2,368 contracts, representing approximately 236,800 underlying shares or approximately 95.1% of RLMD's average daily trading volume over the past month, of 248,905 shares. Below is a chart showing RLMD's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,291 contracts, representing approximately 1.4 million underlying shares or approximately 93.7% of DE's average daily trading volume over the past month, of 1.5 million shares.
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Particularly high volume was seen for the $30 strike call option expiring September 16, 2022, with 19,091 contracts trading so far today, representing approximately 1.9 million underlying shares of NEOG. Below is a chart showing RLMD's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 14,291 contracts, representing approximately 1.4 million underlying shares or approximately 93.7% of DE's average daily trading volume over the past month, of 1.5 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Neogen Corp (Symbol: NEOG), where a total volume of 38,422 contracts has been traded thus far today, a contract volume which is representative of approximately 3.8 million underlying shares (given that every 1 contract represents 100 underlying shares).
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2022-08-22 00:00:00 UTC
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Company News for Aug 22, 2022
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https://www.nasdaq.com/articles/company-news-for-aug-22-2022
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Shares of Deere & Co. DE rose 0.5% after the company reported third-quarter fiscal 2022 revenues of $13 billion, surpassing the Zacks Consensus Estimate of $12.9 billion.
Shares of Foot Locker Inc. FL soared 20% after the company posted second-quarter fiscal 2022 adjusted earnings per share of $1.10, beating the Zacks Consensus Estimate of $0.75.
Bill.com Holdings Inc.’s BILL shares jumped 16.7% after reporting fourth-quarter fiscal 2022 revenues of $200.22 million, outpacing the Zacks Consensus Estimate by 9.35%.
Vipshop Holdings Ltd.’s VIPS shares surged 3.9% after posting second-quarter fiscal 2022 adjusted earnings per share of $0.37, exceeding the Zacks Consensus Estimate of $0.26.
Infrastructure Stock Boom to Sweep America
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Deere & Company (DE): Free Stock Analysis Report
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Bill.com Holdings, Inc. (BILL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Deere & Co. DE rose 0.5% after the company reported third-quarter fiscal 2022 revenues of $13 billion, surpassing the Zacks Consensus Estimate of $12.9 billion. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Fortunes will be made.
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Deere & Company (DE): Free Stock Analysis Report Shares of Deere & Co. DE rose 0.5% after the company reported third-quarter fiscal 2022 revenues of $13 billion, surpassing the Zacks Consensus Estimate of $12.9 billion. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway.
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Shares of Deere & Co. DE rose 0.5% after the company reported third-quarter fiscal 2022 revenues of $13 billion, surpassing the Zacks Consensus Estimate of $12.9 billion. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Fortunes will be made.
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Shares of Deere & Co. DE rose 0.5% after the company reported third-quarter fiscal 2022 revenues of $13 billion, surpassing the Zacks Consensus Estimate of $12.9 billion. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. Fortunes will be made.
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2022-08-20 00:00:00 UTC
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If You Invested $10,000 In Deere 20 Years Ago, This Is How Much You Would Have Today
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https://www.nasdaq.com/articles/if-you-invested-%2410000-in-deere-20-years-ago-this-is-how-much-you-would-have-today
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The answer is $170,000. That's how much you'd have now if you'd invested $10,000 in Deere (NYSE: DE) 20 years ago. It's a super return for a large-cap company, as elephants aren't supposed to be able to gallop. Moreover, what's remarkable about Deere's stock performance is its tripling over the last five years. The company has been doing something right, because its returns dwarf those of the S&P 500 and its peers like AGCO and CNH Industrial. Here's a look at what makes the agricultural machinery company so unique.
Why Deere's stock has outperformed
There are a few key reasons why Deere has outperformed in recent years:
After half a decade in the doldrums, the prices of key crop commodities like soybeans, corn, and wheat have increased significantly over the last few years (see chart below).
The company's leadership in smart farming solutions has added a significant amount of value to its equipment and kept farmers loyal to Deere's equipment.
Management's acquisition policy has been excellent in building its precision agriculture (smart farming) business and diversifying its end markets by acquiring a major road construction equipment maker, Wirtgen, in 2017.
As noted above, crop commodity prices have risen to historical highs recently, which is excellent news for crop farmers. It's also great news for Deere because it encourages farmers to replace aging equipment. It's also timely because it coincides with a period when Deere is aggressively rolling out its precision agriculture solutions -- more on that in a moment.
Data by YCharts.
Great acquisition history
Deere is best known for its large and small agriculture equipment, but it also has a construction and forestry segment which contributes handily to profitability. For example, the segment contributed $1.5 billion to operating profit in 2021, compared to $2 billion for small ag and turf and $3.3 billion for production and precision ag.
In addition, the $5.2 billion acquisition of Wirtgen bolstered Deere's position in road construction machinery and helped diversify its income stream. That's a major plus for investors and the company because it ensures a level of earnings and cash flow. That's important because Deere will need cash to invest in its business, even when its core agriculture machinery business is experiencing weak conditions.
Precision agriculture
Deere's acquisition strategy is an instrumental part of its precision ag strategy. Precision ag solutions use real-time data gathered from internet-enabled devices to help farmers make the right decisions in an industry fraught with uncertainty. For example, preparing the soil, planting, nurturing, and harvesting are critical decisions that hugely affect crop yield.
Deere's technology solutions are deeply embedded in its hardware. For example, it has the technology to control spraying and monitor and control fertilizer application, and solutions that use data to guide planting, spraying, and harvesting. It's a set of solutions Deere built up through organic investment and acquisitions, such as the 2017 acquisition of Blue River Technology , creators of "see and spray" technology to spray herbicide precisely.
Harvest Profit, a provider of farm profitability software, was bought in 2020, and Bear Flag Robotics was purchased in 2021. The latter is a developer of autonomous driving technology that can be retrofitted to existing tractors.
Looking ahead
Deere's leadership in precision ag has encouraged peers to follow in its steps and make acquisitions in the space. It combines the right technology at the right time (as crop prices recovered), and Deere is reaping the rewards. Whether $10,000 invested in Deere now will lead you to $170,000 in 20 years is debatable. However, no one will argue that Deere isn't the market leader in an industry (precision ag) that is only getting started in improving global crop yields. As such, investors can look forward to more earnings growth in the future.
10 stocks we like better than Deere & Company
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 11, 2022
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Great acquisition history Deere is best known for its large and small agriculture equipment, but it also has a construction and forestry segment which contributes handily to profitability. Precision ag solutions use real-time data gathered from internet-enabled devices to help farmers make the right decisions in an industry fraught with uncertainty. That's how much you'd have now if you'd invested $10,000 in Deere (NYSE: DE) 20 years ago.
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In addition, the $5.2 billion acquisition of Wirtgen bolstered Deere's position in road construction machinery and helped diversify its income stream. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. That's how much you'd have now if you'd invested $10,000 in Deere (NYSE: DE) 20 years ago.
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Why Deere's stock has outperformed There are a few key reasons why Deere has outperformed in recent years: After half a decade in the doldrums, the prices of key crop commodities like soybeans, corn, and wheat have increased significantly over the last few years (see chart below). Precision agriculture Deere's acquisition strategy is an instrumental part of its precision ag strategy. It's a set of solutions Deere built up through organic investment and acquisitions, such as the 2017 acquisition of Blue River Technology , creators of "see and spray" technology to spray herbicide precisely.
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Moreover, what's remarkable about Deere's stock performance is its tripling over the last five years. Great acquisition history Deere is best known for its large and small agriculture equipment, but it also has a construction and forestry segment which contributes handily to profitability. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them!
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baaeb341-087e-4a4f-a3ad-e03beebbd0c2
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2022-08-19 00:00:00 UTC
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VIS, CAT, DE, GE: Large Outflows Detected at ETF
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https://www.nasdaq.com/articles/vis-cat-de-ge%3A-large-outflows-detected-at-etf
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Industrials ETF (Symbol: VIS) where we have detected an approximate $65.8 million dollar outflow -- that's a 1.7% decrease week over week (from 20,139,166 to 19,792,420). Among the largest underlying components of VIS, in trading today Caterpillar Inc. (Symbol: CAT) is off about 0.3%, Deere & Co. (Symbol: DE) is down about 1.3%, and General Electric Co (Symbol: GE) is lower by about 2%. For a complete list of holdings, visit the VIS Holdings page » The chart below shows the one year price performance of VIS, versus its 200 day moving average:
Looking at the chart above, VIS's low point in its 52 week range is $157.99 per share, with $208.48 as the 52 week high point — that compares with a last trade of $187.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the VIS Holdings page » The chart below shows the one year price performance of VIS, versus its 200 day moving average: Looking at the chart above, VIS's low point in its 52 week range is $157.99 per share, with $208.48 as the 52 week high point — that compares with a last trade of $187.20. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the VIS Holdings page » The chart below shows the one year price performance of VIS, versus its 200 day moving average: Looking at the chart above, VIS's low point in its 52 week range is $157.99 per share, with $208.48 as the 52 week high point — that compares with a last trade of $187.20. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Industrials ETF (Symbol: VIS) where we have detected an approximate $65.8 million dollar outflow -- that's a 1.7% decrease week over week (from 20,139,166 to 19,792,420).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Industrials ETF (Symbol: VIS) where we have detected an approximate $65.8 million dollar outflow -- that's a 1.7% decrease week over week (from 20,139,166 to 19,792,420). For a complete list of holdings, visit the VIS Holdings page » The chart below shows the one year price performance of VIS, versus its 200 day moving average: Looking at the chart above, VIS's low point in its 52 week range is $157.99 per share, with $208.48 as the 52 week high point — that compares with a last trade of $187.20. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the VIS Holdings page » The chart below shows the one year price performance of VIS, versus its 200 day moving average: Looking at the chart above, VIS's low point in its 52 week range is $157.99 per share, with $208.48 as the 52 week high point — that compares with a last trade of $187.20. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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484bbbf4-ebb4-4d8f-98fd-87037cea72ce
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721063.0
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2022-08-19 00:00:00 UTC
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US STOCKS-Wall Street ends down as yields rise; indexes post weekly losses
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-down-as-yields-rise-indexes-post-weekly-losses
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By Caroline Valetkevitch
NEW YORK, Aug 19 (Reuters) - U.S. stocks fell on Friday in a broad selloff led by megacaps as U.S. bond yields rose, with the S&P 500 posting losses for the week after four straight weeks of gains.
Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O all fell and were the biggest drags on the S&P 500 and Nasdaq.Higher rates tend to be a negative for tech and growth stocks, whose valuations rely more heavily on future cash flows.
U.S. Treasury yields rose, with the benchmark 10-year note US10YT=RR nearly hitting 3%, after Germany reported record-high increases in monthly producer prices.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
"The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average .DJI fell 292.3 points, or 0.86%, to 33,706.74, the S&P 500 .SPX lost 55.26 points, or 1.29%, to 4,228.48 and the Nasdaq Composite .IXIC dropped 260.13 points, or 2.01%, to 12,705.22.
All three major indexes registered losses for the week. The S&P 500 fell about 1.2% and the Nasdaq slid 2.6% in their first weekly declines after four weeks of gains. The Dow lost about 0.2% for the week.
After notching its worst first half since 1970, the S&P 500 has bounced some 16% from its mid-June low, fueled by stronger-than-expected corporate earnings and hopes the economy can avoid a recession even as the Fed hikes rates.
Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight inflation at a four decade-high.
Focus next week may be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Meme stock Bed Bath & Beyond Inc BBBY.Oplunged 40.5% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
The S&P banking index .SPXBKfell 2.1% after recent gains.
Shares of Deere & Co DE.N ended slightly higher, even after it lowered its full-year profit outlook and said it has sold out of large tractors as it grapples with parts shortages and high costs.
Volume on U.S. exchanges was last at 10.01 billion shares in one of the lowest volume days of the year.
Declining issues outnumbered advancing ones on the NYSE by a 6.06-to-1 ratio; on Nasdaq, a 3.59-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 43 new highs and 93 new lows.
(Reporting by Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed in New York, Editing by Shounak Dasgupta, Arun Koyyur and Deepa Babington)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation. All three major indexes registered losses for the week.
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Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma. The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
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The S&P 500 fell about 1.2% and the Nasdaq slid 2.6% in their first weekly declines after four weeks of gains. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
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Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation. The S&P 500 fell about 1.2% and the Nasdaq slid 2.6% in their first weekly declines after four weeks of gains. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
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2022-08-19 00:00:00 UTC
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US STOCKS-Wall Street falls with megacap stocks; S&P 500, Nasdaq set for weekly losses
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https://www.nasdaq.com/articles/us-stocks-wall-street-falls-with-megacap-stocks-sp-500-nasdaq-set-for-weekly-losses
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By Caroline Valetkevitch
NEW YORK, Aug 19 (Reuters) - U.S. stocks were sharply lower on Friday thanks to a fall in megacap stocks and rising U.S. bond yields, putting the S&P 500 and Nasdaq on track to snap a four-week winning streak.
The benchmark 10-year U.S. Treasury yield climbed to an almost one-month high near 3%. Amazon.com AMZN.O, Apple AAPL.O and Microsoft MSFT.O put the most pressure on the S&P 500.
Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
"The rise in rates around the globe and tough talk from central bankers are being used as an excuse to push stocks lower in very light volume on an August Friday session," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average .DJI fell 299.61 points, or 0.88%, to 33,699.43, the S&P 500 .SPX lost 55.57 points, or 1.30%, to 4,228.17 and the Nasdaq Composite .IXIC dropped 255.13 points, or 1.97%, to 12,710.21.
Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them.
The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight four decade-high inflation.
Focus next week may be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Shares of Deere & Co DE.N were near flat after it lowered its full-year profit outlook and said it has sold out of large tractors as it grapples with parts shortages and high costs.
Meme stock Bed Bath & Beyond Inc BBBY.O plunged 41% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
Bank shares .SPXBK also fell after recent gains.
Declining issues outnumbered advancing ones on the NYSE by a 6.65-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 29 new lows; the Nasdaq Composite recorded 31 new highs and 80 new lows.
(Reporting by Caroline Valetkevitch, additional reporting by Saqib Iqbal Ahmed in New York, Editing by Shounak Dasgupta, Arun Koyyur and Deepa Babington)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation. Friday's monthly options expiration should also make way for greater near-term stock market moves as options positions expire, said Brent Kochuba, founder of options-focused financial insights company SpotGamma.
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Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting. The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them. The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight four decade-high inflation.
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The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation. Richmond Federal Reserve President Thomas Barkin said on Friday that U.S. central bank officials have "a lot of time still" before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting.
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The U.S. central bank needs to keep raising borrowing costs to tame decades-high inflation, a string of U.S. central bank officials said on Thursday, even as they debated how fast and how high to lift them. The Fed has raised its benchmark overnight interest rate by 225 basis points since March to fight four decade-high inflation. Investors have been weighing how aggressive the Federal Reserve may need to be as it raises interest rates to battle inflation.
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721065.0
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2022-08-19 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq eye weekly loss as rate-hike worries hit growth stocks
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DE
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-eye-weekly-loss-as-rate-hike-worries-hit-growth-stocks
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By Bansari Mayur Kamdar and Devik Jain
Aug 19 (Reuters) - The S&P 500 and the Nasdaq on Friday were set for their first weekly loss after four weeks of gains as worries over interest rate hikes sapped risk appetite and dragged the megacap growth and technology stocks sharply lower.
The blue-chip Dow .DJI was set to post slim weekly gains, with stocks struggling to advance this week as initial hope that the inflation had peaked gave way to doubts following the Federal Reserve's minutes from July meeting.
The market expectation of a less aggressive rate hike was dampened as the minutes did not provide a clear hint at the pace of rate increases and showed policymakers committed to raising rates.
"Today was the day that the bullish investors just didn't have the muscle to keep pushing the game higher and that happens at some point - optimism fades and the bears get a bite at the apple," said Mike Zigmont, head of trading & research at Harvest Volatility Management.
High-growth and technology stocks such as Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell over 2% as U.S. Treasury bond yields rose, mimicking European bonds as Germany posted record-high increase in monthly producer prices. US/
The benchmark 10-year U.S. Treasury yield climbed to near a one-month high at 2.978%.
Banks .SPXBK fell 2.3% and were set to end the week lower, potentially snapping their six-week winning streak.
"Lot of individual not so great news here today and it's just manifesting in an overall market selloff," said Dennis Dick, retail trader at Triple D Trading, pointing to profit miss by Deere & Co DE.N, inflation in Germany and a selloff in meme stocks and cryptocurrencies.
At 12:26 p.m. ET, the Dow Jones Industrial Average .DJI was down 231.33 points, or 0.68%, at 33,767.71, the S&P 500 .SPX was down 49.57 points, or 1.16%, at 4,234.17, and the Nasdaq Composite .IXIC was down 247.57 points, or 1.91%, at 12,717.78.
Meanwhile, Richmond Federal Reserve President Thomas Barkin said on Friday the Fed's efforts to control inflation could lead to a recession, but it needn't be "calamitous".
St. Louis Fed President James Bullard said on Thursday he was in favor of a third straight 75 basis-point rate hike in September, while his San Francisco Fed colleague Mary Daly said a 50 or 75 basis point hike next month would be "reasonable".
The Fed has raised its benchmark overnight interest rate by 225 bps since March to fight four decade-high inflation.
Focus next week will be on Fed Chair Jerome Powell's speech on the economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Friday's monthly options expiration should also make way for greater near-term stock market moves, as a lot of options dealer positions, which may have been acting to suppress index volatility, expires, analysts said.
Cryptocurrency and blockchain-related stocks dropped following a sudden selloff in bitcoin, with crypto exchange Coinbase Global COIN.O and miner Marathon Digital MARA.O down 9.6% and 14.1%, respectively.
Meme stock Bed Bath & Beyond Inc BBBY.O plunged 35.2% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
General Motors Co GM.N rose 2.1% after it said it would reinstate quarterly dividend payouts.
Declining issues outnumbered advancers for a 6.85-to-1 ratio on the NYSE and a 4.45-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 29 new lows, while the Nasdaq recorded 26 new highs and 75 new lows.
(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru, Saqib Ahmed in New York; Editing by Shounak Dasgupta and Arun Koyyur)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"Today was the day that the bullish investors just didn't have the muscle to keep pushing the game higher and that happens at some point - optimism fades and the bears get a bite at the apple," said Mike Zigmont, head of trading & research at Harvest Volatility Management. By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - The S&P 500 and the Nasdaq on Friday were set for their first weekly loss after four weeks of gains as worries over interest rate hikes sapped risk appetite and dragged the megacap growth and technology stocks sharply lower. The blue-chip Dow .DJI was set to post slim weekly gains, with stocks struggling to advance this week as initial hope that the inflation had peaked gave way to doubts following the Federal Reserve's minutes from July meeting.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - The S&P 500 and the Nasdaq on Friday were set for their first weekly loss after four weeks of gains as worries over interest rate hikes sapped risk appetite and dragged the megacap growth and technology stocks sharply lower. The blue-chip Dow .DJI was set to post slim weekly gains, with stocks struggling to advance this week as initial hope that the inflation had peaked gave way to doubts following the Federal Reserve's minutes from July meeting. The market expectation of a less aggressive rate hike was dampened as the minutes did not provide a clear hint at the pace of rate increases and showed policymakers committed to raising rates.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - The S&P 500 and the Nasdaq on Friday were set for their first weekly loss after four weeks of gains as worries over interest rate hikes sapped risk appetite and dragged the megacap growth and technology stocks sharply lower. The blue-chip Dow .DJI was set to post slim weekly gains, with stocks struggling to advance this week as initial hope that the inflation had peaked gave way to doubts following the Federal Reserve's minutes from July meeting. "Lot of individual not so great news here today and it's just manifesting in an overall market selloff," said Dennis Dick, retail trader at Triple D Trading, pointing to profit miss by Deere & Co DE.N, inflation in Germany and a selloff in meme stocks and cryptocurrencies.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - The S&P 500 and the Nasdaq on Friday were set for their first weekly loss after four weeks of gains as worries over interest rate hikes sapped risk appetite and dragged the megacap growth and technology stocks sharply lower. The market expectation of a less aggressive rate hike was dampened as the minutes did not provide a clear hint at the pace of rate increases and showed policymakers committed to raising rates. The blue-chip Dow .DJI was set to post slim weekly gains, with stocks struggling to advance this week as initial hope that the inflation had peaked gave way to doubts following the Federal Reserve's minutes from July meeting.
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721066.0
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2022-08-19 00:00:00 UTC
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Deere (DE) Earnings Miss, Sales Beat Estimates in Q2, Up Y/Y
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https://www.nasdaq.com/articles/deere-de-earnings-miss-sales-beat-estimates-in-q2-up-y-y
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Deere & Company DE reported third-quarter fiscal 2022 (ended Jul 31, 2022) earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64. The bottom line increased 16% from the prior-year quarter’s levels.
Net sales of equipment operations (comprising Agriculture and Turf, Construction and Forestry) were $13 billion, up 25% year over year. Revenues beat the Zacks Consensus Estimate of $12.9 billion. Total net sales (including financial services and others) were $14.1 billion, up 22% year over year.
Operational Update
The cost of sales in the reported quarter was up 26% year over year to $9,511 million. Total gross profit in the reported quarter increased 18% year over year to $2,539 million. Selling, administrative and general expenses rose 14% to $959 million from the prior-year period’s levels.
Total operating profit (including financial services) was up 18% year over year to $2,646 million in the fiscal third quarter.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Segment Performance
The Production & Precision Agriculture segment’s sales rose 43% year over year to $6,096 million, primarily owing to higher shipment volumes and price realization. Operating profit in the segment increased 43% year over year to $1,293 million.
Small Agriculture & Turf sales rose 16% to $3,635 million from the year-earlier quarter’s levels due to higher shipment volumes and price realization, partially offset by the unfavorable impact of currency translation. The segment’s operating profit fell 5% year over year to $552 million.
Construction & forestry segment sales were $3,269 million, up 8% year over year, backed by price realization. The segment’s operating profit was up 11% year over year to $514 million.
Net revenues in Deere’s Financial Services division were $903 million in the reported quarter compared with the prior-year quarter’s $902 million. The segment’s operating profit amounted to $287 million, down 1% year over year.
Financial Update
Deere reported cash and cash equivalents of $4,359 million at the end of third-quarter fiscal 2022 compared with $7,519 million recorded at the end of the year-ago quarter. Cash generated from operating activities was $418 million in the first nine months of fiscal 2022 compared with $4,314 million in the prior-year period. At the end of the quarter, the long-term borrowing was nearly $32 billion, remaining the same year over year.
Outlook
Deere expects net income for fiscal 2022 to be between $7.0 billion and $7.2 billion compared with the prior estimate of $7.0-$7.4 billion. Demand for farm and construction equipment will continue to be supported by positive fundamentals.
Price Performance
Deere’s shares have gained 4.7% in the past year compared with the industry’s growth of 3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. AIT, Greif Inc. GEF and Sonoco Products Company SON. While AIT sports a Zacks Rank #1 (Strong Buy), GEF & SON carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial has an estimated earnings growth rate of 10.9% for fiscal 2023. In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 earnings has been revised upward by 6%.
Applied Industrial pulled off a trailing four-quarter earnings surprise of 22.8%, on average. AIT’s shares have soared 32.2% in a year.
Greif has an estimated earnings growth rate of 37% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. GEF’s shares have risen 18.6% in the past year.
Sonoco has an expected earnings growth rate of 78.3% for 2022. The Zacks Consensus Estimate for the current year’s earnings moved up 18% in the past 60 days.
Sonoco has a trailing four-quarter earnings surprise of 4.06%, on average. SON’s shares have moved up 1.7% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Sonoco Products Company (SON): Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report
Greif, Inc. (GEF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company DE reported third-quarter fiscal 2022 (ended Jul 31, 2022) earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Segment Performance The Production & Precision Agriculture segment’s sales rose 43% year over year to $6,096 million, primarily owing to higher shipment volumes and price realization.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Segment Performance The Production & Precision Agriculture segment’s sales rose 43% year over year to $6,096 million, primarily owing to higher shipment volumes and price realization. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold). Deere & Company DE reported third-quarter fiscal 2022 (ended Jul 31, 2022) earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Segment Performance The Production & Precision Agriculture segment’s sales rose 43% year over year to $6,096 million, primarily owing to higher shipment volumes and price realization. Deere & Company DE reported third-quarter fiscal 2022 (ended Jul 31, 2022) earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64. Net revenues in Deere’s Financial Services division were $903 million in the reported quarter compared with the prior-year quarter’s $902 million.
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Deere & Company DE reported third-quarter fiscal 2022 (ended Jul 31, 2022) earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64. Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Segment Performance The Production & Precision Agriculture segment’s sales rose 43% year over year to $6,096 million, primarily owing to higher shipment volumes and price realization. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold).
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2022-08-19 00:00:00 UTC
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Late Summer Period of Reflection; FL Beats, DE Mixed
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https://www.nasdaq.com/articles/late-summer-period-of-reflection-fl-beats-de-mixed
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Friday, August 19, 2022
As we exit the most consequential period of summer earnings season — jobs numbers, inflation, housing and earnings reports for the marquee names on the S&P 500 have all been heard from over the past few weeks — we enter the quietest period of trading this side of Christmas Week. We are thankful for such a time, as it gives us a moment to pause and look back on what’s transpired thus far in 2022.
For instance, although all major indices are still down big year-to-date — from -7% on the Dow to -18% on the Nasdaq — we’re actually positive on two of the four over the past six months: the Dow and the small-cap Russell 2000 are both up slightly more than +1%, with the S&P 500 basically flat (-0.5%). Only the tech-heavy Nasdaq, which had gotten the biggest bid in the stellar trading year that was 2021, is still down -3% from February.
Market futures are selling off somewhat in Friday’s pre-market on basically no news, unless you count Ryan Cohen selling all his Bed Bath & Beyond BBBY shares (sending that meme stock hurtling downward though still well off the sub-$5 per share trough we saw in early July). The run-up off the mid-June bottom has been impressive and efficient, although the muscle memory of sending indices too high too soon like we did back in the first trading days of the year is likely still fresh in many investors’ minds.
For the past week, we’ve been in pretty much a holding pattern, even though intra-day highs and lows demonstrated a bit more volatility than the closing numbers would indicate. We are seeing signs across a widening spectrum of the economy that inflation is pulling back notably, but there is still a long way to go until the Fed funds rate at all resembles the current rate of inflation. Everyone agrees the Fed has a rendezvous with 3%; the only question is whether we touch it in September or the Fed leaves a little more slack.
Next week’s summit in Jackson Hole will bring plenty of analysis based on public statements from Fed Chair Jay Powell and others. The Fed has taken plenty of lumps over its monetary policy decisions over the past year, but the fact of the matter is: they’re not sunk yet. Despite a first-half ’22 negative GDP, which unofficially touched off a recession, a still-strong labor force and supply chain improvements have our current economy resembling something better than recessionary strife.
Foot Locker FL shares are up big on the company’s Q2 earnings report ahead of Friday’s opening bell, with a big beat on the bottom line — earnings of $1.10 per share versus 75 cents in the Zacks consensus, for a positive surprise of +46.7% — on revenues of $2.07 billion, which topped estimates by +0.62%. Comps were -10.3% year over year, but 2021 was a record year for the company. Shares are way up on the report, which marks Foot Locker’s ninth-straight beat, though still below the early-year levels, before the stock plummeted on Q4 earnings back in February. For more on FL’s earnings, click here.
Deere & Co. DE also posted earnings this morning, though its results were mixed: earnings of $6.16 per share missed the Zacks consensus by -7.23% (though up nicely from $5.32 per share a year ago) on $13 billion in quarterly sales, marking a +0.76% positive surprise. This breaks an 11-quarter streak of earnings beats for the farm machinery major, which is trading down more than -4% in today’s early session. Shares are still positive year to date. For more on DE’s earnings, click here.
Questions or comments about this article and/or its author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Foot Locker, Inc. (FL): Free Stock Analysis Report
Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the past week, we’ve been in pretty much a holding pattern, even though intra-day highs and lows demonstrated a bit more volatility than the closing numbers would indicate. Despite a first-half ’22 negative GDP, which unofficially touched off a recession, a still-strong labor force and supply chain improvements have our current economy resembling something better than recessionary strife. As we exit the most consequential period of summer earnings season — jobs numbers, inflation, housing and earnings reports for the marquee names on the S&P 500 have all been heard from over the past few weeks — we enter the quietest period of trading this side of Christmas Week.
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Deere & Company (DE): Free Stock Analysis Report As we exit the most consequential period of summer earnings season — jobs numbers, inflation, housing and earnings reports for the marquee names on the S&P 500 have all been heard from over the past few weeks — we enter the quietest period of trading this side of Christmas Week. For the past week, we’ve been in pretty much a holding pattern, even though intra-day highs and lows demonstrated a bit more volatility than the closing numbers would indicate.
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As we exit the most consequential period of summer earnings season — jobs numbers, inflation, housing and earnings reports for the marquee names on the S&P 500 have all been heard from over the past few weeks — we enter the quietest period of trading this side of Christmas Week. Deere & Co. DE also posted earnings this morning, though its results were mixed: earnings of $6.16 per share missed the Zacks consensus by -7.23% (though up nicely from $5.32 per share a year ago) on $13 billion in quarterly sales, marking a +0.76% positive surprise. For the past week, we’ve been in pretty much a holding pattern, even though intra-day highs and lows demonstrated a bit more volatility than the closing numbers would indicate.
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Deere & Company (DE): Free Stock Analysis Report As we exit the most consequential period of summer earnings season — jobs numbers, inflation, housing and earnings reports for the marquee names on the S&P 500 have all been heard from over the past few weeks — we enter the quietest period of trading this side of Christmas Week. For the past week, we’ve been in pretty much a holding pattern, even though intra-day highs and lows demonstrated a bit more volatility than the closing numbers would indicate.
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5247b2c9-e9d7-43dd-9bce-f0ff79715950
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721068.0
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2022-08-19 00:00:00 UTC
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US STOCKS-Nasdaq leads Wall St lower as rate hike worries spark tech rout
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DE
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https://www.nasdaq.com/articles/us-stocks-nasdaq-leads-wall-st-lower-as-rate-hike-worries-spark-tech-rout
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nan
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nan
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By Bansari Mayur Kamdar and Devik Jain
Aug 19 (Reuters) - Wall Street fell on Friday with megacap growth and technology stocks leading a broader market selloff as rate hike worries sapped risk appetite.
Stocks have wavered this week after minutes from the U.S. Federal Reserve's July meeting were released on Wednesday, as investors tried to get an accurate reading of the central bank's monetary policy tightening path.
The blue-chip Dow .DJI was on track to post slim weekly gains, while the Nasdaq .IXIC and the S&P 500 .SPX were headed for their first weekly loss after four straight weeks of gains.
"Lot of individual not so great news here today and it's just manifesting in an overall market selloff," said Dennis Dick, retail trader at Triple D Trading, pointing to weak results from Deere & Co DE.N, inflation numbers in Germany and a selloff in meme stocks and cryptocurrencies.
"You're getting a little bit of profit taking (after) a pretty good run for the last six weeks."
Deere fell 2.8% after it missed earnings estimates as the world's largest heavy equipment maker continues to grapple with parts shortages stemming from supply chain snarls.
The S&P 500 industrials sector .SPLRCI fell 1%.
High-growth and technology stocks such as Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O declined nearly 2% as U.S. Treasury bond yields climbed, mimicking European bonds after Germany reported record-high increases in monthly producer prices. US/
Banks .SPXBK also fell 1.3% and were on track to end the week lower, potentially snapping their six-week winning streak.
Meanwhile, Richmond Federal Reserve President Thomas Barkin said on Friday the U.S. central bank's efforts to control inflation could lead to a recession, but it needn't be "calamitous".
St. Louis Fed President James Bullard said on Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable".
At 09:46 a.m. ET, the Dow Jones Industrial Average was down 192.74 points, or 0.57%, at 33,806.30, the S&P 500 was down 38.75 points, or 0.90%, at 4,244.99, and the Nasdaq Composite was down 187.97 points, or 1.45%, at 12,777.37.
The Fed has raised its benchmark overnight interest rate by 225 bps since March to fight four decade-high inflation.
Focus next week will be on Fed Chair Jerome Powell's speech on economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Cryptocurrency and blockchain-related stocks dropped following a sudden selloff in bitcoin, with crypto exchange Coinbase Global COIN.O and miner Marathon Digital MARA.O down 8.5% and 11.5%, respectively.
Bed Bath & Beyond Inc BBBY.O plunged 41.1% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake.
General Motors Co GM.N rose 1.8% after it said it would reinstate quarterly dividend payouts.
Declining issues outnumbered advancers for a 7.56-to-1 ratio on the NYSE and a 5.16-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 10 new highs and 35 new lows.
(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street fell on Friday with megacap growth and technology stocks leading a broader market selloff as rate hike worries sapped risk appetite. Stocks have wavered this week after minutes from the U.S. Federal Reserve's July meeting were released on Wednesday, as investors tried to get an accurate reading of the central bank's monetary policy tightening path. Deere fell 2.8% after it missed earnings estimates as the world's largest heavy equipment maker continues to grapple with parts shortages stemming from supply chain snarls.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street fell on Friday with megacap growth and technology stocks leading a broader market selloff as rate hike worries sapped risk appetite. The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded 10 new highs and 35 new lows. (Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta) ((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street fell on Friday with megacap growth and technology stocks leading a broader market selloff as rate hike worries sapped risk appetite. The blue-chip Dow .DJI was on track to post slim weekly gains, while the Nasdaq .IXIC and the S&P 500 .SPX were headed for their first weekly loss after four straight weeks of gains. "Lot of individual not so great news here today and it's just manifesting in an overall market selloff," said Dennis Dick, retail trader at Triple D Trading, pointing to weak results from Deere & Co DE.N, inflation numbers in Germany and a selloff in meme stocks and cryptocurrencies.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street fell on Friday with megacap growth and technology stocks leading a broader market selloff as rate hike worries sapped risk appetite. St. Louis Fed President James Bullard said on Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable". Stocks have wavered this week after minutes from the U.S. Federal Reserve's July meeting were released on Wednesday, as investors tried to get an accurate reading of the central bank's monetary policy tightening path.
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1d6f048f-7288-4022-9905-bc14df2f12dc
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721069.0
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2022-08-19 00:00:00 UTC
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Deere (DE) Q3 Earnings Lag Estimates
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DE
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https://www.nasdaq.com/articles/deere-de-q3-earnings-lag-estimates
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nan
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nan
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Deere (DE) came out with quarterly earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64 per share. This compares to earnings of $5.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -7.23%. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $6.65 per share when it actually produced earnings of $6.81, delivering a surprise of 2.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $13 billion for the quarter ended July 2022, surpassing the Zacks Consensus Estimate by 0.76%. This compares to year-ago revenues of $10.41 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Deere shares have added about 7.3% since the beginning of the year versus the S&P 500's decline of -10.1%.
What's Next for Deere?
While Deere has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Deere: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $7.04 on $13.69 billion in revenues for the coming quarter and $23.26 on $47.16 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Ituran (ITRN), has yet to report results for the quarter ended June 2022. The results are expected to be released on August 29.
This maker of tracking and communications technology for vehicles is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ituran's revenues are expected to be $71.94 million, up 6.7% from the year-ago quarter.
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Deere & Company (DE): Free Stock Analysis Report
Ituran Location and Control Ltd. (ITRN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Another stock from the broader Zacks Industrial Products sector, Ituran (ITRN), has yet to report results for the quarter ended June 2022. Deere (DE) came out with quarterly earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64 per share.
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Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $13 billion for the quarter ended July 2022, surpassing the Zacks Consensus Estimate by 0.76%. Deere & Company (DE): Free Stock Analysis Report Deere (DE) came out with quarterly earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64 per share.
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Deere (DE) came out with quarterly earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64 per share. Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $13 billion for the quarter ended July 2022, surpassing the Zacks Consensus Estimate by 0.76%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Deere (DE) came out with quarterly earnings of $6.16 per share, missing the Zacks Consensus Estimate of $6.64 per share. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $6.65 per share when it actually produced earnings of $6.81, delivering a surprise of 2.41%.
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eb00cd88-8811-4633-9f99-14f96e3d2452
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721070.0
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2022-08-19 00:00:00 UTC
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Deere Q3 Profit Rises, But Misses Estimates; Cuts FY22 Earnings View
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DE
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https://www.nasdaq.com/articles/deere-q3-profit-rises-but-misses-estimates-cuts-fy22-earnings-view
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. (DE) reported Friday that its third-quarter net income grew 13 percent to $1.884 billion or $6.16 per share from last year's $1.667 billion, or $5.32 per share.
On average, analysts polled by Thomson Reuters expected earnings of $6.69 per share for the quarter. Analysts estimate typically exclude special items.
Net sales and revenues increased 22 percent to $14.102 billion from prior year's $11.53 billion.
Net sales were $13.000 billion for the quarter, compared to $10.413 billion last year.
Analysts expected sales of $12.78 billion for the quarter.
Third-quarter net sales grew 25 percent, driven by higher rates of production, despite continuing supply-chain pressures.
Looking ahead, Deere revised fiscal 2022 earnings outlook. Net income attributable is forecast to be in a range of $7.0 billion to $7.2 billion, compared to previous estimate of $7.0 billion to $7.4 billion.
The company further said strong order books and positive customer fundamentals are expected to drive demand in 2023.
In pre-market activity on the NYSE, Deere shares were losing around 6.5 percent to trade at $344.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Third-quarter net sales grew 25 percent, driven by higher rates of production, despite continuing supply-chain pressures. The company further said strong order books and positive customer fundamentals are expected to drive demand in 2023. (RTTNews) - Agricultural machinery and equipment maker Deere & Co. (DE) reported Friday that its third-quarter net income grew 13 percent to $1.884 billion or $6.16 per share from last year's $1.667 billion, or $5.32 per share.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. (DE) reported Friday that its third-quarter net income grew 13 percent to $1.884 billion or $6.16 per share from last year's $1.667 billion, or $5.32 per share. Third-quarter net sales grew 25 percent, driven by higher rates of production, despite continuing supply-chain pressures. Analysts estimate typically exclude special items.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. (DE) reported Friday that its third-quarter net income grew 13 percent to $1.884 billion or $6.16 per share from last year's $1.667 billion, or $5.32 per share. Analysts estimate typically exclude special items. Third-quarter net sales grew 25 percent, driven by higher rates of production, despite continuing supply-chain pressures.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. (DE) reported Friday that its third-quarter net income grew 13 percent to $1.884 billion or $6.16 per share from last year's $1.667 billion, or $5.32 per share. Analysts estimate typically exclude special items. Third-quarter net sales grew 25 percent, driven by higher rates of production, despite continuing supply-chain pressures.
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0235bd05-06c7-43ed-911a-6defbec69155
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721071.0
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2022-08-19 00:00:00 UTC
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Deere quarterly profit rises on strong equipment demand, pricing
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DE
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https://www.nasdaq.com/articles/deere-quarterly-profit-rises-on-strong-equipment-demand-pricing
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nan
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Adds background, details from the results
Aug 19 (Reuters) - Deere & Co DE.N reported a rise in quarterly profit on Friday as higher equipment demand coupled with a robust pricing environment helped the world's largest farm equipment maker to offset inflationary cost pressures.
Gaps between the supply and demand for grains increased amid the Ukraine crisis while growing consumer demand spiked prices, putting pressure on farmers to produce more and upgrade their aging fleet.
Last month, Deere's peer AGCO Corp AGCO.N said there would not be enough grain in the market for some time, which would support prices.
Deere sees full-year earnings to be in the range of $7.0 billion to $7.2 billion compared with previous outlook of $7.0 billion to $7.4 billion.
The Moline, Illinois-based firm's net income was $1.88 billion, or $6.16 per share, for the quarter ended July 31, compared with $1.67 billion, or $5.32 per share, a year earlier.
Total net sales and revenue rose about 22% to $14.10 billion.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri)
((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background, details from the results Aug 19 (Reuters) - Deere & Co DE.N reported a rise in quarterly profit on Friday as higher equipment demand coupled with a robust pricing environment helped the world's largest farm equipment maker to offset inflationary cost pressures. Gaps between the supply and demand for grains increased amid the Ukraine crisis while growing consumer demand spiked prices, putting pressure on farmers to produce more and upgrade their aging fleet. Last month, Deere's peer AGCO Corp AGCO.N said there would not be enough grain in the market for some time, which would support prices.
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Adds background, details from the results Aug 19 (Reuters) - Deere & Co DE.N reported a rise in quarterly profit on Friday as higher equipment demand coupled with a robust pricing environment helped the world's largest farm equipment maker to offset inflationary cost pressures. Deere sees full-year earnings to be in the range of $7.0 billion to $7.2 billion compared with previous outlook of $7.0 billion to $7.4 billion. The Moline, Illinois-based firm's net income was $1.88 billion, or $6.16 per share, for the quarter ended July 31, compared with $1.67 billion, or $5.32 per share, a year earlier.
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Adds background, details from the results Aug 19 (Reuters) - Deere & Co DE.N reported a rise in quarterly profit on Friday as higher equipment demand coupled with a robust pricing environment helped the world's largest farm equipment maker to offset inflationary cost pressures. Deere sees full-year earnings to be in the range of $7.0 billion to $7.2 billion compared with previous outlook of $7.0 billion to $7.4 billion. The Moline, Illinois-based firm's net income was $1.88 billion, or $6.16 per share, for the quarter ended July 31, compared with $1.67 billion, or $5.32 per share, a year earlier.
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Adds background, details from the results Aug 19 (Reuters) - Deere & Co DE.N reported a rise in quarterly profit on Friday as higher equipment demand coupled with a robust pricing environment helped the world's largest farm equipment maker to offset inflationary cost pressures. Gaps between the supply and demand for grains increased amid the Ukraine crisis while growing consumer demand spiked prices, putting pressure on farmers to produce more and upgrade their aging fleet. Last month, Deere's peer AGCO Corp AGCO.N said there would not be enough grain in the market for some time, which would support prices.
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e9897e18-637a-47e6-9525-bde56d593862
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721072.0
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2022-08-19 00:00:00 UTC
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Deere And Co Q3 22 Earnings Conference Call At 10:00 AM ET
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DE
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https://www.nasdaq.com/articles/deere-and-co-q3-22-earnings-conference-call-at-10%3A00-am-et
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nan
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nan
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(RTTNews) - Deere And Co (DE) will host a conference call at 10:00 AM ET on Aug. 19, 2022, to discuss Q3 22 earnings results. Deere And Co is scheduled to report results on Friday, August 19, before market open.
To access the live webcast, log on to https://investor.deere.com/home/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere And Co (DE) will host a conference call at 10:00 AM ET on Aug. 19, 2022, to discuss Q3 22 earnings results. Deere And Co is scheduled to report results on Friday, August 19, before market open. To access the live webcast, log on to https://investor.deere.com/home/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere And Co (DE) will host a conference call at 10:00 AM ET on Aug. 19, 2022, to discuss Q3 22 earnings results. Deere And Co is scheduled to report results on Friday, August 19, before market open. To access the live webcast, log on to https://investor.deere.com/home/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere And Co (DE) will host a conference call at 10:00 AM ET on Aug. 19, 2022, to discuss Q3 22 earnings results. Deere And Co is scheduled to report results on Friday, August 19, before market open. To access the live webcast, log on to https://investor.deere.com/home/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere And Co (DE) will host a conference call at 10:00 AM ET on Aug. 19, 2022, to discuss Q3 22 earnings results. Deere And Co is scheduled to report results on Friday, August 19, before market open. To access the live webcast, log on to https://investor.deere.com/home/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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267539e6-b9a8-4381-9c28-b62aaa03e8c9
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721073.0
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2022-08-19 00:00:00 UTC
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US STOCKS-Wall St heads for lower open on rate hike worries
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-st-heads-for-lower-open-on-rate-hike-worries
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nan
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nan
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By Bansari Mayur Kamdar and Devik Jain
Aug 19 (Reuters) - Wall Street was set to open lower on Friday after U.S. Federal Reserve officials said the central bank needs to keep raising interest rates to rein in inflation, while heavy equipment maker Deere's profit miss added to the risk-off mood.
High-growth and technology stocks such as Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O declined more than 1% in trading before the bell as U.S. Treasury bond yields climbed.
Banks also fell and were on track to end the week lower, potentially snapping their six-week winning streak.
"Lot of individual not so great news here today and it's just manifesting in an overall market selloff," said Dennis Dick, retail trader at Triple D Trading, pointing to weak results from Deere & Co DE.N, inflation numbers in Germany and a selloff in meme stocks and cryptocurrencies.
"You're getting a little bit of profit taking (after) a pretty good run for the last six weeks."
Deere slid 4.2% after it missed earnings estimates as the world's largest heavy equipment maker continues to grapple with parts shortages stemming from supply chain snarls.
Meanwhile, St. Louis Fed President James Bullard said on Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable".
Kansas City Fed President Esther George said she and her colleagues will not stop tightening policy until they are "completely convinced" that overheated inflation is coming down.
Traders are now seeing a near equal chance of a 50 basis-point and 75 basis-point hike. FEDWATCH
The U.S. central bank has raised its benchmark overnight interest rate by 225 bps since March to fight four decade-high inflation.
At 08:42 a.m. ET, Dow e-minis 1YMcv1 were down 212 points, or 0.62%, S&P 500 e-minis EScv1 were down 35.75 points, or 0.83%, and Nasdaq 100 e-minis NQcv1 were down 136 points, or 1.01%.
Stocks have wavered this week after the Fed's minutes from its July meeting were released on Wednesday, as investors tried to get an accurate reading of the central bank's monetary policy tightening path.
While the Dow .DJI and the S&P 500 .SPX are on track to post slim weekly gains, the tech-heavy Nasdaq .IXIC is headed for its first weekly loss after four straight weeks of gains.
The benchmark 10-year Treasury yield was on track to post its third week of gains. US/
Focus next week will be on Fed Chair Jerome Powell's speech on economic outlook at the annual global central bankers' conference in Jackson Hole, Wyoming.
Cryptocurrency and blockchain-related stocks dropped following a sudden selloff in bitcoin, with crypto exchange Coinbase Global COIN.O and miner Marathon Digital MARA.O down 9.2% and 11.5%, respectively.
Bed Bath & Beyond Inc BBBY.O plunged 39.3% as billionaire investor Ryan Cohen exited the struggling home goods retailer by selling his stake following a stunning rally in the stock this month.
General Motors Co GM.N rose 1.7% after it said it would reinstate quarterly dividend payouts, suggesting the automaker was confident it was past the worst risks from the pandemic and the economic turbulence of the past several months.
(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street was set to open lower on Friday after U.S. Federal Reserve officials said the central bank needs to keep raising interest rates to rein in inflation, while heavy equipment maker Deere's profit miss added to the risk-off mood. Deere slid 4.2% after it missed earnings estimates as the world's largest heavy equipment maker continues to grapple with parts shortages stemming from supply chain snarls. High-growth and technology stocks such as Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O declined more than 1% in trading before the bell as U.S. Treasury bond yields climbed.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street was set to open lower on Friday after U.S. Federal Reserve officials said the central bank needs to keep raising interest rates to rein in inflation, while heavy equipment maker Deere's profit miss added to the risk-off mood. FEDWATCH The U.S. central bank has raised its benchmark overnight interest rate by 225 bps since March to fight four decade-high inflation. (Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta) ((BansariMayur.Kamdar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street was set to open lower on Friday after U.S. Federal Reserve officials said the central bank needs to keep raising interest rates to rein in inflation, while heavy equipment maker Deere's profit miss added to the risk-off mood. Meanwhile, St. Louis Fed President James Bullard said on Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable". While the Dow .DJI and the S&P 500 .SPX are on track to post slim weekly gains, the tech-heavy Nasdaq .IXIC is headed for its first weekly loss after four straight weeks of gains.
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By Bansari Mayur Kamdar and Devik Jain Aug 19 (Reuters) - Wall Street was set to open lower on Friday after U.S. Federal Reserve officials said the central bank needs to keep raising interest rates to rein in inflation, while heavy equipment maker Deere's profit miss added to the risk-off mood. Meanwhile, St. Louis Fed President James Bullard said on Thursday he was leaning toward supporting a third straight 75-basis-point rate hike in September, while San Francisco Fed colleague Mary Daly said hiking rates by 50 or 75 basis points next month would be "reasonable". High-growth and technology stocks such as Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O declined more than 1% in trading before the bell as U.S. Treasury bond yields climbed.
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ba7bb876-a707-40d7-8808-0d4d075739dc
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721074.0
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2022-08-18 00:00:00 UTC
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Pre-Market Earnings Report for August 19, 2022 : DE, VIPS, FL, MSGE, BKE
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-19-2022-%3A-de-vips-fl-msge-bke-0
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The following companies are expected to report earnings prior to market open on 08/19/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE)is reporting for the quarter ending July 31, 2022. The farm machinery company's consensus earnings per share forecast from the 12 analysts that follow the stock is $6.62. This value represents a 24.44% increase compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.41%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Vipshop Holdings Limited (VIPS)is reporting for the quarter ending June 30, 2022. The internet services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.23. This value represents a 17.86% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for VIPS is 9.50 vs. an industry ratio of -91.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. (FL)is reporting for the quarter ending July 31, 2022. The retail (shoe) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.81. This value represents a 63.35% decrease compared to the same quarter last year. In the past year FL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.84%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for FL is 7.26 vs. an industry ratio of 8.30.
Madison Square Garden Entertainment Corp. (MSGE)is reporting for the quarter ending June 30, 2022. The leisure (recreational) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.43. This value represents a 91.17% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MSGE is -25.78 vs. an industry ratio of -59.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Buckle, Inc. (BKE)is reporting for the quarter ending July 31, 2022. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.93. This value represents a 10.58% decrease compared to the same quarter last year. In the past year BKE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.82%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for BKE is 6.31 vs. an industry ratio of 8.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter.
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In the past year DE has beat the expectations every quarter. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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d1c0c939-9e7c-478d-b43d-3ff15b2d68ee
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721075.0
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2022-08-18 00:00:00 UTC
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Pre-Market Earnings Report for August 19, 2022 : DE, VIPS, FL, MSGE, BKE
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-19-2022-%3A-de-vips-fl-msge-bke
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nan
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The following companies are expected to report earnings prior to market open on 08/19/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE)is reporting for the quarter ending July 31, 2022. The farm machinery company's consensus earnings per share forecast from the 12 analysts that follow the stock is $6.62. This value represents a 24.44% increase compared to the same quarter last year. In the past year DE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.41%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Vipshop Holdings Limited (VIPS)is reporting for the quarter ending June 30, 2022. The internet services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.23. This value represents a 17.86% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for VIPS is 9.50 vs. an industry ratio of -91.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. (FL)is reporting for the quarter ending July 31, 2022. The retail (shoe) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.81. This value represents a 63.35% decrease compared to the same quarter last year. In the past year FL has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.84%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for FL is 7.26 vs. an industry ratio of 8.30.
Madison Square Garden Entertainment Corp. (MSGE)is reporting for the quarter ending June 30, 2022. The leisure (recreational) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.43. This value represents a 91.17% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MSGE is -25.78 vs. an industry ratio of -59.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Buckle, Inc. (BKE)is reporting for the quarter ending July 31, 2022. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.93. This value represents a 10.58% decrease compared to the same quarter last year. In the past year BKE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.82%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for BKE is 6.31 vs. an industry ratio of 8.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. In the past year DE has beat the expectations every quarter.
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In the past year DE has beat the expectations every quarter. Deere & Company (DE)is reporting for the quarter ending July 31, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 15.68 vs. an industry ratio of 9.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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22693bc7-88f0-441a-828a-adbe6ec1944c
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721076.0
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2022-08-18 00:00:00 UTC
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Interesting DE Put And Call Options For October 21st
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DE
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https://www.nasdaq.com/articles/interesting-de-put-and-call-options-for-october-21st
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the October 21st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new October 21st contracts and identified one put and one call contract of particular interest.
The put contract at the $350.00 strike price has a current bid of $13.55. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $350.00, but will also collect the premium, putting the cost basis of the shares at $336.45 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $363.73/share today.
Because the $350.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.87% return on the cash commitment, or 22.08% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $370.00 strike price has a current bid of $16.80. If an investor was to purchase shares of DE stock at the current price level of $363.73/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $370.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.34% if the stock gets called away at the October 21st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red:
Considering the fact that the $370.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.62% boost of extra return to the investor, or 26.34% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $363.73) to be 37%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the October 21st expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the October 21st expiration.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $370.00 strike price has a current bid of $16.80. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $370.00 strike price has a current bid of $16.80. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the October 21st expiration.
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0657200b-1dfe-46da-8d78-72130687317a
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721077.0
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2022-08-18 00:00:00 UTC
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The Zacks Analyst Blog Highlights The Home Depot, Philip Morris, BlackRock, Deere and Starbucks
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-the-home-depot-philip-morris-blackrock-deere-and
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For Immediate Release
Chicago, IL – August 18, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Philip Morris International Inc. PM, BlackRock, Inc. BLK, Deere & Co. DE and Starbucks Corp. SBUX.
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for Home Depot, Philip Morris and BlackRock
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc., Philip Morris International Inc. and BlackRock, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
The Home Depot shares have gained +1.5% over the past year, lagging Lowes' +8.1% gain, but outperforming the broader market's -3.2% decline. The company reported its ninth straight quarter of earnings and sales beat in the fiscal second quarter on Tuesday. Results benefited from strong demand for home-improvement projects, robust housing market trends and ongoing investments.
The Home Depot also benefited from continued strength in both Pro and DIY categories as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.
However, the company reported soft gross margin in the fiscal second quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
(You can read the full research report on The Home Depot here >>>)
Philip Morris shares have gained +6.2% over the past year, roughly in-line with the Zacks Tobacco industry's gain of +6.8%. The company has been benefiting from its pricing power, which aided its second-quarter 2022 results. The top and the bottom line increased year on year and beat the Zacks Consensus Estimate.
Its strength in IQOS and the combustible business drove performance despite headwinds. Proforma pricing for combustible products rose 3.5% and nearly 5%, excluding Indonesia. Strength in the reduced-risk products category has been benefiting the company for a while.
However, Philip Morris has been facing supply-chain and regulatory hurdles in its Russian business. The company has undertaken steps to scale down its operations in the region due to the Ukraine war. Also, management expects continued uncertainty concerning the recovery pace from the pandemic-led operating landscape.
(You can read the full research report on Philip Morris here >>>)
BlackRock shares have declined -15.7% over the past year against the Zacks Financial - Investment Management industry's decline of -10.3%. The rise in equity market volatility and a fall in asset prices in an environment of macroeconomic uncertainty is typically an unfavorable backdrop for BlackRock and other asset managers.
However, BlackRock has had an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. BlackRock continues to restructure the equity business, which along with strategic acquisitions, will likely keep supporting revenue growth, and help in expanding market share and footprints globally. A robust assets under management (AUM) balance will likely further support the top line.
(You can read the full research report on BlackRock here >>>)
Other noteworthy reports we are featuring today include Deere & Co. and Starbucks Corp.
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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BlackRock, Inc. (BLK): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: The Home Depot, Inc. HD, Philip Morris International Inc. PM, BlackRock, Inc. BLK, Deere & Co. DE and Starbucks Corp. SBUX. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for Home Depot, Philip Morris and BlackRock The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: The Home Depot, Inc. HD, Philip Morris International Inc. PM, BlackRock, Inc. BLK, Deere & Co. DE and Starbucks Corp. SBUX. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc., Philip Morris International Inc. and BlackRock, Inc. (You can read the full research report on Philip Morris here >>>) BlackRock shares have declined -15.7% over the past year against the Zacks Financial - Investment Management industry's decline of -10.3%.
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Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for Home Depot, Philip Morris and BlackRock The Zacks Research Daily presents the best research output of our analyst team. (You can read the full research report on Philip Morris here >>>) BlackRock shares have declined -15.7% over the past year against the Zacks Financial - Investment Management industry's decline of -10.3%. (You can read the full research report on BlackRock here >>>) Other noteworthy reports we are featuring today include Deere & Co. and Starbucks Corp. Why Haven't You Looked at Zacks' Top Stocks?
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Here are highlights from Wednesday’s Analyst Blog: Top Stock Reports for Home Depot, Philip Morris and BlackRock The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc., Philip Morris International Inc. and BlackRock, Inc. Stocks recently featured in the blog include: The Home Depot, Inc. HD, Philip Morris International Inc. PM, BlackRock, Inc. BLK, Deere & Co. DE and Starbucks Corp. SBUX.
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721078.0
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2022-08-17 00:00:00 UTC
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Deere & Company Q3 Preview: Can the Earnings Streak Continue?
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https://www.nasdaq.com/articles/deere-company-q3-preview%3A-can-the-earnings-streak-continue
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A stellar place to park your cash over the last month has been the Zacks Industrial Products Sector, up a substantial 17.8% and easily outperforming the general market. However, the sector has lagged the S&P 500 year-to-date.
Below is a chart illustrating the sector’s performance vs. the S&P 500 over several timeframes.
Image Source: Zacks Investment Research
One of the most popular and widely-followed stocks in the sector, Deere & Company DE, is on deck to unveil Q3 results on Friday, August 19th, before market open.
Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme.
The company carries a Zacks Rank #3 (Hold) with an overall VGM Score of a C. How does the agriculture machinery titan shape up heading into its quarterly release? Let’s take a closer look.
Share Performance & Valuation
John Deere shares have been a bright spot in an otherwise dim market year-to-date, tacking on an impressive 7.3% in value and easily outperforming the S&P 500.
Image Source: Zacks Investment Research
Even over the last month, the strong price action of Deere shares has continued, increasing by an impressive double-digit 23% and outperforming the general market once again.
Image Source: Zacks Investment Research
The company also sports rock-solid valuation levels; DE’s 15.9X forward P/E ratio is well beneath its five-year median of 17.3X and represents an enticing 8% discount relative to its Zacks Sector.
In addition, Deere carries a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have had some mixed reactions for the quarter to be reported, but the overall tone has been bearish, with two upwards and four downwards revisions. Still, the Zacks Consensus EPS Estimate of $6.62 reflects a double-digit 25% uptick in quarterly earnings year-over-year.
Image Source: Zacks Investment Research
The company’s top-line is also in exceptional health – the Zacks Consensus Sales Estimate of $12.9 billion reflects a substantial 24% increase in quarterly revenue Y/Y.
Quarterly Performance & Market Reactions
DE has been on a remarkable earnings streak, exceeding the Zacks Consensus EPS Estimate in each of its previous 11 quarters. Just in its latest print, the company registered a solid 2.4% bottom-line beat.
Top-line results have primarily been strong as well, with the company penciling in eight revenue beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
To a bit of a surprise, the market hasn’t reacted well in response as of late to DE’s quarterly prints, with shares moving downwards following back-to-back releases.
Putting Everything Together
Deere shares have been remarkably strong not just year-to-date but over the last month as well, crushing the S&P 500 in both timeframes.
Shares trade at solid valuation multiples, nicely beneath their five-year median and representing an attractive discount relative to their sector.
Analysts have been primarily bearish for the quarter to be reported, but estimates still reflect substantial growth.
In addition, the company has consistently exceeded quarterly estimates, but shares have moved downwards following each of its last two quarterly prints.
Heading into the release, Deere & Company DE carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 1.8%.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research One of the most popular and widely-followed stocks in the sector, Deere & Company DE, is on deck to unveil Q3 results on Friday, August 19th, before market open. Image Source: Zacks Investment Research Even over the last month, the strong price action of Deere shares has continued, increasing by an impressive double-digit 23% and outperforming the general market once again. Image Source: Zacks Investment Research To a bit of a surprise, the market hasn’t reacted well in response as of late to DE’s quarterly prints, with shares moving downwards following back-to-back releases.
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Heading into the release, Deere & Company DE carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 1.8%. Image Source: Zacks Investment Research One of the most popular and widely-followed stocks in the sector, Deere & Company DE, is on deck to unveil Q3 results on Friday, August 19th, before market open. Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme.
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Image Source: Zacks Investment Research One of the most popular and widely-followed stocks in the sector, Deere & Company DE, is on deck to unveil Q3 results on Friday, August 19th, before market open. Image Source: Zacks Investment Research The company also sports rock-solid valuation levels; DE’s 15.9X forward P/E ratio is well beneath its five-year median of 17.3X and represents an enticing 8% discount relative to its Zacks Sector. Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme.
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Share Performance & Valuation John Deere shares have been a bright spot in an otherwise dim market year-to-date, tacking on an impressive 7.3% in value and easily outperforming the S&P 500. Image Source: Zacks Investment Research Even over the last month, the strong price action of Deere shares has continued, increasing by an impressive double-digit 23% and outperforming the general market once again. Image Source: Zacks Investment Research One of the most popular and widely-followed stocks in the sector, Deere & Company DE, is on deck to unveil Q3 results on Friday, August 19th, before market open.
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f8ad7b03-7125-4d33-aaa1-db0c05bca0bb
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721079.0
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2022-08-17 00:00:00 UTC
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Top Stock Reports for The Home Depot, Philip Morris & BlackRock
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https://www.nasdaq.com/articles/top-stock-reports-for-the-home-depot-philip-morris-blackrock
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Wednesday, August 17, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), Philip Morris International Inc. (PM) and BlackRock, Inc. (BLK). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
The Home Depot shares have gained +1.5% over the past year, lagging Lowes' +8.1% gain, but outperforming the broader market's -3.2% decline. The company reported ninth straight quarter of earnings and sales beat in the fiscal second quarter on Tuesday. Results benefited from strong demand for home-improvement projects, robust housing market trends and ongoing investments.
The Home Depot also benefited from continued strength in both Pro and DIY categories as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.
However, the company reported soft gross margin in the fiscal second quarter driven by higher supply chain investments. Higher inventory levels and interest expense also remain concerning.
(You can read the full research report on The Home Depot here >>>)
Philip Morris shares have gained +6.2% over the past year, roughly in-line with the Zacks Tobacco industry’s gain of +6.8%. The company has been benefiting from its pricing power, which aided its second-quarter 2022 results. The top and the bottom line increased year on year and beat the Zacks Consensus Estimate.
Its strength in IQOS and the combustible business drove performance despite headwinds. Proforma pricing for combustible products rose 3.5% and nearly 5%, excluding Indonesia. Strength in the reduced-risk products category has been benefiting the company for a while.
However, Philip Morris has been facing supply-chain and regulatory hurdles in its Russian business. The company has undertaken steps to scale down its operations in the region due to the Ukraine war. Also, management expects continued uncertainty concerning the recovery pace from the pandemic-led operating landscape.
(You can read the full research report on Philip Morris here >>>)
BlackRock shares have declined -15.7% over the past year against the Zacks Financial - Investment Management industry’s decline of -10.3%. The rise in equity market volatility and a fall in asset prices in an environment of macroeconomic uncertainty is typically an unfavorable backdrop for BlackRock and other asset managers.
However, BlackRock have has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. BlackRock continues to restructure the equity business, which along with strategic acquisitions, will likely keep supporting revenue growth, and help in expanding market share and footprints globally. A robust assets under management (AUM) balance will likely further support the top line.
(You can read the full research report on BlackRock here >>>)
Other noteworthy reports we are featuring today include PayPal Holdings, Inc. (PYPL), Deere & Company (DE), and Starbucks Corporation (SBUX).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Focus on Pro Customers to Aid Home Depot's (HD) Top Line
Phillip Morris (PM) Gains From Smoke-Free Product Category
Buyouts, AUM Balance Aid BlackRock (BLK), Higher Costs A Woe
Featured Reports
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Further, growing momentum across PayPal Checkout experiences is positive.
Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs.
Store Growth Aids Starbucks (SBUX), Dismal China Comps Hurts
Per the Zacks analyst, Starbucks' rapid unit growth, best-in-class loyalty program and digital offerings bode well. However, dismal performance in China continues to hurt the company's performance.
Infrastructure Investment & Clean Assets Aid Xcel Energy (XEL)
Per the Zacks analyst, Xcel Energy's investment of $26 billion through 2026 to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
VeriSign (VRSN) Gains on Higher Demand for Domain Names
Per the Zacks analyst, VeriSign has been gaining from growth in .com and .net domain name registrations. However, surging expenses related to cybersecurity and infrastructure spending is a concern.
J.B. Hunt (JBHT) Rides on Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by J.B. Hunt. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Exact Sciences' (EXAS) Screening Sales Grow Amid High Costs
The Zacks analyst is upbeat about Exact Sciences' robust revenue growth in the legacy Screening business segment. However, mounting operating expenses weigh on the company's bottom line.
New Upgrades
Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves
The Zacks analyst believes that Petrobras' stake in Brazil's huge pre-salt oil reserves puts it in an enviable position to maintain an impressive production growth profile for years to come.
Arch Capital (ACGL) Set to Grow on Improving Premium
Per the Zacks analyst, Arch Capital is set to grow on solid Insurance and Reinsurance business driving improvement in premium growth which is backed by diverse product & service portfolio.
Lodging Industry Recovery, Top Assets Aid Host Hotels (HST)
Per the Zacks Analyst, with a rebound in the lodging industry, a solid portfolio of upscale hotels across lucrative markets and capital-recycling moves, Host Hotels is likely to witness RevPAR growth.
New Downgrades
Xifaxan Patent Litigation, Macro Challenges Hurt Bausch (BHC)
Per the Zacks analyst, the ongoing patent litigation for one of the top drugs Xifaxan will remain an overhang and an earlier-than-expected generic entry will adversely impact the top line.
High Costs & Inflation to Ail Spectrum Brands' (SPB) Margins
Per the Zacks analyst, Spectrum Brands has been reeling under elevated supply-chain costs stemming from higher inventory. This along with rising inflation are likely to persist in FY22.
Increased Cat Loss & Elevated Debt Level Hurt Allstate (ALL)
Per the Zacks analyst, exposure to catastrophic events continues to dent underwriting profitability. Rising debt remains a concern as it escalates interest expenses.
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BlackRock, Inc. (BLK): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The Home Depot, Inc. (HD): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Phillip Morris (PM) Gains From Smoke-Free Product Category Buyouts, AUM Balance Aid BlackRock (BLK), Higher Costs A Woe Featured Reports PayPal (PYPL) Benefits From Increasing Total Payment Volume Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Increased Cat Loss & Elevated Debt Level Hurt Allstate (ALL) Per the Zacks analyst, exposure to catastrophic events continues to dent underwriting profitability. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), Philip Morris International Inc. (PM) and BlackRock, Inc. (BLK).
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Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), Philip Morris International Inc. (PM) and BlackRock, Inc. (BLK). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Phillip Morris (PM) Gains From Smoke-Free Product Category Buyouts, AUM Balance Aid BlackRock (BLK), Higher Costs A Woe Featured Reports PayPal (PYPL) Benefits From Increasing Total Payment Volume Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services. Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs.
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(You can read the full research report on The Home Depot here >>>) Philip Morris shares have gained +6.2% over the past year, roughly in-line with the Zacks Tobacco industry’s gain of +6.8%. (You can read the full research report on Philip Morris here >>>) BlackRock shares have declined -15.7% over the past year against the Zacks Financial - Investment Management industry’s decline of -10.3%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Focus on Pro Customers to Aid Home Depot's (HD) Top Line Phillip Morris (PM) Gains From Smoke-Free Product Category Buyouts, AUM Balance Aid BlackRock (BLK), Higher Costs A Woe Featured Reports PayPal (PYPL) Benefits From Increasing Total Payment Volume Per the Zacks analyst, PayPal's total payment volume is rising owing to solid adoption of Venmo and merchant services.
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Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), Philip Morris International Inc. (PM) and BlackRock, Inc. (BLK). (You can read the full research report on The Home Depot here >>>) Philip Morris shares have gained +6.2% over the past year, roughly in-line with the Zacks Tobacco industry’s gain of +6.8%. You can see all of today’s research reports here >>> The Home Depot shares have gained +1.5% over the past year, lagging Lowes' +8.1% gain, but outperforming the broader market's -3.2% decline.
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721080.0
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2022-08-16 00:00:00 UTC
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Notable Tuesday Option Activity: DE, IBM, MMM
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-de-ibm-mmm
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 7,890 contracts has been traded thus far today, a contract volume which is representative of approximately 789,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 63.2% of DE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $330 strike put option expiring January 20, 2023, with 768 contracts trading so far today, representing approximately 76,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange:
International Business Machines Corp (Symbol: IBM) options are showing a volume of 35,126 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 59.7% of IBM's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $125 strike put option expiring October 21, 2022, with 3,652 contracts trading so far today, representing approximately 365,200 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $125 strike highlighted in orange:
And 3M Co (Symbol: MMM) saw options trading volume of 20,299 contracts, representing approximately 2.0 million underlying shares or approximately 58.5% of MMM's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $200 strike call option expiring September 16, 2022, with 7,508 contracts trading so far today, representing approximately 750,800 underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for DE options, IBM options, or MMM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $330 strike put option expiring January 20, 2023, with 768 contracts trading so far today, representing approximately 76,800 underlying shares of DE. Particularly high volume was seen for the $125 strike put option expiring October 21, 2022, with 3,652 contracts trading so far today, representing approximately 365,200 underlying shares of IBM. Particularly high volume was seen for the $200 strike call option expiring September 16, 2022, with 7,508 contracts trading so far today, representing approximately 750,800 underlying shares of MMM.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 7,890 contracts has been traded thus far today, a contract volume which is representative of approximately 789,000 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $330 strike highlighted in orange: International Business Machines Corp (Symbol: IBM) options are showing a volume of 35,126 contracts thus far today. Below is a chart showing IBM's trailing twelve month trading history, with the $125 strike highlighted in orange: And 3M Co (Symbol: MMM) saw options trading volume of 20,299 contracts, representing approximately 2.0 million underlying shares or approximately 58.5% of MMM's average daily trading volume over the past month, of 3.5 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 7,890 contracts has been traded thus far today, a contract volume which is representative of approximately 789,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 59.7% of IBM's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing IBM's trailing twelve month trading history, with the $125 strike highlighted in orange: And 3M Co (Symbol: MMM) saw options trading volume of 20,299 contracts, representing approximately 2.0 million underlying shares or approximately 58.5% of MMM's average daily trading volume over the past month, of 3.5 million shares.
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Particularly high volume was seen for the $125 strike put option expiring October 21, 2022, with 3,652 contracts trading so far today, representing approximately 365,200 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $125 strike highlighted in orange: And 3M Co (Symbol: MMM) saw options trading volume of 20,299 contracts, representing approximately 2.0 million underlying shares or approximately 58.5% of MMM's average daily trading volume over the past month, of 3.5 million shares. Below is a chart showing MMM's trailing twelve month trading history, with the $200 strike highlighted in orange: For the various different available expirations for DE options, IBM options, or MMM options, visit StockOptionsChannel.com.
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2022-08-16 00:00:00 UTC
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Deere (DE) to Report Q3 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/deere-de-to-report-q3-earnings%3A-whats-in-the-offing
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Deere & Company DE is scheduled to report third-quarter fiscal 2022 results on Aug 19, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.62 for the fiscal third quarter, suggesting growth of 24% year over year. The Zacks Consensus Estimate for total revenues is pinned at $12.9 billion for the period, calling for a year-over-year increase of 24.3%. Earnings estimates for the fiscal third quarter have moved up in the past 30 days.
Q2 Results
In the last reported quarter, Deere’s earnings surpassed the Zacks Consensus Estimate, while sales missed the same. Both the bottom and the top line increased year over year. The company has a trailing four-quarter earnings surprise of 14.2%, on average.
Let’s see how things have shaped up prior to this announcement.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicate?
Our proven model doesn’t conclusively predict an earnings beat for Deere this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is -0.99%.
Zacks Rank: Deere currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Consider
Higher agricultural crop prices and pick-up in farm income have prompted farmers to boost spending on new agricultural equipment and replace the age-old ones. The preference for Deere’s products for their advanced technologies and features will likely reflect on fiscal third-quarter revenues.
Cost management and benefits from footprint assessment are likely to have boosted the company’s margin in the to-be-reported quarter. However, rising raw material and logistics costs and uncertainties related to the COVID-19 pandemic might have affected quarterly performance.
Segment Estimates
The Zacks Consensus Estimate for Production & Precision Agriculture segment’s revenues is pegged at $5,760 million for the fiscal third quarter, suggesting a year-over-year increase of 36%. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $1,422 million, up 57% year over year.
Small Agriculture & Turf segment’s Zacks Consensus Estimate for revenues is pegged at $3,678 million for the fiscal third quarter, indicating a 17% growth from the prior-year quarter’s levels. The segment’s operating profit is estimated at $638 million, up 9% year over year.
The Construction & Forestry segment’s sales are estimated at $3,479 million in the fiscal third quarter, up 15% from the prior-year quarter’s levels. The segment’s operating profit is expected to increase 16% to $539 million from the prior-year quarter’s levels. The segment’s sales in the fiscal third quarter are expected to have benefited from strong demand for farm and construction equipment, supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending. Demand for earthmoving and compact construction equipment end markets remains strong on continued strength in the housing market, increased activity in the oil and gas sector and strong capex programs from the independent rental companies. The segment’s margin might reflect benefits from the Deere-Hitachi transaction and improved price and volume.
The Zacks Consensus Estimate for the Financial Services segment’s revenues is pegged at $895 million for the fiscal third quarter, down 0.7% from the year-ago quarter’s tally. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $288 million compared with the prior-year quarter’s reported figure of $291 million.
Price Performance
Deere’s shares have declined 2.7% in the past year compared with the industry’s loss of 3.2%.
Image Source: Zacks Investment Research
Stocks Worth a Look
Here are some stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
The Toronto-Dominion Bank TD has an Earnings ESP of +2.67% and a Zacks Rank #3.
The Zacks Consensus Estimate for the company’s fiscal third-quarter fiscal 2022 earnings is currently at $1.59, suggesting a year-over-year decline of 0.63%. TD’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 5.07%.
Hewlett Packard Enterprise Company HPE currently has an Earnings ESP of +2.89% and a Zacks Rank of 2. The Zacks Consensus Estimate for Hewlett Packard’s fiscal third-quarter 2022 earnings is pegged at 48 cents per share, suggesting a 2.13% growth from the year-ago quarter’s levels.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.97 billion, suggesting year-over-year growth of 1.02%. HPE has a trailing four-quarter earnings surprise of 7.76%, on average.
Calavo Growers, Inc. CVGW currently has an Earnings ESP of +2.78% and a Zacks Rank #3. The Zacks Consensus Estimate for Calavo Growers’ fiscal third-quarter 2022 earnings per share is currently pegged at 36 cents, indicating 311.7% growth from the prior-year quarter’s tally.
The Zacks Consensus Estimate for CVGW’s quarterly revenues is pegged at $324 million, which indicates year-over-year growth of 13.6%. The company has a trailing four quarters earnings surprise of 24.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Toronto Dominion Bank The (TD): Free Stock Analysis Report
Calavo Growers, Inc. (CVGW): Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The segment’s sales in the fiscal third quarter are expected to have benefited from strong demand for farm and construction equipment, supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending. Deere & Company DE is scheduled to report third-quarter fiscal 2022 results on Aug 19, before the opening bell. The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.62 for the fiscal third quarter, suggesting growth of 24% year over year.
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Deere & Company DE is scheduled to report third-quarter fiscal 2022 results on Aug 19, before the opening bell. The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.62 for the fiscal third quarter, suggesting growth of 24% year over year. Q2 Results In the last reported quarter, Deere’s earnings surpassed the Zacks Consensus Estimate, while sales missed the same.
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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.62 for the fiscal third quarter, suggesting growth of 24% year over year. Deere & Company DE is scheduled to report third-quarter fiscal 2022 results on Aug 19, before the opening bell. Q2 Results In the last reported quarter, Deere’s earnings surpassed the Zacks Consensus Estimate, while sales missed the same.
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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.62 for the fiscal third quarter, suggesting growth of 24% year over year. Deere & Company DE is scheduled to report third-quarter fiscal 2022 results on Aug 19, before the opening bell. Q2 Results In the last reported quarter, Deere’s earnings surpassed the Zacks Consensus Estimate, while sales missed the same.
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2022-08-16 00:00:00 UTC
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Will Deere (DE) Beat Estimates Again in Its Next Earnings Report?
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https://www.nasdaq.com/articles/will-deere-de-beat-estimates-again-in-its-next-earnings-report-0
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE). This company, which is in the Zacks Manufacturing - Farm Equipment industry, shows potential for another earnings beat.
This agricultural equipment manufacturer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.24%.
For the last reported quarter, Deere came out with earnings of $6.81 per share versus the Zacks Consensus Estimate of $6.65 per share, representing a surprise of 2.41%. For the previous quarter, the company was expected to post earnings of $2.28 per share and it actually produced earnings of $2.92 per share, delivering a surprise of 28.07%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Deere lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Deere has an Earnings ESP of +1.83% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 19, 2022.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE). The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. For the last reported quarter, Deere came out with earnings of $6.81 per share versus the Zacks Consensus Estimate of $6.65 per share, representing a surprise of 2.41%.
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The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE). For the last reported quarter, Deere came out with earnings of $6.81 per share versus the Zacks Consensus Estimate of $6.65 per share, representing a surprise of 2.41%.
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The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE). For the last reported quarter, Deere came out with earnings of $6.81 per share versus the Zacks Consensus Estimate of $6.65 per share, representing a surprise of 2.41%.
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE). For the last reported quarter, Deere came out with earnings of $6.81 per share versus the Zacks Consensus Estimate of $6.65 per share, representing a surprise of 2.41%. For the previous quarter, the company was expected to post earnings of $2.28 per share and it actually produced earnings of $2.92 per share, delivering a surprise of 28.07%.
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cafcee93-2d3f-4fbd-a2a6-5491f59d879a
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721083.0
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2022-08-16 00:00:00 UTC
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How to Boost Your Portfolio with Top Industrial Products Stocks Set to Beat Earnings
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DE
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https://www.nasdaq.com/articles/how-to-boost-your-portfolio-with-top-industrial-products-stocks-set-to-beat-earnings-6
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nan
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nan
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Deere?
The final step today is to look at a stock that meets our ESP qualifications. Deere (DE) earns a #3 (Hold) three days from its next quarterly earnings release on August 19, 2022, and its Most Accurate Estimate comes in at $6.74 a share.
Deere's Earnings ESP sits at +1.83%, which, as explained above, is calculated by taking the percentage difference between the $6.74 Most Accurate Estimate and the Zacks Consensus Estimate of $6.62. DE is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Eaton (ETN) as well.
Slated to report earnings on November 1, 2022, Eaton holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.02 a share 77 days from its next quarterly update.
The Zacks Consensus Estimate for Eaton is $2.01, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.1%.
Because both stocks hold a positive Earnings ESP, DE and ETN could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Deere & Company (DE): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE is part of a big group of Industrial Products stocks that boast a positive ESP, and investors may want to take a look at Eaton (ETN) as well. Two factors often determine stock prices in the long run: earnings and interest rates. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences.
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Deere & Company (DE): Free Stock Analysis Report Two factors often determine stock prices in the long run: earnings and interest rates. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences.
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Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Two factors often determine stock prices in the long run: earnings and interest rates. Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences.
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Deere (DE) earns a #3 (Hold) three days from its next quarterly earnings release on August 19, 2022, and its Most Accurate Estimate comes in at $6.74 a share. Because both stocks hold a positive Earnings ESP, DE and ETN could potentially post earnings beats in their next reports. Two factors often determine stock prices in the long run: earnings and interest rates.
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e2dc79ba-7de2-4c69-9f2a-aaad1042870c
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721084.0
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2022-08-15 00:00:00 UTC
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Easing Fears and Innovative Products Could Power Deere Stock Higher
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DE
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https://www.nasdaq.com/articles/easing-fears-and-innovative-products-could-power-deere-stock-higher
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nan
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nan
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With shares of popular farming equipment maker Deere (DE) trending higher, it seems like too much recession risk was baked in just over a month ago. Undoubtedly, the cyclical nature of the industry makes the company vulnerable to economic downturns. However, as the company continues to buck the trend with solid results while continuing to shed light on its tech-driven innovations, I think it will be tough to stop Deere in its tracks.
Shares of the company have performed well despite all the macroeconomic uncertainties. Indeed, Deere stock is up 5.2% year-to-date. It's worth noting that shares have rallied significantly off their recent summer lows.
I am incredibly bullish on DE stock and would look to top up my personal stake on any dips moving forward.
Deere Stock on the Receiving End of Price Target Upgrades
Last week, Deere received two notable price target upgrades courtesy of Evercore ISI and Deutsche Bank. Evercore hiked its price target to $416 from $401 per share, while Deutsche hiked to $417 from $388 per share.
Undoubtedly, having such Wall Street analyst upgrades is a potential sign that the relief rally can sustain itself. Even after a remarkable run off its recent bottom, Deere stock remains incredibly cheap, likely because of its discretionary nature.
At writing, shares of DE trade at 2.4 times sales and 19 times trailing earnings, both below the construction and agricultural machinery industry averages of 6.0 and 28.3, respectively.
Indeed, farming equipment may be viewed as boring, but the modest valuation multiple on Deere stock, I believe, is unwarranted given its technological prowess.
In prior pieces, I praised Deere for its Investor Day and autonomous tractor, which, I thought, was an industry game-changer that warranted a considerable amount of multiple expansion. Though Deere's multiple has expanded meaningfully over the past few weeks, I don't think it's too far-fetched to believe Deere could command more of a tech multiple.
The Case for Deere Stock Commanding a Much Higher Multiple
If Tesla (TSLA), an auto company, can be valued like an innovative tech firm, so too can Deere, as it moves forward with autonomous technologies that many may be sleeping on amid anxiety of a looming economic recession. Arguably, Deere is a better way to play autonomy than Tesla, given a fully-autonomous farm is likely to come before fully-autonomous cars roam the streets. Indeed, there are fewer variables to worry about and less in the way of liabilities should something go wrong.
The fully autonomous Deere's 8R tractor was showcased at CES 2022, touting GPS guiding system technologies, among other intriguing innovations. It was easy to look past the conference unless you're a farmer or farmhand. In any case, Deere's autonomous tractors could fuel the beginning of an era as farmers look to improve productivity and profits while doing their part to feed the world.
With recent post-COVID-induced labor woes, the timing of Deere's autonomous solution could not have come at a better time. The way I see it, Deere is a technology company that just so happens to be in the business of making farming and construction equipment.
Deere: Recession Risks Seem Overdone at This Juncture
Discretionary and economically-sensitive stocks have been doing incredibly well amid the latest relief rally. It's possible that the market overestimated the severity and probability of the next recession. Deere and stocks like it have had an enormous weight lifted off their shoulders.
Though farmers may postpone the purchase of Deere's latest and greatest autonomous tractors to a later date, I think the company is well-equipped to strengthen its market footing ahead of the next expansionary cycle.
Recessions aren't good for anybody. However, when going on the hunt for stocks during tough times, it can pay dividends to look to the firms hungry to improve their competitive positioning as the tides go out.
Deere's relentless focus on innovation could help it fuel a boom that could surprise many investors. Management believes its tech-driven agriculture and sustainability strategy could result in an incremental addressable market north of $150 billion. That's a big deal. For now, Deere is leading the charge in agricultural innovation, and it's hard to see any firm dethroning it as it looks to make the most of the opportunity at hand.
Is DE Stock a Buy?
Turning to Wall Street, DE has a Moderate Buy consensus rating based on 12 Buys and five Holds assigned in the past three months. The average Deere price target is $396.13, implying an upside of 8.2%. Analyst price targets range from a low of $325.00 per share to a high of $472.00 per share.
Takeaway - DE Stock's Strategy Can Lead to Earnings Growth
Deere stock's new precious agriculture strategy is exciting and could help the firm raise the bar on earnings and sales growth over the next few years. It's not just the autonomy or electrification trends that could act as tailwinds; the company's value-added services business could act as a driving force for margins.
Indeed, services have been a major source of multiple and margin expansion for many firms, including iPhone maker Apple (AAPL). With a strong brand and a wide moat surrounding its ecosystem, I view Deere as an intriguing company that seems to be doing a lot of things right to make the most of an emerging market opportunity it sees.
Despite the recent run, Deere stock still has a lot of wind to its back. Perhaps such tailwinds could help it steer out of the next recession without sustaining so much damage.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In prior pieces, I praised Deere for its Investor Day and autonomous tractor, which, I thought, was an industry game-changer that warranted a considerable amount of multiple expansion. Though farmers may postpone the purchase of Deere's latest and greatest autonomous tractors to a later date, I think the company is well-equipped to strengthen its market footing ahead of the next expansionary cycle. With a strong brand and a wide moat surrounding its ecosystem, I view Deere as an intriguing company that seems to be doing a lot of things right to make the most of an emerging market opportunity it sees.
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With shares of popular farming equipment maker Deere (DE) trending higher, it seems like too much recession risk was baked in just over a month ago. Deere Stock on the Receiving End of Price Target Upgrades Last week, Deere received two notable price target upgrades courtesy of Evercore ISI and Deutsche Bank. Takeaway - DE Stock's Strategy Can Lead to Earnings Growth Deere stock's new precious agriculture strategy is exciting and could help the firm raise the bar on earnings and sales growth over the next few years.
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Deere Stock on the Receiving End of Price Target Upgrades Last week, Deere received two notable price target upgrades courtesy of Evercore ISI and Deutsche Bank. The Case for Deere Stock Commanding a Much Higher Multiple If Tesla (TSLA), an auto company, can be valued like an innovative tech firm, so too can Deere, as it moves forward with autonomous technologies that many may be sleeping on amid anxiety of a looming economic recession. Takeaway - DE Stock's Strategy Can Lead to Earnings Growth Deere stock's new precious agriculture strategy is exciting and could help the firm raise the bar on earnings and sales growth over the next few years.
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The Case for Deere Stock Commanding a Much Higher Multiple If Tesla (TSLA), an auto company, can be valued like an innovative tech firm, so too can Deere, as it moves forward with autonomous technologies that many may be sleeping on amid anxiety of a looming economic recession. Is DE Stock a Buy? With shares of popular farming equipment maker Deere (DE) trending higher, it seems like too much recession risk was baked in just over a month ago.
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b666e0dd-8135-4b2f-853c-0466567f9c7b
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721085.0
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2022-08-15 00:00:00 UTC
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-sinks-as-market-gains%3A-what-you-should-know-3
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nan
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nan
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Deere (DE) closed at $366.05 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 23.67% over the past month. This has outpaced the Industrial Products sector's gain of 17.67% and the S&P 500's gain of 12.15% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be August 19, 2022. In that report, analysts expect Deere to post earnings of $6.62 per share. This would mark year-over-year growth of 24.44%. Our most recent consensus estimate is calling for quarterly revenue of $12.95 billion, up 24.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.26 per share and revenue of $47.73 billion, which would represent changes of +22.49% and +20.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. Deere is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Deere is holding a Forward P/E ratio of 15.83. Its industry sports an average Forward P/E of 15.83, so we one might conclude that Deere is trading at a no noticeable deviation comparatively.
Investors should also note that DE has a PEG ratio of 1.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed at $366.05 in the latest trading session, marking a -0.57% move from the prior day. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Deere (DE) closed at $366.05 in the latest trading session, marking a -0.57% move from the prior day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.44%. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be August 19, 2022.
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Deere (DE) closed at $366.05 in the latest trading session, marking a -0.57% move from the prior day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.44%. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be August 19, 2022.
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Deere (DE) closed at $366.05 in the latest trading session, marking a -0.57% move from the prior day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.44%. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be August 19, 2022.
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724feb06-f31f-43e6-a260-d1c6373a2d68
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721086.0
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2022-08-14 00:00:00 UTC
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What To Expect From Deere's Q3?
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DE
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https://www.nasdaq.com/articles/what-to-expect-from-deeres-q3
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nan
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nan
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Deere & Company (NYSE: DE) is scheduled to report its fiscal third-quarter results on Friday, August 19. We expect Deere to post revenues and earnings above the street estimates. The company should benefit from higher demand for agriculture equipment and a robust pricing environment. Not only do we expect Deere to report an upbeat Q3, we find that DE stock has more room for growth, as discussed below. Our interactive dashboard analysis of Deere’s Earnings Preview has additional details.
(1) Revenues are expected to be higher than the consensus estimate
Trefis estimates Deere’s Q3 fiscal 2022 total revenues to be around $13.0 billion, slightly higher than the $12.9 billion consensus estimate.
The company saw a strong rebound in demand for agriculture equipment over the last few quarters, a trend that likely continued over the latest quarter.
Furthermore, rising farm income, more than the average age of agricultural equipment, and rising commodity prices likely contributed to the company’s top-line growth.
Looking at the last quarter, Deere’s revenue rose 11% y-o-y to $13.4 billion, driven by a 10% rise in agricultural and turf-related equipment sales, while construction and forestry equipment sales were up 9%.
Our dashboard on Deere Revenues provides more details.
(2) EPS likely to be above the consensus estimates
Deere’s Q3 fiscal 2022 earnings per share (EPS) is expected to be $6.70 per Trefis analysis, above the consensus estimate of $6.65.
Deere’s net income of $2.1 billion in Q2 reflected a 17% rise from its $1.8 billion profit in the prior-year quarter. The company’s operating margins remained around 20% for the quarter.
Looking at the full fiscal 2022, we expect EPS to be $23.45, compared to the $18.99 seen in fiscal 2021.
(3) DE stock has more room for growth
We estimate Deere’s Valuation to be $410 per share, reflecting a 19% upside from its current market price of $344.
This represents a forward P/EBITDA multiple of 10x based on our Deere’s EBITDA forecast and compares with the last two-year average of 9x.
That said, if the company reports upbeat Q3 results and full fiscal guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in even higher levels for DE stock.
While DE stock has room for growth, it is helpful to see how Deere’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Corning vs. Amerco.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DE Return 0% 0% 234%
S&P 500 Return -1% -14% 83%
Trefis Multi-Strategy Portfolio 1% -13% 245%
[1] Month-to-date and year-to-date as of 8/10/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company (NYSE: DE) is scheduled to report its fiscal third-quarter results on Friday, August 19. Not only do we expect Deere to report an upbeat Q3, we find that DE stock has more room for growth, as discussed below. (3) DE stock has more room for growth We estimate Deere’s Valuation to be $410 per share, reflecting a 19% upside from its current market price of $344.
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(1) Revenues are expected to be higher than the consensus estimate Trefis estimates Deere’s Q3 fiscal 2022 total revenues to be around $13.0 billion, slightly higher than the $12.9 billion consensus estimate. (2) EPS likely to be above the consensus estimates Deere’s Q3 fiscal 2022 earnings per share (EPS) is expected to be $6.70 per Trefis analysis, above the consensus estimate of $6.65. Total [2] DE Return 0% 0% 234% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio 1% -13% 245% [1] Month-to-date and year-to-date as of 8/10/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(1) Revenues are expected to be higher than the consensus estimate Trefis estimates Deere’s Q3 fiscal 2022 total revenues to be around $13.0 billion, slightly higher than the $12.9 billion consensus estimate. (2) EPS likely to be above the consensus estimates Deere’s Q3 fiscal 2022 earnings per share (EPS) is expected to be $6.70 per Trefis analysis, above the consensus estimate of $6.65. Total [2] DE Return 0% 0% 234% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio 1% -13% 245% [1] Month-to-date and year-to-date as of 8/10/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(1) Revenues are expected to be higher than the consensus estimate Trefis estimates Deere’s Q3 fiscal 2022 total revenues to be around $13.0 billion, slightly higher than the $12.9 billion consensus estimate. (3) DE stock has more room for growth We estimate Deere’s Valuation to be $410 per share, reflecting a 19% upside from its current market price of $344. Total [2] DE Return 0% 0% 234% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio 1% -13% 245% [1] Month-to-date and year-to-date as of 8/10/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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e1e62d73-10fc-490f-a66d-a0e035c8b6cd
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721087.0
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2022-08-12 00:00:00 UTC
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Deere (DE) Earnings Expected to Grow: Should You Buy?
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DE
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https://www.nasdaq.com/articles/deere-de-earnings-expected-to-grow%3A-should-you-buy-0
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nan
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nan
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The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 19, 2022, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This agricultural equipment manufacturer is expected to post quarterly earnings of $6.60 per share in its upcoming report, which represents a year-over-year change of +24.1%.
Revenues are expected to be $12.95 billion, up 24.4% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.36% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Deere?
For Deere, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.08%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Deere will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Deere would post earnings of $6.65 per share when it actually produced earnings of $6.81, delivering a surprise of +2.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Deere doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise. The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2022.
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This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
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Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Deere, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2022.
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For Deere, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. For the last reported quarter, it was expected that Deere would post earnings of $6.65 per share when it actually produced earnings of $6.81, delivering a surprise of +2.41%. The market expects Deere (DE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2022.
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2022-08-11 00:00:00 UTC
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What's Next For Caterpillar Stock After A Mixed Q2?
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https://www.nasdaq.com/articles/whats-next-for-caterpillar-stock-after-a-mixed-q2
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Caterpillar stock (NYSE: CAT) reported its Q2 results last week, with earnings coming in above ours and the street estimates. However, CAT stock has seen a fall of around 5% in a week, and after the recent fall, we believe CAT stock has more room for growth and may see higher levels, as discussed below.
Caterpillar’s revenue of $14.2 billion in Q2 was up 11% y-o-y, and its EPS of $3.18 reflected a 22% growth. This compares with our estimates of $14.1 billion and $2.92, respectively. The revenue growth was led by higher sales for its resource industries and energy and transportation segments, rising 16% and 15%, respectively, while construction industries sales were up 7%. The supply chain disruptions and lockdowns in China due to increasing Covid cases weighed on the overall revenue growth.
Overall, Caterpillar’s Q2 results were good, and it expects to see sales growth and margin expansion over the next few quarters, with pricing growth more than offsetting the rise in costs. The demand for industrial equipment is expected to remain strong. One significant factor that will likely aid Caterpillar’s sales in the near term is the high commodity prices, which translates into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment. The resource industries was the best performing segment for Caterpillar in Q1 and Q2, led by a high end-user demand for heavy construction and mining equipment.
Given the recently announced results and outlook, we have updated our model and revised our estimates. We expect full-year 2022 revenue to be $57.4 billion and earnings to be $12.48 on a per share and adjusted basis. We maintain our Caterpillar valuation of $235 per share, reflecting a 27% upside from its current market price near $185, implying that investors may be better off using the recent dip to enter CAT stock for gains in the long run.
Our valuation is based on a forward P/E ratio of under 19x based on our earnings forecast of $12.48 on a per-share basis for full-year 2022. At its current levels, CAT stock is trading under 15x its forward earnings, compared to the last three-year average of 19x, implying more room for growth.
But what about the near term?
Although CAT stock has seen a fall of 5% in a week, it’s still up 4% in a month. Will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a higher chance of a rise for CAT stock over the next month. A move of 4% in a month has occurred 854 times in the past ten years. Of those 854 instances, 496 resulted in CAT stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 496 out of 854, or about a 58% chance of a rise in CAT stock over the next month. See our analysis of Caterpillar Stock Chance of Rise for more details.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using the last ten years’ data
After moving -5% or more over five days, the stock rose on 51% of the occasions in the next five days.
After moving 2% or more over ten days, the stock rose on 52% of the occasions in the next ten days.
After moving 4% or more over a twenty-one-day period, the stock rose on 58% of the occasions in the next twenty-one days.
This pattern suggests a slightly higher chance of a rise in CAT stock over the next five, ten, and twenty-one days.
Caterpillar (CAT) Return (Recent) Comparison With Peers
Five-Day Return: TEX highest at 6.2%; ASTE lowest at -10.3%
Ten-Day Return: TEX highest at 12.2%; ASTE lowest at -4.6%
Twenty-One Day Return: TEX highest at 26.4%; CNHI lowest at -2.6%
While CAT stock has more room for growth, it is helpful to see how Caterpillar’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Marine Products vs. Tempur Sealy.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return -6% -10% 100%
S&P 500 Return 0% -13% 85%
Trefis Multi-Strategy Portfolio 5% -9% 259%
[1] Month-to-date and year-to-date as of 8/9/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The resource industries was the best performing segment for Caterpillar in Q1 and Q2, led by a high end-user demand for heavy construction and mining equipment. We maintain our Caterpillar valuation of $235 per share, reflecting a 27% upside from its current market price near $185, implying that investors may be better off using the recent dip to enter CAT stock for gains in the long run. At its current levels, CAT stock is trading under 15x its forward earnings, compared to the last three-year average of 19x, implying more room for growth.
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At its current levels, CAT stock is trading under 15x its forward earnings, compared to the last three-year average of 19x, implying more room for growth. The demand for industrial equipment is expected to remain strong. One significant factor that will likely aid Caterpillar’s sales in the near term is the high commodity prices, which translates into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment.
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The demand for industrial equipment is expected to remain strong. One significant factor that will likely aid Caterpillar’s sales in the near term is the high commodity prices, which translates into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment. The resource industries was the best performing segment for Caterpillar in Q1 and Q2, led by a high end-user demand for heavy construction and mining equipment.
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The demand for industrial equipment is expected to remain strong. One significant factor that will likely aid Caterpillar’s sales in the near term is the high commodity prices, which translates into higher capital spending for miners, bolstering the demand for Caterpillar’s mining equipment. The resource industries was the best performing segment for Caterpillar in Q1 and Q2, led by a high end-user demand for heavy construction and mining equipment.
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2022-08-10 00:00:00 UTC
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The Zacks Analyst Blog Highlights Roche Holding, Adobe, McDonald, Deere & Co and BP p.l.c
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-roche-holding-adobe-mcdonald-deere-co-and-bp-p.l.c
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For Immediate Release
Chicago, IL – August 10, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c. BP.
Here are highlights from Tuesday’s Analyst Blog:
Q2 Earnings Scorecard and Analyst Reports for Roche, Adobe & McDonald's
The Zacks Research Daily presents the best research output of our analyst team. Today's note includes a real-time scorecard of the Q2 earnings season, in addition to featuring new research reports on 16 major stocks, including Roche Holding AG, Adobe Inc., and McDonald's Corp.. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Q2 Earnings Season Scorecard We now have Q2 results from 448 S&P 500 members or 89.6% of the index's total membership. Total earnings for these 448 companies are up +8.1% from the same period last year on +15.3% higher revenues, with 77.2% beating EPS estimates and 68.3% beating revenue estimates.
The beats percentages have been less frequent this earnings season relative to other recent periods.
Looking at Q2 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, earnings and revenues are on track to be up +6.9% and +14% from the year-earlier levels, respectively. Excluding contribution from the Energy sector,
Q2 earnings for the rest of the index would be down -3.4%. On the other hand, the Q2 earnings growth pace improves to +14.1% once the Finance sector's drag is removed.
Estimates for the current period (2022 Q3) have come down lately, with the current +2.5% earnings growth rate down from +7.2% in early July. On an ex-Energy basis, Q3 earnings are currently expected to be down -4%, which represents a decline from +2.1% on July 6th.
Today's Featured Analyst Reports
Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry's decline of +7.4%. The Zacks analysts believes that the demand for COVID-19 tests is expected to decline in the second half, and this will adversely impact the Diagnostics division, which recorded solid growth last year.
Nevertheless, growth of routine business excluding COVID tests should maintain momentum. Competition is stiff for Tecentriq and incremental market share gains will be tough. The decline in sales of drugs like Herceptin, Avastin and MabThera will continue to drag sales.
However, the pharmaceuticals business remained stable and newer drugs continued to offset the decline in sales of legacy drugs. Strong demand for new drugs, namely Hemlibra (hemophilia), Ocrevus (multiple sclerosis), Evrysdi (spinal muscular atrophy), Phesgo (cancer) and Tecentriq (cancer) maintains momentum.
(You can read the full research report on Roche here >>>)
Adobe shares have declined -30.3% over the past year against the Zacks Computer - Software industry's decline of -9.3%. The Zacks analyst believes that lower end-market demand, particularly in Europe, and high acquisition expenses remain major overhangs. Nevertheless, Adobe is benefiting from strong demand for its cloud products. The company's Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth.
Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.
However, we remain optimistic about Adobe's market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud. Further, the company's strong balance sheet remains another positive.
(You can read the full research report on Adobe here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+12.4% vs. -12.4%). The company reported mixed second-quarter 2022 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line increased on a year-over-year basis.
McDonald's increased focus on menu innovation and loyalty program expansion is commendable. The company is also undertaking every effort to drive growth in international markets. Robust digitalization will help the company in driving long-term growth and capturing market share.
However, restaurant closures in Russia and Ukraine coupled with inflationary pressures on labor and commodities remain headwinds. The company stated that recovery in China remains challenging due to ongoing COVID resurgences and related lockdowns.
(You can read the full research report on McDonald here >>>)
Other noteworthy reports we are featuring today include Deere & Co., and BP p.l.c..
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Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Roche Holding AG (RHHBY): Free Stock Analysis Report
BP p.l.c. (BP): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c. The Zacks analysts believes that the demand for COVID-19 tests is expected to decline in the second half, and this will adversely impact the Diagnostics division, which recorded solid growth last year. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.
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Stocks recently featured in the blog include: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c. Today's note includes a real-time scorecard of the Q2 earnings season, in addition to featuring new research reports on 16 major stocks, including Roche Holding AG, Adobe Inc., and McDonald's Corp.. Today's Featured Analyst Reports Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry's decline of +7.4%.
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Today's note includes a real-time scorecard of the Q2 earnings season, in addition to featuring new research reports on 16 major stocks, including Roche Holding AG, Adobe Inc., and McDonald's Corp.. (You can read the full research report on McDonald here >>>) Other noteworthy reports we are featuring today include Deere & Co., and BP p.l.c.. Why Haven't You Looked at Zacks' Top Stocks? Stocks recently featured in the blog include: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c.
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Today's Featured Analyst Reports Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry's decline of +7.4%. (You can read the full research report on McDonald here >>>) Other noteworthy reports we are featuring today include Deere & Co., and BP p.l.c.. Why Haven't You Looked at Zacks' Top Stocks? Stocks recently featured in the blog include: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c.
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2022-08-09 00:00:00 UTC
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Q2 Earnings Scorecard and Analyst Reports for Roche, Adobe & McDonald's
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https://www.nasdaq.com/articles/q2-earnings-scorecard-and-analyst-reports-for-roche-adobe-mcdonalds
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Tuesday, August 9, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's note including a real-time scorecard of the Q2 earnings season, in addition to featuring new research reports on 16 major stocks, including Roche Holding AG (RHHBY), Adobe Inc. (ADBE), and McDonald's Corporation (MCD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q2 Earnings Season Scorecard We now have Q2 results from 448 S&P 500 members or 89.6% of the index's total membership. Total earnings for these 448 companies are up +8.1% from the same period last year on +15.3% higher revenues, with 77.2% beating EPS estimates and 68.3% beating revenue estimates.
The beats percentages have been less frequent this earnings season relative to other recent periods.
Looking at Q2 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, earnings and revenues are on track to be up +6.9% and +14% from the year-earlier levels, respectively. Excluding contribution from the Energy sector,
Q2 earnings for the rest of the index would be down -3.4%. On the other hand, the Q2 earnings growth pace improves to +14.1% once the Finance sector's drag is removed.
Estimates for the current period (2022 Q3) have come down lately, with the current +2.5% earnings growth rate down from +7.2% in early July. On an ex-Energy basis, Q3 earnings are currently expected to be down -4%, which represents a decline from +2.1% on July 6th.
Today's Featured Analyst Reports
Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry’s decline of +7.4%. The Zacks analysts believes that the demand for COVID-19 tests is expected to decline in the second half, and this will adversely impact the Diagnostics division, which recorded solid growth last year.
Nevertheless, growth of routine business excluding COVID tests should maintain momentum. Competition is stiff for Tecentriq and incremental market share gains will be tough. The decline in sales of drugs like Herceptin, Avastin and MabThera will continue to drag sales.
However, the pharmaceuticals business remained stable and newer drugs continued to offset the decline in sales of legacy drugs. Strong demand for new drugs, namely Hemlibra (hemophilia), Ocrevus (multiple sclerosis), Evrysdi (spinal muscular atrophy), Phesgo (cancer) and Tecentriq (cancer) maintains momentum.
(You can read the full research report on Roche here >>>)
Adobe shares have declined -30.3% over the past year against the Zacks Computer - Software industry’s decline of -9.3%. The Zacks analyst believes that lower end-market demand, particularly in Europe, and high acquisition expenses remain major overhangs. Nevertheless, Adobe is benefiting from strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth.
Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.
However, we remain optimistic about Adobe’s market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud. Further, the company’s strong balance sheet remains another positive.
(You can read the full research report on Adobe here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+12.4% vs. -12.4%). The company reported mixed second-quarter 2022 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line increased on a year-over-year basis.
McDonald’s increased focus on menu innovation and loyalty program expansion is commendable. The company is also undertaking every effort to drive growth in international markets. Robust digitalization will help the company in driving long-term growth and capturing market share.
However, restaurant closures in Russia and Ukraine coupled with inflationary pressures on labor and commodities remain headwinds. The company stated that recovery in China remains challenging due to ongoing COVID resurgences and related lockdowns.
(You can read the full research report on McDonald here >>>)
Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Deere & Company (DE), and BP p.l.c. (BP).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
New Drugs Boost Roche (RHHBY) Amid Biosimilar Competition
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay
Featured Reports
Keytruda to Remain Merck's (MRK) Key op Line Driver in 2022
With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.
Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs.
BP to Benefit From Renewable Energy Project in Australia
Per the Zacks analyst, BP is well-positioned to gain from Australia's renewable energy project, which can be the world's leading producer of green hydrogen.
Project Investments, Productivity to Aid Air Products (APD)
While Air Products faces headwinds from higher power and fuel costs, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.
Enterprise (EPD) Banks on $5.5B Midstream Growth Projects
Per the Zacks analyst, Enterprise will generate additional cashflows from its $5.5 billion of midstream growth projects, currently under construction.
Cards, High Rates Aid Capital One (COF), Asset Quality Ails
Per the Zacks analyst, strength in credit card businesses, higher interest rates and loans, and strategic buyouts will support Capital One amid worsening asset quality and mounting operating expenses.
STERIS (STE) Sterilization Wing Grows on New Customer Uptake
The Zacks analyst expects STERIS' Applied Sterilization business to continue to put up a robust performance on growing demand from medical device and biopharma customers.
New Upgrades
Solid Pipeline, Cash Position to Aid Canadian Solar (CSIQ)
Per the Zacks analyst, a strong project pipeline boosts revenue growth prospects for Canadian Solar. Also, its solid financial position should attract more investors to buy this stock
ADTRAN (ADTN) Rides on Solid Demand Trends & Diversification
Per the Zacks analyst, Adtran is likely to benefit from the improved customer diversification and strong demand for end-to-end fiber broadband solutions.
Cambium (CMBM) Rides on Technology Roadmap and Solid Demand
Per the Zacks analyst, Cambium is likely to benefit from the growth of high-performance broadband network and strong demand for its enterprise solutions.
New Downgrades
Elevated Costs to Hurt Monster Beverage's (MNST) Margins
Per the Zacks analyst, Monster Beverage witnesses inflationary operational costs for aluminum can import, shipping, freight and other inputs, which have been hurting margins. This is likely to persist
Medifast (MED) Hurt by Material & Transport Cost Inflation
Per the Zacks analyst, Medifast is battling cost inflation, which hurt its second-quarter earnings. Management lowered its 2022 view due to factors like raw material and transportation cost inflation.
Maximus (MMS) Remains Troubled by Lower Current Ratio
Per the Zacks analyst, Maximus is seeing lower current ratio for a while. The company's current ratio at the end of June-quarter was pegged at 1.47, lower than prior-year quarter's 1.52.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roche Holding AG (RHHBY): Free Stock Analysis Report
BP p.l.c. (BP): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Zacks analysts believes that the demand for COVID-19 tests is expected to decline in the second half, and this will adversely impact the Diagnostics division, which recorded solid growth last year. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read New Drugs Boost Roche (RHHBY) Amid Biosimilar Competition Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Featured Reports Keytruda to Remain Merck's (MRK) Key op Line Driver in 2022 With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read New Drugs Boost Roche (RHHBY) Amid Biosimilar Competition Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Featured Reports Keytruda to Remain Merck's (MRK) Key op Line Driver in 2022 With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst. Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs Per the Zacks analyst, Deere will gain from increased farm equipment demand driven by higher commodity prices despite escalating material and logistic costs. You can see all of today’s research reports here >>> Q2 Earnings Season Scorecard We now have Q2 results from 448 S&P 500 members or 89.6% of the index's total membership.
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Today's Featured Analyst Reports Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry’s decline of +7.4%. (You can read the full research report on Roche here >>>) Adobe shares have declined -30.3% over the past year against the Zacks Computer - Software industry’s decline of -9.3%. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read New Drugs Boost Roche (RHHBY) Amid Biosimilar Competition Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Loyalty Program Aid McDonald's (MCD), China Comps Woes Stay Featured Reports Keytruda to Remain Merck's (MRK) Key op Line Driver in 2022 With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.
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(You can read the full research report on McDonald here >>>) Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Deere & Company (DE), and BP p.l.c. You can see all of today’s research reports here >>> Q2 Earnings Season Scorecard We now have Q2 results from 448 S&P 500 members or 89.6% of the index's total membership. Excluding contribution from the Energy sector, Q2 earnings for the rest of the index would be down -3.4%.
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2022-08-09 00:00:00 UTC
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Foxconn to build autonomous electric tractors at Ohio facility
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DE
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https://www.nasdaq.com/articles/foxconn-to-build-autonomous-electric-tractors-at-ohio-facility-0
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nan
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nan
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By Bianca Flowers
Aug 9 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, on Tuesday said it will build driverless electric tractors for California-based Monarch Tractor at its Lordstown, Ohio, facility starting in early 2023.
The announcement comes as heavy machinery manufacturers, including Deere & Co DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming.
The agreement with Monarch Tractor is the first manufacturing contract Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, has entered since purchasing the Ohio facility that was formerly a General Motors GM.N Assembly plant last year.
Production for Monarch's battery powered MK-V series tractor is scheduled to begin in the first quarter of 2023, said Foxconn, formally known as Hon Hai Technology Group.
Monarch, which is based in Silicon Valley, debuted its first pilot series, autonomous electric tractor to a select group of farmers last year. The company has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI.
CNH Industrial has a minority stake in Monarch Tractor.
With competition brewing among farm equipment manufacturers to expand product lines in precision agriculture technology and autonomous machinery, Monarch's chief executive, Praveen Penmetsa, told Reuters that the company's business model to target smaller farmers gives them unique opportunity to increase the marketshare while being on the same playing field with bigger manufacturers.
"Their technology is focused on the large farm operations and commodity crops. Fruits and vegetable farmers use much smaller tractors so we are focused on smaller farmers - that differentiates us a lot," Penmetsa said.
The company did not disclose the cost of the tractor but said the autonomous software will be sold separately and that farmers will have to pay a monthly fee to access the services.
FOCUS-Deere tapping into Apple-like tech model to drive revenue
Lordstown Motors signals need for more capital to boost production, shares drop
(Reporting by Bianca Flowers in Chicago; Editing by Jan Harvey and Lisa Shumaker)
((Bianca.Flowers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The announcement comes as heavy machinery manufacturers, including Deere & Co DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. Monarch, which is based in Silicon Valley, debuted its first pilot series, autonomous electric tractor to a select group of farmers last year. With competition brewing among farm equipment manufacturers to expand product lines in precision agriculture technology and autonomous machinery, Monarch's chief executive, Praveen Penmetsa, told Reuters that the company's business model to target smaller farmers gives them unique opportunity to increase the marketshare while being on the same playing field with bigger manufacturers.
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Monarch, which is based in Silicon Valley, debuted its first pilot series, autonomous electric tractor to a select group of farmers last year. With competition brewing among farm equipment manufacturers to expand product lines in precision agriculture technology and autonomous machinery, Monarch's chief executive, Praveen Penmetsa, told Reuters that the company's business model to target smaller farmers gives them unique opportunity to increase the marketshare while being on the same playing field with bigger manufacturers. The announcement comes as heavy machinery manufacturers, including Deere & Co DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming.
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With competition brewing among farm equipment manufacturers to expand product lines in precision agriculture technology and autonomous machinery, Monarch's chief executive, Praveen Penmetsa, told Reuters that the company's business model to target smaller farmers gives them unique opportunity to increase the marketshare while being on the same playing field with bigger manufacturers. The announcement comes as heavy machinery manufacturers, including Deere & Co DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. Monarch, which is based in Silicon Valley, debuted its first pilot series, autonomous electric tractor to a select group of farmers last year.
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With competition brewing among farm equipment manufacturers to expand product lines in precision agriculture technology and autonomous machinery, Monarch's chief executive, Praveen Penmetsa, told Reuters that the company's business model to target smaller farmers gives them unique opportunity to increase the marketshare while being on the same playing field with bigger manufacturers. The announcement comes as heavy machinery manufacturers, including Deere & Co DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. Monarch, which is based in Silicon Valley, debuted its first pilot series, autonomous electric tractor to a select group of farmers last year.
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350d98c7-6c2f-415d-81db-beaace2e7a23
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721092.0
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2022-08-09 00:00:00 UTC
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Foxconn to build autonomous electric tractors at Ohio facility
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DE
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https://www.nasdaq.com/articles/foxconn-to-build-autonomous-electric-tractors-at-ohio-facility
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nan
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nan
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By Bianca Flowers
Aug 9 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, on Tuesday said it will build driverless electric tractors for California-based Monarch Tractor at its Lordstown, Ohio facility starting in early 2023.
The announcement comes as heavy machinery manufacturers, including Deere & Co. DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming.
"This partnership reflects Foxconn's growing center of gravity for autonomous electric vehicle production and the potential that can emerge from forward-thinking collaborations," Young Liu, chairman of Hon Hai Technology Group, as Foxconn is formally known, said in a statement.
The agreement with Monarch Tractor is the first manufacturing contract Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, has entered since purchasing the Ohio facility that was formerly a General Motors GM.N Assembly plant last year.
Production for Monarch's battery powered MK-V series tractor is scheduled to begin in the first quarter of 2023, Foxconn said.
Monarch, which is based in Silicon Valley, debuted its first autonomous electric tractor last year and has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI.
CNH Industrial has a minority stake in Monarch Tractor.
(Reporting by Bianca Flowers in Chicago; Editing by Jan Harvey)
((Bianca.Flowers@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The announcement comes as heavy machinery manufacturers, including Deere & Co. DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. Monarch, which is based in Silicon Valley, debuted its first autonomous electric tractor last year and has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI. Production for Monarch's battery powered MK-V series tractor is scheduled to begin in the first quarter of 2023, Foxconn said.
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Monarch, which is based in Silicon Valley, debuted its first autonomous electric tractor last year and has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI. The announcement comes as heavy machinery manufacturers, including Deere & Co. DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. "This partnership reflects Foxconn's growing center of gravity for autonomous electric vehicle production and the potential that can emerge from forward-thinking collaborations," Young Liu, chairman of Hon Hai Technology Group, as Foxconn is formally known, said in a statement.
|
Monarch, which is based in Silicon Valley, debuted its first autonomous electric tractor last year and has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI. The announcement comes as heavy machinery manufacturers, including Deere & Co. DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. By Bianca Flowers Aug 9 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, on Tuesday said it will build driverless electric tractors for California-based Monarch Tractor at its Lordstown, Ohio facility starting in early 2023.
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The announcement comes as heavy machinery manufacturers, including Deere & Co. DE.N and Georgia-based AGCO AGCO.N, set their sights on the electric vehicle market as the U.S. agriculture industry shifts to smart farming. Monarch, which is based in Silicon Valley, debuted its first autonomous electric tractor last year and has since entered into a multi-year licensing agreement with Italian-American vehicle manufacturer CNH Industrial CNH.MI. The agreement with Monarch Tractor is the first manufacturing contract Foxconn, best known for assembling Apple Inc's AAPL.O iPhone, has entered since purchasing the Ohio facility that was formerly a General Motors GM.N Assembly plant last year.
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bb14be1d-0dd8-451b-8bb6-7665324470f8
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721093.0
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2022-08-08 00:00:00 UTC
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Deere (DE) Gains As Market Dips: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-gains-as-market-dips%3A-what-you-should-know-2
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nan
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nan
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Deere (DE) closed the most recent trading day at $343.71, moving +0.12% from the previous trading session. This change outpaced the S&P 500's 0.12% loss on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the agricultural equipment manufacturer had gained 12.69% over the past month, outpacing the Industrial Products sector's gain of 12.28% and the S&P 500's gain of 8.25% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be August 19, 2022. The company is expected to report EPS of $6.60, up 24.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.95 billion, up 24.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.30 per share and revenue of $47.73 billion, which would represent changes of +22.7% and +20.1%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Deere is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 14.74 right now. For comparison, its industry has an average Forward P/E of 14.74, which means Deere is trading at a no noticeable deviation to the group.
It is also worth noting that DE currently has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
How to Profit from the Hot Electric Vehicle Industry
Global electric car sales in 2021 more than doubled their 2020 numbers. And today, the electric vehicle (EV) technology and very nature of the business is changing quickly. The next push for future technologies is happening now and investors who get in early could see exceptional profits.
See Zacks' Top Stocks to Profit from the EV Revolution >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. For comparison, its industry has an average Forward P/E of 14.74, which means Deere is trading at a no noticeable deviation to the group. Deere (DE) closed the most recent trading day at $343.71, moving +0.12% from the previous trading session.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed the most recent trading day at $343.71, moving +0.12% from the previous trading session. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
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Deere (DE) closed the most recent trading day at $343.71, moving +0.12% from the previous trading session. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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Deere (DE) closed the most recent trading day at $343.71, moving +0.12% from the previous trading session. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date.
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6a7236d9-82df-44f3-aa6d-ab6a2b5207f1
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721094.0
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2022-08-08 00:00:00 UTC
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Notable Monday Option Activity: LPSN, WCC, DE
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DE
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-lpsn-wcc-de
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in LivePerson Inc (Symbol: LPSN), where a total of 6,312 contracts have traded so far, representing approximately 631,200 underlying shares. That amounts to about 74.3% of LPSN's average daily trading volume over the past month of 849,845 shares. Especially high volume was seen for the $17.50 strike call option expiring August 19, 2022, with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of LPSN. Below is a chart showing LPSN's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
Wesco International, Inc. (Symbol: WCC) options are showing a volume of 3,421 contracts thus far today. That number of contracts represents approximately 342,100 underlying shares, working out to a sizeable 70.4% of WCC's average daily trading volume over the past month, of 485,760 shares. Particularly high volume was seen for the $130 strike call option expiring August 19, 2022, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of WCC. Below is a chart showing WCC's trailing twelve month trading history, with the $130 strike highlighted in orange:
And Deere & Co. (Symbol: DE) saw options trading volume of 8,492 contracts, representing approximately 849,200 underlying shares or approximately 69.1% of DE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $315 strike put option expiring August 12, 2022, with 728 contracts trading so far today, representing approximately 72,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange:
For the various different available expirations for LPSN options, WCC options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $17.50 strike call option expiring August 19, 2022, with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of LPSN. Particularly high volume was seen for the $130 strike call option expiring August 19, 2022, with 1,105 contracts trading so far today, representing approximately 110,500 underlying shares of WCC. Especially high volume was seen for the $315 strike put option expiring August 12, 2022, with 728 contracts trading so far today, representing approximately 72,800 underlying shares of DE.
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Especially high volume was seen for the $17.50 strike call option expiring August 19, 2022, with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of LPSN. Below is a chart showing WCC's trailing twelve month trading history, with the $130 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 8,492 contracts, representing approximately 849,200 underlying shares or approximately 69.1% of DE's average daily trading volume over the past month, of 1.2 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in LivePerson Inc (Symbol: LPSN), where a total of 6,312 contracts have traded so far, representing approximately 631,200 underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in LivePerson Inc (Symbol: LPSN), where a total of 6,312 contracts have traded so far, representing approximately 631,200 underlying shares. Especially high volume was seen for the $17.50 strike call option expiring August 19, 2022, with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of LPSN. Below is a chart showing WCC's trailing twelve month trading history, with the $130 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 8,492 contracts, representing approximately 849,200 underlying shares or approximately 69.1% of DE's average daily trading volume over the past month, of 1.2 million shares.
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Especially high volume was seen for the $17.50 strike call option expiring August 19, 2022, with 2,884 contracts trading so far today, representing approximately 288,400 underlying shares of LPSN. Below is a chart showing WCC's trailing twelve month trading history, with the $130 strike highlighted in orange: And Deere & Co. (Symbol: DE) saw options trading volume of 8,492 contracts, representing approximately 849,200 underlying shares or approximately 69.1% of DE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $315 strike put option expiring August 12, 2022, with 728 contracts trading so far today, representing approximately 72,800 underlying shares of DE.
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f9e7b2bf-6461-4f69-bc8a-77d172adb773
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721095.0
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2022-08-02 00:00:00 UTC
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Deere (DE) Dips More Than Broader Markets: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-dips-more-than-broader-markets%3A-what-you-should-know-0
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nan
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nan
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Deere (DE) closed at $333.21 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's 0.67% loss on the day. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the agricultural equipment manufacturer had gained 12.12% in the past month. In that same time, the Industrial Products sector gained 11.86%, while the S&P 500 gained 7.79%.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2022. On that day, Deere is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 24.06%. Our most recent consensus estimate is calling for quarterly revenue of $12.95 billion, up 24.35% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $23.30 per share and revenue of $47.73 billion. These results would represent year-over-year changes of +22.7% and +20.1%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. Deere is currently a Zacks Rank #4 (Sell).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 14.52. For comparison, its industry has an average Forward P/E of 14.52, which means Deere is trading at a no noticeable deviation to the group.
Also, we should mention that DE has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE's industry had an average PEG ratio of 1.15 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks' Top Picks to Cash in on Electric Vehicles
Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors
See 5 EV Stocks With Extreme Upside Potential >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. For comparison, its industry has an average Forward P/E of 14.52, which means Deere is trading at a no noticeable deviation to the group. Zacks’ Special Report reveals 5 picks investors See 5 EV Stocks With Extreme Upside Potential >>
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On that day, Deere is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 24.06%. Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $333.21 in the latest trading session, marking a -1.47% move from the prior day.
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On that day, Deere is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 24.06%. The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Deere (DE) closed at $333.21 in the latest trading session, marking a -1.47% move from the prior day.
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Deere (DE) closed at $333.21 in the latest trading session, marking a -1.47% move from the prior day. On that day, Deere is projected to report earnings of $6.60 per share, which would represent year-over-year growth of 24.06%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2022.
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590de676-e28b-48e9-9408-dbc11395e856
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721096.0
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2022-08-02 00:00:00 UTC
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Zebra Technologies (ZBRA) Surpasses Q2 Earnings and Revenue Estimates
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DE
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https://www.nasdaq.com/articles/zebra-technologies-zbra-surpasses-q2-earnings-and-revenue-estimates
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nan
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nan
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Zebra Technologies (ZBRA) came out with quarterly earnings of $4.61 per share, beating the Zacks Consensus Estimate of $4.19 per share. This compares to earnings of $4.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10.02%. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.83 per share when it actually produced earnings of $4.01, delivering a surprise of 4.70%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Zebra, which belongs to the Zacks Manufacturing - Thermal Products industry, posted revenues of $1.47 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.47%. This compares to year-ago revenues of $1.38 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Zebra shares have lost about 39.8% since the beginning of the year versus the S&P 500's decline of -13.6%.
What's Next for Zebra?
While Zebra has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Zebra: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $5.04 on $1.49 billion in revenues for the coming quarter and $18.88 on $5.92 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Thermal Products is currently in the bottom 6% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Deere (DE), has yet to report results for the quarter ended July 2022. The results are expected to be released on August 19.
This agricultural equipment manufacturer is expected to post quarterly earnings of $6.60 per share in its upcoming report, which represents a year-over-year change of +24.1%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
Deere's revenues are expected to be $12.95 billion, up 24.4% from the year-ago quarter.
Zacks' Top Picks to Cash in on Electric Vehicles
Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors
See 5 EV Stocks With Extreme Upside Potential >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. Another stock from the broader Zacks Industrial Products sector, Deere (DE), has yet to report results for the quarter ended July 2022. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.83 per share when it actually produced earnings of $4.01, delivering a surprise of 4.70%.
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Zebra, which belongs to the Zacks Manufacturing - Thermal Products industry, posted revenues of $1.47 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.47%. Deere & Company (DE): Free Stock Analysis Report A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.83 per share when it actually produced earnings of $4.01, delivering a surprise of 4.70%.
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Zebra, which belongs to the Zacks Manufacturing - Thermal Products industry, posted revenues of $1.47 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 1.47%. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.83 per share when it actually produced earnings of $4.01, delivering a surprise of 4.70%.
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While Zebra has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. A quarter ago, it was expected that this producer of printers for bar codes, plastic cards and, radio-frequency identification tags would post earnings of $3.83 per share when it actually produced earnings of $4.01, delivering a surprise of 4.70%.
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024e605e-7f2d-4dd5-960b-19b478fe93c1
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721097.0
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2022-08-01 00:00:00 UTC
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Noteworthy Monday Option Activity: POOL, DE, TDG
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-pool-de-tdg
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Pool Corp (Symbol: POOL), where a total volume of 4,640 contracts has been traded thus far today, a contract volume which is representative of approximately 464,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.1% of POOL's average daily trading volume over the past month, of 487,905 shares. Particularly high volume was seen for the $270 strike put option expiring November 18, 2022, with 2,500 contracts trading so far today, representing approximately 250,000 underlying shares of POOL. Below is a chart showing POOL's trailing twelve month trading history, with the $270 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 8,934 contracts thus far today. That number of contracts represents approximately 893,400 underlying shares, working out to a sizeable 64.2% of DE's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $325 strike put option expiring August 05, 2022, with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $325 strike highlighted in orange:
And TransDigm Group Inc (Symbol: TDG) saw options trading volume of 1,625 contracts, representing approximately 162,500 underlying shares or approximately 64.1% of TDG's average daily trading volume over the past month, of 253,380 shares. Particularly high volume was seen for the $380 strike put option expiring December 16, 2022, with 800 contracts trading so far today, representing approximately 80,000 underlying shares of TDG. Below is a chart showing TDG's trailing twelve month trading history, with the $380 strike highlighted in orange:
For the various different available expirations for POOL options, DE options, or TDG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $270 strike put option expiring November 18, 2022, with 2,500 contracts trading so far today, representing approximately 250,000 underlying shares of POOL. Particularly high volume was seen for the $325 strike put option expiring August 05, 2022, with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Particularly high volume was seen for the $380 strike put option expiring December 16, 2022, with 800 contracts trading so far today, representing approximately 80,000 underlying shares of TDG.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Pool Corp (Symbol: POOL), where a total volume of 4,640 contracts has been traded thus far today, a contract volume which is representative of approximately 464,000 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing POOL's trailing twelve month trading history, with the $270 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 8,934 contracts thus far today. Below is a chart showing DE's trailing twelve month trading history, with the $325 strike highlighted in orange: And TransDigm Group Inc (Symbol: TDG) saw options trading volume of 1,625 contracts, representing approximately 162,500 underlying shares or approximately 64.1% of TDG's average daily trading volume over the past month, of 253,380 shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Pool Corp (Symbol: POOL), where a total volume of 4,640 contracts has been traded thus far today, a contract volume which is representative of approximately 464,000 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $270 strike put option expiring November 18, 2022, with 2,500 contracts trading so far today, representing approximately 250,000 underlying shares of POOL. Below is a chart showing DE's trailing twelve month trading history, with the $325 strike highlighted in orange: And TransDigm Group Inc (Symbol: TDG) saw options trading volume of 1,625 contracts, representing approximately 162,500 underlying shares or approximately 64.1% of TDG's average daily trading volume over the past month, of 253,380 shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Pool Corp (Symbol: POOL), where a total volume of 4,640 contracts has been traded thus far today, a contract volume which is representative of approximately 464,000 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $325 strike put option expiring August 05, 2022, with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $325 strike highlighted in orange: And TransDigm Group Inc (Symbol: TDG) saw options trading volume of 1,625 contracts, representing approximately 162,500 underlying shares or approximately 64.1% of TDG's average daily trading volume over the past month, of 253,380 shares.
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c1b1bda0-fd43-4e74-983a-a88011f1b3a2
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721098.0
|
2022-08-01 00:00:00 UTC
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Will Caterpillar Stock Rise Post Q2 Results?
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DE
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https://www.nasdaq.com/articles/will-caterpillar-stock-rise-post-q2-results
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nan
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nan
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Caterpillar (NYSE: CAT) is scheduled to report its Q2 2022 results on Tuesday, August 2. We expect Caterpillar to post revenue and earnings below the consensus estimates. While a solid demand and strong pricing environment will drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and lockdowns in China. That said, our forecast indicates that CAT stock has more room for growth from its current levels, as we discuss below. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q2 2022 revenues to be around $14.1 billion, reflecting a 9% y-o-y growth but below the $14.4 billion consensus estimate.
All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q2 as well, driven by strong end-user demand and a strong pricing environment.
However, supply chain disruptions and lockdowns in China due to rising Covid cases may have weighed on the overall revenue growth.
Looking back at Q1 2022, total revenues grew by 14% y-o-y to $13.6 billion, with gains across the company’s businesses.
Resource industries segment led this growth with a 30% y-o-y rise in sales, while construction and energy & transportation segments saw an increase of 12% each.
Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
(2) EPS likely to be below the consensus estimates
Caterpillar’s Q2 2022 adjusted earnings per share (EPS) is expected to be $2.92 per Trefis analysis, compared to the consensus estimate of $3.01.
Caterpillar’s adjusted net income of $1.5 billion in Q1 2022 reflected a considerable 2% y-o-y decline, compared to $1.6 billion in the prior-year quarter.
Higher expenses primarily drove this decline. The company’s operating margin declined 160 bps to 13.7% in Q1, compared to 15.3% in the year-ago quarter. Higher freight costs weighed on the manufacturing costs as well; a trend likely continued in Q2 as well.
Looking forward, we expect the full-year 2022 adjusted EPS to be higher at $12.17, compared to $10.81 in 2021.
(3) Stock price estimate above the current market price
We estimate Caterpillar’s Valuation to be around $235 per share, which is 19% above its current market price of $198.
This represents a forward P/E multiple of 19x based on our EPS forecast of $12.17 for 2022, in line with the last three-year average and higher than the 16x CAT stock currently trades.
If the company reports upbeat results, with sales growth and 2022 guidance better than the street estimates, the P/E multiple will likely be revised upward, resulting in even higher levels for CAT stock.
While CAT stock has more room for growth, it is helpful to see how Caterpillar’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Marine Products vs. Tempur Sealy.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Aug 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 0% -4% 114%
S&P 500 Return 0% -13% 84%
Trefis Multi-Strategy Portfolio 0% -14% 240%
[1] Month-to-date and year-to-date as of 8/1/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a solid demand and strong pricing environment will drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and lockdowns in China. This represents a forward P/E multiple of 19x based on our EPS forecast of $12.17 for 2022, in line with the last three-year average and higher than the 16x CAT stock currently trades. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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While a solid demand and strong pricing environment will drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and lockdowns in China. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details. All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q2 as well, driven by strong end-user demand and a strong pricing environment.
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While a solid demand and strong pricing environment will drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and lockdowns in China. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details. All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q2 as well, driven by strong end-user demand and a strong pricing environment.
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Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments. While a solid demand and strong pricing environment will drive the company’s revenue growth, its overall performance may be weighed down due to supply chain disruptions and lockdowns in China. Our interactive dashboard analysis of Caterpillar’s Earnings Preview has additional details.
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b912dc1b-899b-4124-8237-2bced7925f6b
|
721099.0
|
2022-08-01 00:00:00 UTC
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3 Cheap Cathie Wood Stocks to Buy Now
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DE
|
https://www.nasdaq.com/articles/3-cheap-cathie-wood-stocks-to-buy-now
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nan
|
nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s hard finding the best stock pickers, especially in a year like 2022. We all know that past performance doesn’t mean future success, which means someone who has succeeded or failed in the past will continue to do that now. It’s worth keeping an eye on what the biggest names in investing are doing, though, and that means you should take a look at these cheap Cathie Wood stocks.
The stock market is very unpredictable, rallying on the day the Federal Reserve raised interest rates by 75 basis points. It is challenging to find cheap stocks to buy while waiting for the rebound.
7 Blue-Chip Stocks to Buy Before the Bull Market Returns
Cathie Wood implements investment strategies in several different markets and sectors with a focus on disruptive innovation. I tend to prefer value stocks, whereas her emphasis is on growth, so it was a tough task to find three cheap Cathie Wood stocks that met my criteria, but this is what I ended up with.
COIN Coinbase $62.21
DE Deere & Co $341.76
TER Teradyne $100.59
Coinbase (COIN)
Source: rarrarorro / Shutterstock.com
Coinbase (NASDAQ:COIN) is a bet on the crypto economy and its future. The cryptocurrency market is still a nascent industry and Coinbase Global can certainly benefit from having a major position in it. Cathie Wood’s ETFs reduced their COIN holdings, but they still have a significant amount.
The stock was trading at around $250 at the start of the year, but it’s down to around $62, and it has a trailing 12-months price-to-earnings ratio of 6.4. If you thought COIN stock was too expensive in early 2022 you were probably right. If you think it’s too cheap now you might also be right. Crypto’s popularity has had a steep fall, but COIN stock might be worth investigating at this price.
After a 75% drop, the bullish story about COIN stock lies in fundamentals. There is strong momentum in earnings per share with the company beating estimates in three out of the four past quarters, along with strong sales growth. In 2020, sales growth was 139.35%, and in 2021, it was 513.66%.
Profitability metrics are very strong, although Q1 2022 was not good by any means. The trailing 12-month price-to-earnings growth of 0.08 signals an undervalued stock and the trailing 12-month price-to-cash flow ratio of 2.1 is 72% lower than the financials sector median value.
The firm is also generating tons of positive free cash flow with a 261.41% increase in 2021. Consider a position in Coinbase, as the price is very attractive.
Deere & Co (DE)
Source: Jim Lambert / Shutterstock.com
Deere & Co (NYSE:DE) has seen its shares perform well in 2022 and the bullish thesis is that the broader financial performance is very strong. This is a mature firm and a key player in the heavy construction machinery business. EPS growth is robust, beating EPS estimates in three out of four past quarters, and sales growth has rebounded in 2021 up 23.73%.
For a stock to be considered cheap, it’s important to examine the free cash flow trend. Deere has generated $4.83 billion and $5.15 billion in the past two years, making up for the cash burn in the three prior years by far.
7 Stocks to Buy on the Dip
The TTM PEG ratio of 0.54, well below 1, signals that the stock is undervalued. The TTM P/E ratio of 17.3 is also not too high, and the forward dividend yield of 1.4% can increase the total return in a rebound rally.
Teradyne (TER)
Source: Michael Vi / Shutterstock.com
Teradyne (NASDAQ:TER) stock has fallen 38% in 2022, an early indication it is cheap now. As always, a stock price itself does not tell you much without analyzing the company’s financials.
Teradyne has reported a strong second quarter with revenues and earnings beating estimates, and automotive demand remains strong. EPS momentum is exceptional, beating estimates in the past four consecutive quarters.
The sales growth has been very strong in the past two years — in both years, the firm has increased its net income growth by more than its sales growth.
The company generates a lot of positive free cash flow and is expected to have EPS growth of 7.16% over the next 3-5 years.
In addition to its growth growth, the company’s valuation also seems cheap. TER stock has a TTM P/E ratio of 20.8, 18% lower than the information technology sector median figure.
Teradyne is cheap and has created value for its shareholders in recent years. This is very bullish over the long-term.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Cheap Cathie Wood Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock market is very unpredictable, rallying on the day the Federal Reserve raised interest rates by 75 basis points. The TTM P/E ratio of 17.3 is also not too high, and the forward dividend yield of 1.4% can increase the total return in a rebound rally. We all know that past performance doesn’t mean future success, which means someone who has succeeded or failed in the past will continue to do that now.
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COIN Coinbase $62.21 DE Deere & Co $341.76 TER Teradyne $100.59 Coinbase (COIN) Source: rarrarorro / Shutterstock.com Coinbase (NASDAQ:COIN) is a bet on the crypto economy and its future. The trailing 12-month price-to-earnings growth of 0.08 signals an undervalued stock and the trailing 12-month price-to-cash flow ratio of 2.1 is 72% lower than the financials sector median value. We all know that past performance doesn’t mean future success, which means someone who has succeeded or failed in the past will continue to do that now.
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I tend to prefer value stocks, whereas her emphasis is on growth, so it was a tough task to find three cheap Cathie Wood stocks that met my criteria, but this is what I ended up with. We all know that past performance doesn’t mean future success, which means someone who has succeeded or failed in the past will continue to do that now. The stock market is very unpredictable, rallying on the day the Federal Reserve raised interest rates by 75 basis points.
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COIN Coinbase $62.21 DE Deere & Co $341.76 TER Teradyne $100.59 Coinbase (COIN) Source: rarrarorro / Shutterstock.com Coinbase (NASDAQ:COIN) is a bet on the crypto economy and its future. We all know that past performance doesn’t mean future success, which means someone who has succeeded or failed in the past will continue to do that now. The stock market is very unpredictable, rallying on the day the Federal Reserve raised interest rates by 75 basis points.
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30b762bc-11ff-4698-bbc2-7278e812c4aa
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