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721100.0
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2022-07-31 00:00:00 UTC
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3 Top Innovative Dividend Stocks for the Second Half of 2022
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https://www.nasdaq.com/articles/3-top-innovative-dividend-stocks-for-the-second-half-of-2022
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The best companies in the world have a reputation for bringing new products and services to market to maintain their competitive edge in a changing economy. Massive industry-leading companies might be able to get away with a lack of innovation for a while, but over time, complacently often leads to slowing growth.
NextEra Energy (NYSE: NEE), Equinor (NYSE: EQNR), and Deere (NYSE: DE) are similar in that they all have established businesses in legacy industries but are also aggressively investing in what they believe will be the next growth chapter in each of their fields. Here's what makes each of these dividend stocks a great buy now.
Image source: Getty Images.
1. A utility leading the energy transition
NextEra Energy is the largest utility by market cap in the United States. The stock's outperformance is largely due to its early mover advantage in transitioning away from coal (and, to a lesser extent, natural gas) toward renewables.
The company's two main business segments are Florida Power & Light (FPL) -- which absorbed Gulf Power earlier this year -- and NextEra Energy Resources (NEER).
FPL is the largest regulated electric utility in Florida. It continues to transition its power generation portfolio toward solar and expects a roughly 65% increase in zero carbon emission emitting power generation by the FPL system over the next decade when compared to 2021 levels.
Meanwhile, NEER -- the company's main renewable energy arm -- expects its total renewable capacity (from wind, solar, and other sources) to be between 22.7 gigawatts (GW) and 30 GW from 2021 through 2024.
NextEra Energy is already the largest renewable energy operator in North America. But what makes it unique is that it isn't slowing down its investments despite its leading position. As a regulated electric utility, it has projects that are ideally suited for risk-averse investors because they generate predictable cash flows that support the company's growing dividend and future development projects. NextEra has a 2.1% dividend yield at the time of this writing.
2. From offshore oil and gas to offshore wind
Equinor is Norway's biggest oil and gas company. Considered one of the world's largest integrated majors, Equinor has spent decades being the dominant player in the North Sea.
However, the company's production has slowed in recent years despite sizable investments in the Gulf of Mexico and offshore Brazil. For example, first half 2022 production was 2% lower than first half 2021 production and full year 2022 production is expected to be just 2% higher than full-year 2021 production. Equinor's 2021 production of 2.079 million barrels of oil equivalent per day (boe/d) was practically flat compared to 2.08 million boe/d in 2017 and just 7% higher than 1.94 million boe/d the company averaged in 2013. That gives Equinor's production a compound annual growth rate of less than 1% for the last 10 years.
One reason for the low growth is that Equinor has aggressive carbon reduction goals and is investing heavily in renewable energy, carbon capture and storage, and offshore wind power.
Equinor has low oil and gas capital expenditures (capex) and one of the lowest production costs of any oil and gas major, which allows it to rake in gobs of free cash flow (FCF). Despite being one of the smaller majors by market cap and having less than a third of ExxonMobil's market cap, Equinor generated the equivalent of more than half of ExxonMobil's FCF in 2021 and the most FCF as a percentage of market cap of any major.
EQNR free cash flow (annual). Data by YCharts.
Equinor continues to make selective investments in oil and gas. However, it must diversify its portfolio to include renewables and carbon capture and storage if it wants to achieve its medium- and long-term carbon reduction goals. According to its 2022 energy transition plan, the company aims to boost oil and gas production by just 2% between 2021 and 2022 while lowering the carbon intensity of its oil and gas portfolio. It has earmarked $23 billion in renewable energy capex between 2021 and 2026 to reach an installed capacity of 12 GW to 16 GW by 2030. However, we could see Equinor reallocate some of its renewable spending toward oil and gas in response to increasing demand in Europe due to the Russia-Ukraine conflict.
In many ways, Equinor is similar to NextEra Energy in that it still operates a sizable fossil-fuel-based asset portfolio but is allocating most of its investments toward lower carbon solutions. It has a dividend yield of 2.2% at the time of this writing.
3. Cultivating decades of growth
Like NextEra Energy and Equinor, heavy-equipment manufacturer Deere has set aggressive sustainability goals. And unlike many companies that simply say they will be carbon neutral by 2050, Deere's goals are based on 2026 and 2030 targets.
Known as its Leap Ambitions plans, Deere wants to grow its market share in production and precision agriculture, small agriculture and turf, construction, and forestry by offering lower-carbon solutions like electric and hybrid models as well as spearheading automation across its end markets.
Most notable is Deere's goal to have 100% of small agriculture equipment connectively enabled by 2026, and to deliver over 20 electric and hybrid product models. Elsewhere, the company aims to lower its carbon-dioxide-equivalent emissions, improve nitrogen-use efficiency, and achieve 95% recycled product content by 2030. It also plans to reduce other emissions by 50% by that year.
Deere is an excellent example of a legacy company and a well-known American brand that plans to achieve long-term growth and gain customer trust through sustainable business practices.
The results show the strategy is working. Deere booked record profit in 2021 and forecasts an even better year in 2022. Its dividend yield is only 1.5%, but the company prioritizes share repurchases and organic investment over the dividend -- so its payout is more of a cherry on top of an excellent underlying investment thesis.
High yield isn't everything
NextEra Energy, Equinor, and Deere aren't high-yield dividend stocks by any means. But they are excellent companies that stand a good chance of growing their businesses over time and supporting their dividends with cash, not debt. In this vein, all three companies could deliver better long-term value than a high-yield dividend stock with weaker growth prospects.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. 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 is an excellent example of a legacy company and a well-known American brand that plans to achieve long-term growth and gain customer trust through sustainable business practices. NextEra Energy (NYSE: NEE), Equinor (NYSE: EQNR), and Deere (NYSE: DE) are similar in that they all have established businesses in legacy industries but are also aggressively investing in what they believe will be the next growth chapter in each of their fields. Here's what makes each of these dividend stocks a great buy now.
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High yield isn't everything NextEra Energy, Equinor, and Deere aren't high-yield dividend stocks by any means. NextEra Energy (NYSE: NEE), Equinor (NYSE: EQNR), and Deere (NYSE: DE) are similar in that they all have established businesses in legacy industries but are also aggressively investing in what they believe will be the next growth chapter in each of their fields. Here's what makes each of these dividend stocks a great buy now.
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High yield isn't everything NextEra Energy, Equinor, and Deere aren't high-yield dividend stocks by any means. NextEra Energy (NYSE: NEE), Equinor (NYSE: EQNR), and Deere (NYSE: DE) are similar in that they all have established businesses in legacy industries but are also aggressively investing in what they believe will be the next growth chapter in each of their fields. Here's what makes each of these dividend stocks a great buy now.
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NextEra Energy (NYSE: NEE), Equinor (NYSE: EQNR), and Deere (NYSE: DE) are similar in that they all have established businesses in legacy industries but are also aggressively investing in what they believe will be the next growth chapter in each of their fields. Here's what makes each of these dividend stocks a great buy now. It continues to transition its power generation portfolio toward solar and expects a roughly 65% increase in zero carbon emission emitting power generation by the FPL system over the next decade when compared to 2021 levels.
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c27c7e19-95bf-417b-a03b-08022b8c676c
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721101.0
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2022-07-29 00:00:00 UTC
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Is Trending Stock Deere & Company (DE) a Buy Now?
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DE
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https://www.nasdaq.com/articles/is-trending-stock-deere-company-de-a-buy-now
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nan
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nan
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Deere (DE) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this agricultural equipment manufacturer have returned +10.7%, compared to the Zacks S&P 500 composite's +6.7% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has gained 7.3%. 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.
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 $6.60 per share for the current quarter, representing a year-over-year change of +24.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The consensus earnings estimate of $23.30 for the current fiscal year indicates a year-over-year change of +22.7%. This estimate has changed -0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $26.24 indicates a change of +12.6% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -1.9%.
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 $12.95 billion for the current quarter points to a year-over-year change of +24.4%. The $47.73 billion and $53.88 billion estimates for the current and next fiscal years indicate changes of +20.1% and +12.9%, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $12.03 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $6.81 for the same period compares with $5.68 a year ago.
Compared to the Zacks Consensus Estimate of $13.44 billion, the reported revenues represent a surprise of -10.48%. The EPS surprise was +2.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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 B on this front, indicating that it is trading at a discount to 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.
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.
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) has been one of the most searched-for stocks on Zacks.com lately.
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Last Reported Results and Surprise History Deere reported revenues of $12.03 billion in the last reported quarter, representing a year-over-year change of +9.4%. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Deere (DE) has been one of the most searched-for stocks on Zacks.com 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) has been one of the most searched-for stocks on Zacks.com lately. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has gained 7.3%.
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For the next fiscal year, the consensus earnings estimate of $26.24 indicates a change of +12.6% from what Deere is expected to report a year ago. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Deere (DE) has been one of the most searched-for stocks on Zacks.com lately.
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cad6532c-9e7e-4dcd-817c-a0fc7a4a1257
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721102.0
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2022-07-28 00:00:00 UTC
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Agco (AGCO) Beats Q2 Earnings Estimates
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DE
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https://www.nasdaq.com/articles/agco-agco-beats-q2-earnings-estimates
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Agco (AGCO) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.18 per share. This compares to earnings of $2.88 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.17%. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.88 per share when it actually produced earnings of $2.39, delivering a surprise of 27.13%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.95 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.42%. This compares to year-ago revenues of $2.88 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.
Agco shares have lost about 10.5% since the beginning of the year versus the S&P 500's decline of -15.6%.
What's Next for Agco?
While Agco 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 Agco: 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 $3.46 on $3.32 billion in revenues for the coming quarter and $11.78 on $12.55 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 11% 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 same industry, 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 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
AGCO Corporation (AGCO): 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 #3 (Hold) for the stock. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.88 per share when it actually produced earnings of $2.39, delivering a surprise of 27.13%.
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Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.95 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.42%. Deere & Company (DE): Free Stock Analysis Report A quarter ago, it was expected that this farm equipment maker would post earnings of $1.88 per share when it actually produced earnings of $2.39, delivering a surprise of 27.13%.
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Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.95 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.42%. 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. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.88 per share when it actually produced earnings of $2.39, delivering a surprise of 27.13%.
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A quarter ago, it was expected that this farm equipment maker would post earnings of $1.88 per share when it actually produced earnings of $2.39, delivering a surprise of 27.13%. Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $2.95 billion for the quarter ended June 2022, missing the Zacks Consensus Estimate by 0.42%. 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.
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32d9a380-85e6-4e5c-978a-61c32ed7eb6d
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721103.0
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2022-07-27 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-4
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nan
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nan
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Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.62%. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
Coming into today, shares of the agricultural equipment manufacturer had gained 3.33% in the past month. In that same time, the Industrial Products sector gained 2.86%, while the S&P 500 gained 0.24%.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which 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.
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.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Deere is currently a Zacks Rank #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 13.71. Its industry sports an average Forward P/E of 13.71, so we one might conclude that Deere is trading at a no noticeable deviation comparatively.
We can also see that DE currently has a PEG ratio of 1.09. 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. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.09 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 27, putting it in the top 11% 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.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks 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.
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. Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
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Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. 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. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
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Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. Deere is currently a Zacks Rank #3 (Hold). Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
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afd8de12-2f9b-420f-8540-56a3c1b5412d
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721104.0
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2022-07-27 00:00:00 UTC
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The Zacks Analyst Blog Highlights Broadcom, Oracle, Danaher, Deere and Northrop Grumman
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-broadcom-oracle-danaher-deere-and-northrop-grumman
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For Immediate Release
Chicago, IL – July 27, 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: Broadcom Inc. AVGO, Oracle Corp. ORCL, Danaher Corp. DHR, Deere & Co. DE and Northrop Grumman Corp. NOC.
Here are highlights from Tuesday’s Analyst Blog:
Q2 Earnings Season Scorecard and Analyst Reports for Broadcom, Oracle and Danaher
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the ongoing Q2 earnings season and new research reports on 16 major stocks, including Broadcom Inc., Oracle Corp., and Danaher 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
Including all the reports that came out before the market's open on July 26th, we now have Q2 results from 134 S&P 500 members or 26.8% of the index's total membership. Total earnings for these companies are down -5.8% from the same period last year on +7.9% higher revenues, with 73.9% beating EPS estimates and 64.2% beating revenue estimates.
This is the lowest EPS and revenue beats percentage for this group of 134 index members since the first quarter of 2020 and towards the low end of the 5-year range.
Weak earnings growth for the Finance sector is the primary reason the aggregate reported Q2 earnings growth rate is in negative territory. Excluding the -26.2% decline in Finance sector earnings, Q2 earnings growth for the rest of the index companies that have reported improves to +9.8%. Looking at Q2 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, earnings are expected to be up +3.7% as a whole and +10% on an ex-Finance basis.
Estimates for the current period (2022 Q3) have started coming down, though persistent positive revisions to the Energy sector are partly offsetting those cuts, a trend that we saw with respect to Q2 estimates as well. Total Q3 earnings are currently expected to be up +6.1% on +9.2% higher revenues.
Excluding the Energy sector's substantial contribution, total Q3 earnings for the rest of the index would be up only +0.6%, which is down from +2.1% growth expected at the start of July. For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street
Today's Featured Research Reports
Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. Networking is well-poised on strong adoption of Broadcom's next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers.
It is benefiting from the world's first complete end-to-end chipset solutions for the Wi-Fi 7 ecosystem. In the server storage connectivity domain, much of the growth is anticipated from the continued recovery of enterprise IT spending deployed toward upgrading computer services.
An upbeat third-quarter fiscal 2022 guidance is encouraging. The recently announced VMware acquisition will aid prospects in the long term. However, increasing competition, along with high debt levels, are persistent woes.
(You can read the full research report on Broadcom here >>>)
Oracle shares have declined -13.1% over the year-to-date basis against the Zacks Computer - Software industry's decline of -24.1%. The Zacks analyst believes higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.
However, ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
Solid demand for the Oracle Dedicated Region Cloud customer is anticipated to drive the top line. Partnerships with Accenture and Microsoft is helping Oracle win new clientele. The company's share buybacks and dividend policy are noteworthy
(You can read the full research report on Oracle here >>>)
Danaher shares have declined -5.7% over the past year against the Zacks Diversified Operations industry's decline of -23.3%. The company's cost inflation and woes related to supply-chain restrictions might be worrying for the company in the quarters ahead. High debts might inflate financial obligations and forex woes are likely to be concerning for Danaher.
However, Danaher's diversified business structure allows it to mitigate risks in one end market with strength across others. The company stands to benefit from Danaher Business System ("DBS"), healthy rewards to shareholders, buyout benefits and product innovation in the quarters ahead.
It anticipates year-over-year core revenue growth of low-single digit for the second quarter of 2022. Danaher is slated to release second-quarter results on Jul 21. The impact of COVID-related testing is predicted to boost sales in the low-single digits for the second quarter
(You can read the full research report on Danaher here >>>)
Other noteworthy reports we are featuring today include Deere & Co. and Northrop Grumman Corp.
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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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Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Danaher Corporation (DHR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Broadcom Inc. (AVGO): 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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Stocks recently featured in the blog include: Broadcom Inc. AVGO, Oracle Corp. ORCL, Danaher Corp. DHR, Deere & Co. DE and Northrop Grumman Corp. NOC. Networking is well-poised on strong adoption of Broadcom's next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. 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.
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Stocks recently featured in the blog include: Broadcom Inc. AVGO, Oracle Corp. ORCL, Danaher Corp. DHR, Deere & Co. DE and Northrop Grumman Corp. NOC. For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street Today's Featured Research Reports Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. You can see all of today's research reports here >>> Q2 Earnings Season Scorecard Including all the reports that came out before the market's open on July 26th, we now have Q2 results from 134 S&P 500 members or 26.8% of the index's total membership.
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For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street Today's Featured Research Reports Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. (You can read the full research report on Danaher here >>>) Other noteworthy reports we are featuring today include Deere & Co. and Northrop Grumman Corp. Why Haven't You Looked at Zacks' Top Stocks? Stocks recently featured in the blog include: Broadcom Inc. AVGO, Oracle Corp. ORCL, Danaher Corp. DHR, Deere & Co. DE and Northrop Grumman Corp. NOC.
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Excluding the -26.2% decline in Finance sector earnings, Q2 earnings growth for the rest of the index companies that have reported improves to +9.8%. (You can read the full research report on Danaher here >>>) Other noteworthy reports we are featuring today include Deere & Co. and Northrop Grumman Corp. Why Haven't You Looked at Zacks' Top Stocks? Stocks recently featured in the blog include: Broadcom Inc. AVGO, Oracle Corp. ORCL, Danaher Corp. DHR, Deere & Co. DE and Northrop Grumman Corp. NOC.
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2022-07-26 00:00:00 UTC
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Q2 Earnings Season Scorecard and Analyst Reports for Broadcom, Oracle, & Danaher
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https://www.nasdaq.com/articles/q2-earnings-season-scorecard-and-analyst-reports-for-broadcom-oracle-danaher
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Tuesday, July 26, 2022
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the onoging Q2 earnings season and new research reports on 16 major stocks, including Broadcom Inc. (AVGO), Oracle Corporation (ORCL), and Danaher Corporation (DHR). 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
Including all the reports that came out before the market's open on July 26th, we now have Q2 results from 134 S&P 500 members or 26.8% of the index's total membership. Total earnings for these companies are down -5.8% from the same period last year on +7.9% higher revenues, with 73.9% beating EPS estimates and 64.2% beating revenue estimates.
This is the lowest EPS and revenue beats percentage for this group of 134 index members since the first quarter of 2020 and towards the low end of the 5-year range.
Weak earnings growth for the Finance sector is the primary reason the aggregate reported Q2 earnings growth rate is in negative territory. Excluding the -26.2% decline in Finance sector earnings, Q2 earnings growth for the rest of the index companies that have reported improves to +9.8%. Looking at Q2 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, earnings are expected to be up +3.7% as a whole and +10% on an ex-Finance basis.
Estimates for the current period (2022 Q3) have started coming down, though persistent positive revisions to the Energy sector is partly offsetting those cuts, a trend that we saw with respect to Q2 estimates as well. Total Q3 earnings are currently expected to be up +6.1% on +9.2% higher revenues.
Excluding the Energy sector's substantial contribution, total Q3 earnnings for the rest of the index would be up only +0.6%, which is down from +2.1% growth expected at the start of July. For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street
Today's Featured Research Reports
Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. Networking is well-poised on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers.
It is benefiting from the world’s first complete end-to-end chipset solutions for the Wi-Fi 7 ecosystem. In the server storage connectivity domain, much of the growth is anticipated from the continued recovery of enterprise IT spending deployed toward upgrading computer services.
An upbeat third-quarter fiscal 2022 guidance is encouraging. The recently announced VMware acquisition will aid prospects in the long term. However, increasing competition, along with high debt levels, are persistent woes.
(You can read the full research report on Broadcom here >>>)
Oracle shares have declined -13.1% over the year-to-date basis against the Zacks Computer - Software industry’s decline of -24.1%. The Zacks analyst believes higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.
However, ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings. Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM), bodes well.
Solid demand for the Oracle Dedicated Region Cloud customer is anticipated to drive the top line. Partnerships with Accenture and Microsoft is helping Oracle win new clientele. The company’s share buybacks and dividend policy are noteworthy
(You can read the full research report on Oracle here >>>)
Danaher shares have declined -5.7% over the past year against the Zacks Diversified Operations industry’s decline of -23.3%. The company’s cost inflation and woes related to supply-chain restrictions might be worrying for the company in the quarters ahead. High debts might inflate financial obligations and forex woes are likely to be concerning for Danaher.
However, Danaher’s diversified business structure allows it to mitigate risks in one end market with strength across others. The company stands to benefit from Danaher Business System (“DBS”), healthy rewards to shareholders, buyout benefits and product innovation in the quarters ahead.
It anticipates year-over-year core revenue growth of low-single digit for the second quarter of 2022. Danaher is slated to release second-quarter results on Jul 21. The impact of COVID-related testing is predicted to boost sales in the low-single digits for the second quarter
(You can read the full research report on Danaher here >>>)
Other noteworthy reports we are featuring today include Bristol-Myers Squibb Company (BMY), Deere & Company (DE) and Northrop Grumman Corporation (NOC).
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
Strong Demand for Networking Products Aids Broadcom (AVGO)
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Life Sciences Business Drive Danaher (DHR), High Costs Ail
Featured Reports
Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition
Per the Zacks analyst, strong demand for Eliquis and Opdivo fuel growth for Bristol Myers. However, one of the top revenue generators Revlimid is facing generics, which will impact sales.
Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.
Lyft (LYFT) Gets a Boost From Improvement in Ride Volumes
The Zacks analyst is impressed with the uptick in revenues owing to expansion in ride volumes. Increase in driver supply is driving Lyft's ride volumes.
Travelers' (TRV) Auto & Homeowners Aids, Cat Loss Hurts
Per the Zacks analyst, persistent progress and strong market of the auto and homeowners businesses contribute to revenue growth of the company. However, exposure to catastrophe loss remains a headwind
Higher Rates to Aid SVB Financial (SIVB) Amid Cost Woes
Per the Zacks analyst, loan growth and higher rates will likely aid SVB Financial's margin growth in the near term. However, elevated expenses due to its investments in technology will hurt profits.
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.
Acuity Brands' (AYI) Innovative Portfolio Aid, Inflation Ail
Per the Zacks analyst, Acuity Brands' diversified portfolio of innovative lighting control solutions and energy-efficient luminaries bode well. Yet, inflationary pressure and supply chain woes hurt.
New Upgrades
Cheniere (LNG) to Gain from Sustained Gas Export Strength
The Zacks analyst believes that being one of the few liquefied natural gas exporters of the U.S., Cheniere Energy is set to capitalize on the sustained strength in shipments to Europe and Asia.
Hershey (HSY) Benefits From Prudent Buyouts & Solid Pricing
Per the Zacks analyst, Hershey's contributions from buyouts and higher prices are driving growth. The buyouts of Pretzels, Dot's and Lily's boosted net sales by 4.6 points in first-quarter 2022.
Illumina (ILMN) Rides on Robust Demand for NextSeq & NovaSeq
The Zacks analyst is encouraged by Illumina's high NovaSeqs consumables and instruments shipments for clinical customers. Strong market adoption of NextSeq 1000 and 2000 platforms is encouraging.
New Downgrades
Universal Display (OLED) Plagued by Margin Woes, Chip Deficit
Per the Zacks analyst, Universal Display continues to face pandemic-triggered disruptions, chip shortage and supply chain constraints, while high operating expenses weigh on its profitability.
Conagra (CAG) Gross Margin Troubled by Input Cost Inflation
Per the Zacks analyst, Conagra Brands has been battling cost of goods sold inflation, which hurt gross margin in fourth quarter. In fiscal 2023, management expects gross inflation in low-teens range.
Twitter (TWTR) Suffers from Slow Ad Demand, Buyout Uncertainty
Per the Zacks analyst, Twitter suffers from slow advertising demand due to macroeconomic headwinds and uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.
This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio
The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors.
Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors.
And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation.
>>Give me access to my free special report.
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
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
Danaher Corporation (DHR): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Broadcom Inc. (AVGO): 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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Networking is well-poised on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. In the server storage connectivity domain, much of the growth is anticipated from the continued recovery of enterprise IT spending deployed toward upgrading computer services. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Strong Demand for Networking Products Aids Broadcom (AVGO) Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Life Sciences Business Drive Danaher (DHR), High Costs Ail Featured Reports Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition Per the Zacks analyst, strong demand for Eliquis and Opdivo fuel growth for Bristol Myers.
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For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street Today's Featured Research Reports Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Strong Demand for Networking Products Aids Broadcom (AVGO) Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Life Sciences Business Drive Danaher (DHR), High Costs Ail Featured Reports Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition Per the Zacks analyst, strong demand for Eliquis and Opdivo fuel growth for Bristol Myers. 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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For more details about the Q2 earnings season, please check out our weekly Earnings Preview report where this week provided a preview for the Tech sector >>>>Previewing Big Tech Earnings Ahead of a Huge Week for Wall Street Today's Featured Research Reports Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+11.1% vs. -1.1%) on the back of continued strength in networking and server storage segments. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Strong Demand for Networking Products Aids Broadcom (AVGO) Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Life Sciences Business Drive Danaher (DHR), High Costs Ail Featured Reports Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition Per the Zacks analyst, strong demand for Eliquis and Opdivo fuel growth for Bristol Myers. You can see all of today’s research reports here >>> Q2 Earnings Season Scorecard Including all the reports that came out before the market's open on July 26th, we now have Q2 results from 134 S&P 500 members or 26.8% of the index's total membership.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Strong Demand for Networking Products Aids Broadcom (AVGO) Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships Life Sciences Business Drive Danaher (DHR), High Costs Ail Featured Reports Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition Per the Zacks analyst, strong demand for Eliquis and Opdivo fuel growth for Bristol Myers. You can see all of today’s research reports here >>> Q2 Earnings Season Scorecard Including all the reports that came out before the market's open on July 26th, we now have Q2 results from 134 S&P 500 members or 26.8% of the index's total membership. This is the lowest EPS and revenue beats percentage for this group of 134 index members since the first quarter of 2020 and towards the low end of the 5-year range.
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721106.0
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2022-07-26 00:00:00 UTC
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Deere (DE) Boasts Earnings & Price Momentum: Should You Buy?
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DE
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https://www.nasdaq.com/articles/deere-de-boasts-earnings-price-momentum%3A-should-you-buy-0
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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus List
Building an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List Methodology
When stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Deere (DE)
Illinois-based 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. It is the 75th-largest company in the S&P 500 Index with a market capitalization of around $110 billion. It has an advantage in most farm machinery categories as its machines come with advanced features and are better constructed than its competitors. Deere is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology, in an effort to make farming automated, easier and more precise across the production process.
On July 25, 2017, DE was added to the Focus List at $126.55 per share. Shares have increased 155.2% to $322.96 since then, and the company is a #3 (Hold) on the Zacks Rank.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.16 to $23.30. DE boasts an average earnings surprise of 14.2%.
Moreover, analysts are expecting DE's earnings to grow 22.7% for the current fiscal year.
Reveal Winning Stocks
Unlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio
The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors.
Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors.
And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation.
>>Give me access to my free special report.
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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A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
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Deere & Company (DE): Free Stock Analysis Report It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market. The stocks included in the list are set to outperform the market over the next 12 months.
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It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market. The stocks included in the list are set to outperform the market over the next 12 months. The portfolio's past performance only solidifies why investors should consider it as a starting point.
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It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market. The stocks included in the list are set to outperform the market over the next 12 months. The portfolio's past performance only solidifies why investors should consider it as a starting point.
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2022-07-22 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, KMB, XPEL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-kmb-xpel
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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 8,223 contracts have traded so far, representing approximately 822,300 underlying shares. That amounts to about 48.7% of DE's average daily trading volume over the past month of 1.7 million shares. Especially high volume was seen for the $315 strike call option expiring July 22, 2022, with 1,266 contracts trading so far today, representing approximately 126,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange:
Kimberly-Clark Corp. (Symbol: KMB) saw options trading volume of 6,794 contracts, representing approximately 679,400 underlying shares or approximately 47% of KMB's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $190 strike call option expiring August 19, 2022, with 1,467 contracts trading so far today, representing approximately 146,700 underlying shares of KMB. Below is a chart showing KMB's trailing twelve month trading history, with the $190 strike highlighted in orange:
And XPEL Inc (Symbol: XPEL) saw options trading volume of 838 contracts, representing approximately 83,800 underlying shares or approximately 46.6% of XPEL's average daily trading volume over the past month, of 179,675 shares. Especially high volume was seen for the $60 strike call option expiring August 19, 2022, with 800 contracts trading so far today, representing approximately 80,000 underlying shares of XPEL. Below is a chart showing XPEL's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for DE options, KMB options, or XPEL 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 $315 strike call option expiring July 22, 2022, with 1,266 contracts trading so far today, representing approximately 126,600 underlying shares of DE. Especially high volume was seen for the $190 strike call option expiring August 19, 2022, with 1,467 contracts trading so far today, representing approximately 146,700 underlying shares of KMB. Especially high volume was seen for the $60 strike call option expiring August 19, 2022, with 800 contracts trading so far today, representing approximately 80,000 underlying shares of XPEL.
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Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange: Kimberly-Clark Corp. (Symbol: KMB) saw options trading volume of 6,794 contracts, representing approximately 679,400 underlying shares or approximately 47% of KMB's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $190 strike call option expiring August 19, 2022, with 1,467 contracts trading so far today, representing approximately 146,700 underlying shares of KMB. Below is a chart showing KMB's trailing twelve month trading history, with the $190 strike highlighted in orange: And XPEL Inc (Symbol: XPEL) saw options trading volume of 838 contracts, representing approximately 83,800 underlying shares or approximately 46.6% of XPEL's average daily trading volume over the past month, of 179,675 shares.
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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 8,223 contracts have traded so far, representing approximately 822,300 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange: Kimberly-Clark Corp. (Symbol: KMB) saw options trading volume of 6,794 contracts, representing approximately 679,400 underlying shares or approximately 47% of KMB's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing KMB's trailing twelve month trading history, with the $190 strike highlighted in orange: And XPEL Inc (Symbol: XPEL) saw options trading volume of 838 contracts, representing approximately 83,800 underlying shares or approximately 46.6% of XPEL's average daily trading volume over the past month, of 179,675 shares.
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Below is a chart showing DE's trailing twelve month trading history, with the $315 strike highlighted in orange: Kimberly-Clark Corp. (Symbol: KMB) saw options trading volume of 6,794 contracts, representing approximately 679,400 underlying shares or approximately 47% of KMB's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $190 strike call option expiring August 19, 2022, with 1,467 contracts trading so far today, representing approximately 146,700 underlying shares of KMB. Below is a chart showing KMB's trailing twelve month trading history, with the $190 strike highlighted in orange: And XPEL Inc (Symbol: XPEL) saw options trading volume of 838 contracts, representing approximately 83,800 underlying shares or approximately 46.6% of XPEL's average daily trading volume over the past month, of 179,675 shares.
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721108.0
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2022-07-21 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-3
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Deere (DE) closed at $316.54 in the latest trading session, marking a +0.37% move from the prior day. The stock lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 0.81% over the past month. This has lagged the Industrial Products sector's gain of 5.21% and the S&P 500's gain of 7.91% 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. The company is expected to report EPS of $6.60, up 24.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $47.14 billion, which would represent changes of +22.7% and +18.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Deere currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 13.54. This represents a no noticeable deviation compared to its industry's average Forward P/E of 13.54.
It is also worth noting that DE currently has a PEG ratio of 1.07. 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. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Deere & Company (DE): Free Stock Analysis Report
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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 at $316.54 in the latest trading session, marking a +0.37% 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. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
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Deere (DE) closed at $316.54 in the latest trading session, marking a +0.37% move from the prior day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%. 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 $316.54 in the latest trading session, marking a +0.37% move from the prior day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%. 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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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. Deere (DE) closed at $316.54 in the latest trading session, marking a +0.37% move from the prior day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.
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d6f42d67-7389-4c5d-bd71-395734be88fa
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721109.0
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2022-07-19 00:00:00 UTC
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Down Between 9% and 42%: 3 Top Dividend Stocks That Are Too Cheap to Ignore
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DE
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https://www.nasdaq.com/articles/down-between-9-and-42%3A-3-top-dividend-stocks-that-are-too-cheap-to-ignore
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nan
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Earnings season is underway, and stock market volatility is rising as companies give investors an updated reading on the state of business and the broader economy. Forty-year high inflation paired with recession fears contributed to the stock market's brutal first half of 2022. Add it all up, and there's a good deal of uncertainty weighing on the U.S. stock market right now.
Dividend stocks can ease the pressure of a bear market by providing investors with passive income without the need to sell stocks on the cheap. Johnson Controls (NYSE: JCI), Deere (NYSE: DE), and American Electric Power (NASDAQ: AEP) are down 42%, 32%, and 9%, respectively, from their all-time highs. Here's what makes each dividend stock a great buy now.
Image source: Getty Images.
Johnson Controls looks heavily oversold
Lee Samaha (Johnson Controls): Down an eye-watering 42% in 2022, the building products and climate control company is definitely in the dog house among investors. Part of the reason for that comes from management disappointing investors by slashing its full-year guidance on the second-quarter fiscal 2022 earnings report in early May. Unfortunately, management proved too optimistic in its assumptions about dealing with supply chain constraints and raw material availability. As such, investors will be in "show me" mode for a while.
That said, there's reason to believe that Johnson Controls can come back strongly in 2023 and beyond. First, the main issue in the first half of 2022 is not orders (three-month trailing orders up 11% in the second quarter) or backlog (standing at a record $10.9 billion). Instead, the company found it challenging to procure semiconductors for much of its higher-margin equipment, notably systems and controls. However, if and when the issues are sorted out, there's a margin expansion opportunity as the company executes on its backlog. Indeed, management believes that's exactly what will happen in the future.
Thinking longer term, the company's building products and systems have a lot of growth potential from its products' role in helping building owners meet their net-zero carbon emissions goals and the need for healthy buildings in the wake of COVID-19. Throw in a 3% dividend yield while you wait, and it's an attractive stock for patient investors.
Pave your portfolio with passive income and long-term growth
Daniel Foelber (Deere): Deere stock has been on a roller coaster the last couple of years -- from falling below $140 a share during spring 2020, to blasting to a new all-time high of over $445 a share in April, to tumbling down 35% from that high in less than three months. Part of the reason for the Deere stock surge was the prospect of a boom in U.S. agriculture production in response to strained supply due to the war in Ukraine. However, farmers may be less inclined to outlay sizable expenditures if they feel higher commodity prices will be short-lived due to a potential impending recession.
Despite the uncertainty, Deere stock is beginning to look attractive at its lower price. It has a price-to-earnings ratio of 15.5 and is teed up to have a record year in 2022. Moreover, Deere has done an excellent job of returning capital to shareholders through the dividend and buybacks. But where it really stands out is its investments in research and development -- namely autonomous tractors, lower emission engines, and other products and services that support the industrial Internet of Things (IIoT). IIoT is a term for the increasingly interconnected industrial economy, which is transitioning from stand-alone mechanical processes to integrated electronics, sensors, and computing power. Deere's legacy customers may be hesitant to adopt this new technology. But there's no denying Deere is the best-positioned agriculture equipment supplier given its long-term investments and dense dealership network.
Deere's dividend yield of 1.5% may not be much. But investors should keep in mind that the dividend is just one of many ways Deere is returning value. It spends far more money growing its business than its dividend. By prioritizing growth, Deere is suited to lead the next several decades of international agricultural innovation.
This power producer can provide plenty of passive income
Scott Levine (American Electric Power): Bucking the trend of the market sell-off that has seen the S&P 500 plummet more than 19% since the start of 2022, shares of American Electric Power, a leading regulated electric utility, have remained positive, climbing almost 8%. But the news isn't all bright for the utility stock; despite their rise, shares are down about 9% from their 52-week high. Couple this with the fact that the stock is trading at 18.1 times trailing earnings, a discount to its five-year average P/E of 22.1, and it seems like American Electric Power, and its attractive forward dividend yield of 3.3%, is ripe for plucking from the bargain bin.
While a high-yield dividend and an inexpensive valuation may seem like a perfect pairing, it's critical that investors dig deeper into their potential investments in order to ensure that the company's hefty payouts aren't in jeopardy of disappearing. In doing this with American Electric Power, investors will find that there are several green flags. For one, the company has maintained a consistently conservative payout ratio of 64% over the past five years, suggesting that management espouses a circumspect approach to rewarding shareholders -- not one that risks the company's financial wellbeing. This approach, moreover, may likely continue. In a recent investor presentation, management identified a future payout ratio target of 60% to 70%. And turning to the balance sheet, investors will find more reassurance that American Electric Power retains an investment-grade balance sheet as rated by Moody's, Standard & Poor's, and Fitch.
During times of increased market volatility, investors will often grow risk-averse and look for the comfort of conservative stocks, such as utility stocks. Those who find themselves in this camp should certainly have American Electric Power on their radars.
10 stocks we like better than Johnson Controls
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*Stock Advisor returns as of June 2, 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 Moody's. 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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Earnings season is underway, and stock market volatility is rising as companies give investors an updated reading on the state of business and the broader economy. Couple this with the fact that the stock is trading at 18.1 times trailing earnings, a discount to its five-year average P/E of 22.1, and it seems like American Electric Power, and its attractive forward dividend yield of 3.3%, is ripe for plucking from the bargain bin. While a high-yield dividend and an inexpensive valuation may seem like a perfect pairing, it's critical that investors dig deeper into their potential investments in order to ensure that the company's hefty payouts aren't in jeopardy of disappearing.
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Johnson Controls (NYSE: JCI), Deere (NYSE: DE), and American Electric Power (NASDAQ: AEP) are down 42%, 32%, and 9%, respectively, from their all-time highs. Pave your portfolio with passive income and long-term growth Daniel Foelber (Deere): Deere stock has been on a roller coaster the last couple of years -- from falling below $140 a share during spring 2020, to blasting to a new all-time high of over $445 a share in April, to tumbling down 35% from that high in less than three months. This power producer can provide plenty of passive income Scott Levine (American Electric Power): Bucking the trend of the market sell-off that has seen the S&P 500 plummet more than 19% since the start of 2022, shares of American Electric Power, a leading regulated electric utility, have remained positive, climbing almost 8%.
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Dividend stocks can ease the pressure of a bear market by providing investors with passive income without the need to sell stocks on the cheap. This power producer can provide plenty of passive income Scott Levine (American Electric Power): Bucking the trend of the market sell-off that has seen the S&P 500 plummet more than 19% since the start of 2022, shares of American Electric Power, a leading regulated electric utility, have remained positive, climbing almost 8%. Earnings season is underway, and stock market volatility is rising as companies give investors an updated reading on the state of business and the broader economy.
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Johnson Controls looks heavily oversold Lee Samaha (Johnson Controls): Down an eye-watering 42% in 2022, the building products and climate control company is definitely in the dog house among investors. Deere's dividend yield of 1.5% may not be much. This power producer can provide plenty of passive income Scott Levine (American Electric Power): Bucking the trend of the market sell-off that has seen the S&P 500 plummet more than 19% since the start of 2022, shares of American Electric Power, a leading regulated electric utility, have remained positive, climbing almost 8%.
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721110.0
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2022-07-15 00:00:00 UTC
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6 Best Agriculture Stocks to Buy Now
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DE
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https://www.nasdaq.com/articles/6-best-agriculture-stocks-to-buy-now
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today I’ll look at the best agriculture stocks to buy now. Each of these picks are cheap both on an earnings multiple basis and using other value metrics. The metrics I’m looking at today include free cash flow and dividend yield, as well as buyback yield.
In fact, these are all farming machinery and construction companies that are profitable.
In terms of agriculture, sometimes it’s better to own the stocks of the companies that help farmers, rather than directly owning the crops or other output.
Click to Enlarge
Source: Mark R. Hake, CFA
These machinery companies are all very inexpensive now. The chart at right shows that the average price-to-earnings (P/E) multiple for the group of these agriculture stocks is 12.3 times
Moreover, the average earnings growth rate is 9.7% for earnings forecasts to 2023. That lowers the average multiple to just 11.1x for 2023x.
The average dividend yield of the group is also now 1.81%.
That makes these the best agriculture stocks to buy now.
The 7 Best Tech Dividend Stocks to Buy Right Now
Let’s dive in and look at these stocks.
DE Deere & Co. $294.33
TORO The Toro Company $79.51
AGCO AGCO Corporation $90.25
CNHI CNH Industrial $10.77
KUBTY Kubota Corporation $75.52
CAT Caterpillar $169.94
Deere & Co. (DE)
Source: Jim Lambert / Shutterstock.com
Market Capitalization: $90.5 billion
Deere & Co. (NYSE:DE) is the well-known John Deere brand of agriculture machines and tools. It along with Case and and a few other companies dominates the farm machinery market.
Things are looking good for Deere & Co., as analysts project earnings to grow by 12% from $23.17 to $25.95 in 2023. This is based on 15 analysts’ estimates from a survey by Seeking Alpha. This puts it on a cheap 2022 multiple of just 12.7x, falling to 11.3x next year.
Moreover, this allows the company to pay a dividend of $4.52, which it recently raised in Q1 by 7.6%. In fact, Deere has raised its dividend in each of the past five years, and it has consistently paid an annual dividend for every year of the past 32 years. That gives investors a lot of comfort that it can survive the present recession.
That gives the DE stock a 1.5% dividend yield at Thursday’s closing price of $294.33.
In addition, Deere & Co has been buying back a large number of its common stock shares. Last quarter it spent $603 million, which put it on an annual run rate of $2.412 billion. That represents 2.67% of its market cap. The stock is down over 12.8% YTD.
All this makes it one of the best agriculture stocks to buy now. In fact, TipRanks reports that 17 analysts have an average price target of $403.50, which is 37% over today’s price.
The Toro Company (TTC)
Source: Joseph M. Arseneau / Shutterstock.com
Market Cap: $8.1 billion
The Toro Company (NYSE:TTC) is a turf and landscape equipment products manufacturer. Earnings are forecast to rise 18% next year to $4.85 from $4.11 this year.
That puts TTC stock on a forward P/E multiple of 19.3x for this year and 16.4x for next year. Moreover, its earnings more than cover the $1.20 dividend payment. This gives the stock a dividend yield of 1.5%.
Moreover, in the last 12 months ending March 31, The Toro Company has bought back $272 million of its shares. That represents 3.35% of its shares outstanding.
7 Cheap Semiconductor Stocks to Buy Now
This gives the stock a total yield of 4.85%, including both the dividend and buyback yield. It also makes this one of the best agriculture stocks to buy. In fact, TipRanks report that its analyst price target is 20% higher at $96.00 over its Thursday price of $79.51.
AGCO Corp (AGCO)
Source: Pavel Kapysh/ShutterStock.com
Market Cap: $7 billion
AGCO Corporation (NYSE:AGCO), the farm machinery maker, is forecast to grow its earnings over 11% from $11.76 to $13.06 next year. That lowers its forward P/E to just 6.9x in 2023 from 7.7x this year.
Moreover, the stock yields just over 1% at $90.25 at the close July 14, and has consistently raised the dividend every year for the past nine years. The dividend payment of 96 cents is more than covered by the EPS of $11.77, making the payout ratio very low at just around 8%.
This leaves plenty of room for AGCO to raise its dividend and also to buy back large amounts of its shares. For example, in the last 12 months to March 31, it spent $159.4 million on share repurchases. That works out to 2.28% annually of its market value.
This buyback yield of 2.28% plus its 1% dividend yield means it has a 3.28% total shareholder yield. Analysts covered by TipRanks have an average 51% higher price target at $137.71.
CNH Industrial (CNHI)
Source: Pavel Kapysh / Shutterstock.com
Market Cap: $14 billion
CNH Industrial (NYSE:CNHI) makes agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles in the U.S and overseas. The company is forecast to show 8.7% earnings growth next year.
At $10.77 per share on July 14, the stock has a forward multiple of 7.9x earnings for 2022. It falls to 7.3x for next year based on analysts’ average forecast of $1.48 per share, up from $1.36 in 2022.
And with its 30-cent dividend per share, well-covered by earnings, the stock has a dividend yield of 2.8%. And it has consistently paid dividends in the past 13 years.
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In addition, six analysts surveyed by TipRanks have an average price target of $16.42. That is over 49% over today’s stock price.
Kubota Corp (KUBTY)
Source: Shutterstock
Market Cap: $18.2 billion
Kubota Corporation (OTCMKTS:KUBTY) is a farm and industrial machinery maker based in Japan, but it sells its products throughout the world, including in the U.S.
The company makes good earnings, expected to bring in $6.18 per share this year. However, analysts forecast lower earnings for next year, raising its P/E multiple to 13.2x from 12.2x this year. This is still very cheap for an industrial company.
Moreover, Kubota pays a 1.9% dividend yield, which makes up for the lower earnings forecasts for next year. This makes it one of the best agriculture stocks to buy.
Caterpillar (CAT)
Source: astudio / Shutterstock.com
Market Cap: $93.1 billion
Caterpillar (NYSE:CAT) is a brand-name farm and industrial machine manufacturer that is still forecast to show 16%-plus earnings growth next year, despite fears of a recession.
However, the stock is down about 18% YTD, so this puts it on a cheap forward multiple of just 13.6x for 2022 with earnings forecast at $12.45 per share. In 2023, EPS is likely to hit $14.48, effectively lowering the forward P/E multiple to just 11.7x.
On top of this, Caterpillar pays a generous dividend of $4.80 per share or just 38.6% of its earnings per share. That shows that the dividend is sustainable. In fact, Caterpillar has paid annual dividends every year for the past 32 years. Right now the stock has an attractive dividend yield of 2.8% at Thursdays closing price of $169.94.
In addition, Caterpillar believes very strongly in buybacks. In Q1 it spent $820 million on share repurchases. Annualized that works out to $3.28 billion, or 3.52% of its total market value. In other words, its total shareholder yield, including dividend yield, is over 6.34% on a combined basis.
5 Best Stocks to Buy if You Have $250 to Spend
In fact, 16 analysts surveyed by TipRanks have an average 32% higher price target at $227.13. This makes it one of the best agriculture stocks to buy.
On the date of publication, Mark Hake did not hold (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 6 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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This leaves plenty of room for AGCO to raise its dividend and also to buy back large amounts of its shares. The metrics I’m looking at today include free cash flow and dividend yield, as well as buyback yield. The average dividend yield of the group is also now 1.81%.
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DE Deere & Co. $294.33 TORO The Toro Company $79.51 AGCO AGCO Corporation $90.25 CNHI CNH Industrial $10.77 KUBTY Kubota Corporation $75.52 CAT Caterpillar $169.94 Deere & Co. (DE) Source: Jim Lambert / Shutterstock.com Market Capitalization: $90.5 billion Deere & Co. (NYSE:DE) is the well-known John Deere brand of agriculture machines and tools. The metrics I’m looking at today include free cash flow and dividend yield, as well as buyback yield. The average dividend yield of the group is also now 1.81%.
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In fact, Deere has raised its dividend in each of the past five years, and it has consistently paid an annual dividend for every year of the past 32 years. 7 Cheap Semiconductor Stocks to Buy Now This gives the stock a total yield of 4.85%, including both the dividend and buyback yield. And with its 30-cent dividend per share, well-covered by earnings, the stock has a dividend yield of 2.8%.
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This gives the stock a dividend yield of 1.5%. And with its 30-cent dividend per share, well-covered by earnings, the stock has a dividend yield of 2.8%. Moreover, Kubota pays a 1.9% dividend yield, which makes up for the lower earnings forecasts for next year.
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721111.0
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2022-07-14 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
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nan
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nan
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Deere (DE) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the agricultural equipment manufacturer had lost 10.22% over the past month, lagging the Industrial Products sector's loss of 4.76% and the S&P 500's gain of 1.51% 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 $6.59, up 23.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.96 billion, up 24.45% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $23.31 per share and revenue of $47.78 billion, which would represent changes of +22.75% and +20.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Deere should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.12% lower. Deere is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 12.73. Its industry sports an average Forward P/E of 12.73, 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 0.98 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 0.98 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
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. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Deere (DE) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day.
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Deere (DE) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%. 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 (DE) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%.
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Deere (DE) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day. 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. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%.
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58e268c5-d4d0-42e6-9db6-8a88748d97b3
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721112.0
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2022-07-14 00:00:00 UTC
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IWY, NKE, IBM, DE: ETF Inflow Alert
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DE
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https://www.nasdaq.com/articles/iwy-nke-ibm-de%3A-etf-inflow-alert
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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 $76.2 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 34,450,000 to 35,050,000). Among the largest underlying components of IWY, in trading today Nike (Symbol: NKE) is off about 2.8%, International Business Machines Corp (Symbol: IBM) is down about 0.3%, and Deere & Co. (Symbol: DE) is lower by about 2%. 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 $119.11 per share, with $176.10 as the 52 week high point — that compares with a last trade of $124.95. 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 had notable inflows »
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 $119.11 per share, with $176.10 as the 52 week high point — that compares with a last trade of $124.95. 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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Among the largest underlying components of IWY, in trading today Nike (Symbol: NKE) is off about 2.8%, International Business Machines Corp (Symbol: IBM) is down about 0.3%, and Deere & Co. (Symbol: DE) is lower by about 2%. 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 $119.11 per share, with $176.10 as the 52 week high point — that compares with a last trade of $124.95. 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 $76.2 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 34,450,000 to 35,050,000).
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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 $76.2 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 34,450,000 to 35,050,000). 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 $119.11 per share, with $176.10 as the 52 week high point — that compares with a last trade of $124.95. 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 $76.2 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 34,450,000 to 35,050,000). 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 $119.11 per share, with $176.10 as the 52 week high point — that compares with a last trade of $124.95. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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44cc2414-3382-4c30-8f92-cb4d100581fb
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721113.0
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2022-07-14 00:00:00 UTC
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Is Most-Watched Stock Deere & Company (DE) Worth Betting on Now?
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DE
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https://www.nasdaq.com/articles/is-most-watched-stock-deere-company-de-worth-betting-on-now
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nan
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nan
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Deere (DE) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this agricultural equipment manufacturer have returned -10.2%, compared to the Zacks S&P 500 composite's +1.5% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has lost 8.8%. 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.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Deere is expected to post earnings of $6.59 per share for the current quarter, representing a year-over-year change of +23.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $23.31 for the current fiscal year indicates a year-over-year change of +22.8%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $26.47 indicates a change of +13.6% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -1.1%.
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
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 $12.96 billion for the current quarter points to a year-over-year change of +24.5%. The $47.78 billion and $54.31 billion estimates for the current and next fiscal years indicate changes of +20.2% and +13.7%, respectively.
Last Reported Results and Surprise History
Deere reported revenues of $12.03 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $6.81 for the same period compares with $5.68 a year ago.
Compared to the Zacks Consensus Estimate of $13.44 billion, the reported revenues represent a surprise of -10.48%. The EPS surprise was +2.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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 B on this front, indicating that it is trading at a discount to 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.
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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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) has recently been on Zacks.com's list of the most searched stocks.
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Last Reported Results and Surprise History Deere reported revenues of $12.03 billion in the last reported quarter, representing a year-over-year change of +9.4%. 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) has recently been on Zacks.com's list of the most searched stocks.
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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) has recently been on Zacks.com's list of the most searched stocks.
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For the next fiscal year, the consensus earnings estimate of $26.47 indicates a change of +13.6% from what Deere is expected to report a year ago. Deere (DE) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
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388112e1-876e-4116-aed4-05a5b14db91f
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721114.0
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2022-07-13 00:00:00 UTC
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Deere Stock: An Intriguing Value, Even With a Looming Recession
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DE
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https://www.nasdaq.com/articles/deere-stock%3A-an-intriguing-value-even-with-a-looming-recession
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nan
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nan
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Shares of farming-equipment maker Deere (DE) are now down more than 30% from their all-time highs to $304 and change per share. It's been a brutal plunge as investors brace for a recession that could accompany a bit of discretionary demand destruction.
Despite coming off a somewhat decent second quarter of earnings (revenue was a bit light), Deere stock has fallen into the headlights of the vicious broader market sell-off. Though management is still shooting for a high operating margin target, it's tough to gauge how bumpy the road ahead will be, especially since 2023 holds a rate-induced recession.
Though Deere may have a reputation as a less-exciting, Baby-Boomer-friendly stock, it's hard to ignore the innovations going on behind the scenes. The company is innovating in a way that could out-pace its rivals in the farm equipment space. With fully-autonomous tractors coming soon, the farming world may see its biggest ever technological jump in decades.
Undoubtedly, autonomous farming sounds pretty far-fetched. However, I believe it's closer to reality than autonomous driving, given a farm is a more controlled environment with fewer things that can go wrong. Indeed, Deere is on the cutting edge of autonomy, and its investor presentations aren't just about building hype. Deere is serious about full autonomy, and its strategic push could help power its stock to even higher levels.
I am bullish on DE stock.
On TipRanks, DE scores a 5 out of 10 on the Smart Score spectrum. This indicates a potential for the stock to perform in-line with the broader market.
Why Deere Can Weather the Next Recession
Though autonomy and electrification tailwinds are notable, investors may shy on Deere stock for the time being. The market doesn't seem to care much for exciting stories anymore. If there's a recession on the minds of investors, big-ticket discretionary firms are going to be tossed aside. Given Deere stock's brutal performance during the 2008 stock market crash, many investors may view the firm as some sort of value trap.
Sure, Deere will get knocked down, just as most other firms will once the next recession arrives. The only difference is that Deere will have a front-row seat to the next economic boom, with intriguing new machinery that will be tough for farmers to pass up.
Further, not every recession is built the same. With upward pressure on crop prices, many farmers could be in a position to update to the latest and greatest Deere machinery. Indeed, an autonomous tractor is an investment that can pay for itself and then some. Should crop prices continue rallying, Deere may be a discretionary firm that could mostly be spared from the coming market-wide chaos.
Crop price moves tend to influence Deere stock. And with the risk of a global food shortage, one has to think that farmers will seek out any productivity enhancements where they can.
Further, it's been difficult to attract and retain talent in the farming space. It's this difficulty in finding enough farm hands that could lead to greater spending on autonomous products coming out of the Deere pipeline.
Wall Street's Take
According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy. Out of 17 analyst ratings, there are 11 Buy recommendations and six Hold recommendations.
The average Deere price target is $403.50, implying an upside of 36.34%. Analyst price targets range from a low of $325 per share to a high of $472 per share.
The Bottom Line for Deere Stock
Crop prices could remain elevated as the Russian blockades in Ukraine threaten to cause a global hunger crisis. Higher crop prices mean farmers will do their best to increase yields.
With Deere's autonomous equipment to launch in the near future, many farmers may spend extra cash on the latest Deere offering. Not only can such offerings help enhance productivity, but they can help farmers navigate an environment where it's hard to find labor.
Deere's innovative autonomous offerings may also draw in customers from its rivals. Undoubtedly, the Deere brand is respected within the farming community. Though rivals will try to meet Deere stride for stride, it may prove difficult to match its innovative capabilities.
At writing, shares of Deere trade at 15.9 times trailing earnings and 2.0 times sales. That's incredibly cheap for a firm innovating at such a rampant pace. Recession or not, Deere stock seems like a great bet here, and many Wall Street analysts are inclined to agree.
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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Despite coming off a somewhat decent second quarter of earnings (revenue was a bit light), Deere stock has fallen into the headlights of the vicious broader market sell-off. The Bottom Line for Deere Stock Crop prices could remain elevated as the Russian blockades in Ukraine threaten to cause a global hunger crisis. Shares of farming-equipment maker Deere (DE) are now down more than 30% from their all-time highs to $304 and change per share.
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Given Deere stock's brutal performance during the 2008 stock market crash, many investors may view the firm as some sort of value trap. Wall Street's Take According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy. The Bottom Line for Deere Stock Crop prices could remain elevated as the Russian blockades in Ukraine threaten to cause a global hunger crisis.
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Why Deere Can Weather the Next Recession Though autonomy and electrification tailwinds are notable, investors may shy on Deere stock for the time being. Given Deere stock's brutal performance during the 2008 stock market crash, many investors may view the firm as some sort of value trap. With Deere's autonomous equipment to launch in the near future, many farmers may spend extra cash on the latest Deere offering.
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Given Deere stock's brutal performance during the 2008 stock market crash, many investors may view the firm as some sort of value trap. Shares of farming-equipment maker Deere (DE) are now down more than 30% from their all-time highs to $304 and change per share. It's been a brutal plunge as investors brace for a recession that could accompany a bit of discretionary demand destruction.
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28d6bffa-3253-4e38-bfcc-d5e8638c2e89
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721115.0
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2022-07-12 00:00:00 UTC
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Noteworthy Tuesday Option Activity: INSP, DE, TEAM
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-insp-de-team
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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 Inspire Medical Systems Inc (Symbol: INSP), where a total of 1,316 contracts have traded so far, representing approximately 131,600 underlying shares. That amounts to about 44.4% of INSP's average daily trading volume over the past month of 296,405 shares. Especially high volume was seen for the $175 strike put option expiring August 19, 2022, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of INSP. Below is a chart showing INSP's trailing twelve month trading history, with the $175 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 8,248 contracts, representing approximately 824,800 underlying shares or approximately 44% of DE's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $312.50 strike call option expiring July 15, 2022, with 477 contracts trading so far today, representing approximately 47,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $312.50 strike highlighted in orange:
And Atlassian Corp PLC (Symbol: TEAM) saw options trading volume of 7,726 contracts, representing approximately 772,600 underlying shares or approximately 43.8% of TEAM's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $207.50 strike put option expiring July 15, 2022, with 568 contracts trading so far today, representing approximately 56,800 underlying shares of TEAM. Below is a chart showing TEAM's trailing twelve month trading history, with the $207.50 strike highlighted in orange:
For the various different available expirations for INSP options, DE options, or TEAM 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 $175 strike put option expiring August 19, 2022, with 300 contracts trading so far today, representing approximately 30,000 underlying shares of INSP. Especially high volume was seen for the $312.50 strike call option expiring July 15, 2022, with 477 contracts trading so far today, representing approximately 47,700 underlying shares of DE. Especially high volume was seen for the $207.50 strike put option expiring July 15, 2022, with 568 contracts trading so far today, representing approximately 56,800 underlying shares of TEAM.
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Below is a chart showing INSP's trailing twelve month trading history, with the $175 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 8,248 contracts, representing approximately 824,800 underlying shares or approximately 44% of DE's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $312.50 strike call option expiring July 15, 2022, with 477 contracts trading so far today, representing approximately 47,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $312.50 strike highlighted in orange: And Atlassian Corp PLC (Symbol: TEAM) saw options trading volume of 7,726 contracts, representing approximately 772,600 underlying shares or approximately 43.8% of TEAM's average daily trading volume over the past month, of 1.8 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Inspire Medical Systems Inc (Symbol: INSP), where a total of 1,316 contracts have traded so far, representing approximately 131,600 underlying shares. Below is a chart showing INSP's trailing twelve month trading history, with the $175 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 8,248 contracts, representing approximately 824,800 underlying shares or approximately 44% of DE's average daily trading volume over the past month, of 1.9 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $312.50 strike highlighted in orange: And Atlassian Corp PLC (Symbol: TEAM) saw options trading volume of 7,726 contracts, representing approximately 772,600 underlying shares or approximately 43.8% of TEAM's average daily trading volume over the past month, of 1.8 million shares.
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Below is a chart showing INSP's trailing twelve month trading history, with the $175 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 8,248 contracts, representing approximately 824,800 underlying shares or approximately 44% of DE's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $312.50 strike call option expiring July 15, 2022, with 477 contracts trading so far today, representing approximately 47,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $312.50 strike highlighted in orange: And Atlassian Corp PLC (Symbol: TEAM) saw options trading volume of 7,726 contracts, representing approximately 772,600 underlying shares or approximately 43.8% of TEAM's average daily trading volume over the past month, of 1.8 million shares.
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c334ffd3-241c-4756-af44-536d89568c1a
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721116.0
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2022-07-08 00:00:00 UTC
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10 Best Dividend Stocks to Buy Now in July
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DE
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https://www.nasdaq.com/articles/10-best-dividend-stocks-to-buy-now-in-july
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nan
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nan
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Today, I provide 10 of my best dividend stock ideas for the month of July. I believe these dividend stocks are a great way to add balance and passive income to a long-term portfolio. Compounding is the eighth wonder of the world, and dividends are a great way to accelerate your wealth. Two of my favorite dividend stocks on the list are Deere & Company (NYSE: DE) and Microsoft (NASDAQ: MSFT). To see the other eight dividend stock picks and more information, please watch the below video.
*Stock prices used in the below video were during the trading day of July 7, 2022. The video was published on July 7, 2022.
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 June 2, 2022
Eric Cuka has positions in Broadcom Ltd, Deere & Company, Intel, and Microsoft. The Motley Fool has positions in and recommends Activision Blizzard, Intel, Logitech International, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom Ltd, Pool, and VMware and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Eric 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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I believe these dividend stocks are a great way to add balance and passive income to a long-term portfolio. Two of my favorite dividend stocks on the list are Deere & Company (NYSE: DE) and Microsoft (NASDAQ: MSFT). Today, I provide 10 of my best dividend stock ideas for the month of July.
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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 June 2, 2022 Eric Cuka has positions in Broadcom Ltd, Deere & Company, Intel, and Microsoft. Today, I provide 10 of my best dividend stock ideas for the month of July.
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Two of my favorite dividend stocks on the list are Deere & Company (NYSE: DE) and Microsoft (NASDAQ: MSFT). 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Broadcom Ltd, Deere & Company, Intel, and Microsoft.
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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! See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Cuka has positions in Broadcom Ltd, Deere & Company, Intel, and Microsoft. Today, I provide 10 of my best dividend stock ideas for the month of July.
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c90501fe-4fe1-4c90-b581-195659effefc
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721117.0
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2022-07-08 00:00:00 UTC
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John Deere Recalls Lawn Tractors
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https://www.nasdaq.com/articles/john-deere-recalls-lawn-tractors
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. is recalling certain John Deere lawn tractors due to crash and injury risks, the U.S. Consumer Product Safety Commission said.
The recall involves John Deere lawn tractors, models X380 and X390. About 160 units were sold in the United States and about 30 were sold in Canada.
The tractors are green and yellow. The tractors, manufactured in the U.S., were sold at John Deere dealers nationwide and online at John Deere.com from April 2022 through May 2022 for between $5,000 and $6,300.
According to the agency, the wheel hubs were not manufactured to specifications and can fail, causing the tractor to lose braking and propulsion. It could result in crash and injury hazards.
The recall was initiated after the Moline, Illinois-based firm received three reports of the lawn tractor not braking properly. One minor injury resulting in bruises and abrasions has been reported.
Consumers are asked to immediately stop using the recalled lawn tractors and contact an authorized John Deere dealer for a free repair.
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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Consumers are asked to immediately stop using the recalled lawn tractors and contact an authorized John Deere dealer for a free repair. (RTTNews) - Agricultural machinery and equipment maker Deere & Co. is recalling certain John Deere lawn tractors due to crash and injury risks, the U.S. Consumer Product Safety Commission said. The recall involves John Deere lawn tractors, models X380 and X390.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. is recalling certain John Deere lawn tractors due to crash and injury risks, the U.S. Consumer Product Safety Commission said. The recall involves John Deere lawn tractors, models X380 and X390. Consumers are asked to immediately stop using the recalled lawn tractors and contact an authorized John Deere dealer for a free repair.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. is recalling certain John Deere lawn tractors due to crash and injury risks, the U.S. Consumer Product Safety Commission said. The tractors, manufactured in the U.S., were sold at John Deere dealers nationwide and online at John Deere.com from April 2022 through May 2022 for between $5,000 and $6,300. Consumers are asked to immediately stop using the recalled lawn tractors and contact an authorized John Deere dealer for a free repair.
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(RTTNews) - Agricultural machinery and equipment maker Deere & Co. is recalling certain John Deere lawn tractors due to crash and injury risks, the U.S. Consumer Product Safety Commission said. The tractors, manufactured in the U.S., were sold at John Deere dealers nationwide and online at John Deere.com from April 2022 through May 2022 for between $5,000 and $6,300. The recall involves John Deere lawn tractors, models X380 and X390.
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0677996c-5be3-44d6-83f8-691704768745
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721118.0
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2022-07-07 00:00:00 UTC
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3 Cathie Wood Investments That Could Deliver Superior Returns
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https://www.nasdaq.com/articles/3-cathie-wood-investments-that-could-deliver-superior-returns-2
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nan
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A lot of Cathie Wood's favorite stocks kicked off this holiday-shortened trading week by moving sharply higher. Is her style of growth investing finally in style? There's no denying that the chief stock picker of ARK Invest has hit a rough patch after a spectacular 2020. If sentiment is turning her way again, you will want to pay attention.
Roku (NASDAQ: ROKU), Deere (NYSE: DE), and Zoom Video (NASDAQ: ZM) are some of the stocks playing big roles in the ARK Invest family of exchange-traded funds. Let's see why these three investments can deliver superior returns.
Image source: Getty Images.
Roku
We're streaming a lot of TV these days, and no one knows this better than Roku. It had a record 61.3 million accounts at the end of March, and these aren't dormant homes. Roku users are streaming an average of 3.8 hours of content a day. As the leading operating system for smart TVs, Roku is taking advantage of the pole position by monetizing its free platform. Average revenue per user is up 34% over the past year as advertisers pay up to reach Roku's engaged viewers.
Roku shares have fallen precipitously since last year's peak, but that 82% drop could also be a buying opportunity. The initial bearish thesis -- that we would be streaming less once the biggest threat of the pandemic passes -- hasn't played out. Streaming hours on Roku are up 14% over the past year. The new fear, that a recession will lead to advertisers paring back their spending, could also prove hollow. Traditional advertising will take a hit, but there are a growing number of premium streaming apps that will pay to get noticed on the country's leading streaming platform. Roku should hold up just fine.
Deere
Wood loves disruptors, but that doesn't mean that she will shy away from a 180-year-old company that's been a leader in agricultural, commercial, and construction equipment for as long as most of us have been alive. Farm tractors and construction-site-clearing backhoes may not seem cutting edge, but Deere fancies itself a leader in tech, automation, and even artificial intelligence.
Revenue rose 24% in fiscal 2021, admittedly off depressed single-digit top-line growth the prior year. Analysts still see Deere's top line growing 18% this year and 11% in fiscal 2023. The shares are trading for just 12 times this year's projected profit. There's also a 1.6% yield, making this one of Wood's rare holdings that pay a quarterly dividend.
Infrastructure will continue to be a global theme for the next few years. An iffy economy may slow the place of the building and rebuilding, but Deere is in the right place as it waits for the right time.
Zoom Video
Wood doesn't shy away from adding to her declining positions, and that explains why her largest position is actually one of her worst performers. Zoom Video is the biggest stake across all of ARK Invest ETFs by market cap. She now owns nearly $1 billion worth of the videoconferencing giant, more than 3% of Zoom's total shares outstanding.
The stock that took off early in the pandemic as offices, classrooms, and social gatherings went virtual has struggled since last year's availability of vaccinations had us returning to work, school, and local hot spots. Zoom has shed 80% of its value since peaking in late 2020, but it's not as if the business itself has deteriorated to that point.
Growth has slowed, but Zoom's model is still moving in the right direction. Revenue rose 12% in its latest quarter. Earnings exceeded expectations, just as we've seen over the past year despite the shrinking share price. Zoom also offered rosy guidance for the current quarter while also boosting its outlook for the entire fiscal year.
We're still turning to the convenience of virtual meetings. Zoom is a part of our communications arsenal now. Zoom's net dollar expansion rate over the past 12 months for enterprise customers is clocking in at 123%, meaning that enterprise clients are spending 23% more on the platform than they were a year ago. We've also seen the number of customers spending at least $100,000 on Zoom grow by 46% over the past year. Zoom may no longer be the high-octane growth stock it was when the stock was peaking, but it's surprisingly reasonably priced now. It trades for 28 times trailing earnings, but the math gets better. Back out Zoom's strong net cash position and it's fetching an earnings multiple of just 23 based on its enterprise value.
Find out why Roku is one of the 10 best stocks to buy now
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*Stock Advisor returns as of June 2, 2022
Rick Munarriz has positions in Deere & Company and Roku. The Motley Fool has positions in and recommends Roku and Zoom Video Communications. 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 Wood loves disruptors, but that doesn't mean that she will shy away from a 180-year-old company that's been a leader in agricultural, commercial, and construction equipment for as long as most of us have been alive. Farm tractors and construction-site-clearing backhoes may not seem cutting edge, but Deere fancies itself a leader in tech, automation, and even artificial intelligence. The stock that took off early in the pandemic as offices, classrooms, and social gatherings went virtual has struggled since last year's availability of vaccinations had us returning to work, school, and local hot spots.
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Roku (NASDAQ: ROKU), Deere (NYSE: DE), and Zoom Video (NASDAQ: ZM) are some of the stocks playing big roles in the ARK Invest family of exchange-traded funds. Zoom Video Wood doesn't shy away from adding to her declining positions, and that explains why her largest position is actually one of her worst performers. The Motley Fool has positions in and recommends Roku and Zoom Video Communications.
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Roku (NASDAQ: ROKU), Deere (NYSE: DE), and Zoom Video (NASDAQ: ZM) are some of the stocks playing big roles in the ARK Invest family of exchange-traded funds. The Motley Fool has positions in and recommends Roku and Zoom Video Communications. There's no denying that the chief stock picker of ARK Invest has hit a rough patch after a spectacular 2020.
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The Motley Fool has positions in and recommends Roku and Zoom Video Communications. There's no denying that the chief stock picker of ARK Invest has hit a rough patch after a spectacular 2020. Roku (NASDAQ: ROKU), Deere (NYSE: DE), and Zoom Video (NASDAQ: ZM) are some of the stocks playing big roles in the ARK Invest family of exchange-traded funds.
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e1e30ff5-7054-43ed-9a10-ff36855b9c30
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721119.0
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2022-07-01 00:00:00 UTC
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Investing in the Future of Food
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DE
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https://www.nasdaq.com/articles/investing-in-the-future-of-food
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In this podcast, Motley Fool senior analysts Asit Sharma and Maria Gallagher discuss:
Chewy's (NYSE: CHWY) pricing power and strong recurring revenue.
The cyclical problem facing Coinbase (NASDAQ: COIN).
Reliance Industries' offer to buy Walgreens' international stores.
A growing world population means more mouths to feed. Motley Fool analyst Deidre Woollard and Motley Fool contributor Demitri Kalogeropoulos serve up three stocks and explain how the companies behind them are shaping the future of food.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Chewy, Inc.
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 Chewy, Inc. 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 June 2, 2022
This video was recorded on June 27, 2022.
Asit Sharma: Investors chew on a Chewy upgrade, Walgreens wants to sell its UK pharmacies, and Coinbase Global is singing the crypto blues. Motley Fool Money starts now. I'm Asit Sharma sitting in for Chris Hill, and I'm joined today by Senior Analyst, Maria Gallagher. Maria, welcome.
Maria Gallagher: Hi, Asit. How are you?
Asit Sharma: I'm doing well. Not too bad for a Monday. Maria, shares of Chewy this morning, high in the markets on upgrade from hold to buy by analysts at Needham and they cited pricing power, and supply chain improvement in their upgraded forecast. Now, as we tape, I think shares have leveled off. But in general, a pretty good endorsement of this company, which a lot of investors have had some questions on.
Maria Gallagher: I'm a big fan of Chewy. I've been a big fan of Chewy for a while. What I think what's so great about them is the recurrent aspects of their purchases and the stability of these revenues. About 72.2 percent of their net sales are Autoship customers, so people who say get their pet food delivered to them every month and though this is a really stable set and recurring set of revenue. What's great about that, so you have that stability and then you see that growth increasing throughout the year or so. In the first year, a customer usually spend less than $200 but by Year 5, if you have a dog maybe your dog needs more snacks, maybe it needs some medication, maybe it needs different toys. People are spending about $700 in their 5th year on the platform, so you see that expansion from those recurring revenues. They have over 100 percent retention rate for each cohort of their customers and so over the past three years, they've gained about 2/3 of their active customers.
Right now they're about 20.6 million. It's going to be really important to see how those new customers continue with that recurring revenue and expansion platform that they have and you see that logistics and customer service is going to be what continues to drive this relationship. Chewy has a great reputation for incredible customer service and getting your things on time is a very important part of this recurring nature. Your dog needs to eat every month, so you need to make sure you get their food on time, and their medication on time. I think it's really important that that's what they are investing their time and their money in, as both expanding their addressable market, expanding their options for people can buy on the platform, but expanding their logistics services to get people the things that they need to over time. But I overall think this is a really great business and really resilient.
Asit Sharma: I want to go back to a statistic that you cited. They have gained 2/3 of their customer base in a short amount of time thanks to the pandemic. I think that's a large part of that. Is there some execution risks going forward with this big influx of customers that they won't be able to keep up these great metrics on customer retention and growth of the cohorts as they go along? I know they've been straining at the edges a bit in the post-pandemic world with all the supply chain issues everyone else is grappling with. Do you think they are at risk of maybe dropping off their latest customers?
Maria Gallagher: Yeah, and I think that's what people are really going to be monitoring the next couple of quarters. What's interesting I think is what the convenience of Chewy brings to customers and how much people value that. Before the pandemic, people would say, "Oh fine. I'll just drive. I'll get the food, whatever. It doesn't matter." But I think once you start and you get in with that convenience, I think that a lot of people are going to not look back when every month, you don't need to think about it, you know it's going to show up every month, you have all of your options there, you can get stuff for the pharmacy, you can get all the toys, you can get everything you need in one place. I think that convenience, once you're in the habit, it's going to be really hard to break the habit, so I think that they have momentum with these customers on their side. As long as they can keep up the supply chain and the logistics and the customer service which are the three things that are really important to keep those customers, I think that they would have to do something bad to get the customers to leave. If that makes sense. I think that the momentum is really on their side with these cohorts.
Asit Sharma: Good. So this seems to be a case of just keeping on with what's working. Don't try to tweak it too much, just execute.
Maria Gallagher: Yes, hopefully. I really like Chewy. I think that they have a well-deserved reputation in the industry for their customer service. I think they have a well-deserved reputation for being reliable and those two things are going to continue to be the most important. I'm glad to see leadership instead of saying, "We're going to expand to all these different things," that don't really make as much sense. They're expanding where it makes sense with pet care and they're really doubling down on logistics and customer service.
Asit Sharma: Coinbase stock is down roughly eight percent as we tape this morning, Maria, on a downgrade from Goldman Sachs, from neutral to the dreaded sell. Goldman cited lower crypto prices and decreased activity in the industry both of which don't seem to bode well for a digital asset's brokerage.
Maria Gallagher: Coinbase is really tough and it is I think a smaller part of the overall trend in the market. Coinbase is down about 80 percent from its all-time highs. It's so obviously heavily relying on consistent purchases of crypto, which has heavily decreased. In mid-June, they announced that they would take an overly aggressive stance on hiring. They cut 18 percent of their workforce, they also rescinded offers from people. There is a lot of that going around LinkedIn and social media saying people quit their jobs and then Coinbase first send out their offers, which is not great for retention and hiring. If the company bounces back in the next couple of years, I think that reputation will stay with them. They also launched a social NFT marketplace in May. They're getting sales of about 19,000 sales per week, but that's compared to about 225,000 sales in the month of September of this year. We're also seeing the tapering of interest in NFTs. I will say it's not just Coinbase.
Gemini is cutting at least 10 percent of its staff as well. People are talking about this term called the crypto winter, which is a bear market for crypto, but they don't have the historical precedents to believe that it can bounce back or that there's this intrinsic value within the assets to help them bounce back. The last crypto winter was from late 2017 to December of 2020 and so people are saying that they're not sure if this is going to be the end of crypto or if it's just going to be a prolonged slowdown in crypto if it's going to make a comeback. It is just so much newer than the other markets we're seeing slow down. I think that Coinbase isn't alone in having all of these problems and I think it's an indication of the wider interest in the crypto industry.
Asit Sharma: Do you think Coinbase could be at the right place at the wrong time? [laughs] What I mean by that is, I've read through the S1; their perspectives before they went public and I thought their case was convincing and basically, I'll boil down the argument to this. When Bitcoin is rising, our volumes go up, we throw off tremendous cash flow, and we use that cash flow in the meantime to extend into things like this NFT marketplace, into areas like DeFi, but these conditions in which we might be entering a crypto winter, maybe they crimp the volumes so much and hurt cash-flow so much that it really won't matter how much of these peripheral parts of the crypto market or the digital asset market they expand into and maybe they'll be growth challenged for several years to come. Do you think this could be the case or am I being overly pessimistic about Coinbase and maybe the crypto market in general?
Maria Gallagher: The rationale for their business model is logical. I think it makes sense. I think it's a smart way to operate a business, but it is just so heavily reliant on consumer interest and consistent trading volume so it's not only people buy and hold, its people buy and sell and buy and sell a lot because like you said, that trading volume really matters for their overall revenue. I think that when you take the decreased interest, the decreased volume, the decreased interest and not only that, but those peripheral businesses like you're saying, the business model makes sense, but the business model only makes sense when all of the other things are working in their favor and I don't know for how long this is going to last where things are not working in their favor.
Asit Sharma: Well, one thing the crypto market has shown us is that it's impossible to predict. Every time it seems like the market is just going to dry up, excitement builds again. It's a very cyclical type of market so who knows? Maybe we see them just growing in a wave pattern, hitting some peaks and troughs over the next few years. News out this morning that Walgreens is nearing a deal to sell its Boots pharmacy business in the UK to India's Reliance Group. Reliance is checking in with its bankers Maria, to raise up to eight billion dollars for a leveraged buyout of the Boots chain. What do you make of this deal?
Maria Gallagher: I think it makes sense. Like you said, they're trying to raise about eight billion dollars. Boots runs a network of about 2,200 stores across the UK. If you've been to the UK, you will see Boots the way we see Duane Reade and see the Walgreens everywhere here. This is really just a continued strategic shift for them more into the US healthcare business. Walgreens Health has been building out since October of 2021, which is this delivered healthcare platform. They have investments in VillageMD, Shield Health Solutions, CareCentrix. They have partnerships with Clover Health and Blue Cross Blue Shield of California with a patient population over two million. They're really trying to focus more into the healthcare industry so I think that it makes sense that they're trying to spin off that part to try and really focus on building out those capabilities within the US healthcare network.
Asit Sharma: Do you think that Reliance Group, which is so far have been, I'll describe them as a multi-fasted conglomerate in India, do you think that will raise their profile a bit, it seems to be their first big acquisition or at least giant-sized acquisition outside of India where they've made a few forays into some other geographies?
Maria Gallagher: I think it could be because one, Booth is it really recognizable name, also Booth is growing, so their UK retail comps were up 22 percent last quarter. I think it's a good business and I think it makes sense for someone to want to buy it as well as it makes sense that Walgreens is trying to refocus strategically. They're not saying we're refocusing because this business is doing badly they're just refocusing because they are trying to think of their future growth prospects and so I think it's a really good acquisition for somebody to try and raise their stakes by saying outgrowing business that still has a really well-known and reliable name and reliable footprint.
Asit Sharma: I'll point out is an Indian Extraction here that Reliance is run by Mukesh Ambani, who is one of the richest men on the planet and pretty savvy deal makers. They'll be interested to follow this along and see it from Reliance's perspective as well. Last question for you. For Walgreens, which has had, I think, a challenge in finding growth over the past several years. But it seems like a perennial company that might make a persuasive investment. I was just curious about your thoughts if they do go through with this disposition and focus more on that healthcare market. Is this the type of stock that you'd be interested in, maybe rounding out your portfolio, which I'm guessing is tilted toward growth, Ria, knowing you?
Maria Gallagher: It's a little more tilted toward growth, I don't do a lot of healthcare investing personally, so I would have to spend more time looking at their strategy, how their healthcare business runs from an ESG standpoint and from the way I'm thinking of its potential growth. I would spend more time looking at that, but I do think that I would be interested in that and I would be interested in spending more time looking at it.
Asit Sharma: Maria Gallagher, thanks so much for joining me.
Maria Gallagher: Thanks for having me.
Asit Sharma: What's on your investment fleet? Deidre Woollard and Demitri Kalogeropoulos look at the future foods through three very different companies.
Deidre Woollard: To start off with, I want to talk about Beyond Meat, because I feel like as a culture we started to understand meat has a big cost and energy costs of water costs, labor costs, and it's a simple way to improve your diet of course, but also make a change environmentally. As someone who was a vegetarian and has been off and on for about 30 years, wow, the world has changed for the better if you're trying to eat meatlessly or even partly meatless because of those early vegetarian burgers that you've got at the dusty health food store. They were bad. I think what Beyond Meat has done and what impossible burger has also done is they've turned meat plant-based into something that's acceptable, viable, and not suffer to have one of these delicious. But the question I have for you to Demitri is, does it make enough of a difference just to add this as a company? Some news recently was that Kellogg's announced its splitting its business into three. It's got the snack business, things like Cheez-It Pringles, stuff like that. It's got, it's very popular cereals and it's got plant-based, which is led by Morningstar Farms. That's the of a lowest performer as it had about 340 million in sales with the Morningstar Farms brand. I'm looking at this, I'm looking at Beyond Meat's first quarter. What do you think about this Demitri, is Beyond Meat going to be a winner in a long-term?
Demitri Kalogeropoulos: That's the big question right now. I'm sure if noticed, the stock has been down a lot so far in 2022. It's looking a little shaky right now from the business standpoint, demand took a really sharp turn, negative over the last, let's say about three quarters, which is really jarring to see for growth stock. The big question is, do people still have? It appears that they don't have the same appetite for plant-based meat products that they did in earlier phases of the pandemic. Beyond Meat who has seeing fantastic growth for most of the pandemic, and that really hit a wall in late 2021 in here into the first half of 2022. That could be a big problem in terms of our consumers just as willing to try new tastes. Basically, these are all new categories that Beyond Meat is trying to popularize, chicken tenders and things like that and jerky and all these different sausage products, ingredients, and taste that consumers aren't really aware of so they have to be in the adventurous mood to try it out. Sales were essentially flat last quarter and they dropped the quarter before and net losses were almost 90 percent of sales this past quarter. That's some jarring numbers to see. But at the same time, Beyond Meat is introducing a lot of new products, especially for the summer. They've got a new grilling value pack, I think, which is really well-timed obviously for the summer grilling season of their beyond burgers.
They're planning a lot more product releases in the second half of 2022. Management said a couple of months ago that they think a big factor behind the slowing sales over the last couple of months is that they've pulled back on advertising and on promotions and on these new releases in part because of the supply chain issue. So they're saying that that should help those challenges or ease over the next few months. The company do have a super valuable brand, a lot of great partnerships with restaurants and supermarket chains, there aren't many other companies you can think of that have those valuable relationships. It's spending more on promotions and taste testing and things like that in supermarket chains. I don't know if you heard, but marketing is a big push. They recently signed Kim Kardashian as a brand ambassador for them, and that's obviously a very big name. If you believe that these factors are going to support a rebound in sales, and that's what management is hoping, then I think the outlook could be bright for the business. But personally, as I'm going to be watching for a little bit more of a demand rebound, evidence of that in the next couple of quarters before I would call Beyond Meat really a screaming buy right now.
Deidre Woollard: But like the partnerships, there are KFC, chicken nuggets thing appear to be a good success. I even like the Kardashian thing. But I think one of the challenges for Beyond Meat might be pricing and how they compare. Because in this inflationary period, people are really watching what they spend. What do you think Beyond Meat is going to do in a market where people are really paying more attention to what they spend?
Demitri Kalogeropoulos: That's a challenge. I think that's part of the appeal that boost sales a lot last year, if you remember, in earlier phases of the pandemic we had a supply challenge around a lot of meat products. At the same time people are cooking at home a lot more often, so they were way, way more focused on cooking at home and seem to be way more interested in trying out new tastes. Now as those supply challenges are eased on their substitute products like the other meat products, things like beef, pork, and chicken. That's another challenge and it's something that Beyond Meat doesn't have control over. At least it's a risk to watch out for going forward, especially now that consumers are getting more price-conscious.
Deidre Woollard: Yeah, totally makes sense. Well, let's move on and talk about another stock that you wouldn't necessarily think of when you think about innovation that's Kroger. Kroger is a traditional grocer. But the more I study this company, the more I get impressed with their attitude toward innovation. This big growth, this is over 1600 stores, over 400,000 employees, yet they're doing some really innovative stuff in terms of distribution, in terms of fresh foods, in terms of digital. Demitri, how is Kroger planning for the future?
Demitri Kalogeropoulos: You're right, Kroger has a lot of really interesting things going on. Their main market share battle is with Walmart, the biggest retailer in the nation. The focus for both companies has really been fresh food lately there, they realized they both understand that most consumers make their decision about which grocery store they're going to go to based on the idea of the fresh food, which one has the better like fresh produce. Kroger has been succeeding a bit better, I would say, than a lot of its rivals in this regard. A little past quarter, the company just said, I believe it was last mid-June. They revealed that growth continued over very strong growth a year ago.
Flowers were a standout performer, for example, and we know that's a very perishable item. I think it's a big testament to their entire supply chain that Kroger can succeed in a niche like that. Kroger is a very vertically integrated business too. They've got the supermarket chains and there's this huge network, but they also own a lot of their own transportation, they own many farms, they own their own dairy farms, things like that. That vertical integration has given them a lot of flexibility in today's environment where they're not dealing with a whole bunch of supply chain bottlenecks. When you own the transportation, you can move it around and you don't have surprise extra costs that a lot of these other companies are dealing with. Then you've got their move into home delivery.
As you mentioned there, the Okada platform is very popular. That's something that's going to just continue to grow as all the idea of getting food delivered, groceries delivered to your house. We're seeing these platforms get closer and closer to big populations all around the country. Eventually, we're going to be seeing same-day delivery for basically the entire country. I think that's an area that which Kroger is going to succeed. But I wanted to highlight one quick comment to that CEO Rodney McMullen said in theearnings callin mid-June, the quarters in this dynamic environment where consumer behaviours are changing rapidly, we use our data and insights to be nimble and react quickly to ever-changing needs. He's talking about there, they've got this data mining really big platform that tries to project merchandise needs and things like that and make a very personalized shopping experience. That flexibility has been really important since the beginning of consumer sales. But it's even more important, I'd say today because preferences are changing so quickly in response to inflation like you mentioned in the pandemic. Kroger's seems to have a really good reading, I would say on those changes. As you can see from their growth in their last quarter results. They grew a bit faster than Walmart and they seem to be on a good market share trajectory.
Deidre Woollard: As we turn to our last stock, it's not a company that you would think of as a data company or a tech company in any way, but it 100 percent is. I want to talk about John Deere. This is a company that's almost 200 years. You think if those green and yellow tractors, this doesn't sound like an innovator. But they recently held their investor day and they went over some of the innovations they're doing right now and it is fascinating. One of the things I found most interesting is in some ways, John Deere is a leaps and bounds ahead of other autonomous driving. Because if you're in the field, you don't necessarily have to worry about some of the things that you might encounter on the city street. But even more interesting for me is the kind of digitization of the farm and they're taking this in a bunch of different directions. It's things like mapping so that they can do precision application of seeds, pesticides, nutrients, all based on climate data, and micro-climate forecasting. They're building really robust satellite tech so that they can feed all of that information to the tractors. Some of the tractors now they have their autonomy they're totally running by themselves and they can pivot based on the information they're getting in real-time and that's amazing. They've got a lot of partnerships, over 250 connected software systems, all feeding in data, receiving data. It's actually this massive tech network.
Other part that's really interesting, that connects with that as they're getting close to selling a million cameras every year. All of that information is going great into training AI, machine learning for making a better farm. Because farms are facing a lot of challenges, climate change obviously, but labor is a huge problem. Getting closer to robotic pickers and things like that. One of the things I thought was really interesting from that presentation, was it they've referred to the operation center as a digital twin of the farm. We've seen digital twins in the building space where you have a skyscraper and then you have a digital twin that exists and allows you to see using sensors what's happening with the building and make changes without having to actually be inside the building. The same thing can be true of farms. What they talked about is creating the system of record in agriculture. All of this data comes in. Farmers can now see data from each other. It's anonymized to avoid like competition and things like that. But it, all of it is around making better decisions about how they plant, when they plant, and how they use pesticides. All of that information is funneling into this. I think this is amazingly cutting edge. So Demitri, I don't know if you've studied some of the like ad-tech stuff, but how do you think tech in general is impacting this and other farming businesses?
Demitri Kalogeropoulos: That's pretty impressed by how much technology goes into their tractors right now and how much they're applying that into the farming world, followed autonomous driving cars. That's been very interesting. But like you say, the technology they're applying to the farming process, they've got tractors that precisely understand where the planting happened so that it can calculate the exact next line to move down the farm. Small amounts here, maybe an entire half an inch here and there. But that really adds up when you're talking about acres and acres and acres in terms of squeezing extra efficiency. If you can get an extra couple of percentage points of efficiency out of that, that would be a fantastic bonus for your yield. Just some of the AI uses and how they're making things like the fertilizer and weeding and cultivation and then protecting the crop. All that stuff's getting better with the application of these technologies and I think that's an exciting thing for the Ag world. I think I've heard about they're some companies that are focused on that, vertical farming and things like that, the indoor farming idea. But I think it can be easily forgotten when you're looking at that thing that there's actually an opportunity to make traditional farming a lot more efficient over time using these techniques. I think there's a long runway for that to improve to.
Deidre Woollard: Yeah. I think it's interesting. You mentioned the vertical farming companies, like there's Bowery, there's a couple of other start-ups that are doing interesting things. I think you're right. Basically what we know is going to take all of that. It's going to take vertical farming, it's going to take optimizing fields. It's going to take better distribution in grocery stores and reducing waste. It's going to take consumer changes, things like Beyond Meat and making a commitment to eating, things that are a little more easy on the planet. All of this come together to really deliver this kind of picture of the future of food that I find just so fascinating. I think we've just scratched the surface here. So many other things I wanted to talk about with this, but thank you Demitri for your time. I really hope we can do this again. I think this topic is so vital for investors and just anyone who eats to understand. Thank you.
Demitri Kalogeropoulos: Thank you. Yeah. I had a great time.
Asit Sharma: As always, people on the program may have interest in the stocks they talked about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Asit Sharma. Thanks for listening, we'll see you tomorrow!
Asit Sharma has no position in any of the stocks mentioned. Deidre Woollard has positions in Goldman Sachs and Walmart Inc. Demitri Kalogeropoulos has no position in any of the stocks mentioned. Maria Gallagher has positions in Chewy, Inc. The Motley Fool has positions in and recommends Beyond Meat, Inc., Chewy, Inc., Coinbase Global, Inc., and Goldman Sachs. 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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When Bitcoin is rising, our volumes go up, we throw off tremendous cash flow, and we use that cash flow in the meantime to extend into things like this NFT marketplace, into areas like DeFi, but these conditions in which we might be entering a crypto winter, maybe they crimp the volumes so much and hurt cash-flow so much that it really won't matter how much of these peripheral parts of the crypto market or the digital asset market they expand into and maybe they'll be growth challenged for several years to come. Basically, these are all new categories that Beyond Meat is trying to popularize, chicken tenders and things like that and jerky and all these different sausage products, ingredients, and taste that consumers aren't really aware of so they have to be in the adventurous mood to try it out. Motley Fool analyst Deidre Woollard and Motley Fool contributor Demitri Kalogeropoulos serve up three stocks and explain how the companies behind them are shaping the future of food.
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Asit Sharma: Investors chew on a Chewy upgrade, Walgreens wants to sell its UK pharmacies, and Coinbase Global is singing the crypto blues. Motley Fool analyst Deidre Woollard and Motley Fool contributor Demitri Kalogeropoulos serve up three stocks and explain how the companies behind them are shaping the future of food. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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When Bitcoin is rising, our volumes go up, we throw off tremendous cash flow, and we use that cash flow in the meantime to extend into things like this NFT marketplace, into areas like DeFi, but these conditions in which we might be entering a crypto winter, maybe they crimp the volumes so much and hurt cash-flow so much that it really won't matter how much of these peripheral parts of the crypto market or the digital asset market they expand into and maybe they'll be growth challenged for several years to come. I think that when you take the decreased interest, the decreased volume, the decreased interest and not only that, but those peripheral businesses like you're saying, the business model makes sense, but the business model only makes sense when all of the other things are working in their favor and I don't know for how long this is going to last where things are not working in their favor. Motley Fool analyst Deidre Woollard and Motley Fool contributor Demitri Kalogeropoulos serve up three stocks and explain how the companies behind them are shaping the future of food.
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Demitri Kalogeropoulos: You're right, Kroger has a lot of really interesting things going on. Motley Fool analyst Deidre Woollard and Motley Fool contributor Demitri Kalogeropoulos serve up three stocks and explain how the companies behind them are shaping the future of food. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
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2ff76e51-4ecd-46cd-944e-35ef64294d80
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721120.0
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2022-06-30 00:00:00 UTC
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Deere (DE) Stock Moves -0.39%: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-moves-0.39%3A-what-you-should-know
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Deere (DE) closed at $299.47 in the latest trading session, marking a -0.39% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.88%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 14.62% over the past month. This has lagged the Industrial Products sector's loss of 11.26% and the S&P 500's loss of 8.06% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. The company is expected to report EPS of $6.58, up 23.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.91 billion, up 23.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $23.27 per share and revenue of $47.83 billion. These totals would mark changes of +22.54% and +20.37%, respectively, from last 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 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. Deere is currently a Zacks Rank #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 12.92. For comparison, its industry has an average Forward P/E of 12.92, which means Deere is trading at a no noticeable deviation to the group.
Investors should also note that DE has a PEG ratio of 0.99 right now. 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. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 0.99 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 104, putting it in the top 42% 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.
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.
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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With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Deere (DE) closed at $299.47 in the latest trading session, marking a -0.39% move from the prior day. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.
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Deere (DE) closed at $299.47 in the latest trading session, marking a -0.39% move from the prior day. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%. Investors will be hoping for strength from Deere as it approaches 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. Deere (DE) closed at $299.47 in the latest trading session, marking a -0.39% move from the prior day. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, added 0.08%.
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Deere (DE) closed at $299.47 in the latest trading session, marking a -0.39% move from the prior day. Investors might also notice recent changes to analyst estimates for Deere. 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.
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89b2ec51-0740-4087-8300-82bc1cec4dd6
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721121.0
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2022-06-30 00:00:00 UTC
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August 12th Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/august-12th-options-now-available-for-deere-de
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the August 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new August 12th contracts and identified one put and one call contract of particular interest.
The put contract at the $295.00 strike price has a current bid of $14.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $295.00, but will also collect the premium, putting the cost basis of the shares at $280.60 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $297.16/share today.
Because the $295.00 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 4.88% return on the cash commitment, or 41.43% 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 $295.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $300.00 strike price has a current bid of $14.90. If an investor was to purchase shares of DE stock at the current price level of $297.16/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $300.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.97% if the stock gets called away at the August 12th 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 $300.00 strike highlighted in red:
Considering the fact that the $300.00 strike represents an approximate 1% 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 5.01% boost of extra return to the investor, or 42.56% 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 $297.16) to be 36%. 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 $300.00 strike highlighted in red: Considering the fact that the $300.00 strike represents an approximate 1% 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 August 12th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $300.00 strike highlighted in red: Considering the fact that the $300.00 strike represents an approximate 1% 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 August 12th 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 $295.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $300.00 strike price has a current bid of $14.90. Below is a chart showing DE's trailing twelve month trading history, with the $300.00 strike highlighted in red: Considering the fact that the $300.00 strike represents an approximate 1% 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 $295.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $300.00 strike price has a current bid of $14.90. Below is a chart showing DE's trailing twelve month trading history, with the $300.00 strike highlighted in red: Considering the fact that the $300.00 strike represents an approximate 1% 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 August 12th expiration.
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736beb83-e969-4c89-b066-2e7fc4700b77
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721122.0
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2022-06-30 00:00:00 UTC
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7 Beaten-Down S&P 500 Stocks to Buy Before They Rebound
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DE
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https://www.nasdaq.com/articles/7-beaten-down-sp-500-stocks-to-buy-before-they-rebound
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
S&P 500 stocks have been a mixed bag at best this year. During the week of June 21, I think the market began to accept the idea that a ” soft landing” by the economy is much more likely than a “hard landing.” Of course, the market rallied during the week.
As further evidence of the Street’s renewed optimism, Goldman Sachs economist Jan Hatzius, speaking on Bloomberg TV on June 24, said that any recession would probably be “on the shallow end.”
Even more bullish was RBC Capital Managing Director Gerard Cassidy, who told Bloomberg TV on June 24 that “as long as the job market stays strong, (U.S.) consumers will be in good shape.”
7 REITs to Buy for a Bear Market
With the Street realizing that the economy is not going to crash, I believe that there are many good S&P 500 stocks to buy.
Meanwhile, as Bloomberg TV’s Lisa Abramowicz pointed out on June 24, many market participants now think that Fed Chairman Jerome Powell will be less “hawkish” on inflation than the Street has generally believed in recent months.
In this environment, the best S&P 500 stocks for long-term investors to snap up are names that unjustifiably tumbled.
The seven S&P 500 stocks are:
DE Deere $300.65
GOOG, GOOGL Alphabet $2,245.13; 2,234.03
V Visa $199.50
NEE NextEra $76.00
CAT Caterpillar $183.48
GM General Motors $33.45
ILMN Illumina $186.43
Deere (DE)
Source: Deere & Company
Deere (NYSE:DE) tumbled nearly 16% in the last month. Recession fears appear to have played a key role in the retreat.
One of the Street’s most prominent bears, Morgan Stanley cut its rating on one of Deere’s competitors, Agco (NYSE:AGCO) on recession fears. In fact, the firm mentioned the effects of “a more draconian macro/recession scenario” as a key reason for its downgrade.
I expect U.S. consumers’ strength to enable America to avoid a recession (I explained my view on the issue more fully in this June 11 column).
America’s economic strength along with a likely further decline in oil prices should keep Europe and South America from falling off a cliff.
Meanwhile, food prices are likely to remain elevated, keeping Deere’s core customers — farmers — quite strong. With DE stock trading at a rather low forward price-earnings ratio of 14, this is one of the S&P 500 stocks whose outlook is quite attractive.
Alphabet (GOOG,GOOGL)
Source: rvlsoft / Shutterstock.com
Due to fears about the deceleration of digital ad growth, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has retreated about 23% in the last six months.
Not only are those worries overdone due to a misreading of the macro environment, but Alphabet is significantly more resilient than many of its peers.
The company will probably not be meaningfully hurt by consumers’ current transition from goods to services, while reductions in “brand identity” ads will also not greatly affect its results.
7 Growth Stocks to Buy for a Rich Retirement
Of course, its commanding position in the search engine sector largely shields it from competition issues.
Meanwhile, as I also pointed out in the previous column, Alphabet’s self0driving vehicle unit, Waymo, should lift GOOG stock over the longer term.
The forward P/E ratio of GOOG stock has declined to a reasonable level of 19, making it one of the more solid S&P 500 stocks to buy.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) stock has tumbled nearly 9% in the last month, but Bank of America earlier this month released data showing that the spending of its American credit card and debit card customers had jumped 9% year-over-year in May.
“Credit card spending rose by 16% year-over-year, while debit card spending increased by 4%,” the bank reported.
The increase in credit card spending by Bank of America’s U.S. customers bodes very well for the outlook of Visa, the country’s largest credit card network. As with Alphabet, Visa is poised to benefit from consumer spending on services and experiences.
Indeed, analysts, on average, expect the company’s earnings per share to climb from $5.91 last year to $7.16 this year to $8.40 in 2023.
Visa’s forward P/E ratio, based on the average 2023 EPS, is a somewhat elevated 24. Given the company’s expected strong profitability, and the expected and significant increase in its profit, V stock is fairly cheap.
NextEra (NEE)
Source: madamF / Shutterstock.com
NextEra (NYSE:NEE) says that it’s the “world’s largest utility company.”
In addition to owning the largest electric utility in Florida, the company creates more electricity from wind and solar energy than any other company in the world.
Given its businesses, NextEra is very well-positioned to benefit from the renewable energy and electric-vehicle revolutions.
7 Dividend Stocks to Buy and Hold Forever
Earlier in the year, the company said that it would have to delay a significant amount of its solar tariffs. The announcement followed the news of an investigation of some solar equipment imports launched by the government.
That issue should not be much of a problem for NextEra given that President Joe Biden waived additional solar tariffs for two years.
Since the end of December, NEE stock has sunk about 17%. Its forward price-earnings ratio of 25 is reasonable given its 2.25% dividend yield and its strong growth outlook.
Caterpillar (CAT)
Source: Shutterstock
Like Deere, Caterpillar (NYSE:CAT) sells equipment to farmers and should get a lift from high food prices.
Caterpillar will be hurt by a likely significant slowdown in the residential real estate market (due to rising interest rates). Similarly, the slowdown of the commercial real estate market (as a result of of the work-from-home trend), may take a bite.
Its positive catalysts will more than offset those weaknesses, though. Additionally, with CAT stock trading at a forward price-earnings ratio of 15 and a price-sales ratio of only two, its current valuation more than bakes-in those weaknesses.
CAT stock has fallen more than 15% in the past month, and the shares now have a sizeable 2.44% dividend yield.
General Motors (GM)
Source: Katherine Welles / Shutterstock.com
I’ve long been very bullish on General Motors (NYSE:GM) stock. It has opportunities in EVs, tremendous potential in its autonomous-driving subsidiary, Cruise and a low valuation.
My upbeat column on GM in July 2021, in which I called the name tremendously undervalued has not aged well, as the shares have tumbled about 43% since then.
Nevertheless, based on recent contentions by Barron’s Al Root, I may have just been very early.
7 Butchered Tech Stocks to Buy and Hold
Root wrote that “the auto sector is now pricing in a recession—full stop.” He pointed out that GM stock is cheaper now than it was through the depths of the pandemic.
Meanwhile, the company’s Cruise subsidiary, which creates autonomous vehicles, recently took a major step forward by offering paid rides in driverless vehicles for the first time.
Illumina (ILMN)
Source: Mongkolchon Akesin / Shutterstock.com
Illumina (NASDAQ:ILMN) makes products that enable companies to create treatments based on DNA. Its have tumbled more than 50% year to date.
The biggest reason for the decline is the fear that the Fed will raise rates to nosebleed levels, creating major problems for companies like Illumina that lose money. But year-over-year core inflation was actually lower in May than in April.
Another, related reason for the decline of ILMN stock was likely the 41% year-over-year tumble in the company’s EPS last quarter, but that loss was caused by its subsidiary, GRAIL.
GRAIL’s multi-cancer blood test is poised to become a huge profit center once it’s widely launched.
Finally, Illumina’s CFO, Sam Samad, apparently scared investors by resigning to take the same job at Quest Diagnostics (NYSE:DGX). But Quest is significantly larger than Illumina, and a CFO taking the same position at a much larger company is not a reason to be concerned.
Meanwhile, in recent weeks, Illumina has been making very promising partnership deals with large entities, including Merck (NYSE:MRK), AstraZeneca (NASDAQ:AZN), and the Department of Veteran Affairs.
On the date of publication, Larry Ramer owned shares of ILMN stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Beaten-Down S&P 500 Stocks to Buy Before They Rebound 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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As further evidence of the Street’s renewed optimism, Goldman Sachs economist Jan Hatzius, speaking on Bloomberg TV on June 24, said that any recession would probably be “on the shallow end.” Even more bullish was RBC Capital Managing Director Gerard Cassidy, who told Bloomberg TV on June 24 that “as long as the job market stays strong, (U.S.) consumers will be in good shape.” 7 REITs to Buy for a Bear Market With the Street realizing that the economy is not going to crash, I believe that there are many good S&P 500 stocks to buy. Meanwhile, in recent weeks, Illumina has been making very promising partnership deals with large entities, including Merck (NYSE:MRK), AstraZeneca (NASDAQ:AZN), and the Department of Veteran Affairs. During the week of June 21, I think the market began to accept the idea that a ” soft landing” by the economy is much more likely than a “hard landing.” Of course, the market rallied during the week.
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The seven S&P 500 stocks are: DE Deere $300.65 GOOG, GOOGL Alphabet $2,245.13; 2,234.03 V Visa $199.50 NEE NextEra $76.00 CAT Caterpillar $183.48 GM General Motors $33.45 ILMN Illumina $186.43 Deere (DE) Source: Deere & Company Deere (NYSE:DE) tumbled nearly 16% in the last month. During the week of June 21, I think the market began to accept the idea that a ” soft landing” by the economy is much more likely than a “hard landing.” Of course, the market rallied during the week. As further evidence of the Street’s renewed optimism, Goldman Sachs economist Jan Hatzius, speaking on Bloomberg TV on June 24, said that any recession would probably be “on the shallow end.” Even more bullish was RBC Capital Managing Director Gerard Cassidy, who told Bloomberg TV on June 24 that “as long as the job market stays strong, (U.S.) consumers will be in good shape.” 7 REITs to Buy for a Bear Market With the Street realizing that the economy is not going to crash, I believe that there are many good S&P 500 stocks to buy.
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As further evidence of the Street’s renewed optimism, Goldman Sachs economist Jan Hatzius, speaking on Bloomberg TV on June 24, said that any recession would probably be “on the shallow end.” Even more bullish was RBC Capital Managing Director Gerard Cassidy, who told Bloomberg TV on June 24 that “as long as the job market stays strong, (U.S.) consumers will be in good shape.” 7 REITs to Buy for a Bear Market With the Street realizing that the economy is not going to crash, I believe that there are many good S&P 500 stocks to buy. The seven S&P 500 stocks are: DE Deere $300.65 GOOG, GOOGL Alphabet $2,245.13; 2,234.03 V Visa $199.50 NEE NextEra $76.00 CAT Caterpillar $183.48 GM General Motors $33.45 ILMN Illumina $186.43 Deere (DE) Source: Deere & Company Deere (NYSE:DE) tumbled nearly 16% in the last month. Visa (V) Source: Kikinunchi / Shutterstock.com Visa (NYSE:V) stock has tumbled nearly 9% in the last month, but Bank of America earlier this month released data showing that the spending of its American credit card and debit card customers had jumped 9% year-over-year in May.
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The seven S&P 500 stocks are: DE Deere $300.65 GOOG, GOOGL Alphabet $2,245.13; 2,234.03 V Visa $199.50 NEE NextEra $76.00 CAT Caterpillar $183.48 GM General Motors $33.45 ILMN Illumina $186.43 Deere (DE) Source: Deere & Company Deere (NYSE:DE) tumbled nearly 16% in the last month. During the week of June 21, I think the market began to accept the idea that a ” soft landing” by the economy is much more likely than a “hard landing.” Of course, the market rallied during the week. As further evidence of the Street’s renewed optimism, Goldman Sachs economist Jan Hatzius, speaking on Bloomberg TV on June 24, said that any recession would probably be “on the shallow end.” Even more bullish was RBC Capital Managing Director Gerard Cassidy, who told Bloomberg TV on June 24 that “as long as the job market stays strong, (U.S.) consumers will be in good shape.” 7 REITs to Buy for a Bear Market With the Street realizing that the economy is not going to crash, I believe that there are many good S&P 500 stocks to buy.
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7bd27eed-9b09-4bb7-a621-3add95eb6d00
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721123.0
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2022-06-27 00:00:00 UTC
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Ex-Dividend Reminder: Deere, Yamana Gold and Nutrien
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DE
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-deere-yamana-gold-and-nutrien
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 6/29/22, Deere & Co. (Symbol: DE), Yamana Gold Inc (Symbol: AUY), and Nutrien Ltd (Symbol: NTR) will all trade ex-dividend for their respective upcoming dividends. Deere & Co. will pay its quarterly dividend of $1.13 on 8/8/22, Yamana Gold Inc will pay its quarterly dividend of $0.03 on 7/14/22, and Nutrien Ltd will pay its quarterly dividend of $0.48 on 7/15/22. As a percentage of DE's recent stock price of $317.61, this dividend works out to approximately 0.36%, so look for shares of Deere & Co. to trade 0.36% lower — all else being equal — when DE shares open for trading on 6/29/22. Similarly, investors should look for AUY to open 0.61% lower in price and for NTR to open 0.60% lower, all else being equal.
Below are dividend history charts for DE, AUY, and NTR, showing historical dividends prior to the most recent ones declared.
Deere & Co. (Symbol: DE):
Yamana Gold Inc (Symbol: AUY):
Nutrien Ltd (Symbol: NTR):
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 1.42% for Deere & Co., 2.43% for Yamana Gold Inc, and 2.39% for Nutrien Ltd.
In Monday trading, Deere & Co. shares are currently up about 2.2%, Yamana Gold Inc shares are up about 0.2%, and Nutrien Ltd shares are up about 0.3% 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 DE's recent stock price of $317.61, this dividend works out to approximately 0.36%, so look for shares of Deere & Co. to trade 0.36% lower — all else being equal — when DE shares open for trading on 6/29/22. If they do continue, the current estimated yields on annualized basis would be 1.42% for Deere & Co., 2.43% for Yamana Gold Inc, and 2.39% for Nutrien Ltd. Looking at the universe of stocks we cover at Dividend Channel, on 6/29/22, Deere & Co. (Symbol: DE), Yamana Gold Inc (Symbol: AUY), and Nutrien Ltd (Symbol: NTR) 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 6/29/22, Deere & Co. (Symbol: DE), Yamana Gold Inc (Symbol: AUY), and Nutrien Ltd (Symbol: NTR) will all trade ex-dividend for their respective upcoming dividends. Deere & Co. will pay its quarterly dividend of $1.13 on 8/8/22, Yamana Gold Inc will pay its quarterly dividend of $0.03 on 7/14/22, and Nutrien Ltd will pay its quarterly dividend of $0.48 on 7/15/22. Deere & Co. (Symbol: DE): Yamana Gold Inc (Symbol: AUY): Nutrien Ltd (Symbol: NTR): 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 6/29/22, Deere & Co. (Symbol: DE), Yamana Gold Inc (Symbol: AUY), and Nutrien Ltd (Symbol: NTR) will all trade ex-dividend for their respective upcoming dividends. Deere & Co. will pay its quarterly dividend of $1.13 on 8/8/22, Yamana Gold Inc will pay its quarterly dividend of $0.03 on 7/14/22, and Nutrien Ltd will pay its quarterly dividend of $0.48 on 7/15/22. Deere & Co. (Symbol: DE): Yamana Gold Inc (Symbol: AUY): Nutrien Ltd (Symbol: NTR): 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 DE's recent stock price of $317.61, this dividend works out to approximately 0.36%, so look for shares of Deere & Co. to trade 0.36% lower — all else being equal — when DE shares open for trading on 6/29/22. 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 1.42% for Deere & Co., 2.43% for Yamana Gold Inc, and 2.39% for Nutrien Ltd.
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ac5a0720-f658-4dd8-863f-6bfac0722ca1
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721124.0
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2022-06-24 00:00:00 UTC
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Noteworthy Friday Option Activity: FIS, RCL, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-fis-rcl-de
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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 Fidelity National Information Services Inc (Symbol: FIS), where a total of 29,640 contracts have traded so far, representing approximately 3.0 million underlying shares. That amounts to about 82.9% of FIS's average daily trading volume over the past month of 3.6 million shares. Particularly high volume was seen for the $140 strike call option expiring July 15, 2022, with 25,102 contracts trading so far today, representing approximately 2.5 million underlying shares of FIS. Below is a chart showing FIS's trailing twelve month trading history, with the $140 strike highlighted in orange:
Royal Caribbean Group (Symbol: RCL) saw options trading volume of 47,134 contracts, representing approximately 4.7 million underlying shares or approximately 77.5% of RCL's average daily trading volume over the past month, of 6.1 million shares. Particularly high volume was seen for the $40 strike put option expiring June 24, 2022, with 9,785 contracts trading so far today, representing approximately 978,500 underlying shares of RCL. Below is a chart showing RCL's trailing twelve month trading history, with the $40 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 12,248 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 70.4% of DE's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $270 strike put option expiring June 24, 2022, with 615 contracts trading so far today, representing approximately 61,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $270 strike highlighted in orange:
For the various different available expirations for FIS options, RCL 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 $140 strike call option expiring July 15, 2022, with 25,102 contracts trading so far today, representing approximately 2.5 million underlying shares of FIS. Particularly high volume was seen for the $40 strike put option expiring June 24, 2022, with 9,785 contracts trading so far today, representing approximately 978,500 underlying shares of RCL. Particularly high volume was seen for the $270 strike put option expiring June 24, 2022, with 615 contracts trading so far today, representing approximately 61,500 underlying shares of DE.
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Below is a chart showing FIS's trailing twelve month trading history, with the $140 strike highlighted in orange: Royal Caribbean Group (Symbol: RCL) saw options trading volume of 47,134 contracts, representing approximately 4.7 million underlying shares or approximately 77.5% of RCL's average daily trading volume over the past month, of 6.1 million shares. Particularly high volume was seen for the $40 strike put option expiring June 24, 2022, with 9,785 contracts trading so far today, representing approximately 978,500 underlying shares of RCL. Below is a chart showing RCL's trailing twelve month trading history, with the $40 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 12,248 contracts thus far today.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Fidelity National Information Services Inc (Symbol: FIS), where a total of 29,640 contracts have traded so far, representing approximately 3.0 million underlying shares. Particularly high volume was seen for the $140 strike call option expiring July 15, 2022, with 25,102 contracts trading so far today, representing approximately 2.5 million underlying shares of FIS. Below is a chart showing FIS's trailing twelve month trading history, with the $140 strike highlighted in orange: Royal Caribbean Group (Symbol: RCL) saw options trading volume of 47,134 contracts, representing approximately 4.7 million underlying shares or approximately 77.5% of RCL's average daily trading volume over the past month, of 6.1 million shares.
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Particularly high volume was seen for the $140 strike call option expiring July 15, 2022, with 25,102 contracts trading so far today, representing approximately 2.5 million underlying shares of FIS. Below is a chart showing FIS's trailing twelve month trading history, with the $140 strike highlighted in orange: Royal Caribbean Group (Symbol: RCL) saw options trading volume of 47,134 contracts, representing approximately 4.7 million underlying shares or approximately 77.5% of RCL's average daily trading volume over the past month, of 6.1 million shares. Particularly high volume was seen for the $270 strike put option expiring June 24, 2022, with 615 contracts trading so far today, representing approximately 61,500 underlying shares of DE.
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0b1668c1-e28d-4185-9e15-94d442d0641a
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721125.0
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2022-06-24 00:00:00 UTC
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DE November 18th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-november-18th-options-begin-trading
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the November 18th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 147 days until expiration the newly available contracts represent a possible 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 November 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $310.00 strike price has a current bid of $28.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $310.00, but will also collect the premium, putting the cost basis of the shares at $281.95 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $311.76/share today.
Because the $310.00 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 9.05% return on the cash commitment, or 22.46% 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 $310.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $320.00 strike price has a current bid of $25.40. If an investor was to purchase shares of DE stock at the current price level of $311.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $320.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.79% if the stock gets called away at the November 18th 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 $320.00 strike highlighted in red:
Considering the fact that the $320.00 strike represents an approximate 3% 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 8.15% boost of extra return to the investor, or 20.22% 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 $311.76) to be 36%. 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 $320.00 strike highlighted in red: Considering the fact that the $320.00 strike represents an approximate 3% 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 become available today, for the November 18th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $320.00 strike highlighted in red: Considering the fact that the $320.00 strike represents an approximate 3% 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 become available today, for the November 18th 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 $310.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $320.00 strike price has a current bid of $25.40. Below is a chart showing DE's trailing twelve month trading history, with the $320.00 strike highlighted in red: Considering the fact that the $320.00 strike represents an approximate 3% 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 November 18th 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 $320.00 strike highlighted in red: Considering the fact that the $320.00 strike represents an approximate 3% 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 become available today, for the November 18th expiration.
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641cab69-7cf7-401f-b7aa-d706aaf4034d
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721126.0
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2022-06-24 00:00:00 UTC
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Validea Peter Lynch Strategy Daily Upgrade Report - 6/24/2022
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DE
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https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-6-24-2022
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nan
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nan
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The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
PROVIDENT FINANCIAL SERVICES, INC. (PFS) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Provident Financial Services, Inc. is a holding company for The Provident Bank (the Bank). The Bank is a New Jersey-chartered capital stock savings bank operating full-service branch offices throughout northern and central New Jersey, as well as Bucks, Lehigh and Northampton counties in Pennsylvania and Queens County, New York. The Bank provides a range of financial products and services through its network of branches. The Bank originates commercial real estate loans, commercial business loans, fixed-rate and adjustable-rate mortgage loans collateralized by one-to four-family residential real estate and other consumer loans, for borrowers generally located within its primary market area. The Bank invests in mortgage-backed securities and other permissible investments. It provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and insurance brokerage services through its subsidiary, SB One Insurance Agency, Inc.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: FAIL
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: BONUS PASS
Detailed Analysis of PROVIDENT FINANCIAL SERVICES, INC.
Full Guru Analysis for PFS
Full Factor Report for PFS
GOLUB CAPITAL BDC INC (GBDC) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Golub Capital BDC, Inc. is an externally managed, closed-end, non-diversified management investment company. The Company's investment strategy is to invest primarily in one stop and other senior secured loans of United States middle-market companies. The Company also selectively invests in second lien and subordinated loans of, and warrants and minority equity securities in, United States middle-market companies. It also invests in industries, such as healthcare, restaurant and retail, software, digital and technology services, specialty manufacturing, business services, consumer products and services, food and beverages, aerospace and defense, and value-added distribution. The Company's investment activities are managed by its investment adviser, GC Advisors LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: FAIL
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of GOLUB CAPITAL BDC INC
Full Guru Analysis for GBDC
Full Factor Report for GBDC
DARDEN RESTAURANTS, INC. (DRI) is a large-cap growth stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Darden Restaurants, Inc. is a full-service restaurant company. owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood and The Capital Burger. The Company also has 25 franchised restaurants in operation located in Latin America. It has four reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. The Olive Garden segment includes Olive Garden restaurants in United States and Canada. The LongHorn Steakhouse segment includes LongHorn Steakhouse restaurants in the United States. The Fine Dining segment brands that operate within the fine-dining sub-segment of full-service dining. The Other Business segment include remaining brands Cheddar's Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of DARDEN RESTAURANTS, INC.
Full Guru Analysis for DRI
Full Factor Report for DRI
DEERE & COMPANY (DE) is a large-cap growth stock in the Constr. & Agric. Machinery industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Deere & Company produces intelligent, connected machines and applications, which help the agriculture and construction industries. The Company's production and precision agriculture segment develops and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugar. The small agriculture and turf segment develops and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, crop producers, and turf and utility customers. The construction and forestry segment develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The financial services segment primarily finances sales and leases by John Deere dealers of new and used production and precision agriculture, small agriculture and turf, and construction and forestry equipment.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of DEERE & COMPANY
Full Guru Analysis for DE
Full Factor Report for DE
WASHINGTON FEDERAL INC. (WAFD) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Washington Federal, Inc. is a bank holding company. The Company conducts its operations through a federally insured national bank subsidiary, Washington Federal, National Association (the Bank). The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. Washington Federal Bank has approximately 224 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through the Bank's subsidiaries, the Company is also engaged in insurance brokerage activities. The Bank offers various consumer checking account products, both interest bearing and non-interest bearing, and business checking accounts.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: FAIL
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: BONUS PASS
Detailed Analysis of WASHINGTON FEDERAL INC.
Full Guru Analysis for WAFD
Full Factor Report for WAFD
More details on Validea's Peter Lynch strategy
Peter Lynch Stock Ideas
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. The Other Business segment include remaining brands Cheddar's Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. Detailed Analysis of GOLUB CAPITAL BDC INC Full Guru Analysis for GBDC Full Factor Report for GBDC DARDEN RESTAURANTS, INC. (DRI) is a large-cap growth stock in the Restaurants industry.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. Detailed Analysis of DEERE & COMPANY Full Guru Analysis for DE Full Factor Report for DE WASHINGTON FEDERAL INC. (WAFD) is a small-cap value stock in the Regional Banks industry.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The Bank provides a range of financial products and services through its network of branches. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation.
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721127.0
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2022-06-24 00:00:00 UTC
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ESG Investing: 7 Profitable Stock Picks for the Socially Responsible
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https://www.nasdaq.com/articles/esg-investing%3A-7-profitable-stock-picks-for-the-socially-responsible
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Environmental, social, and governance (ESG) investing is often used interchangeably with sustainable and socially responsible investing.
To help investors choose ESG shares, MSCI (NYSE:MSCI), a leading supplier of investment decision support tools, provides the MSCI ESG Rating.
These lettering system assigns the coveted AAA rating to the best ESG stocks and funds. The classification shows how a company manages financially relevant ESG investing risks and opportunities. Rating metrics include climate change impact, diversity, inclusion, equity, and business ethics.
7 Retirement Stocks to Buy in Unexpected Sectors
“ESG adoption is on the rise, fueled by client demand and the desire to make a positive impact,” According to the 2022 Capital Group ESG Global Study. “There is a wider recognition among the investor community that companies with good sustainable credentials are more likely to outperform.”
Yet, even ESG investing has not been immune to declines in the current bear market. The S&P 500 ESG index has fallen over 20% year-to-date (YTD). However, the rise of socially responsible investing is undeniable.
With that information, here are the seven best ESG stocks to include in your portfolio in July.
BBY Best Buy $72.70
DE Deere $302.00
ESGD iShares ESG Aware MSCI EAFE ETF $63.23
MSFT Microsoft $264.66
NVO Novo Nordisk $111.41
PG Procter & Gamble $144.00
XYL Xylem $78.68
Best Buy (BBY)
Source: Shutterstock
52-week range: $69.07 – $141.97
Best Buy (NYSE:BBY) is one of the largest consumer electronics retailers in the world, with over 1,000 stores across the U.S. and Canada. The retailer holds an AAA ESG rating from MSCI.
In late May, Best Buy announced Q1 FY23 financials. Revenue was $10.6 billion, compared to $11.6 billion the year before. Diluted EPS was $1.57, compared to $2.23 the previous year. Cash and equivalents totaled $640 million.
As the nation’s largest retail collector of e-waste, Best Buy recently launched a home pick-up electronic recycling service. The Best Buy “Standalone Haul-Away” service will remove and recycle up to two large products along with select smaller products.
BBY stock has fallen 39% YTD, yet the dividend yield is a generous 5%. Shares are trading at 8.33 times forward earnings and 0.34 times sales. Meanwhile, the 12-month median price forecast for BBY stock stands at $88.
Deere (DE)
Source: mark stephens photography / Shutterstock.com
52-week range: $295.59 – $446.76
Deere (NYSE:DE) is one of the largest manufacturers of agricultural, construction, and forestry equipment, with roots going back 180 years. The company employs artificial intelligence (AI), machine learning, and computer vision applications to boost yields and reduce costs.
All these steps understandably help enhance overall sustainability in agriculture, which is a significant component in ESG investing. Deere holds an A rating from MSCI.
7 REITs to Buy for a Profitable Summer
On May 20, Deere issued Q2 FY’22 results. Net sales and revenues came in at $13.370 billion, up 11% YOY. Net income per share was $6.81 compared to $5.68 for the same period last year.
Deere announced a joint venture with GUSS Automation, a pioneer in semi-autonomous vineyard and orchard sprayers.
Through this venture that focuses on innovation and technology, the two companies aim to help farmers be more productive, growing more food using fewer resources.
DE stock has lost almost 14% YTD. Shares are priced at 14.1 times forward earnings and 2.3 times sales, while the dividend yield is 1.4%.
Wall Street’s 12-month median price forecast for DE stock is at $417.
iShares ESG Aware MSCI EAFE ETF (ESGD)
Source: Shutterstock
52-week range: $61.36 – $82.63
Dividend yield: 4.05%
Expense ratio: 0.20% per year
The iShares ESG Aware MSCI EAFE ETF (NASDAQ:ESGD), is a great entry to ESG investing.
It invests in developed market companies with positive ESG properties. The fund was first listed in June 2016.
ESGD, which currently holds 448 stocks, holds the MSCI ESG fund rating of AAA. In terms of sectoral allocations, we see financials (17.23%) industrials (14.98%), health care (12.85%) and consumer discretionary (11.08%), among others.
The top 10 stocks comprise close to 14% of $6.666 million in net assets.
Among them are the nutrition company Nestle (OTCMKTS:NSRGY); semiconductor equipment manufacturer ASML (NASDAQ:ASML); Swiss pharma group Roche (OTCMKTS:RHBBY); and Denmark-based pharma company Novo Nordisk (NYSE:NVO).
ESGD is down over 20% year-to-date. Trailing price-to-earnings (P/E) and price-to-book (P/B) ratios stand at 12.60x and 1.64x. InvestorPlace.com readers interested
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
52-week range: $246.44 – $349.67
Microsoft (NASDAQ:MSFT) is one of the “Big Five” technology companies, but also a great ESG investing opportunity.
It is best known for its Windows and Office software product lines, Surface computers, and the Xbox gaming system. Microsoft holds an AAA ESG rating from MSCI.
In late April, management released Q3 FY’22 earnings. Revenue came in at $49.4 billion, an 18% YOY increase. Diluted EPS was $2.22, compared to $2.03 the year before. Cash and equivalents totaled $12.5 billion.
7 Bargain Income Stocks to Buy and Hold Forever
Recently, Microsoft announced its intention to build a new data center region in Southern Finland.
In addition to providing data storage and cloud computing capabilities, this data center will also provide carbonless surplus heating to the surrounding region. It will be the world’s largest scheme to recycle the waste heat generated by servers.
So far in 2022, MSFT stock has lost 20%. Forward P/E and price-to-sales (P/S) numbers are 23.4x and 9.9x, respectively.
The dividend yield is 1%. Finally, the 12-month median price forecast for MSFT stock stands at $350.00.
Novo Nordisk (NVO)
Source: joreks / Shutterstock.com
52-week range: $81.65 – $122.16
Novo Nordisk (NYSE:NVO) is a Danish pharmaceutical company that specializes in diabetes care.
The company maintains 16 production sites and 10 research and development (R&D) centers globally. Novo Nordisk holds an AAA ESG rating from MSCI.
In late April, Novo Nordisk reported Q1 metrics. Net sales came in at 42 billion Danish kroner (DKK), an 18% increase at constant exchange rates. Diluted EPS was DKK 6.22, compared to DKK 5.45 the year before.
Recently, company researchers announced positive results from clinical trials studying a new, once-weekly insulin treatment.
The results from two separate studies show that the once-weekly treatment was as effective as daily insulin injections. As a result, the treatment has the potential to become the ideal insulin for people with diabetes, initiating insulin treatment.
NVO stock is essentially flat YTD but appreciated 25.5% over the past year. Shares are trading at 32 times forward earnings and 11.7 times sales. The dividend yield is 1.5%. Lastly, the 12-month median price forecast for NVO stock is at $123.24.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
52-week range: $131.94 – $165.35
Procter & Gamble (NYSE:PG) is one of the global leaders in packaged consumer products.
It operates in beauty, grooming, healthcare, home care, and family care segments. Procter & Gamble has an A rating from MSCI, making it a very attractive ESG investing play.
The consumer products giant issued Q3 FY’22 financial results on Apr. 20. Revenue was $19.4 billion representing an increase of 7% YOY. Diluted EPS was $1.33 compared to $1.26 in the previous-year quarter.
7 Long-Term Stocks to Buy in a Bear Market
Procter & Gamble’s multi-purpose cleaner Microban 24 has been the first consumer product registered to kill bacteria and viruses that cause the flu and Covid-19 for up to 24 hours.
The company asserts that a 3-in-1 product able to clean, sanitize, and defend against 99.9% of bacteria and viruses for up to 24 hours.
Investors hope it will contribute to the top line as we see new variants of the virus that has affected our lives over the past two years.
So far in 2022, PG stock has fallen more than 11% but is supported by a 2.76% dividend yield. Shares are trading at 21.5 times forward earnings and 4.3 times sales. Meanwhile, the 12-month median price forecast for PG stock stands at $170.
Xylem (XYL)
Source: IgorGolovniov / Shutterstock.com
52-week range: $78.92 – $138.78
Xylem (NYSE:XYL) is one of the world’s largest water technology providers, this ESG investing opportunity services municipal, residential, commercial, agricultural, and industrial sectors.
Xylem holds an AAA ESG rating from MSCI.
In early May, Xylem released Q1 financial results. Revenue was $1.27 billion, an increase of 1.3% YOY. Adjusted diluted EPS was 47 cents, compared to 56 cents the year before.
Management recently announced a new wastewater treatment solution, the Xylem Edge Control. This off-the-shelf suite of digital solutions can achieve treatment compliance targets. It simultaneously reduces energy consumption from aeration by up to 25%.
XYL stock has dropped almost 33% YTD. Forward P/E and P/S numbers are 29.7x and 2.7x, respectively. The dividend yield is 1.65%. Finally, the 12-month median forecast is at $90.00.
On the date of publication, Tezcan Gecgil 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 ESG Investing: 7 Profitable Stock Picks for the Socially Responsible 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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“There is a wider recognition among the investor community that companies with good sustainable credentials are more likely to outperform.” Yet, even ESG investing has not been immune to declines in the current bear market. To help investors choose ESG shares, MSCI (NYSE:MSCI), a leading supplier of investment decision support tools, provides the MSCI ESG Rating. Rating metrics include climate change impact, diversity, inclusion, equity, and business ethics.
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BBY Best Buy $72.70 DE Deere $302.00 ESGD iShares ESG Aware MSCI EAFE ETF $63.23 MSFT Microsoft $264.66 NVO Novo Nordisk $111.41 PG Procter & Gamble $144.00 XYL Xylem $78.68 Best Buy (BBY) Source: Shutterstock 52-week range: $69.07 – $141.97 Best Buy (NYSE:BBY) is one of the largest consumer electronics retailers in the world, with over 1,000 stores across the U.S. and Canada. iShares ESG Aware MSCI EAFE ETF (ESGD) Source: Shutterstock 52-week range: $61.36 – $82.63 Dividend yield: 4.05% Expense ratio: 0.20% per year The iShares ESG Aware MSCI EAFE ETF (NASDAQ:ESGD), is a great entry to ESG investing. Among them are the nutrition company Nestle (OTCMKTS:NSRGY); semiconductor equipment manufacturer ASML (NASDAQ:ASML); Swiss pharma group Roche (OTCMKTS:RHBBY); and Denmark-based pharma company Novo Nordisk (NYSE:NVO).
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To help investors choose ESG shares, MSCI (NYSE:MSCI), a leading supplier of investment decision support tools, provides the MSCI ESG Rating. BBY Best Buy $72.70 DE Deere $302.00 ESGD iShares ESG Aware MSCI EAFE ETF $63.23 MSFT Microsoft $264.66 NVO Novo Nordisk $111.41 PG Procter & Gamble $144.00 XYL Xylem $78.68 Best Buy (BBY) Source: Shutterstock 52-week range: $69.07 – $141.97 Best Buy (NYSE:BBY) is one of the largest consumer electronics retailers in the world, with over 1,000 stores across the U.S. and Canada. iShares ESG Aware MSCI EAFE ETF (ESGD) Source: Shutterstock 52-week range: $61.36 – $82.63 Dividend yield: 4.05% Expense ratio: 0.20% per year The iShares ESG Aware MSCI EAFE ETF (NASDAQ:ESGD), is a great entry to ESG investing.
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BBY Best Buy $72.70 DE Deere $302.00 ESGD iShares ESG Aware MSCI EAFE ETF $63.23 MSFT Microsoft $264.66 NVO Novo Nordisk $111.41 PG Procter & Gamble $144.00 XYL Xylem $78.68 Best Buy (BBY) Source: Shutterstock 52-week range: $69.07 – $141.97 Best Buy (NYSE:BBY) is one of the largest consumer electronics retailers in the world, with over 1,000 stores across the U.S. and Canada. Shares are priced at 14.1 times forward earnings and 2.3 times sales, while the dividend yield is 1.4%. To help investors choose ESG shares, MSCI (NYSE:MSCI), a leading supplier of investment decision support tools, provides the MSCI ESG Rating.
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61aea34f-4ad3-474e-ae86-b1231388e30c
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721128.0
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2022-06-24 00:00:00 UTC
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UXI's Underlying Holdings Imply 31% Gain Potential
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https://www.nasdaq.com/articles/uxis-underlying-holdings-imply-31-gain-potential
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the ProShares Ultra Industrials ETF (Symbol: UXI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $25.47 per unit.
With UXI trading at a recent price near $19.47 per unit, that means that analysts see 30.83% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of UXI's underlying holdings with notable upside to their analyst target prices are ChargePoint Holdings Inc (Symbol: CHPT), Trex Co Inc (Symbol: TREX), and Deere & Co. (Symbol: DE). Although CHPT has traded at a recent price of $15.55/share, the average analyst target is 56.48% higher at $24.33/share. Similarly, TREX has 43.16% upside from the recent share price of $56.73 if the average analyst target price of $81.21/share is reached, and analysts on average are expecting DE to reach a target price of $409.50/share, which is 37.64% above the recent price of $297.51. Below is a twelve month price history chart comparing the stock performance of CHPT, TREX, and DE:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
ProShares Ultra Industrials ETF UXI $19.47 $25.47 30.83%
ChargePoint Holdings Inc CHPT $15.55 $24.33 56.48%
Trex Co Inc TREX $56.73 $81.21 43.16%
Deere & Co. DE $297.51 $409.50 37.64%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
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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Although CHPT has traded at a recent price of $15.55/share, the average analyst target is 56.48% higher at $24.33/share. ProShares Ultra Industrials ETF UXI $19.47 $25.47 30.83% ChargePoint Holdings Inc CHPT $15.55 $24.33 56.48% Trex Co Inc TREX $56.73 $81.21 43.16% Deere & Co. DE $297.51 $409.50 37.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of UXI's underlying holdings with notable upside to their analyst target prices are ChargePoint Holdings Inc (Symbol: CHPT), Trex Co Inc (Symbol: TREX), and Deere & Co. (Symbol: DE). Similarly, TREX has 43.16% upside from the recent share price of $56.73 if the average analyst target price of $81.21/share is reached, and analysts on average are expecting DE to reach a target price of $409.50/share, which is 37.64% above the recent price of $297.51. ProShares Ultra Industrials ETF UXI $19.47 $25.47 30.83% ChargePoint Holdings Inc CHPT $15.55 $24.33 56.48% Trex Co Inc TREX $56.73 $81.21 43.16% Deere & Co. DE $297.51 $409.50 37.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, TREX has 43.16% upside from the recent share price of $56.73 if the average analyst target price of $81.21/share is reached, and analysts on average are expecting DE to reach a target price of $409.50/share, which is 37.64% above the recent price of $297.51. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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With UXI trading at a recent price near $19.47 per unit, that means that analysts see 30.83% upside for this ETF looking through to the average analyst targets of the underlying holdings. ProShares Ultra Industrials ETF UXI $19.47 $25.47 30.83% ChargePoint Holdings Inc CHPT $15.55 $24.33 56.48% Trex Co Inc TREX $56.73 $81.21 43.16% Deere & Co. DE $297.51 $409.50 37.64% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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39d30fcd-a3af-42e4-99ec-8f05cc465a9c
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721129.0
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2022-06-22 00:00:00 UTC
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Should You Buy Deere Stock At $320?
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https://www.nasdaq.com/articles/should-you-buy-deere-stock-at-%24320
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After an 8% fall year-to-date, at the current levels we believe Deere stock (NYSE: DE) has more room for growth. DE stock fell from $350 in early January to $323 now. The YTD -8% move for DE marks a significant outperformance with -23% returns for the broader S&P500 index.
Looking at the longer term, DE stock is up a solid 116% from levels seen in late 2018. This again marks an outperformance compared to some of its peers and the broader markets, with Caterpillar stock rising 52%, Cummins stock up 45%, and the S&P 500 index rising 48% over the same period.
This rise over the last three years was driven by: 1. the company’s earnings, which grew a solid 102% to $18.99 in 2021, compared to $9.39 in 2018, on a per share and adjusted basis. 2. its P/E ratio, which grew 7% to 17x currently from 16x in 2018. Earnings growth was driven by an 18% revenue growth and a 65% rise in net income margin.
Deere’s revenue rose 18% to $44.0 billion in 2021, compared to $37.4 billion in 2018. The revenue growth was led by strong 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. However, more recently, rising interest rates, supply chain disruptions, and a high inflationary environment are expected to weigh on revenue growth for the industrial companies.
Deere’s net income margin of 13.5% in 2021 reflects a 532 bps rise from 8.2% in 2018 due to a better pricing environment. We expect the net income margin to improve to 14.2% in 2022 as the company passes on the increased costs to the customers. Deere has spent $5.5 billion in share repurchases between 2018 and 2021, resulting in the share count falling to 314 million in 2021 from 327 million, and this trend is expected to continue over the coming years.
We estimate Deere’s valuation to be $410 per share, reflecting a 27% upside from its current market price of $323, implying that investors may be better off using the recent dip to enter DE stock for gains in the long run. Our valuation represents a forward P/E ratio of 17x based on our earnings forecast of $23.45 on a per share and adjusted basis for full-year 2022. This compares with an average of 17x seen over the last three years. That said, investors should take into account the near-term risks. DE stock faces headwinds from the current weakness in broader markets. The S&P500 has now entered a bear market territory with rising concerns of slowing economic growth given the high inflation, Fed uncertainty, and supply chain disruptions.
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 Jun 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DE Return -10% -6% 213%
S&P 500 Return 0% -23% 84%
Trefis Multi-Strategy Portfolio -10% -27% 190%
[1] Month-to-date and year-to-date as of 6/21/2022
[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 estimate Deere’s valuation to be $410 per share, reflecting a 27% upside from its current market price of $323, implying that investors may be better off using the recent dip to enter DE stock for gains in the long run. After an 8% fall year-to-date, at the current levels we believe Deere stock (NYSE: DE) has more room for growth. DE stock fell from $350 in early January to $323 now.
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Total [2] DE Return -10% -6% 213% S&P 500 Return 0% -23% 84% Trefis Multi-Strategy Portfolio -10% -27% 190% [1] Month-to-date and year-to-date as of 6/21/2022 [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. After an 8% fall year-to-date, at the current levels we believe Deere stock (NYSE: DE) has more room for growth. DE stock fell from $350 in early January to $323 now.
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This again marks an outperformance compared to some of its peers and the broader markets, with Caterpillar stock rising 52%, Cummins stock up 45%, and the S&P 500 index rising 48% over the same period. We estimate Deere’s valuation to be $410 per share, reflecting a 27% upside from its current market price of $323, implying that investors may be better off using the recent dip to enter DE stock for gains in the long run. Total [2] DE Return -10% -6% 213% S&P 500 Return 0% -23% 84% Trefis Multi-Strategy Portfolio -10% -27% 190% [1] Month-to-date and year-to-date as of 6/21/2022 [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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After an 8% fall year-to-date, at the current levels we believe Deere stock (NYSE: DE) has more room for growth. DE stock fell from $350 in early January to $323 now. The YTD -8% move for DE marks a significant outperformance with -23% returns for the broader S&P500 index.
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f0023d0d-94b3-4502-ac79-6f7137bbd711
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721130.0
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2022-06-21 00:00:00 UTC
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These 2 Companies Just Raised Their Dividends -- and You Can Still Buy Them
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https://www.nasdaq.com/articles/these-2-companies-just-raised-their-dividends-and-you-can-still-buy-them
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This part of the year, when kids escape school and people head to the beach, isn't usually heavy with dividend raises. Still, investors wanting to boost their overall yield can take advantage of a few recent hikes from notable companies.
Two dependable operators that have declared dividend raises in recent days, in fact, haven't yet hit their ex-dividend dates. Happily, this means that investors can still buy into those hikes. Read on for more about the latest lifts from Deere (NYSE: DE) and Realty Income (NYSE: O).
1. Deere
A habitual shareholder payer, Deere declared its latest in a history of dividend raises at the end of May. The farm equipment mainstay is cranking its quarterly payout 8% higher to $1.13 per share.
The world is facing a shortage in food crops largely because of the war in Ukraine, so Deere is an important manufacturer these days. This is reflected in the company's recent results; despite the supply chain shortages all manufacturers have to endure, Deere still managed to boost its net sales 9% higher on a year-over-year basis, and expand net income by a robust 17% in its most recently reported quarter.
The future is exciting for Deere, as innovation should keep the goods rolling out of the factory. The company has invested heavily in automated technology, to the point where it's soon to introduce an autonomous tractor. This, combined with the pinpoint accuracy of its See & Spray Ultimate crop spraying solutions, will surely keep Deere's competitive edge sharp and make its stock an increasingly compelling investment.
Deere's dividend raise kicks in on Aug. 8, when the next distribution is to be paid. This will be handed out to stockholders of record as of June 30. At the most recent closing share price, the new distribution would yield 1.4%.
2. Realty Income
As Deere is to agricultural machinery, Realty Income is to retail spaces. The latter company is a real estate investment trust (REIT) that specializes in leasing space to stores in shopping centers and malls.
Famous as a monthly dividend payer, Realty Income declared a new payout in mid-June. It's enacting a marginal dividend raise of less than 1%, to just shy of $0.25 per share.
In business for 53 years, Realty Income has accumulated a massive portfolio of more than 11,200 properties, and its tenant list comprises some of the most recognized retailers. Walgreens Boots Alliance's Walgreens tops the list, with convenience store 7-Eleven close behind. FedEx and CVS Health are also regular rent payers.
Speaking of rent, Realty Income tends to sign its tenants to long-term triple net leases that stipulate annual increases.
That not only saves expenses, it also keeps the cash flowing in for years from those renters, many of whom operate strongly recession-resistant businesses. The REIT is able to consistently raise its revenue and profitability, and with its strong cash flow and dividend policy, it has become one of the few REITs on the list of hallowed Dividend Aristocrats.
Realty Income's freshly raised monthly dividend will be handed out on July 15 to investors of record as of July 1. It would yield 4.6% at the current stock price.
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*Stock Advisor returns as of June 2, 2022
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx. The Motley Fool recommends CVS Health. 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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This part of the year, when kids escape school and people head to the beach, isn't usually heavy with dividend raises. Two dependable operators that have declared dividend raises in recent days, in fact, haven't yet hit their ex-dividend dates. Read on for more about the latest lifts from Deere (NYSE: DE) and Realty Income (NYSE: O).
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Famous as a monthly dividend payer, Realty Income declared a new payout in mid-June. Realty Income's freshly raised monthly dividend will be handed out on July 15 to investors of record as of July 1. This part of the year, when kids escape school and people head to the beach, isn't usually heavy with dividend raises.
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Deere A habitual shareholder payer, Deere declared its latest in a history of dividend raises at the end of May. This is reflected in the company's recent results; despite the supply chain shortages all manufacturers have to endure, Deere still managed to boost its net sales 9% higher on a year-over-year basis, and expand net income by a robust 17% in its most recently reported quarter. Realty Income's freshly raised monthly dividend will be handed out on July 15 to investors of record as of July 1.
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The REIT is able to consistently raise its revenue and profitability, and with its strong cash flow and dividend policy, it has become one of the few REITs on the list of hallowed Dividend Aristocrats. This part of the year, when kids escape school and people head to the beach, isn't usually heavy with dividend raises. Two dependable operators that have declared dividend raises in recent days, in fact, haven't yet hit their ex-dividend dates.
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2022-06-16 00:00:00 UTC
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Noteworthy Thursday Option Activity: PINS, MRO, DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-pins-mro-de
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Pinterest Inc (Symbol: PINS), where a total of 69,571 contracts have traded so far, representing approximately 7.0 million underlying shares. That amounts to about 41% of PINS's average daily trading volume over the past month of 17.0 million shares. Particularly high volume was seen for the $20 strike call option expiring August 19, 2022, with 14,087 contracts trading so far today, representing approximately 1.4 million underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $20 strike highlighted in orange:
Marathon Oil Corp. (Symbol: MRO) saw options trading volume of 85,523 contracts, representing approximately 8.6 million underlying shares or approximately 40.6% of MRO's average daily trading volume over the past month, of 21.0 million shares. Especially high volume was seen for the $27 strike call option expiring June 17, 2022, with 11,203 contracts trading so far today, representing approximately 1.1 million underlying shares of MRO. Below is a chart showing MRO's trailing twelve month trading history, with the $27 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 8,501 contracts thus far today. That number of contracts represents approximately 850,100 underlying shares, working out to a sizeable 40.3% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $290 strike put option expiring August 19, 2022, with 430 contracts trading so far today, representing approximately 43,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $290 strike highlighted in orange:
For the various different available expirations for PINS options, MRO 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 $20 strike call option expiring August 19, 2022, with 14,087 contracts trading so far today, representing approximately 1.4 million underlying shares of PINS. Especially high volume was seen for the $27 strike call option expiring June 17, 2022, with 11,203 contracts trading so far today, representing approximately 1.1 million underlying shares of MRO. Especially high volume was seen for the $290 strike put option expiring August 19, 2022, with 430 contracts trading so far today, representing approximately 43,000 underlying shares of DE.
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Particularly high volume was seen for the $20 strike call option expiring August 19, 2022, with 14,087 contracts trading so far today, representing approximately 1.4 million underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $20 strike highlighted in orange: Marathon Oil Corp. (Symbol: MRO) saw options trading volume of 85,523 contracts, representing approximately 8.6 million underlying shares or approximately 40.6% of MRO's average daily trading volume over the past month, of 21.0 million shares. Below is a chart showing MRO's trailing twelve month trading history, with the $27 strike highlighted in orange: And Deere & Co. (Symbol: DE) options are showing a volume of 8,501 contracts thus far today.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Pinterest Inc (Symbol: PINS), where a total of 69,571 contracts have traded so far, representing approximately 7.0 million underlying shares. Particularly high volume was seen for the $20 strike call option expiring August 19, 2022, with 14,087 contracts trading so far today, representing approximately 1.4 million underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $20 strike highlighted in orange: Marathon Oil Corp. (Symbol: MRO) saw options trading volume of 85,523 contracts, representing approximately 8.6 million underlying shares or approximately 40.6% of MRO's average daily trading volume over the past month, of 21.0 million shares.
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Below is a chart showing PINS's trailing twelve month trading history, with the $20 strike highlighted in orange: Marathon Oil Corp. (Symbol: MRO) saw options trading volume of 85,523 contracts, representing approximately 8.6 million underlying shares or approximately 40.6% of MRO's average daily trading volume over the past month, of 21.0 million shares. Especially high volume was seen for the $290 strike put option expiring August 19, 2022, with 430 contracts trading so far today, representing approximately 43,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $290 strike highlighted in orange: For the various different available expirations for PINS options, MRO options, or DE options, visit StockOptionsChannel.com.
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721132.0
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2022-06-16 00:00:00 UTC
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EXCLUSIVE-Russia says it is assisting exports of Ukrainian foodstuffs via Azov Sea
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Russia to delay some green projects 2 yrs amid Western sanctions
Carbon trading pilot to start this fall in Sakhalin as planned
Grain harvest 130 mln tonnes next year, on par with 2022
Russia blames Kyiv for failure to get grain ships out of Odesa
Russian deputy premier does not specify origin of grain being exported
Adds details, quotes, background
June 16 (Reuters) - Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export.
Ukraine, like Russia one of the world's biggest exporters of grains and oilseeds, has accused Russia of stealing grain from territories in Ukraine that its forces have seized.
Russian Deputy Prime Minister Viktoria Abramchenko rejected the allegation in an interview with Reuters, saying: "Russia does not ship grains from Ukraine."
She continued: "Russia is securing a 'green [safe] corridor' for grains and any other foodstuff such as oilseeds ... so it can be exported from Ukraine without hurdles. [Via] Melitopol or Berdiansk."
Ukraine's inability to use its major deep-sea port, Odesa, because of Russia's military incursion has led to a jump in global food prices and warnings by the United Nations of hunger in poorer countries that rely heavily on imported grain.
Abramchenko restated Russia's line that it is for Ukraine to open sea-lanes to Odesa that have been mined.
Each side accuses the other of laying the mines to obstruct access to the port, which Ukraine fears that Russia may try to seize with an attack from the sea.
"We cannot provide a green corridor for Odesa as Ukraine has done everything for this port not to work," Abramchenko said.
Ukraine's exports have fallen sharply this year as it tries to move foodstuffs by cumbersome road, river and rail routes.
GRAIN HARVESTS
Kyiv has said its grain harvest is likely to drop to around 48.5 million tonnes this year from 86 million tonnes because of Russia's incursion, which President Vladimir Putin sought to justify in part by saying Ukraine was part of the Russian cultural sphere and should not be a separate state.
The deputy premier, Russia's top official for climate and agriculture, said Russia expected to harvest around 130 million tonnes of grain in 2023, on a par with this year. She said the government had no plans to amend its grain export duty, which she said had been set to protect the domestic market.
Russia, which competes mainly with the European Union and Ukraine to supply wheat to the Middle East and Africa, has been limiting its exports since 2021 with taxes and an export quota as part of efforts to slow domestic food inflation.
Abramchenko said it had secured seed supplies from 11 countries including Serbia, Turkey, Israel and Egypt, which have not joined the Western sanctions, as it seeks to protect its food security.
She also said Russia would have to delay implementation of some climate-related projects due to restrictions on imports of foreign equipment, but would stay in the Paris climate accord.
Before the recent sanctions, Russia planned to be carbon-neutral by 2060 at the latest, and was testing the concept by trying to make its fossil-fuel rich Pacific island of Sakhalin carbon-neutral by 2025.
Abramchenko said Moscow would have to postpone some green energy projects by two years.
"Russia is deeply integrated into the global economy and there are some types of equipment, technology that Russia did not have; we imported it," she said. "America and Europe said they would not trade with us - we need time to diversify."
A pilot project to start trading carbon emissions on Sakhalin will nevertheless launch this year as planned, Abramchenko said. Russia's method of accounting for carbon emissions is not in line with the Paris agreement, however.
Turkey says U.N. plan for Ukraine grain exports reasonable, Kyiv wary
Russian-flagged ships transport Ukraine's grain to Syria, Maxar says
The sea mines floating between Ukraine’s grain stocks and the world
EXPLAINER-U.N. plan to get Ukraine grains out faces hurdles
(Reporting by Reuters; Editing by Kevin Liffey and David Evans)
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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Russian Deputy Prime Minister Viktoria Abramchenko rejected the allegation in an interview with Reuters, saying: "Russia does not ship grains from Ukraine." Ukraine's inability to use its major deep-sea port, Odesa, because of Russia's military incursion has led to a jump in global food prices and warnings by the United Nations of hunger in poorer countries that rely heavily on imported grain. She also said Russia would have to delay implementation of some climate-related projects due to restrictions on imports of foreign equipment, but would stay in the Paris climate accord.
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Russia to delay some green projects 2 yrs amid Western sanctions Carbon trading pilot to start this fall in Sakhalin as planned Grain harvest 130 mln tonnes next year, on par with 2022 Russia blames Kyiv for failure to get grain ships out of Odesa Russian deputy premier does not specify origin of grain being exported Adds details, quotes, background June 16 (Reuters) - Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export. Russian Deputy Prime Minister Viktoria Abramchenko rejected the allegation in an interview with Reuters, saying: "Russia does not ship grains from Ukraine." Ukraine's inability to use its major deep-sea port, Odesa, because of Russia's military incursion has led to a jump in global food prices and warnings by the United Nations of hunger in poorer countries that rely heavily on imported grain.
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Russia to delay some green projects 2 yrs amid Western sanctions Carbon trading pilot to start this fall in Sakhalin as planned Grain harvest 130 mln tonnes next year, on par with 2022 Russia blames Kyiv for failure to get grain ships out of Odesa Russian deputy premier does not specify origin of grain being exported Adds details, quotes, background June 16 (Reuters) - Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export. Russian Deputy Prime Minister Viktoria Abramchenko rejected the allegation in an interview with Reuters, saying: "Russia does not ship grains from Ukraine." Ukraine's inability to use its major deep-sea port, Odesa, because of Russia's military incursion has led to a jump in global food prices and warnings by the United Nations of hunger in poorer countries that rely heavily on imported grain.
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Russia to delay some green projects 2 yrs amid Western sanctions Carbon trading pilot to start this fall in Sakhalin as planned Grain harvest 130 mln tonnes next year, on par with 2022 Russia blames Kyiv for failure to get grain ships out of Odesa Russian deputy premier does not specify origin of grain being exported Adds details, quotes, background June 16 (Reuters) - Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export. Russian Deputy Prime Minister Viktoria Abramchenko rejected the allegation in an interview with Reuters, saying: "Russia does not ship grains from Ukraine." Ukraine's inability to use its major deep-sea port, Odesa, because of Russia's military incursion has led to a jump in global food prices and warnings by the United Nations of hunger in poorer countries that rely heavily on imported grain.
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2022-06-14 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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https://www.nasdaq.com/articles/should-you-invest-in-the-global-x-u.s.-infrastructure-development-etf-pave-1
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Launched on 03/06/2017, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Infrastructure segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Global X Management. It has amassed assets over $3.98 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.59%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 69.10% of the portfolio. Materials and Utilities round out the top three.
Looking at individual holdings, Nucor Corp (NUE) accounts for about 4.26% of total assets, followed by Sempra Energy (SRE) and Deere & Co (DE).
The top 10 holdings account for about 30.54% of total assets under management.
Performance and Risk
So far this year, PAVE has lost about -16.84%, and is down about -9.53% in the last one year (as of 06/14/2022). During this past 52-week period, the fund has traded between $23.70 and $29.01.
The ETF has a beta of 1.27 and standard deviation of 31.54% 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 sufficient 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 $1.70 billion in assets, iShares Global Infrastructure ETF has $3.39 billion. IFRA has an expense ratio of 0.30% and IGF charges 0.43%.
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.
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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
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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Looking at individual holdings, Nucor Corp (NUE) accounts for about 4.26% of total assets, followed by Sempra Energy (SRE) and Deere & Co (DE). Launched on 03/06/2017, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Infrastructure segment of the equity market. Index Details The fund is sponsored by Global X Management.
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Launched on 03/06/2017, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Infrastructure segment of the equity market. 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. 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.
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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. Launched on 03/06/2017, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Infrastructure segment of the equity market.
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Launched on 03/06/2017, the Global X U.S. Infrastructure Development ETF (PAVE) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Infrastructure segment of the equity market. 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
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2022-06-13 00:00:00 UTC
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Bill Gates Stocks: 7 Top Picks From the Gates Foundation Portfolio
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https://www.nasdaq.com/articles/bill-gates-stocks%3A-7-top-picks-from-the-gates-foundation-portfolio
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
During times of extreme volatility, even the most seasoned investors may struggle to pick safe stocks to buy for the long run. In such periods, it may be inspiring to review the stocks held by the Gates Foundation, which we will refer to as Bill Gates stocks.
Established in 2000, the Bill & Melinda Gates Foundation is among the largest private philanthropic foundations worldwide. It aims to “create a world where every person has the opportunity to live a healthy, productive life.”
Meanwhile, the Bill & Melinda Gates Foundation Trust, a separate entity, manages the foundation’s assets. Understandably, it invests in businesses with the potential for long-term growth.
The Gates Foundation had a portfolio of 18 holdings in the first quarter, with roughly $19.8 billion in net assets, according to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC).
7 Great Dividend Stocks Under $25
With that information, here are seven of the best Gates Foundation stocks to buy in the second half of the year:
BRK-B Berkshire Hathaway $281.56
CNI Canadian National Railway $107.76
DE Deere $324.90
ECL Ecolab $152.79
MSFT Microsoft $242.26
SDGR Schrodinger $23.13
WM Waste Management $147.86
Berkshire Hathaway (BRK-A, BRK-B)
Source: Jonathan Weiss / Shutterstock.com
52-Week Range: $270.73 – $362.10
Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is among the largest conglomerates worldwide. It has over a dozen subsidiaries across a variety of sectors and also maintains significant minority holdings in other giants.
Warren Buffet has been the CEO and largest shareholder since 1970. InvestorPlace.com readers may be interested to know that over half of the portfolio of the Gates Foundation is invested in Berkshire Hathaway stock. Also, the group has recently made an investment into Citigroup (NYSE:C) that has grabbed headlines.
In late April, Berkshire Hathaway reported first-quarter financials. Total revenue increased 9.6% year-over-year (YOY) to $70.8 billion. Net earnings per Class B share stood at $2.47, compared to $5.09 a year ago. Cash and equivalents ended the quarter at $35.5 billion.
Recently, the company announced plans to acquire Alleghany (NYSE:Y), a holding company that primarily focuses on insurance. Alleghany also holds interests in middle-market companies and real estate through Alleghany Capital and Alleghany Properties.
BRK-B stock is down 6% in 2022 and down 2% over the past year. By comparison, the S&P 500 has lost over 20% year-to-date (YTD).
Shares are trading at 22.9 times forward earnings and 1.95 times sales. The 12-month median forecast for Berkshire Hathaway stands at $373.
Canadian National Railway (CNI)
Source: Eric Buermeyer / Shutterstock.com
52-Week Range: $ 100.66 – $137.19
Quebec-headquartered transportation giant Canadian National Railway (NYSE:CNI) is a freight railway that serves Canada and parts of the U.S. Its rail lines span Canada from coast to coast and down into the American Midwest and South.
The company services some 20,000 miles of track. It also transports approximately 250 billion CAD worth of goods annually.
In late April, Canadian National released Q1 results. Revenue came in at 3.7 billion CAD, representing a 5% increase YOY. Adjusted diluted earnings per share (EPS) was 1.32 CAD, up 7% from 1.23 CAD a year ago. Free cash flow (FCF) stood at 571 million CAD.
The group recently proposed the divestiture of the “Kansas City Speedway” from a recent merger between Canada Pacific Railway (NYSE:CP) and Kansas City Southern. The proposed agreement will allow CNI to take over a parallel line created from the merger, increasing competition in the region. If accepted, the proposal is likely to generate substantial revenue.
CNI stock is down more than 12% YTD but only -2% over the past year. The current price supports a dividend yield of 2.1%.
7 of the Hottest ETFs to Buy Right Now
Forward price-to-earnings (P/E) and price-to-sales (P/S) metrics are 21x and 7x, respectively. Lastly, the 12-month median forecast for Canadian National Railway stock is at $133.77.
Deere (DE)
Source: JCLobo / Shutterstock
52-week range: $307.64 – $446.76
Deere (NYSE:DE) is one of the most prominent manufacturers of heavy machinery, specializing in agriculture, construction and forestry. Its flagship brand is John Deere. Industrial shares, including Deere, comprise about a third of Bill Gates stocks.
On May 20, Deere put out Q2 earnings. Revenue increased 11% to $13.37 billion. As a result, fully diluted EPS increased to $6.81 per share, up from $5.68 in the prior-year quarter. Cash and equivalents ended the quarter at $3.88 billion.
Recently, the company secured a partnership with GUSS Automation. GUSS, which stands for “Global Unmanned Spray System,” is a semi-autonomous spraying system used in agriculture.
This partnership will allow GUSS Automation to sell its devices through the John Deere sales channel, increasing revenue for both companies. As a result, Deere management raised its full-year earnings forecast to $7 billion to $7.4 billion, including special items.
DE stock is down 5.3% YTD and 5% over the past year. It currently generates a 1.3% dividend yield.
Shares are trading at 13.8 times forward earnings and 2.2 times trailing sales. The 12-month median forecast for Deere stands at $419.
Ecolab (ECL)
Source: Ken Wolter / Shutterstock.com
52-Week Range: $152.20 – $238.93
Ecolab (NYSE:ECL) develops technologies for water treatment and purification, cleaning and hygiene. It services roughly 3 million locations and holds more than 10,000 patents.
On April 26, Ecolab released Q1 financials. Revenue increased 13% YOY to $3.3 billion, fueled in part by substantial volume gains. It has also been able to raise prices to overcome soaring cost inflation.
Adjusted diluted EPS came in at 82 cents, compared to 81 cents the year before. Cash and equivalents ended the period at $99.4 million.
Management recently unveiled plans to build a wind farm on the western coast of Finland. The five-turbine farm will bring Ecolab’s sustainable energy to 100% in Europe and 80% overall. In addition, the wind farm is expected to lower energy costs.
ECL stock is down 35% YTD and 29% over the past year. The dividend yield currently sits at 1.3%.
7 Top-Rated Large-Cap Stocks to Buy and Hold
Forward P/E and P/S metrics are 30.6x and 3.5x, respectively. Meanwhile, the 12-month median forecast for Ecolab is at $193.
Microsoft (MSFT)
Source: NYCStock / Shutterstock.com
52-Week Range: $244.23 – $349.67
Tech giant Microsoft (NASDAQ:MSFT) is known for its portfolio that includes the Windows operating system, Office, Azure Cloud Computing and Xbox gaming. With a market capitalization (cap) of well over $1 trillion, it is the second most valuable company on the S&P 500 index. Understandably, MSFT is one of the Bill Gates stocks to review today.
In late April, Microsoft released Q3 metrics. Revenue increased 18% YOY to $49.4 billion. Wall Street was pleased to see that server products and cloud services revenue increased 29% YOY, driven in part by Azure.
Adjusted diluted EPS increased 14% YOY to $2.22, up from $2.03 in the prior-year quarter. Cash and cash equivalents totaled $12.5 billion. The board also returned $12.4 billion to shareholders via stock repurchases and dividends.
In addition, the tech giant has recently announced a slate of new partnerships. For example, a collaboration with Mastercard (NYSE:MA) is expected to enhance identity protection for its cardholders. Additionally, Kraft Heinz (NASDAQ:KHC) is taking steps to enhance its supply chain logistics with Microsoft technology.
So far in 2022, MSFT stock is down around 28%. That narrows to -5% over the past year. Forward P/E and P/S metrics stand at 23.4x and 9.9x, respectively. Finally, the 12-month median forecast for Microsoft is $350.
Schrodinger (SDGR)
Source: shutterstock.com/Peshkova
52-Week Range: $ 20.71 – $79.75
Life sciences play Schrodinger (NASDAQ:SDGR) has been making headlines with its artificial intelligence (AI)-based computational software. Pharmaceutical companies rely on its platform to evaluate chemical compounds digitally. Additionally, Schrodinger maintains a pipeline of collaborative and internal research into new drugs.
On May 4, the company released Q1 results. Revenue came in at $48.7 million, up 51% YOY. Net loss stood at $34.5 million, or 48 cents per share, compared to a net loss of $500,000 a year ago. Cash and equivalents ended the quarter at $117.3 million.
Recently, Schrodinger presented new pre-clinical data showing that its Wee1 inhibitor displayed anti-tumor properties. As it was effective both alone and in tandem with other cancer treatments, the inhibitor could be a significant step in the eventual launch of the drug to market.
For 2022, total revenue is forecast to range from $161 million to $181 million. That figure would represent a 17% to 31% YOY growth.
7 High-Yielding Monthly Dividend Stocks to Buy in June
SDGR stock is down 33% YTD and down 70% over the past 12 months. Shares are changing hands at 11.4 times sales. The 12-month median forecast for Schrodinger is $67.50.
Waste Management (WM)
Source: rblfmr / Shutterstock.com
52-Week Range: $136.97 – $170.18
Waste Management (NYSE:WM) is one of the largest garbage collection providers stateside, servicing about 20 million customers. It also operates a robust landfill-gas system, turning the gas into beneficial services such as electrical power.
In late April, Waste Management issued Q1 earnings. Revenue increased from $4.11 billion to $4.66 billion. Adjusted diluted EPS soared to $1.29, up from $1.06 in the previous year. FCF stood at $845 million.
Recently, management announced an $825 million investment into renewable energy generated by landfill gas. This investment should offer enough electricity to power around 1 million homes and fuel its entire fleet by 2026. Analysts also expect it to reduce operating costs while creating revenue from electricity generation.
WM stock is down 11% YTD, but up almost 6% over the past year. It also generates a 1.7% dividend yield. Forward P/E and P/S metrics are 27.9x and 3.5x, respectively. Finally, the 12-month median forecast stands at $173.
On the date of publication, Tezcan Gecgil 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 Bill Gates Stocks: 7 Top Picks From the Gates Foundation Portfolio 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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Established in 2000, the Bill & Melinda Gates Foundation is among the largest private philanthropic foundations worldwide. Understandably, it invests in businesses with the potential for long-term growth. 7 Great Dividend Stocks Under $25 With that information, here are seven of the best Gates Foundation stocks to buy in the second half of the year: BRK-B Berkshire Hathaway $281.56 CNI Canadian National Railway $107.76 DE Deere $324.90 ECL Ecolab $152.79 MSFT Microsoft $242.26 SDGR Schrodinger $23.13 WM Waste Management $147.86 Berkshire Hathaway (BRK-A, BRK-B) Source: Jonathan Weiss / Shutterstock.com 52-Week Range: $270.73 – $362.10 Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is among the largest conglomerates worldwide.
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7 Great Dividend Stocks Under $25 With that information, here are seven of the best Gates Foundation stocks to buy in the second half of the year: BRK-B Berkshire Hathaway $281.56 CNI Canadian National Railway $107.76 DE Deere $324.90 ECL Ecolab $152.79 MSFT Microsoft $242.26 SDGR Schrodinger $23.13 WM Waste Management $147.86 Berkshire Hathaway (BRK-A, BRK-B) Source: Jonathan Weiss / Shutterstock.com 52-Week Range: $270.73 – $362.10 Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is among the largest conglomerates worldwide. Microsoft (MSFT) Source: NYCStock / Shutterstock.com 52-Week Range: $244.23 – $349.67 Tech giant Microsoft (NASDAQ:MSFT) is known for its portfolio that includes the Windows operating system, Office, Azure Cloud Computing and Xbox gaming. Established in 2000, the Bill & Melinda Gates Foundation is among the largest private philanthropic foundations worldwide.
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7 Great Dividend Stocks Under $25 With that information, here are seven of the best Gates Foundation stocks to buy in the second half of the year: BRK-B Berkshire Hathaway $281.56 CNI Canadian National Railway $107.76 DE Deere $324.90 ECL Ecolab $152.79 MSFT Microsoft $242.26 SDGR Schrodinger $23.13 WM Waste Management $147.86 Berkshire Hathaway (BRK-A, BRK-B) Source: Jonathan Weiss / Shutterstock.com 52-Week Range: $270.73 – $362.10 Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is among the largest conglomerates worldwide. As a result, Deere management raised its full-year earnings forecast to $7 billion to $7.4 billion, including special items. Established in 2000, the Bill & Melinda Gates Foundation is among the largest private philanthropic foundations worldwide.
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7 Great Dividend Stocks Under $25 With that information, here are seven of the best Gates Foundation stocks to buy in the second half of the year: BRK-B Berkshire Hathaway $281.56 CNI Canadian National Railway $107.76 DE Deere $324.90 ECL Ecolab $152.79 MSFT Microsoft $242.26 SDGR Schrodinger $23.13 WM Waste Management $147.86 Berkshire Hathaway (BRK-A, BRK-B) Source: Jonathan Weiss / Shutterstock.com 52-Week Range: $270.73 – $362.10 Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is among the largest conglomerates worldwide. Established in 2000, the Bill & Melinda Gates Foundation is among the largest private philanthropic foundations worldwide. Understandably, it invests in businesses with the potential for long-term growth.
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e04a3bdc-8f39-43d8-9187-b184b64f5dd2
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721135.0
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2022-06-10 00:00:00 UTC
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How to Build a Stock Portfolio for New Investors
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https://www.nasdaq.com/articles/how-to-build-a-stock-portfolio-for-new-investors
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Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch. This series is focused on investing for beginners, but investors of all backgrounds will enjoy this content. The stock market can be challenging to navigate, but this diversified portfolio enables successful long-term growth investing.
Here are the growth stock portfolio allocations by category:
60% growth stocks, such as Tesla (NASDAQ: TSLA)
20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO)
10% dividend stocks, such as Microsoft (NASDAQ: MSFT)
10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI)
The video below provides an update on this stock portfolio, which was created in February 2022. I share the stocks I'm buying now, the stocks I am dollar-cost averaging into, and more. The entire portfolio and all positions are revealed, including four new stocks I've recently added, such as Snap (NYSE: SNAP) and Toast (NYSE: TOST). Please watch for more information, and don't forget to subscribe and click the bell to receive notifications, so you don't miss any future videos in the series.
*Stock prices used in the below video were during the trading day of February 9, 2022. The video was published on February 9, 2022.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. The Motley Fool recommends Marvell Technology Group 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. Eric 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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Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch.
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Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF. Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch.
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Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. Eric Cuka has positions in Alphabet (A shares), Apple, Blend Labs, Inc., Confluent, Inc., CrowdStrike Holdings, Inc., DLocal Limited, Datadog, Deere & Company, Invesco QQQ Trust, Marvell Technology Group, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, SentinelOne, Inc., Snap Inc., Snowflake Inc., SoFi Technologies, Inc., Tesla, The Trade Desk, Toast, Inc., UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., Vanguard S&P 500 ETF, WisdomTree Trust-WisdomTree Cloud Computing Fund, iShares PHLX SOX Semiconductor Sector Index Fund, and indie Semiconductor, Inc. and has the following options: long January 2023 $35 calls on SoFi Technologies, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Confluent, Inc., CrowdStrike Holdings, Inc., Datadog, Matterport, Inc., Microsoft, Nvidia, Roblox Corporation, Snowflake Inc., Tesla, The Trade Desk, UiPath Inc., Unity Software Inc., Upstart Holdings, Inc., and Vanguard S&P 500 ETF.
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Here are the growth stock portfolio allocations by category: 60% growth stocks, such as Tesla (NASDAQ: TSLA) 20% ETFs as a core, such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) 10% dividend stocks, such as Microsoft (NASDAQ: MSFT) 10% speculative stocks, such as SoFi Technologies (NASDAQ: SOFI) The video below provides an update on this stock portfolio, which was created in February 2022. Today, I am providing an update on my video series on how to build a growth stock portfolio from scratch. The entire portfolio and all positions are revealed, including four new stocks I've recently added, such as Snap (NYSE: SNAP) and Toast (NYSE: TOST).
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aa5bc9a7-2d44-4399-ba1f-32f3ad4741f1
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721136.0
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2022-06-09 00:00:00 UTC
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Caterpillar (CAT) Rewards Shareholders With 8% Dividend Hike
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https://www.nasdaq.com/articles/caterpillar-cat-rewards-shareholders-with-8-dividend-hike
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Caterpillar Inc. CAT recently hiked its quarterly dividend by 8% to $1.20 to boost shareholder value. The hike will take the company’s dividend yield from the current 1.93% to 2.09% — higher than the industry’s dividend yield of 1.92%.
Since 2010, Caterpillar’s quarterly dividend has grown from the payout of 42 cents per share to the current announced dividend of $1.20. The increased dividend will be paid on Aug 19, 2022, to shareholders of record on Jul 20, 2022. CAT has been a consistent payer of quarterly dividends since 1933. The last dividend hike of 8% to $1.11 was announced in June 2021. Due to the uncertainty surrounding the pandemic, Caterpillar had suspended share repurchases in April 2020 but maintained its dividend throughout the year.
Caterpillar has paid higher dividends to shareholders for 28 consecutive years and is a member of the S&P 500 Dividend Aristocrat Index. The Dividend Aristocrats is currently a group of 65 companies in the S&P 500 Index that have at least 25 consecutive years of dividend increases.
The company has a five-year dividend growth rate of 9.2% and a payout ratio of 41%, which is higher than the industry. The company outscores its closest competitor, Deere & Company DE, which has a five-year dividend growth rate of 11.3% and a payout ratio of 21.9%.
Deere recently hiked its quarterly cash dividend by 8% to $1.13 per share. The company’s current dividend yield is 1.25%.
Caterpillar’s cash and liquidity position remains strong, with the company ending the first quarter of 2022 with cash and short-term investments of $6.5 billion. ME&T debt at the quarter’s end stood at $9.76 billion. Caterpillar’s current ratio is at 1.44, while times interest earned ratio is currently at 10.2. It expects to deliver ME&T free cash flow between $4 billion and $8 billion this year. Also, first-quarter 2022 backlog was an impressive $26.4 billion. Robust backlog levels, strong end-market demand across all segments and higher pricing are expected to bolster its top-line performance in the forthcoming quarters.
In North America, demand from both residential and non-residential construction will boost sales for Caterpillar’s construction equipment. The perked-up investment in roads, bridges, airports and waterways due to the U.S. Infrastructure Investment and Jobs Act represents a huge opportunity for Caterpillar. In the Asia Pacific barring China, higher commodity prices, housing strength, and increased government spending on infrastructure will support the construction equipment sales. Increased construction activity will drive machine demand in EAME and Latin America.
In Resource Industries, mining orders are picking up for the past few quarters, courtesy of improving metal prices. There has been improvement in heavy construction and quarry and aggregates for four straight quarters. The trend is expected to continue for the rest of the year. Investments in expanded offerings, services and digital initiatives are expected to fuel growth for the company.
Price Performance
Image Source: Zacks Investment Research
Over the past year, Caterpillar stock has fallen 2.1% compared with the industry’s decline of 3.8%.
Zacks Rank
Caterpillar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK and Myers Industries MYE. Both GPK & MYE flaunt a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
Myers Industries, Inc. (MYE): 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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Robust backlog levels, strong end-market demand across all segments and higher pricing are expected to bolster its top-line performance in the forthcoming quarters. Image Source: Zacks Investment Research Over the past year, Caterpillar stock has fallen 2.1% compared with the industry’s decline of 3.8%. Caterpillar Inc. CAT recently hiked its quarterly dividend by 8% to $1.20 to boost shareholder value.
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Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. CAT recently hiked its quarterly dividend by 8% to $1.20 to boost shareholder value. The hike will take the company’s dividend yield from the current 1.93% to 2.09% — higher than the industry’s dividend yield of 1.92%.
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The hike will take the company’s dividend yield from the current 1.93% to 2.09% — higher than the industry’s dividend yield of 1.92%. Since 2010, Caterpillar’s quarterly dividend has grown from the payout of 42 cents per share to the current announced dividend of $1.20. Caterpillar has paid higher dividends to shareholders for 28 consecutive years and is a member of the S&P 500 Dividend Aristocrat Index.
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Since 2010, Caterpillar’s quarterly dividend has grown from the payout of 42 cents per share to the current announced dividend of $1.20. Deere recently hiked its quarterly cash dividend by 8% to $1.13 per share. Caterpillar Inc. CAT recently hiked its quarterly dividend by 8% to $1.20 to boost shareholder value.
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5ba36bc4-6219-4622-967e-d23020415c83
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721137.0
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2022-06-08 00:00:00 UTC
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Which ARK Space Exploration Stocks are Most Buyable?
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https://www.nasdaq.com/articles/which-ark-space-exploration-stocks-are-most-buyable
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Cathie Wood's ARK Invest line of ETFs has taken a massive beating over the past few months. Still, many investors continue to scoop up shares on weakness. There's no denying that Wood has a lot of fans who are more than willing to stick it out through turbulent times. Though it's hard to time the bottom in any ARK ETFs, the recent rally across the wide range of ARK funds is nothing short of encouraging.
Whether it's the start of a historic bounce or another trap for the bulls remains to be seen. Regardless, contrarians who want to bet on innovation may have another reason to give one of the sunken ARKs a second look.
Cathie Wood's ARK Space Exploration & Innovation ETF (ARKX) is one of the latest additions to the ARK roster, and it's also one of the most perplexing.
Are there really enough space-themed stocks to fill up such a passive-investment product? Perhaps not. That's why there are a lot of head-scratchers within the fund. Some may have little to nothing to do with space exploration. Since its inception just over a year ago, the ARKX fund is down just shy of 28%.
Let's have a closer look at three stocks within ARKX using TipRanks' Comparison Tool to see where Wall Street stands with regards to bottom fishing.
L3 Harris Technologies (LHX)
Of the stocks named in this list, L3 Harris is the most relevant to the theme of space exploration and innovation. The aerospace technology firm and defense contractor has seen wild swings this year, with the stock spiking in early March, only to give up most of the gains before bottoming out just a few weeks ago.
The company is fresh off a mixed quarter that saw some sluggishness due to the fading macroeconomic environment. Still, the $4.1 billion in first-quarter revenue and mild earnings beat ($3.12 EPS versus the $3.05 consensus) was solid in its own right, given the circumstances.
As a defense contractor, L3 Harris is thriving, with the firm recently securing a $205 million fleet-protection contract, courtesy of the U.S. Navy.
As the U.S. government looks to invest more into space, L3 Harris is bound to be a beneficiary. Over the next decade, space launches and other out-of-this-world contracts could be in the cards as the government looks to take its defenses to the next level. In that regard, L3 Harris is a very intriguing play within Cathie Wood's ARKX fund and perhaps one of the fund's most relevant constituents.
The stock trades at 26.4 times trailing earnings and 2.7 times sales, with a bountiful 1.82% dividend yield.
Turning to Wall Street, analysts are bullish, with a Strong Buy consensus rating based on six Buys and two Holds assigned in the past three months. The average L3 Harris price target of $276.50 implies 13.1% upside potential from current levels.
Deere (DE)
Agricultural equipment maker Deere is a weird holding to find in a space-themed ETF. The company doesn't yet sell tractors or combines to firms farming goods in outer space yet. However, the thinking is this could change in the future, especially given Elon Musk's ambitious goal of inhabiting Mars one day.
To do so, agriculture needs to happen, and it can't be sustained without a little help from Deere's wide lineup of quality equipment. As the 10th largest holding in the ARKX ETF with a 2.86% weighting, Deere isn't exactly a needle mover.
Deere may not have any meaningful exposure to space more than a decade from now. Still, Cathie Wood seems to think the agricultural equipment maker is worthy of her ETF, possibly because of automation technologies going on behind the scenes.
Autonomous farming won't just save farmers a ton of time and money; it could be one of the keys to inhabiting a new planet. Undoubtedly, electrification and automation of Deere's fleet is the end goal. As a technology company in disguise, I am a fan of the firm, especially with such a modest multiple.
At writing, the stock trades at 18.5 times trailing earnings and 2.1 times sales. That's a low price to pay for a firm that's developing intelligent equipment that could have the potential to expand into new frontiers.
Wall Street is bullish on the name, with a Moderate Buy consensus rating based on 10 Buys, five Holds, and no Sell ratings assigned in the past three months. Meanwhile, the average Deere price target of $423.79 implies 19.4% upside potential from today's close.
Amazon (AMZN)
Finally, we have the e-commerce company that we all know and love in the 13th spot on the ARKX. The company has been facing a bit of turbulence as a result of the slowing consumer and overinvestment in capacity.
Though the company plans to offer logistics services to other retailers to alleviate excess capacity, many investors were very quick to throw the towel on the firm in anticipation of a worsening consumer slowdown.
Amazon's logistical capabilities are impressive. It can ship packages quite quickly to many parts of the world, but it does not have a space-shipping service as of yet, which is why the inclusion in the ARKX makes minimal sense at this juncture.
Even looking ahead 10-20 years, Amazon is unlikely to ship packages to other planets. Still, it's former top boss Jeff Bezos' affinity for space travel that may be why the stock was included in the ARKX. Remember, Amazon isn't just a retailer, just as it's no longer just a bookseller.
As Bezos' rocket firm Blue Origin continues to innovate, one has to think that some space exposure may be in the cards for Amazon at some point in the future. For Prime members, it may mean access to satellite connectivity or the ability to stream Blue Origin space flights through Prime Video. However, for now, investors shouldn't expect Amazon to get in on space tourism, at least not anytime in the near future.
Cathie Wood likely views Bezos' space hobby as a reason to include the stock on the ARKX. Though the space exposure is to be negligible for a longer duration, the stock is looking quite attractive following its 20-to-1 share split.
Wall Street is incredibly bullish, with the average Amazon price target of $180.13 implying 48.7% upside potential from current levels. AMZN stock receives a Strong Buy consensus rating based on 36 Buys, one Hold, and one Sell assigned in the past three months.
Conclusion
Cathie Wood's ARKX funds are in a slump, but many non-space-related firms within it could help fuel the ETF to outperform its peers. Of the three stocks named, Wall Street is most bullish on Amazon 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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The aerospace technology firm and defense contractor has seen wild swings this year, with the stock spiking in early March, only to give up most of the gains before bottoming out just a few weeks ago. There's no denying that Wood has a lot of fans who are more than willing to stick it out through turbulent times. Though it's hard to time the bottom in any ARK ETFs, the recent rally across the wide range of ARK funds is nothing short of encouraging.
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Wall Street is bullish on the name, with a Moderate Buy consensus rating based on 10 Buys, five Holds, and no Sell ratings assigned in the past three months. Wall Street is incredibly bullish, with the average Amazon price target of $180.13 implying 48.7% upside potential from current levels. There's no denying that Wood has a lot of fans who are more than willing to stick it out through turbulent times.
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Cathie Wood likely views Bezos' space hobby as a reason to include the stock on the ARKX. There's no denying that Wood has a lot of fans who are more than willing to stick it out through turbulent times. Though it's hard to time the bottom in any ARK ETFs, the recent rally across the wide range of ARK funds is nothing short of encouraging.
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Deere (DE) Agricultural equipment maker Deere is a weird holding to find in a space-themed ETF. Cathie Wood likely views Bezos' space hobby as a reason to include the stock on the ARKX. There's no denying that Wood has a lot of fans who are more than willing to stick it out through turbulent times.
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67dcce85-21e0-4945-a4c5-5a45eac71a6d
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721138.0
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2022-06-08 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DE, LRCX, UNH
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-de-lrcx-unh
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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 8,630 contracts have traded so far, representing approximately 863,000 underlying shares. That amounts to about 40.8% of DE's average daily trading volume over the past month of 2.1 million shares. Particularly high volume was seen for the $410 strike call option expiring August 19, 2022, with 384 contracts trading so far today, representing approximately 38,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $410 strike highlighted in orange:
Lam Research Corp (Symbol: LRCX) saw options trading volume of 5,368 contracts, representing approximately 536,800 underlying shares or approximately 40.7% of LRCX's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $360 strike put option expiring January 19, 2024, with 505 contracts trading so far today, representing approximately 50,500 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $360 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 11,641 contracts, representing approximately 1.2 million underlying shares or approximately 40.6% of UNH's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $470 strike put option expiring June 17, 2022, with 702 contracts trading so far today, representing approximately 70,200 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $470 strike highlighted in orange:
For the various different available expirations for DE options, LRCX options, or UNH 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 $410 strike call option expiring August 19, 2022, with 384 contracts trading so far today, representing approximately 38,400 underlying shares of DE. Particularly high volume was seen for the $360 strike put option expiring January 19, 2024, with 505 contracts trading so far today, representing approximately 50,500 underlying shares of LRCX. Particularly high volume was seen for the $470 strike put option expiring June 17, 2022, with 702 contracts trading so far today, representing approximately 70,200 underlying shares of UNH.
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Below is a chart showing DE's trailing twelve month trading history, with the $410 strike highlighted in orange: Lam Research Corp (Symbol: LRCX) saw options trading volume of 5,368 contracts, representing approximately 536,800 underlying shares or approximately 40.7% of LRCX's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing LRCX's trailing twelve month trading history, with the $360 strike highlighted in orange: And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 11,641 contracts, representing approximately 1.2 million underlying shares or approximately 40.6% of UNH's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing UNH's trailing twelve month trading history, with the $470 strike highlighted in orange: For the various different available expirations for DE options, LRCX options, or UNH 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 8,630 contracts have traded so far, representing approximately 863,000 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $410 strike highlighted in orange: Lam Research Corp (Symbol: LRCX) saw options trading volume of 5,368 contracts, representing approximately 536,800 underlying shares or approximately 40.7% of LRCX's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing LRCX's trailing twelve month trading history, with the $360 strike highlighted in orange: And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 11,641 contracts, representing approximately 1.2 million underlying shares or approximately 40.6% of UNH's average daily trading volume over the past month, of 2.9 million shares.
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Particularly high volume was seen for the $410 strike call option expiring August 19, 2022, with 384 contracts trading so far today, representing approximately 38,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $410 strike highlighted in orange: Lam Research Corp (Symbol: LRCX) saw options trading volume of 5,368 contracts, representing approximately 536,800 underlying shares or approximately 40.7% of LRCX's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing LRCX's trailing twelve month trading history, with the $360 strike highlighted in orange: And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 11,641 contracts, representing approximately 1.2 million underlying shares or approximately 40.6% of UNH's average daily trading volume over the past month, of 2.9 million shares.
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e1eca112-4eda-4318-8f73-9b57753afbe7
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721139.0
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2022-06-08 00:00:00 UTC
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iShares Russell 1000 Growth ETF Experiences Big Outflow
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DE
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https://www.nasdaq.com/articles/ishares-russell-1000-growth-etf-experiences-big-outflow-2
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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 $168.3 million dollar outflow -- that's a 0.3% decrease week over week (from 261,100,000 to 260,400,000). Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOGL) is up about 0.4%, American Tower Corp (Symbol: AMT) is up about 0.4%, and Deere & Co. (Symbol: DE) is lower by about 1.9%. 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 $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. 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 $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. 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 $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. 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 $168.3 million dollar outflow -- that's a 0.3% decrease week over week (from 261,100,000 to 260,400,000).
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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 $168.3 million dollar outflow -- that's a 0.3% decrease week over week (from 261,100,000 to 260,400,000). 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 $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. 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 $168.3 million dollar outflow -- that's a 0.3% decrease week over week (from 261,100,000 to 260,400,000). 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 $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. 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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ade4c517-c2d9-4e62-8250-37943d47ba59
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721140.0
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2022-06-06 00:00:00 UTC
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3 Tools You Can Use to Build a Powerhouse Passive Income Portfolio This June
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DE
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https://www.nasdaq.com/articles/3-tools-you-can-use-to-build-a-powerhouse-passive-income-portfolio-this-june
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nan
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nan
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It seems like lately, the stock market has been making wild price swings in both directions on a daily basis as investors try to digest uncertainty and opportunity. For those investors who don't want to get caught up in the short-term drama, a better approach might be to take this opportunity to construct a passive income portfolio that can help you achieve your financial goals.
Stocks that pay reliable dividends are often less volatile than the broader market and tend to be associated with stable, large corporations that aren't going away anytime soon. This can take the pressure off market gyrations and produce income without the need to sell a stock down big off its highs.
When building this portfolio, consider these three tools you can use to help generate the passive income a portfolio needs.
Image source: Getty Images.
Tool 1: Understand the relationship between stock performance and yield
A high yield isn't necessarily indicative of a good dividend stock. For example, a dividend yield will go up as a stock price falls and go down if a stock price rises. Too big a stock price drop might create a high dividend yield that is also a yield trap and best avoided. The opposite can also hold true. As an example, let's look at two excellent dividend stocks -- Deere & Co. (NYSE: DE) and Sherwin-Williams (NYSE: SHW).
Both industrial companies have raised their dividends substantially over the last five years. Sherwin-Williams' dividend is up 111%, and Deere's is up 88%. What's more, both stocks have produced market-beating returns over the last five years.
DE Total Return Level data by YCharts
Investors are undoubtedly happy with Sherwin-Williams and Deere's five-year performance. But on the surface, Sherwin-Williams and Deere may look like bad dividend stocks because their dividend yields are lower today than they were five years ago. This is simply because each company's stock price has risen at a faster rate than it has increased its dividend.
So instead of rolling your eyes at Sherwin-Williams' 0.9% dividend yield, the better takeaway is that the company increased its dividend by 112% in five years. Sherwin-Williams is an industry-leading company with an excellent long-term future. Similarly, Deere yields just 1.3% but is posting record results and is guiding for its best year ever in 2022.
Tool 2: Focus on dividend track records
Any company can raise a dividend when times are good. A good stress test is to see how a company managed its dividend during tough times and periods of slowing growth.
A good starting point is by looking at the lists of Dividend Aristocrats and Dividend Kings. A Dividend Aristocrat is an S&P 500 index member that has paid and raised its dividend annually for at least 25 consecutive years, while a Dividend King has done so for at least 50 years.
By default, Dividend Aristocrats have raised their dividends every year since at least 1997. That means that the company supported dividend raises through the dot-com bust, the Great Recession, and the worst of the COVID-19 pandemic. Granted, an investor should still make sure that the company's future is bright and that it is positioned to support raises in the years to come to keep its streak alive. But finding Dividend Aristocrats and Dividend Kings that you like can provide an excellent starting point for building core positions in a passive income powerhouse portfolio.
Tool 3: Prioritize financial strength
Some companies will prop up a dividend even when it doesn't make sense to do so. Paying and raising a dividend for decades assumes that earnings and free cash flow (FCF) are growing too. But if the dividend is growing at a pace faster than a company's ability to grow earnings and FCF or the company is facing slowing growth, then a dividend-raising streak can be misleading.
Even some Dividend Aristocrats and Dividend Kings have dividends that are so large that they need to be supported with debt on occasion. That's why it's important to look for companies that generate plenty of FCF to support their dividends, and have plenty of liquidity on the balance sheet in case they need to tap into their reserve cash to support the dividend.
A great example of a Dividend King that generates FCF well in excess of its dividend obligation is Procter & Gamble (NYSE: PG).
The table shows that P&G's FCF has grown substantially over the last few decades, which has supported a growing dividend. So although P&G's dividend has increased by 380% in the last 25 years, its FCF has increased by 620%. What's more, it makes nearly double the FCF needed to pay the dividend -- meaning that if growth slows and margins compress, P&G has a large cushion to which it should still be able to afford the dividend with cash. This is just one of several reasons why P&G is one of the safest, most reliable dividend stocks out there.
PG Free Cash Flow Per Share (Annual) data by YCharts
Consistency is key
The biggest mistake investors make when looking for dividend stocks is focusing too much on the yield. As we saw with Sherwin-Williams and Deere, a market-outperforming stock can often have a low dividend yield -- which isn't necessarily the fault of the company itself. In this vein, a company can be a victim of its own success, whereas poor-performing companies can have high yields not because they have grown earnings and dividend distributions but simply because the stock price has fallen.
As tempting as it may be to chase high-yield dividend stocks to bolster your passive income plans, a much better long-term strategy is to stick with companies that you can count on to outlast economic downturns and grow their dividends -- even during tough times.
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 April 27, 2022
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool recommends Sherwin-Williams. 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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PG Free Cash Flow Per Share (Annual) data by YCharts Consistency is key The biggest mistake investors make when looking for dividend stocks is focusing too much on the yield. Stocks that pay reliable dividends are often less volatile than the broader market and tend to be associated with stable, large corporations that aren't going away anytime soon. When building this portfolio, consider these three tools you can use to help generate the passive income a portfolio needs.
|
Tool 1: Understand the relationship between stock performance and yield A high yield isn't necessarily indicative of a good dividend stock. As an example, let's look at two excellent dividend stocks -- Deere & Co. (NYSE: DE) and Sherwin-Williams (NYSE: SHW). Paying and raising a dividend for decades assumes that earnings and free cash flow (FCF) are growing too.
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But on the surface, Sherwin-Williams and Deere may look like bad dividend stocks because their dividend yields are lower today than they were five years ago. A Dividend Aristocrat is an S&P 500 index member that has paid and raised its dividend annually for at least 25 consecutive years, while a Dividend King has done so for at least 50 years. Even some Dividend Aristocrats and Dividend Kings have dividends that are so large that they need to be supported with debt on occasion.
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Sherwin-Williams' dividend is up 111%, and Deere's is up 88%. Tool 2: Focus on dividend track records Any company can raise a dividend when times are good. By default, Dividend Aristocrats have raised their dividends every year since at least 1997.
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9200b603-9924-44ba-bb86-38fb59b827a2
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721141.0
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2022-06-03 00:00:00 UTC
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Deere to move cab production to Mexico amid tight U.S. labor market
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DE
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https://www.nasdaq.com/articles/deere-to-move-cab-production-to-mexico-amid-tight-u.s.-labor-market
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nan
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nan
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June 3 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Friday it would move the company's cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States.
The transfer of cab production from its Tractor and Cab assembly operations facility to the components plant in Ramos, Mexico is expected to be completed by 2024, impacting about 250 employees.
"The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products," the company said in a statement.
An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures.
Deere missed Wall Street revenue targets in its latest quarterly results and flagged difficulties in securing parts for its heavy machinery.
(Reporting by Nathan Gomes and Maria Ponnezhath in Bengaluru; Editing by Krishna Chandra Eluri)
((Nathan.Gomes@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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June 3 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Friday it would move the company's cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States. An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures. Deere missed Wall Street revenue targets in its latest quarterly results and flagged difficulties in securing parts for its heavy machinery.
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June 3 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Friday it would move the company's cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States. "The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products," the company said in a statement. An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures.
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June 3 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Friday it would move the company's cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States. "The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products," the company said in a statement. An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures.
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June 3 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Friday it would move the company's cab production from its Waterloo, Iowa plant to Mexico due to a tight labor market in the United States. "The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products," the company said in a statement. An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures.
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aac5df0d-02fa-46cf-adf0-3d6ec4805e62
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721142.0
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2022-06-01 00:00:00 UTC
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Deere Stock: Getting Cheaper, but Risks Remain
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DE
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https://www.nasdaq.com/articles/deere-stock%3A-getting-cheaper-but-risks-remain
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nan
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nan
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Shares of iconic agriculture equipment maker Deere (DE) plunged violently (more than 14%) following the release of some mixed second-quarter earnings results that saw revenues rise 11% year over year to $13.37 billion. Undoubtedly, there was a bit of margin pressure that likely induced such a reaction.
In the following trading sessions, Deere stock eventually regained most of the ground lost as investors had a chance to digest the quarter. Though numerous headwinds weighed down the quarter, management has continued to do a pretty good job of managing costs.
Thus far, demand for Deere equipment has been quite robust coming out of the pandemic. Still, there's fear that we could be headed for a recession over the next year. Such an economic downturn could weigh heavily on heavy-duty equipment demand and act as an overhang on those turbulent shares of Deere.
On TipRanks, DE scores a 9 out of 10 on the Smart Score spectrum. This indicates a high potential for the stock to outperform the broader market.
Macro Risks Could Weigh on Deere Stock in the Second Half
Indeed, Russia's invasion of Ukraine has only intensified and accelerated global inflation. With higher fertilizer prices and other costs, the budget of farmers has been feeling a bit of pressure. Indeed, with a recession thrown in, demand for new Deere equipment could be pushed out further, making a sustained rally in the stock difficult. Additionally, the forestry and construction equipment business may also be at risk of weakness as firms brace for a downturn.
In any case, Deere stock already looks modestly priced at current levels. If anything, it's a compelling value play despite its higher degree of economic sensitivity. At writing, the stock trades at 18.7 times trailing earnings and just 2.4 times sales.
Assuming the Federal Reserve can steer clear of a hard-landing amid its rate-hike cycle, Deere stock looks too cheap to ignore. However, if a recession proves severe, the downside risks for such a big-ticket discretionary could be excessive.
Given recession risks, many may insist on a wider margin of safety with the name. With so much in the way of uncertainty, I am neutral on DE stock.
For now, the agriculture market looks incredibly robust. While I do not doubt management's ability to overcome recent supply-side constraints, I'm not sure that demand will remain strong if the Fed pulls the brakes on economic growth. Undoubtedly, demand for big-ticket equipment can go from booming to busting very quickly. With the effect of inflation factored in, there's also a chance that margins could erode further going into year's end.
Undoubtedly, Deere is a premium brand in the heavy-duty farming equipment space. With that comes a degree of pricing power. However, the company may not be able to pass on all of the costs to the consumer without taking a near-term hit to sales. Arguably, a margin hit may be better to stomach than a sales hit in the face of a potential recession. In any case, management should be able to find the right balance amid inflationary pressures.
Long-term Fundamentals Remain Sound for Deere
Though management remains quite upbeat, the medium-term outlook could be cloudly for Deere and other discretionary firms. With some degree of recession risk already baked into the stock price, today's entry point at around $358 per share may prove attractive from a longer-term perspective.
The company is doing a lot of things right, specifically with the modernization (and electrification) of its equipment, which could fuel robust demand over the course of the next decade. Undoubtedly, being on the right side of a secular trend is always a good thing. However, it's unclear as to how the firm will cope if we are due for a period of stagflation.
During the 2008-09 market crash, Deere stock lost over 70% of its value, and it took many years to sustain a rally to much higher levels. Indeed, the severity of the next recession is unlikely to be as bad as 2008-09. However, Deere stock's performance through difficult times is noteworthy.
In any case, strong management and secular tailwinds should help the firm offset a portion of the nearer-term headwinds. At the end of the day, Deere is a quality blue chip with many long-term catalysts that should not be ignored by long-term thinkers.
Wall Street's Take
According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy. Out of 15 analyst ratings, there are 10 Buy recommendations and five Hold recommendations.
The average Deere price target is $423.79, implying an upside of 18.45%. Analyst price targets range from a low of $370 per share to a high of $472 per share.
The Bottom Line on Deere Stock
DE isn't at all expensive as it fluctuates around the low end of its year-long consolidation channel in the $350-400 range. As a more cyclical play, potential recessionary or stagflationary headwinds could keep the stock from breaking out. In any case, Wall Street analysts remain bullish on the name, as demand hasn't yet pointed to an economic downturn.
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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While I do not doubt management's ability to overcome recent supply-side constraints, I'm not sure that demand will remain strong if the Fed pulls the brakes on economic growth. With some degree of recession risk already baked into the stock price, today's entry point at around $358 per share may prove attractive from a longer-term perspective. The Bottom Line on Deere Stock DE isn't at all expensive as it fluctuates around the low end of its year-long consolidation channel in the $350-400 range.
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Such an economic downturn could weigh heavily on heavy-duty equipment demand and act as an overhang on those turbulent shares of Deere. Wall Street's Take According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy. In any case, Wall Street analysts remain bullish on the name, as demand hasn't yet pointed to an economic downturn.
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Shares of iconic agriculture equipment maker Deere (DE) plunged violently (more than 14%) following the release of some mixed second-quarter earnings results that saw revenues rise 11% year over year to $13.37 billion. Indeed, with a recession thrown in, demand for new Deere equipment could be pushed out further, making a sustained rally in the stock difficult. Long-term Fundamentals Remain Sound for Deere Though management remains quite upbeat, the medium-term outlook could be cloudly for Deere and other discretionary firms.
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Such an economic downturn could weigh heavily on heavy-duty equipment demand and act as an overhang on those turbulent shares of Deere. During the 2008-09 market crash, Deere stock lost over 70% of its value, and it took many years to sustain a rally to much higher levels. Wall Street's Take According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy.
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d554f35d-1738-4347-8021-2fa20082900d
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721143.0
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2022-06-01 00:00:00 UTC
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Why Rising Farming Costs May Actually Help John Deere
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DE
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https://www.nasdaq.com/articles/why-rising-farming-costs-may-actually-help-john-deere
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nan
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nan
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The world's population is expected to reach nearly 10 billion people by 2050, increasing the global food demand by 50%. A strong outlook for the agriculture industry drove equipment manufacturer John Deere's (NYSE: DE) stock price up over the past several years, until disappointing quarterly results last week wiped away recent gains. But new technology rolling out now may ultimately help the company capitalize on rising farming costs and fuel further sales growth.
Image source: Getty Images.
Lowering farming costs
The USDA reports that as of April, year over year aggregate farming costs have increased 13% and the cost of chemicals have increased 17%. To address rising chemical costs, this spring John Deere announced its new See & Spray Ultimate technology, which uses machine learning to precisely aim herbicide directly at weeds. This technology evolved from a Blue River Technology lettuce bot, which identified in real time which plants to pick and which to leave after training the system from a library of images. In the field crop spraying format, the technology can drastically reduce the amount of herbicide; John Deere claims that targeted spraying can cut chemical use by two-thirds that of normal broadcast applications.
In January, the company unveiled an autonomous tractor that is now ready for large-scale production and should be available for retail later this year. The farmer configures a geofence around the field and a set of instructions, and the tractor then performs the operation using images and sensors to detect its surroundings. This will free up the farmer's time to work on other jobs.
These two advanced technologies have the potential to substantially reduce the cost of labor and chemicals for farmers. If labor shortages persist and chemical costs keep rising, these technologies will start to look more and more attractive to farmers. Meanwhile, the company believes that an aging fleet of farm equipment and sharply rising costs on used machines should bolster demand for its new equipment. While these advanced technologies are certain to be more expensive, high crop prices could go a long way toward justifying some extra up-front expense on equipment that promises to lower recurring farming costs.
Production woes
John Deere saw strong demand in the second quarter for its production and precision ag equipment with sales of $5.1 billion, a 13% year over year increase. Unfortunately, operating profit only increased 5% compared to last year, because higher retail prices were not enough to fully offset increasing production costs.
The company faces manufacturing challenges on a number of fronts. Costs for materials and shipping have risen, while component shortages have built up an inventory of partially complete machines waiting for parts. These widespread supply constraints have prevented John Deere, and the entire industry, from meeting the full demand for equipment.
Despite a strong sales forecast, the company sees these challenges persisting and dragging down overall performance for the year. John Deere has already taken some pricing action and intends to take more to help counterbalance rising costs. But the company books its orders well in advance and is already preparing for 2023 orders, which delays how quickly pricing action can take effect.
Despite its lackluster performance so far this year, John Deere should stay on agriculture stock investors' radar. The recent drop in stock price has brought its P/E to 18.8, below its five-year average of 22.3. It will take some time for the company to work through its supply shortages and for pricing to catch up with manufacturing costs, but a backdrop of global food shortages adds incentive for farmers to purchase equipment that makes farming more efficient.
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 April 27, 2022
Fool contributor Natalie Forbes holds no financial position in any companies 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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A strong outlook for the agriculture industry drove equipment manufacturer John Deere's (NYSE: DE) stock price up over the past several years, until disappointing quarterly results last week wiped away recent gains. To address rising chemical costs, this spring John Deere announced its new See & Spray Ultimate technology, which uses machine learning to precisely aim herbicide directly at weeds. The farmer configures a geofence around the field and a set of instructions, and the tractor then performs the operation using images and sensors to detect its surroundings.
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A strong outlook for the agriculture industry drove equipment manufacturer John Deere's (NYSE: DE) stock price up over the past several years, until disappointing quarterly results last week wiped away recent gains. Production woes John Deere saw strong demand in the second quarter for its production and precision ag equipment with sales of $5.1 billion, a 13% year over year increase. The world's population is expected to reach nearly 10 billion people by 2050, increasing the global food demand by 50%.
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Production woes John Deere saw strong demand in the second quarter for its production and precision ag equipment with sales of $5.1 billion, a 13% year over year increase. The world's population is expected to reach nearly 10 billion people by 2050, increasing the global food demand by 50%. A strong outlook for the agriculture industry drove equipment manufacturer John Deere's (NYSE: DE) stock price up over the past several years, until disappointing quarterly results last week wiped away recent gains.
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Meanwhile, the company believes that an aging fleet of farm equipment and sharply rising costs on used machines should bolster demand for its new equipment. Production woes John Deere saw strong demand in the second quarter for its production and precision ag equipment with sales of $5.1 billion, a 13% year over year increase. The world's population is expected to reach nearly 10 billion people by 2050, increasing the global food demand by 50%.
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7d840bc4-5c68-4cb1-b6c3-58a4dbf3cb5c
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721144.0
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2022-05-31 00:00:00 UTC
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Deere names insider Rajesh Kalathur as CFO
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DE
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https://www.nasdaq.com/articles/deere-names-insider-rajesh-kalathur-as-cfo
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nan
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nan
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May 31 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Tuesday it has named Rajesh Kalathur as its new chief financial officer replacing Ryan Campbell effective immediately.
Kalathur, who was most recently the chief information officer at Deere, was previously a president at the company.
Campbell will now head Deere's construction, forestry and power systems segment, taking over from John Stone, who will be joining security products provider Allegion ALLE.N as its chief executive officer next month.
Deere missed Wall Street revenue targets in its latest quarterly results and flagged having difficulty securing parts for its heavy machinery.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta)
((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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May 31 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Tuesday it has named Rajesh Kalathur as its new chief financial officer replacing Ryan Campbell effective immediately. Campbell will now head Deere's construction, forestry and power systems segment, taking over from John Stone, who will be joining security products provider Allegion ALLE.N as its chief executive officer next month. Deere missed Wall Street revenue targets in its latest quarterly results and flagged having difficulty securing parts for its heavy machinery.
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May 31 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Tuesday it has named Rajesh Kalathur as its new chief financial officer replacing Ryan Campbell effective immediately. Kalathur, who was most recently the chief information officer at Deere, was previously a president at the company. Campbell will now head Deere's construction, forestry and power systems segment, taking over from John Stone, who will be joining security products provider Allegion ALLE.N as its chief executive officer next month.
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May 31 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Tuesday it has named Rajesh Kalathur as its new chief financial officer replacing Ryan Campbell effective immediately. Campbell will now head Deere's construction, forestry and power systems segment, taking over from John Stone, who will be joining security products provider Allegion ALLE.N as its chief executive officer next month. Kalathur, who was most recently the chief information officer at Deere, was previously a president at the company.
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May 31 (Reuters) - Agriculture equipment maker Deere & Co DE.N said on Tuesday it has named Rajesh Kalathur as its new chief financial officer replacing Ryan Campbell effective immediately. Kalathur, who was most recently the chief information officer at Deere, was previously a president at the company. Campbell will now head Deere's construction, forestry and power systems segment, taking over from John Stone, who will be joining security products provider Allegion ALLE.N as its chief executive officer next month.
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ad5bf1a3-276a-4018-bdce-d822ebfb663d
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721145.0
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2022-05-28 00:00:00 UTC
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2 Monster Dividend Stocks to Buy in June
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DE
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https://www.nasdaq.com/articles/2-monster-dividend-stocks-to-buy-in-june
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nan
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nan
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Deere & Company (NYSE: DE) and Procter & Gamble (NYSE: PG) have both beaten the S&P 500 over the last five years. But they've done so for different reasons.
P&G is famous for paying dividends and buying back a ton of stock. In fact, P&G is a Dividend King that has paid and raised its dividend for 66 consecutive years. Deere doesn't have the same track record. Even after the stock fell 28% in one month, it still only yields 1.2%. And Deere hasn't bought back nearly as much stock as P&G. However, Deere has proven that by retaining earnings and reinvesting in its business, it can produce outsized returns for its shareholders.
Here's a quick lesson on when buybacks make sense, when they don't, and why P&G and Deere are both excellent dividend stocks to buy now.
Image source: Getty Images.
Slow and steady
P&G is the largest U.S. consumer staples company by market cap. And unlike many other consumer staples companies that overexpand and try and do too much, P&G has mastered the art of focusing on what it does best and doing it better than any of its competitors.
It was a lesson that P&G learned the hard way. In fact, it wasn't long ago that P&G overextended itself and spent the better part of two years between fiscal 2015 and 2017 restructuring its business, reducing its brand count and product categories, and only investing in markets it knew it could do well in.
The result has been excellent for P&G and its shareholders. One of my favorite P&G charts shows its revenue, net income, free cash flow (FCF), and operating margin over the last 10 years.
Data by YCharts.
P&G's revenue is lower today than it was eight-plus years ago. But its profits are close to a record high, FCF is at a record high and is up 67% in 10 years (even off lower revenue), and its operating margin is at an all-time high of 23.6%.
P&G's investment thesis is beautifully simple -- that it's going to put up excellent, consistent results through economic expansions and contractions. And it's going to buy back a lot of stock and keep raising its dividend. Buying back stock reduces the outstanding share could and increases P&G's earnings per share.
Data by YCharts.
Over the last six years, P&G's share count has decreased by over 10%, while Deere has decreased its outstanding share count by less than 3%. With a dividend yield of 2.6% that you can count on, P&G looks like a great buy for passive income-focused investors.
Focused on long-term growth
Deere's strategy prioritizes a healthy balance sheet and reinvestment. In its fiscal Q2 2022 presentation, Deere reminded investors that the pecking order for using cash from operations starts with maintaining its investment-grade balance sheet by keeping a manageable debt position. Next comes investments in the business. Third comes keeping a 25%-to-35% payout ratio on its common stock dividend. And last comes share repurchases.
Deere stock plunged last Friday despite record-high quarterly revenue and net income because investors are nervous about the effects of rising interest rates, supply chain disruptions, and the impact of inflation on Deere's costs and the pocketbooks of its customers. However, Deere is still forecasting $7 billion to $7.4 billion in net income for fiscal 2022 -- giving it a forward price to earnings ratio of just 13.4 at the midpoint.
Even if Deere's growth slows, the company's long-term investments in information technology, artificial intelligence (AI), and automation give it a unique advantage and position it to continue taking market share in the decades to come. Deere has a stellar track record of investing in technology and harnessing it to make leading products that have a superior return on investment for its customers. Investments in software along with its core hardware and equipment pave the way for Deere to grow its aftermarket services and keep customers engaged.
Given the long-term growth of the industries Deere serves (agriculture, construction, and forestry), it makes sense that the company should prioritize organic growth as a means to grow shareholder value. Therefore, Deere's dividend and buybacks should be viewed more so as cherries on top of the core investment thesis. If Deere had instead spent more on buybacks and dividend payments over the last five or 10 years, then the company would not have been able to grow its earnings at such an impressive clip, or be in the leading position it is in now. In other words, Deere has proved to investors that excess cash is better spent reinvesting in the business.
A dynamic duo
P&G and Deere stocks work well together in a basket. Both companies are industry leaders. P&G anchors the portfolio with reliable, steady earnings and a growing dividend, while Deere's cyclical results are going to move up and down much more along with the broader economy. Investors looking for safe stocks they can count on won't go wrong with P&G. At the same time, Deere, whose 2022 stock gains have been erased in just one month, looks like a solid buy on sale.
10 stocks we like better than Deere & Company
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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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In fact, it wasn't long ago that P&G overextended itself and spent the better part of two years between fiscal 2015 and 2017 restructuring its business, reducing its brand count and product categories, and only investing in markets it knew it could do well in. In its fiscal Q2 2022 presentation, Deere reminded investors that the pecking order for using cash from operations starts with maintaining its investment-grade balance sheet by keeping a manageable debt position. Even if Deere's growth slows, the company's long-term investments in information technology, artificial intelligence (AI), and automation give it a unique advantage and position it to continue taking market share in the decades to come.
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Focused on long-term growth Deere's strategy prioritizes a healthy balance sheet and reinvestment. Even if Deere's growth slows, the company's long-term investments in information technology, artificial intelligence (AI), and automation give it a unique advantage and position it to continue taking market share in the decades to come. Deere & Company (NYSE: DE) and Procter & Gamble (NYSE: PG) have both beaten the S&P 500 over the last five years.
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Here's a quick lesson on when buybacks make sense, when they don't, and why P&G and Deere are both excellent dividend stocks to buy now. Deere stock plunged last Friday despite record-high quarterly revenue and net income because investors are nervous about the effects of rising interest rates, supply chain disruptions, and the impact of inflation on Deere's costs and the pocketbooks of its customers. 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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Here's a quick lesson on when buybacks make sense, when they don't, and why P&G and Deere are both excellent dividend stocks to buy now. Deere & Company (NYSE: DE) and Procter & Gamble (NYSE: PG) have both beaten the S&P 500 over the last five years. P&G is famous for paying dividends and buying back a ton of stock.
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aa87ca7f-8938-437d-9644-413863e2cb0f
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721146.0
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2022-05-27 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, GTN, MU
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-gtn-mu
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 11,551 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 54% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $360 strike call option expiring May 27, 2022, with 418 contracts trading so far today, representing approximately 41,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $360 strike highlighted in orange:
Gray Television Inc (Symbol: GTN) saw options trading volume of 4,688 contracts, representing approximately 468,800 underlying shares or approximately 53.8% of GTN's average daily trading volume over the past month, of 871,820 shares. Particularly high volume was seen for the $17.50 strike call option expiring June 17, 2022, with 4,050 contracts trading so far today, representing approximately 405,000 underlying shares of GTN. Below is a chart showing GTN's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
And Micron Technology Inc. (Symbol: MU) options are showing a volume of 93,966 contracts thus far today. That number of contracts represents approximately 9.4 million underlying shares, working out to a sizeable 53.2% of MU's average daily trading volume over the past month, of 17.7 million shares. Especially high volume was seen for the $72.50 strike call option expiring May 27, 2022, with 4,733 contracts trading so far today, representing approximately 473,300 underlying shares of MU. Below is a chart showing MU's trailing twelve month trading history, with the $72.50 strike highlighted in orange:
For the various different available expirations for DE options, GTN options, or MU 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 $360 strike call option expiring May 27, 2022, with 418 contracts trading so far today, representing approximately 41,800 underlying shares of DE. Particularly high volume was seen for the $17.50 strike call option expiring June 17, 2022, with 4,050 contracts trading so far today, representing approximately 405,000 underlying shares of GTN. Especially high volume was seen for the $72.50 strike call option expiring May 27, 2022, with 4,733 contracts trading so far today, representing approximately 473,300 underlying shares of MU.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 11,551 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million 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 $360 strike highlighted in orange: Gray Television Inc (Symbol: GTN) saw options trading volume of 4,688 contracts, representing approximately 468,800 underlying shares or approximately 53.8% of GTN's average daily trading volume over the past month, of 871,820 shares. That number works out to 54% of DE's average daily trading volume over the past month, of 2.1 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 11,551 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million 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 $360 strike highlighted in orange: Gray Television Inc (Symbol: GTN) saw options trading volume of 4,688 contracts, representing approximately 468,800 underlying shares or approximately 53.8% of GTN's average daily trading volume over the past month, of 871,820 shares. Especially high volume was seen for the $72.50 strike call option expiring May 27, 2022, with 4,733 contracts trading so far today, representing approximately 473,300 underlying shares of MU.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 11,551 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million 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 $360 strike highlighted in orange: Gray Television Inc (Symbol: GTN) saw options trading volume of 4,688 contracts, representing approximately 468,800 underlying shares or approximately 53.8% of GTN's average daily trading volume over the past month, of 871,820 shares. Especially high volume was seen for the $72.50 strike call option expiring May 27, 2022, with 4,733 contracts trading so far today, representing approximately 473,300 underlying shares of MU.
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e1ae0ac6-46a4-40cb-bcdb-3b4b3b02495f
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721147.0
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2022-05-27 00:00:00 UTC
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iShares Russell 3000 ETF Experiences Big Inflow
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DE
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https://www.nasdaq.com/articles/ishares-russell-3000-etf-experiences-big-inflow
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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 3000 ETF (Symbol: IWV) where we have detected an approximate $175.5 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 44,700,000 to 45,450,000). Among the largest underlying components of IWV, in trading today Standard and Poors Global Inc (Symbol: SPGI) is up about 2.1%, Deere & Co. (Symbol: DE) is up about 2.6%, and 3M Co (Symbol: MMM) is up by about 1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $219.90 per share, with $280.44 as the 52 week high point — that compares with a last trade of $237.93. 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 had notable inflows »
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 IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $219.90 per share, with $280.44 as the 52 week high point — that compares with a last trade of $237.93. 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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Among the largest underlying components of IWV, in trading today Standard and Poors Global Inc (Symbol: SPGI) is up about 2.1%, Deere & Co. (Symbol: DE) is up about 2.6%, and 3M Co (Symbol: MMM) is up by about 1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $219.90 per share, with $280.44 as the 52 week high point — that compares with a last trade of $237.93. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $175.5 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 44,700,000 to 45,450,000).
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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 3000 ETF (Symbol: IWV) where we have detected an approximate $175.5 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 44,700,000 to 45,450,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $219.90 per share, with $280.44 as the 52 week high point — that compares with a last trade of $237.93. 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 3000 ETF (Symbol: IWV) where we have detected an approximate $175.5 million dollar inflow -- that's a 1.7% increase week over week in outstanding units (from 44,700,000 to 45,450,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $219.90 per share, with $280.44 as the 52 week high point — that compares with a last trade of $237.93. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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babbf468-6929-486d-89ad-7f9ce1ccbd74
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721148.0
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2022-05-26 00:00:00 UTC
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FOCUS-Deere tapping into Apple-like tech model to drive revenue
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DE
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https://www.nasdaq.com/articles/focus-deere-tapping-into-apple-like-tech-model-to-drive-revenue-0
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nan
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nan
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By Bianca Flowers and Joseph White
BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth.
In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data. All that translates into recurring revenue, something companies like Apple APPL.O have long enjoyed and industrial manufacturers like Deere hungrily eye.
"The more technology we can develop to allow farmers to get productivity out of their land without having to spend so much money on fertilizer and inputs, the better off everybody is," Julian Sanchez, Deere's director of emerging technology, told Reuters.
Investments in automation for high-horsepower equipment is only at its inception for Deere and rivals AGCO AGCO.N and CNH Industrial CNHI.MI. The next step is to equip machines to plant seeds using satellite imagery and soil data, Sanchez said.
While Deere has not outlined what that could mean to its bottom line, last fall U.S. automaker General Motors Co GM.N said it was targeting up to $25 billion in software-driven services by 2030, and added its Cruise self-driving unit could achieve $50 billion in annual revenue within six years.
The race among farm equipment companies to automate agriculture has accelerated amid a burgeoning food crisis. And Deere's strategy around scaling its suite of tech products is now in the spotlight, after the manufacturer's stock plunged 14% on May 20 following a quarterly revenue miss. It was the biggest drop for Deere in 14 years.
The timing comes as the war in Ukraine and widespread drought in key grain-producing countries have roiled commodity markets, causing grain and farm input prices to spike as supplies shrink. That, in turn, has U.S. farmers scrambling to boost crop yields, yet limit their fertilizer and pesticide use.
That and a shrinking farm labor workforce has opened the door for Deere and others to make their high-tech push. For farmers, the prize is higher crop yields. For Illinois-based Deere, it's the revenue.
Autonomous machinery is where Deere is placing its bet as artificial intelligence becomes more integrated in farming. Its self-driving 8R tillage tractor will be the latest addition to the company's algorithm-enabled offerings when the green machines go on sale in the fall.
The new tractor will be priced at $500,000. However, the autonomy feature will be sold separately. Deere executives told analysts at a conference that the company will largely maintain its "point-of-sale" model for equipment, but will integrate a software-as-a-service (SaaS) model for its autonomous solutions. That will likely include their self-driving tractor.
"While it may take us a few years to build out a base of recurring revenues, autonomous solutions, on top of our underlying machine forms, will be recurring," said Joshua Jepsen, Deere's deputy financial officer.
The recurring revenue model can be economically favorable to heavy machinery manufacturers "based on those data insights," said Michael Staebe, a Bain & Company partner focused on machinery.
In Deere’s case, using a subscription model by either selling or leasing its driverless tractor can result in higher margins.
"After expenses, every incremental dollar falls straight to the bottom line," Edward Jones analyst Matt Arnold said. "We would expect it to be an attractive offering to farmers given the efficiency it offers them, and lucrative to Deere."
AGRONOMIC DATA HELPS BOTTOM LINE
Farmers have long been wary about how machinery and supplier firms profit off the data gleaned from their operations, and how secure such data is. But with farmers facing economic pressures, Deere and other manufacturers said it is easier to sell farmers on making such investments.
One key reason: The ability to glean crop insights from huge amounts of agronomic data takes the guesswork out of when to plant and how many seeds to use - which saves farmers money.
"Everybody in the industry is much more data-focused than we have ever seen them," said Michael Boehlje, a professor at Purdue University. "(Companies) can do profit projections by geographic space in fields. That takes you to a different level of thinking and analysis.”
In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center. The platform stores and lets farmers access their machine data from the cloud.
"When I look at what precision ag has done for our operations and what we can accomplish in a day's time compared to 10 to 20 years ago, it's so much easier," said Jeremy Jack, a row crop farmer in Mississippi and chief executive of Silent Shade Planting Co.
Ron Heck's fleet of Case IH combines and tractors are equipped with automated steering to harvest his 4,000 acres where he rotates soybeans and corn.
The fourth-generation farmer in Iowa said some of his new equipment is loaded with technology. "Unfortunately for us it costs more, but hopefully the costs will be paid back in the long run by better efficiency."
FACTB0X-GM's ambitious agenda to show investors it can out-Tesla Tesla
Deere says its robo-tractors are ready to till the fields
(Reporting by Bianca Flowers and Joseph White; Editing by Ben Klayman 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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In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data. The timing comes as the war in Ukraine and widespread drought in key grain-producing countries have roiled commodity markets, causing grain and farm input prices to spike as supplies shrink. "When I look at what precision ag has done for our operations and what we can accomplish in a day's time compared to 10 to 20 years ago, it's so much easier," said Jeremy Jack, a row crop farmer in Mississippi and chief executive of Silent Shade Planting Co. Ron Heck's fleet of Case IH combines and tractors are equipped with automated steering to harvest his 4,000 acres where he rotates soybeans and corn.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. The recurring revenue model can be economically favorable to heavy machinery manufacturers "based on those data insights," said Michael Staebe, a Bain & Company partner focused on machinery. That takes you to a different level of thinking and analysis.” In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. That takes you to a different level of thinking and analysis.” In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center. "When I look at what precision ag has done for our operations and what we can accomplish in a day's time compared to 10 to 20 years ago, it's so much easier," said Jeremy Jack, a row crop farmer in Mississippi and chief executive of Silent Shade Planting Co. Ron Heck's fleet of Case IH combines and tractors are equipped with automated steering to harvest his 4,000 acres where he rotates soybeans and corn.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. The recurring revenue model can be economically favorable to heavy machinery manufacturers "based on those data insights," said Michael Staebe, a Bain & Company partner focused on machinery. In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data.
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84819377-dd9e-4079-9e37-76b66490738b
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721149.0
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2022-05-26 00:00:00 UTC
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Deere (DE) Rewards Shareholders With an 8% Dividend Hike
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DE
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https://www.nasdaq.com/articles/deere-de-rewards-shareholders-with-an-8-dividend-hike
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nan
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nan
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Deere & Company’s DE board hiked its quarterly cash dividend by 8%. The move reflects the company’s forecast beating second-quarter fiscal 2022 earnings performance and success in building a smart industrial strategy. Shares of the firm equipment maker have moved up 9.5% since the company reported earnings on May 20.
Deere will now pay the new quarterly cash dividend of $1.13 per share, up from the prior rate of $1.05 per share. The new quarterly dividend brings the company’s annualized dividend rate to $4.52 per share. The quarterly dividend will be paid out on Aug 8 to shareholders of record as of Jun 30, 2022. The raised dividend takes DE’s current dividend yield from 1.25% to 1.32%. The company has a payout ratio of 22%.
Over the five years, the company raised its dividend four times. Deere has a five-year average dividend yield of 1.73%, a five-year dividend growth rate of 11.3% and a five-year average payout ratio of 29.3%. The company fares well compared with its peer AGCO Corporation AGCO, which has a five-year average dividend yield of 0.83%, a five-year dividend growth rate of 7.5% and a five-year average payout ratio of 16.2%. AGCO increased its dividend four times in the past five years.
Deere recently reported second-quarter fiscal 2022 earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65. The bottom line increased 19.9% from the prior-year quarter’s levels, driven by strong demand. Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) were $12,034 million, reflecting year-over-year growth of 9%. However, the top line fell short of the Zacks Consensus Estimate of $13,442 million, primarily due to continued supply chain challenges. Total net sales (including financial services and others) were $13,370 million, up 11% year over year.
DE had cash and cash equivalents of $3,878 million at the end of the fiscal second quarter. Long-term borrowing was nearly $32 billion at second-quarter fiscal 2022-end. The company expects farm and construction equipment demand to be supported by positive fundamentals. Net income for fiscal 2022 is anticipated to be between $7.0 billion and $7.4 billion, up from the prior estimate of $6.7-$7.1 billion.
The company stated that production disruptions due to supply chain constraints and inflationary pressure would continue to impact the company’s results in fiscal 2022. Strong farm fundamentals coupled with the underlying supply challenges might impair the company’s ability to meet high demand. Deere’s smart industrial strategy and Leap Ambitions are committed to aiding customers manage escalating input costs while improving their yields.
Price Performance
Deere’s shares have declined 5.3% in the past year compared with the industry’s loss of 6.4%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK and Myers Industries MYE, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
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Deere & Company (DE): Free Stock Analysis Report
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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’s smart industrial strategy and Leap Ambitions are committed to aiding customers manage escalating input costs while improving their yields. Deere & Company’s DE board hiked its quarterly cash dividend by 8%. Deere will now pay the new quarterly cash dividend of $1.13 per share, up from the prior rate of $1.05 per share.
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The company fares well compared with its peer AGCO Corporation AGCO, which has a five-year average dividend yield of 0.83%, a five-year dividend growth rate of 7.5% and a five-year average payout ratio of 16.2%. Deere & Company’s DE board hiked its quarterly cash dividend by 8%. Deere will now pay the new quarterly cash dividend of $1.13 per share, up from the prior rate of $1.05 per share.
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The company fares well compared with its peer AGCO Corporation AGCO, which has a five-year average dividend yield of 0.83%, a five-year dividend growth rate of 7.5% and a five-year average payout ratio of 16.2%. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold). Deere & Company’s DE board hiked its quarterly cash dividend by 8%.
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Deere will now pay the new quarterly cash dividend of $1.13 per share, up from the prior rate of $1.05 per share. Deere recently reported second-quarter fiscal 2022 earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65. Image Source: Zacks Investment Research Zacks Rank & Stocks to Consider Deere currently carries a Zacks Rank #3 (Hold).
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eadac1a7-6ad6-45d8-bd9e-2801822f319f
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721150.0
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2022-05-26 00:00:00 UTC
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Is Deere the Apple of Agriculture?
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DE
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https://www.nasdaq.com/articles/is-deere-the-apple-of-agriculture
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When Deere & Company (NYSE: DE) was founded in 1837, Andrew Jackson was president, Texas was its own country, and the Civil War was decades away from starting. When Apple (NASDAQ: AAPL) was founded in 1976, mankind had been on the moon, and the Vietnam War was finally over.
Despite their historical differences and being in starkly contrasting industries, Deere and Apple have more in common as investments than you may realize. Both companies are the leaders in their respective industries and charge top dollar for their premium products. At their core, both companies make hardware, whether that's consumer electronics or equipment and machinery. But they also make software and are investing heavily in engaging with customers even after they purchase new products through aftermarket services.
Here's why Deere is the Apple of agriculture, and why it could be a great stock to buy now.
Image source: Getty Images.
Investing in the industrial internet of things
The industrial internet of things, commonly known as IIoT, is the integration of computers and traditional industrial processes. Think cameras, sensors, artificial intelligence (AI), robotics, automation, etc. For agriculture, this means transitioning from purely mechanical processes like manually operating a tractor by sitting in the cab all day to increasingly automated processes that save time and boost efficiency. A term you may have heard is "precision agriculture." It's been talked about for a long time. Now it is accelerating, and Deere deserves a lot of credit for that.
In January, Deere unveiled a fully autonomous tractor that can function without a person in the cab. The operator can monitor its performance from their phone and intervene when needed. Yes, there's some handholding, as the tractor will just stop in its place if it doesn't know what to do. But to be fair, this is a safer option than having a rogue tractor barreling through your neighbor's fence.
Fully autonomous tractors may be more practical and useful sooner than autonomous passenger vehicles given that there are fewer variables and the vehicle tends to move at a slower speed.
A coiled spring for an agricultural evolution
Deere's operating expenses, capital expenditures, and research and development expenses peaked in 2019 as the company prepared for what would come to be known as its "Smart Industrial Strategy," which was announced in June 2020. Smart Industrial is Deere's push toward a technology-focused approach to its machinery. The company has since received criticism for preventing its customers from fixing their own equipment, as software updates increase dependence on Deere's dealership networks. After all, it is in Deere's best interest if customers rely on it for repairs and services instead of doing it themselves.
Deere has even been caught up in the Right-To-Repair movement, which is focused on shifting aftermarket control away from the original equipment manufacturers to third-party players. Issues like this are common with software. Apple has faced similar debates for decades as some consumers complain that the company retains too much control by forcing software updates even after the product is purchased, which leaves the customer overly reliant on Apple and often leads to paying for new Apple products and services.
Regardless of where you stand on the issue, the reality is that Deere's openness to automation is a great long-term tailwind. The company is attempting to position itself as a leader in precision agriculture and even environmental issues, cutting back on emissions on its massive diesel engines and even incorporating machinery with electric motors.
Deere's results speak for themselves. The company forecasts record net income of $7 billion to $7.4 billion in fiscal 2022. Deere has a market cap of around $96 billion, so its forward price to earnings ratio is under 14. That's an attractive valuation for Deere even if growth slows.
Playing the long game
Just five or so years ago, investors doubted the viability of Apple's services business as a separate revenue stream. Many thought that the services business would inadvertently cannibalize Apple's new product sales by increasing the useful life of older products. Apple proved the doubters wrong. In the six-month period ended March 26, 2022, Apple earned more gross profit from services alone than it did in all of 2010. And that's with services making up around just 29% of total gross profit.
Deere and Apple both build their own software and hardware. Like Apple, which has many stores that double as purchase points and service centers, Deere's dealership network provides customers with access to mechanics that can fix equipment if something goes wrong. If a company wants to control its aftermarket business, it needs the infrastructure to do so. Deere has that in spades.
Agriculture is a traditional industry that will take time to embrace automation. But Deere is making the right long-term investments so that when the tipping point occurs, it will be best positioned to capitalize.
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Daniel Foelber has positions in Apple and has the following options: short July 2022 $130 calls on Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool 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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The company has since received criticism for preventing its customers from fixing their own equipment, as software updates increase dependence on Deere's dealership networks. The company is attempting to position itself as a leader in precision agriculture and even environmental issues, cutting back on emissions on its massive diesel engines and even incorporating machinery with electric motors. Like Apple, which has many stores that double as purchase points and service centers, Deere's dealership network provides customers with access to mechanics that can fix equipment if something goes wrong.
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The company has since received criticism for preventing its customers from fixing their own equipment, as software updates increase dependence on Deere's dealership networks. Like Apple, which has many stores that double as purchase points and service centers, Deere's dealership network provides customers with access to mechanics that can fix equipment if something goes wrong. When Deere & Company (NYSE: DE) was founded in 1837, Andrew Jackson was president, Texas was its own country, and the Civil War was decades away from starting.
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Here's why Deere is the Apple of agriculture, and why it could be a great stock to buy now. Apple has faced similar debates for decades as some consumers complain that the company retains too much control by forcing software updates even after the product is purchased, which leaves the customer overly reliant on Apple and often leads to paying for new Apple products and services. Like Apple, which has many stores that double as purchase points and service centers, Deere's dealership network provides customers with access to mechanics that can fix equipment if something goes wrong.
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When Deere & Company (NYSE: DE) was founded in 1837, Andrew Jackson was president, Texas was its own country, and the Civil War was decades away from starting. When Apple (NASDAQ: AAPL) was founded in 1976, mankind had been on the moon, and the Vietnam War was finally over. Despite their historical differences and being in starkly contrasting industries, Deere and Apple have more in common as investments than you may realize.
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721151.0
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2022-05-26 00:00:00 UTC
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Daily Dividend Report: RY,DCI,DE,BLK,VTR
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https://www.nasdaq.com/articles/daily-dividend-report%3A-rydcideblkvtr
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Royal Bank of Canada announced today that its board of directors has declared an increase to its quarterly common share dividend of eight cents or seven per cent, to $1.28 per share, payable on and after August 24, 2022, to common shareholders of record at the close of business on July 26, 2022.
Donaldson today announced that its Board of Directors declared a regular cash dividend of 23.0 cents per share, an increase of 4.5% from the prior quarterly dividend of 22.0 cents per share. The dividend is payable June 24, 2022, to shareholders of record on June 9, 2022. Donaldson is a member of the S&P High-Yield Dividend Aristocrats Index and calendar year 2021 marked the 26th consecutive year of annual dividend increases. The Company has paid a cash dividend every quarter for 66 years.
The Deere Board of Directors today declared a quarterly dividend of $1.13 per share payable August 8, 2022 to stockholders of record on June 30, 2022. The new quarterly rate represents an additional 8 cents per share over the previous level, an increase of approximately 8 percent per share. "The latest increase in our quarterly dividend is a reflection of Deere's recent strong performance and the success of our Smart Industrial strategy," said John C. May, chairman and chief executive officer. "It also shows our confidence in the company's future direction."
BlackRock, today announced that its Board of Directors has declared a quarterly cash dividend of $4.88 per share of common stock, payable June 23, 2022 to shareholders of record at the close of business on June 6, 2022.
Ventas today announced that its Board of Directors has declared a quarterly dividend of $0.45 per common share. The dividend will be payable in cash on July 14, 2022 to stockholders of record as of the close of business on July 1, 2022.
VIDEO: Daily Dividend Report: RY,DCI,DE,BLK,VTR
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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Royal Bank of Canada announced today that its board of directors has declared an increase to its quarterly common share dividend of eight cents or seven per cent, to $1.28 per share, payable on and after August 24, 2022, to common shareholders of record at the close of business on July 26, 2022. The Deere Board of Directors today declared a quarterly dividend of $1.13 per share payable August 8, 2022 to stockholders of record on June 30, 2022. "The latest increase in our quarterly dividend is a reflection of Deere's recent strong performance and the success of our Smart Industrial strategy," said John C. May, chairman and chief executive officer.
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Royal Bank of Canada announced today that its board of directors has declared an increase to its quarterly common share dividend of eight cents or seven per cent, to $1.28 per share, payable on and after August 24, 2022, to common shareholders of record at the close of business on July 26, 2022. The Deere Board of Directors today declared a quarterly dividend of $1.13 per share payable August 8, 2022 to stockholders of record on June 30, 2022. BlackRock, today announced that its Board of Directors has declared a quarterly cash dividend of $4.88 per share of common stock, payable June 23, 2022 to shareholders of record at the close of business on June 6, 2022.
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Royal Bank of Canada announced today that its board of directors has declared an increase to its quarterly common share dividend of eight cents or seven per cent, to $1.28 per share, payable on and after August 24, 2022, to common shareholders of record at the close of business on July 26, 2022. Donaldson today announced that its Board of Directors declared a regular cash dividend of 23.0 cents per share, an increase of 4.5% from the prior quarterly dividend of 22.0 cents per share. BlackRock, today announced that its Board of Directors has declared a quarterly cash dividend of $4.88 per share of common stock, payable June 23, 2022 to shareholders of record at the close of business on June 6, 2022.
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Royal Bank of Canada announced today that its board of directors has declared an increase to its quarterly common share dividend of eight cents or seven per cent, to $1.28 per share, payable on and after August 24, 2022, to common shareholders of record at the close of business on July 26, 2022. The Company has paid a cash dividend every quarter for 66 years. The Deere Board of Directors today declared a quarterly dividend of $1.13 per share payable August 8, 2022 to stockholders of record on June 30, 2022.
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4b61c04b-9023-48da-96a8-04e49c238dd7
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721152.0
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2022-05-26 00:00:00 UTC
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FOCUS-Deere tapping into Apple-like tech model to drive revenue
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https://www.nasdaq.com/articles/focus-deere-tapping-into-apple-like-tech-model-to-drive-revenue
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By Bianca Flowers and Joseph White
BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth.
In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data. All that translates into recurring revenue, something companies like Apple APPL.O have long enjoyed and industrial manufacturers like Deere hungrily eye.
"The more technology we can develop to allow farmers to get productivity out of their land without having to spend so much money on fertilizer and inputs, the better off everybody is," Julian Sanchez, Deere's director of emerging technology, told Reuters.
Investments in automation for high-horsepower equipment is only at its inception for Deere and rivals AGCO AGCO.N and CNH Industrial CNHI.MI. The next step is to equip machines to plant seeds using satellite imagery and soil data, Sanchez said.
While Deere has not outlined what that could mean to its bottom line, last fall U.S. automaker General Motors Co GM.N said it was targeting up to $25 billion in software-driven services by 2030, and added its Cruise self-driving unit could achieve $50 billion in annual revenue within six years.
The race among farm equipment companies to automate agriculture has accelerated amid a burgeoning food crisis. And Deere's strategy around scaling its suite of tech products is now in the spotlight, after the manufacturer's stock plunged 14% on May 20 following a quarterly revenue miss. It was the biggest drop for Deere in 14 years.
The timing comes as the war in Ukraine and widespread drought in key grain-producing countries have roiled commodity markets, causing grain and farm input prices to spike as supplies shrink. That, in turn, has U.S. farmers scrambling to boost crop yields, yet limit their fertilizer and pesticide use.
That and a shrinking farm labor workforce has opened the door for Deere and others to make their high-tech push. For farmers, the prize is higher crop yields. For Illinois-based Deere, it's the revenue.
Autonomous machinery is where Deere is placing its bet as artificial intelligence becomes more integrated in farming. Its self-driving 8R tillage tractor will be the latest addition to the company's algorithm-enabled offerings when the green machines go on sale in the fall.
While the new tractor will be priced at $500,000, the autonomy feature will be sold separately. Deere declined to reveal the pricing model, but executives said earlier this year a subscription service is one option.
The recurring revenue model can be economically favorable to heavy machinery manufacturers "based on those data insights," said Michael Staebe, a Bain & Company partner focused on machinery.
In Deere’s case, using a subscription model by either selling or leasing its driverless tractor can result in higher margins.
"After expenses, every incremental dollar falls straight to the bottom line," Edward Jones analyst Matt Arnold said. "We would expect it to be an attractive offering to farmers given the efficiency it offers them, and lucrative to Deere."
AGRONOMIC DATA HELPS BOTTOM LINE
Farmers have long been wary about how machinery and supplier firms profit off the data gleaned from their operations, and how secure such data is. But with farmers facing economic pressures, Deere and other manufacturers said it is easier to sell farmers on making such investments.
One key reason: The ability to glean crop insights from huge amounts of agronomic data takes the guesswork out of when to plant and how many seeds to use - which saves farmers money.
"Everybody in the industry is much more data-focused than we have ever seen them," said Michael Boehlje, a professor at Purdue University. "(Companies) can do profit projections by geographic space in fields. That takes you to a different level of thinking and analysis.”
In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center. The platform stores and lets farmers access their machine data from the cloud.
"When I look at what precision ag has done for our operations and what we can accomplish in a day's time compared to 10 to 20 years ago, it's so much easier," said Jeremy Jack, a row crop farmer in Mississippi and chief executive of Silent Shade Planting Co.
Ron Heck's fleet of Case IH combines and tractors are equipped with automated steering to harvest his 4,000 acres where he rotates soybeans and corn.
The fourth-generation farmer in Iowa said some of his new equipment is loaded with technology. "Unfortunately for us it costs more, but hopefully the costs will be paid back in the long run by better efficiency."
FACTB0X-GM's ambitious agenda to show investors it can out-Tesla Tesla
Deere says its robo-tractors are ready to till the fields
(Reporting by Bianca Flowers and Joseph White; Editing by Ben Klayman 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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In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data. The timing comes as the war in Ukraine and widespread drought in key grain-producing countries have roiled commodity markets, causing grain and farm input prices to spike as supplies shrink. "When I look at what precision ag has done for our operations and what we can accomplish in a day's time compared to 10 to 20 years ago, it's so much easier," said Jeremy Jack, a row crop farmer in Mississippi and chief executive of Silent Shade Planting Co. Ron Heck's fleet of Case IH combines and tractors are equipped with automated steering to harvest his 4,000 acres where he rotates soybeans and corn.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. In a world with a dwindling number of grain producers and a growing population, Deere and its rivals are developing self-driving equipment loaded with the latest software that is harvesting a new kind of bumper crop: data. That takes you to a different level of thinking and analysis.” In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. But with farmers facing economic pressures, Deere and other manufacturers said it is easier to sell farmers on making such investments. That takes you to a different level of thinking and analysis.” In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center.
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By Bianca Flowers and Joseph White BONDURANT, Iowa, May 26 (Reuters) - Deere & Co DE.N has sold its tractors and other equipment to farmers for decades, but the world's largest agriculture machinery manufacturer is tearing a page from the technology world's playbook - combining cutting-edge hardware with software and subscription models to drive revenue growth. But with farmers facing economic pressures, Deere and other manufacturers said it is easier to sell farmers on making such investments. That takes you to a different level of thinking and analysis.” In 2020, Deere acquired Harvest Profit, a farm profitability software company that has been integrated into the John Deere Operations Center.
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721153.0
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2022-05-25 00:00:00 UTC
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Down 24% In 1 Month, This Dirt Cheap Dividend Stock Looks Like a Great Value
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DE
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https://www.nasdaq.com/articles/down-24-in-1-month-this-dirt-cheap-dividend-stock-looks-like-a-great-value
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Deere & Company (NYSE: DE) crushed fiscal 2022 second-quarter (ended May 1) revenue and earnings on Friday -- reporting a 17% year-over-year increase in net income and excellent growth despite supply chain and inflation headwinds. Yet the stock collapsed by over 14% on the day following the release, its worst daily decline since 2008. The sell-off contributed to a 23.7% decline since the stock's all-time high -- which was achieved a little over a month ago on April 14.
Here's what's going on with Deere and why the agriculture stock is a buy despite some concerns.
Image source: Getty Images.
Deere is operating a booming business
Deere is a cyclical stock whose earnings tend to rise and fall to the tune of the broader agriculture, construction, and forestry industries. And right now, business is booming.
In Q2 of fiscal 2021, Deere achieved record quarterly sales of $12.06 billion and record quarterly net income of $1.8 billion. Despite the tough comps, it crushed those records this quarter, posting $13.37 billion in sales and a staggering $2.1 billion in net income.
Low interest rates and increased demand from Deere's customers certainly helped its results offset supply chain issues. Deere sees demand remaining strong for the rest of the year. "Looking ahead, we believe demand for farm machinery will continue benefiting from positive fundamentals in spite of availability concerns and inflationary pressures affecting our customers' input costs," said Deere CEO John C. May in a press release.
Deere is guiding for $7 billion to $7.4 billion in fiscal 2022 net income -- which would be a record high. The guidance gives Deere a forward price-to-earnings ratio of 13 to 13.7. For context, Deere's 10-year median P/E ratio is 16.2 -- signaling that the company looks relatively cheap despite its stock price doubling over the last two years.
Deere expects operating cash flow of $5.6 billion to $6 billion in fiscal 2022, which sounds like a lot, but it's quite a bit lower than Deere's record high of $7.3 billion in fiscal 2021. One reason for the lower operating cash flow is higher operating expenses due to inflation. Despite the strong performance, Deere is another example of a booming business that is getting its margins squeezed and could see profits suffer if growth comes down.
Deere's long-term focus
The company prioritizes maintaining its top-rated balance sheet, investing in research and development, and improving its own product portfolio. Long-term investments are more important to Deere than buybacks or dividends.
Deere's 1.2% dividend yield and relatively low buybacks aren't all that attractive for investors who want passive income. Additionally, Deere only targets a 25% to 35% payout ratio. So even if earnings keep growing, the company isn't likely to suddenly hike its dividend by a large amount.
However, Deere's commitment to investing in technology, automation, and even artificial intelligence gives it a big long-term advantage as the industrial Internet of Things becomes increasingly sophisticated and interconnected. Although Deere may not provide short-term shareholder benefits, its track record suggests its long-term-focused model produces greater shareholder value in the end. Over the last 10 years, Deere is one of the few major industrial stocks that has beat the S&P 500, the Nasdaq Composite, and the industrial sector even when factoring in dividends.
DE Total Return Level data by YCharts
Meanwhile, Caterpillar and Cummins have underperformed the major indexes. This isn't to say that Caterpillar and Cummins are bad stocks. In fact, Caterpillar looks like a good buy now. It's just a testament to Deere's model of investing in its business instead of returning value to shareholders through oversized dividends and buybacks.
Playing devil's advocate
When you see a stock like Deere that looks like a good buy, a good habit to develop is to try and poke holes in your own investment thesis. I think there are a few good arguments against Deere right now.
For starters, a collapse in consumer, agricultural, industrial, and infrastructure spending would derail Deere's growth. Put a different way, if the cycle flips from boom to bust, Deere's valuation won't look so cheap. A complete bust seems unlikely, given the strength of the agricultural industry right now. But it is a risk worth monitoring.
The more likely scenario is that inflation lasts longer than expected and hurts Deere's margins to the point where a dollar added in revenue doesn't go as far in terms of actual profit. What's more, rising interest rates make it more expensive to borrow money. So even if business is good for Deere's end users, they may be less inclined to allocate capital expenditures toward Deere products if financing isn't as cheap or if they perceive the boom in business to be ephemeral. Customers may also shift buyer behavior toward agricultural machinery at a cheaper price instead of the premium-priced John Deere brand.
A reasonable buy now
Despite the risks, the collapse in Deere's stock price seems over the top. The company has a great track record and a long-term focus, and its stock isn't expensive even if growth slows. For investors looking to dip their toes into an industrial stock they can own for the long term, Deere looks like an excellent all-around value.
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.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool recommends Cummins. 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 & Company (NYSE: DE) crushed fiscal 2022 second-quarter (ended May 1) revenue and earnings on Friday -- reporting a 17% year-over-year increase in net income and excellent growth despite supply chain and inflation headwinds. "Looking ahead, we believe demand for farm machinery will continue benefiting from positive fundamentals in spite of availability concerns and inflationary pressures affecting our customers' input costs," said Deere CEO John C. May in a press release. The more likely scenario is that inflation lasts longer than expected and hurts Deere's margins to the point where a dollar added in revenue doesn't go as far in terms of actual profit.
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In Q2 of fiscal 2021, Deere achieved record quarterly sales of $12.06 billion and record quarterly net income of $1.8 billion. Low interest rates and increased demand from Deere's customers certainly helped its results offset supply chain issues. Deere expects operating cash flow of $5.6 billion to $6 billion in fiscal 2022, which sounds like a lot, but it's quite a bit lower than Deere's record high of $7.3 billion in fiscal 2021.
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Deere is operating a booming business Deere is a cyclical stock whose earnings tend to rise and fall to the tune of the broader agriculture, construction, and forestry industries. Deere expects operating cash flow of $5.6 billion to $6 billion in fiscal 2022, which sounds like a lot, but it's quite a bit lower than Deere's record high of $7.3 billion in fiscal 2021. So even if business is good for Deere's end users, they may be less inclined to allocate capital expenditures toward Deere products if financing isn't as cheap or if they perceive the boom in business to be ephemeral.
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Here's what's going on with Deere and why the agriculture stock is a buy despite some concerns. A reasonable buy now Despite the risks, the collapse in Deere's stock price seems over the top. * 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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2022-05-25 00:00:00 UTC
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3 Stocks That Are Coiled Springs for a Commodity Supercycle
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An economic supercycle is a business cycle with sustained economic expansion. A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products. A commodity supercycle can occur for supply/demand imbalances even when an economic supercycle isn't active.
Strained supply chains and global geopolitical tensions are disrupting global trade and teeing up a potential commodity supercycle. If certain countries decide not to trade with each other, or dramatically reduce trade, that decision will severely impact a lot of businesses. For the U.S. and its allies, it's not just about how much oil and gas, or copper, or lithium, or semiconductors are the world, but rather how much supply exists from America's network of allies relative to demand.
Deere & Company (NYSE: DE), Aspen Technology (NASDAQ: AZPN), and Rio Tinto (NYSE: RIO) are three companies that are positioned to provide critical goods and services needed in a commodity supercycle. Here's what makes each company a great buy now.
Image source: Getty Images.
Hitch a ride on the agriculture giant
Daniel Foelber (Deere): Despite reporting smashing earnings and revenue on Friday, Deere stock suffered its worst daily decline since 2008. For investors who are relatively new to the stock market, seeing a company put up strong results and then watching its stock crash anyway can seem bizarre. And in many ways, it is. But the stock market is forward-looking, meaning it cares more about what is to come than what has already happened. And in Deere's case, the expectation is that the company will face a slowdown if its customers cut spending. Or at the very least, Deere's margins could be squeezed as supply chain disruptions and higher input costs make it more expensive to conduct its business operations.
Struggles aside, the long-term future for Deere looks incredibly attractive. The company is the industry leader or close to the industry leader in each of its segments. Deere is also invested heavily in artificial intelligence (AI) and other technologies to improve crop yield and save its customers money. That investment reduces the total cost of ownership for Deere products and makes them some of the best on the market. Deere's AI investments have been recognized by Ark Invest's Cathie Wood. In fact, Deere is the sixth-largest holding in the Ark Autonomous Technology and Robotics exchange-traded fund.
Deere stock is down a staggering 26% in the last month alone -- which has pushed its price-to-earnings (P/E) ratio down to 16.4 and its forward P/E ratio down to just 13.7. Granted, Deere stock tends to trade at a discount to the average P/E multiple in the S&P 500. But 13.7 is still cheap by Deere's standards given its 10-year median P/E is 17.4. Throw in a 1.2% dividend yield, and you have a value stock that looks poised for higher farming and industrial investment for decades to come.
An industrial software company servicing the energy industry
Lee Samaha (Aspen Technology): The recently formed Aspen Technology is a merger between the old Aspen Technology (industrial software with a heavy focus on energy) and a couple of energy and oil and gas businesses from Emerson Electric. As a result of the merger, Emerson Electric shareholders will own 55% of the new company with Aspen's existing shareholders receiving 45% and $6 billion in cash.
The merger combines Aspen's leadership in industrial asset optimization software with Emerson's power transmission and distribution software (OSI) and oil- and gas-focused Geological Simulation Software (GSS) business. The new company will generate around 40% of its sales from midstream/downstream and upstream oil and gas activity, with a further 18% from chemicals, 22% from power transmission and distribution, and 16% from engineering, procurement, and construction (EPC).
The logic behind selecting Aspen is simple. If there's going to be a commodity supercycle, then there will be spending on energy assets. And there's likely going to be even more growth in spending on the asset optimization software that Aspen offers. Furthermore, the emergence of digital web-enabled technologies is revolutionizing the productivity of industrial software solutions.
In addition, the strategic support of Emerson Electric (a leading process automation company) will strengthen the growth opportunity at Aspen -- Emerson's automation solutions are complementary to AspenTech's industrial software solutions. It all adds up to a company with exciting long-term prospects.
A metals producer that's poised to pop
Scott Levine (Rio Tinto): Commodity prices go up; commodity prices go down. Those familiar with this sector know that downturns -- and subsequent spikes -- are common occurrences; therefore, they're nothing to be feared. One metals stock, in fact, that's well positioned to benefit from an upswing in commodities is Rio Tinto. A leader in producing a variety of industrial metals, Rio Tinto relies most significantly on its iron ore to keep the lights on, but its copper and aluminum operations also figure prominently in the company's financials. Investors, therefore, stand to prosper should there be an uptick in the markets of any one -- or several -- commodities.
There's no certainty that a commodity supercycle is around the corner, but Rio Tinto's strong balance sheet indicates that it's in good financial shape to be OK until the supercycle starts. At the end of 2021, for example, Rio Tinto had a net cash position of $1.6 billion; moreover, the company has a conservative debt-to-equity ratio of 0.24. Pivoting to the cash flow statement, investors will find that the company's tendency to generate strong streams of the green represents another advantageous quality. Over the past five years, Rio Tinto has generated average annual free cash flow of $5.78 per share according to Morningstar.
Currently, shares of Rio Tinto are trading at a discount. Whereas the stock trades at an average five-year average price-to-cash-flow multiple of 7.1, the stock is changing hands today at a ratio of 4.3. And that's not the only perspective from which Rio Tinto's stock seems attractively valued: It's trading today at about 5.1 times trailing earnings, a discount to its five-year average P/E of 10.5.
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 April 27, 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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A leader in producing a variety of industrial metals, Rio Tinto relies most significantly on its iron ore to keep the lights on, but its copper and aluminum operations also figure prominently in the company's financials. Pivoting to the cash flow statement, investors will find that the company's tendency to generate strong streams of the green represents another advantageous quality. A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products.
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Deere & Company (NYSE: DE), Aspen Technology (NASDAQ: AZPN), and Rio Tinto (NYSE: RIO) are three companies that are positioned to provide critical goods and services needed in a commodity supercycle. The merger combines Aspen's leadership in industrial asset optimization software with Emerson's power transmission and distribution software (OSI) and oil- and gas-focused Geological Simulation Software (GSS) business. A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products.
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Deere & Company (NYSE: DE), Aspen Technology (NASDAQ: AZPN), and Rio Tinto (NYSE: RIO) are three companies that are positioned to provide critical goods and services needed in a commodity supercycle. A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products. A commodity supercycle can occur for supply/demand imbalances even when an economic supercycle isn't active.
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A commodity supercycle is when demand continues to outpace supply and leads to strong prices for commodities like oil, natural gas, basic metals, and agricultural products. A commodity supercycle can occur for supply/demand imbalances even when an economic supercycle isn't active. Strained supply chains and global geopolitical tensions are disrupting global trade and teeing up a potential commodity supercycle.
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721155.0
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2022-05-24 00:00:00 UTC
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EnerSys (ENS) to Report Q4 Earnings: What's in the Offing?
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EnerSys ENS is scheduled to release fourth-quarter fiscal 2022 (ended March 2022) results on May 25, after market close.
ENS’ earnings surpassed estimates thrice in the last four quarters and missed the mark once, the surprise being 0.8%, on average. Its third-quarter fiscal 2022 (ended December 2021) earnings of $1.01 per share beat the Zacks Consensus Estimate of 99 cents by 2%.
Image Source: Zacks Investment Research
In the past three months, shares of the company have lost 11.5% compared with the industry’s decline of 10.3%.
Factors at Play
EnerSys’ results for the fiscal fourth quarter are likely to have been affected by the softness in its power systems end market amid the supply-chain constraints. Also, weakness in ENS’s original equipment manufacturer (OEM) motive power end market is expected to have been a headwind in the to-be-reported quarter.
ENS has been dealing with the adverse impacts of increasing cost of sales and operating expenses for a while. In the fiscal third quarter, its cost of sales increased 17.4% year over year, while Operating expenses jumped 10.8%, a trend that most likely continued in the fiscal fourth quarter. Also, in the quarter, ENS’s gross margin decreased 340 basis points (bps) while the operating margin fell 330 bps. Shortages of product components (semiconductors and resin) as well as high freight and tariffs plus labor constraints might have dented EnerSys’ margin and profitability in the fourth quarter of fiscal 2022.
EnerSys has been making multiple investments to boost growth over time. Although its investments bode well for the long term, high capital expenditure incurred might have suppressed its short-term liquidity in the to-be-reported quarter. For fiscal 2022, ENS expects capital expenditure of about $100 million, of which $52.4 million was incurred in the first three quarters of fiscal 2022.
ENS’s performance is exposed to risks arising from geopolitical issues, trade relations, unfavorable movements in foreign currencies and governmental policies, given its widespread presence. A stronger U.S. dollar might have hurt its overseas business in the fiscal fourth quarter.
However, EnerSys is expected to have benefited from strength across defense, transportation and lithium-based battery technology end markets in the fiscal fourth quarter. Also, ENS’ solid product offerings, its focus on product innovation (including lithium, Touch-Safe and DC fast charge) and strengthening demand are expected to have positively contributed to its performance in the fiscal fourth quarter.
The Zacks Consensus Estimate for revenues in the fiscal fourth quarter from the Energy Systems segment is currently pegged at $387 million, indicating growth of 10.9% from the last fiscal year’s quarterly reported figure. Also, the consensus estimate for Motive Power segment revenues is pegged at $369 million, indicating an increase of 10.8% from the last fiscal year’s quarterly reading. The consensus estimate for revenues from the Specialty segment stands at $144 million, suggesting growth of 9.1% from the last fiscal year’s quarterly tally.
The Zacks Consensus Estimate for ENS’s total revenues for the fiscal fourth quarter is currently pegged at $881 million, suggesting 8.2% growth from the last fiscal year’s quarterly reported number and a 4.4% increase from the quarter-ago reported number. The consensus estimate for earnings of $1.15 suggests a decline of 11.5% from the prior fiscal year’s quarterly levels and an increase of 13.9% sequentially.
Earnings Whispers
Our quantitative model does not predict a beat for EnerSys this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: EnerSys has an Earnings ESP of -1.31%, as the Most Accurate Estimate is pegged at $1.13, lower than the Zacks Consensus Estimate of $1.15.
Enersys Price and EPS Surprise
Enersys price-eps-surprise | Enersys Quote
Zacks Rank: EnerSys carries a Zacks Rank #4 (Sell).
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Graco Inc. GGG has an Earnings ESP of +0.42% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Graco’s earnings is pegged at 68 cents per share for the second quarter of 2022. GGG’s shares have lost 13.9% in the past three months.
Deere & Company DE has an Earnings ESP of +0.57% and a Zacks Rank of 3, currently.
The Zacks Consensus Estimate for Deere’s earnings is pegged at $6.95 per share for the third quarter of fiscal 2022 (ending July 2022). DE’s shares have decreased 2.2% in the past three months.
Hubbell Incorporated HUBB has an Earnings ESP of +1.73% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Hubbell’s earnings is pegged at $2.41 per share for the second quarter of 2022. HUBB’s shares have gained 6.4% in the past three months.
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.
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
Graco Inc. (GGG): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
Hubbell Inc (HUBB): 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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Shortages of product components (semiconductors and resin) as well as high freight and tariffs plus labor constraints might have dented EnerSys’ margin and profitability in the fourth quarter of fiscal 2022. ENS’s performance is exposed to risks arising from geopolitical issues, trade relations, unfavorable movements in foreign currencies and governmental policies, given its widespread presence. EnerSys ENS is scheduled to release fourth-quarter fiscal 2022 (ended March 2022) results on May 25, after market close.
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EnerSys ENS is scheduled to release fourth-quarter fiscal 2022 (ended March 2022) results on May 25, after market close. Its third-quarter fiscal 2022 (ended December 2021) earnings of $1.01 per share beat the Zacks Consensus Estimate of 99 cents by 2%. Image Source: Zacks Investment Research In the past three months, shares of the company have lost 11.5% compared with the industry’s decline of 10.3%.
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The Zacks Consensus Estimate for Deere’s earnings is pegged at $6.95 per share for the third quarter of fiscal 2022 (ending July 2022). EnerSys ENS is scheduled to release fourth-quarter fiscal 2022 (ended March 2022) results on May 25, after market close. Its third-quarter fiscal 2022 (ended December 2021) earnings of $1.01 per share beat the Zacks Consensus Estimate of 99 cents by 2%.
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Deere & Company DE has an Earnings ESP of +0.57% and a Zacks Rank of 3, currently. EnerSys ENS is scheduled to release fourth-quarter fiscal 2022 (ended March 2022) results on May 25, after market close. Its third-quarter fiscal 2022 (ended December 2021) earnings of $1.01 per share beat the Zacks Consensus Estimate of 99 cents by 2%.
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2022-05-23 00:00:00 UTC
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Got $500? Consider These 3 Cathie Wood Bargain Stocks
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You don't need a lot of money to assemble a portfolio these days. Zero-commission-fee trading and the ability to buy fractional shares at a growing number of brokerages make it easy to build a diversified collection of stocks when you have as little as $500 to invest. The low barrier also makes it easy to cherry-pick from the market's most popular top stock investors, including Ark Invest's Cathie Wood.
The CEO, co-founder, and stock picker of the Ark Invest family of exchange-traded funds (ETFs) has admittedly had a challenging run since her blowout performance in 2020, but this also means that there are some surprising bargains to be found in her portfolios. Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and General Motors (NYSE: GM) are three of her holdings that I think are bargains right now.
Image source: Getty Images.
Roku
Roku has never been as popular as it is right now as a platform. It had 61.3 million active accounts on its platform by the end of March, and it's an engaged audience with users averaging nearly four hours a day cradling their Roku remotes as they stream various services through the market-leading operating system.
Roku's growth is impressive, as average revenue per user has risen 34% over the past year, and that's stacked on top of the 14% year-over-year gain in active accounts. The stock has been treated like a canceled pilot TV show lately, plunging more than 80% since peaking last summer.
Roku shares are exchanging hands for a modest four times revenue. This is a stock that was routinely trading at a double-digit top-line multiple. Profitability has been spotty. Roku doesn't have the low P/E ratio you'll find in the other two names on this list. However, Roku has a cash-rich balance sheet with more than enough liquidity to get through any setbacks or initiatives to invest in growth.
Deere
Wall Street went Deere hunting last week. Shares of the global giant in agricultural, commercial, and construction equipment took a 14% hit on Friday after the company posted mixed quarterly results and lowered its operating cash flow guidance for the entire fiscal year. It wasn't a perfect report, but it does make the valuation argument for Deere even more attractive.
The stock trades at just 14 times its earnings guidance for fiscal 2022. Deere is also well positioned to continue growing as countries improve their infrastructure and beef up their potential to produce agricultural harvests. Every quarter won't be yield a bumper crop, but Deere's long-term growth potential makes it a compelling buy on dips.
General Motors
The largest holding across all of Wood's ETFs through most of the past year has been Tesla, but it's not the only automaker in her portfolio. At the other end of the growth spectrum you will find General Motors driving its way into Wood's portfolio.
Unlike Tesla with its lofty multiples, GM is cheap by most measuring sticks. GM is trading for just six times trailing earnings. Tesla's P/E ratio is 15 times higher at 90. The disparity only grows if you look at the other end of the income statement, as Tesla's revenue multiple is 11 against GM at a mere 0.4 on a trailing basis. The gap starts to narrow if you approach each automaker's enterprise value instead of market cap. GM is highly leveraged. There is still a huge valuation difference between the two companies.
Tesla naturally has growth, momentum, and a commanding lead in the electric vehicles market. It's also widely assumed that Tesla is the leader in self-driving cars, but GM's Cruise platform is starting to turn heads in the automotive community. GM's debt is substantial, and it hasn't resumed the quarterly dividends it suspended in early 2020. It's still an attractively priced automotive stock with a stronger position in next-gen vehicle tech than you probably think.
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 April 27, 2022
Rick Munarriz has positions in Deere & Company, Roku, and Tesla. The Motley Fool has positions in and recommends Roku and Tesla. 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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The CEO, co-founder, and stock picker of the Ark Invest family of exchange-traded funds (ETFs) has admittedly had a challenging run since her blowout performance in 2020, but this also means that there are some surprising bargains to be found in her portfolios. Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and General Motors (NYSE: GM) are three of her holdings that I think are bargains right now. Roku shares are exchanging hands for a modest four times revenue.
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Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and General Motors (NYSE: GM) are three of her holdings that I think are bargains right now. The stock trades at just 14 times its earnings guidance for fiscal 2022. The CEO, co-founder, and stock picker of the Ark Invest family of exchange-traded funds (ETFs) has admittedly had a challenging run since her blowout performance in 2020, but this also means that there are some surprising bargains to be found in her portfolios.
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Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and General Motors (NYSE: GM) are three of her holdings that I think are bargains right now. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Rick Munarriz has positions in Deere & Company, Roku, and Tesla. The CEO, co-founder, and stock picker of the Ark Invest family of exchange-traded funds (ETFs) has admittedly had a challenging run since her blowout performance in 2020, but this also means that there are some surprising bargains to be found in her portfolios.
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See the 10 stocks *Stock Advisor returns as of April 27, 2022 Rick Munarriz has positions in Deere & Company, Roku, and Tesla. The CEO, co-founder, and stock picker of the Ark Invest family of exchange-traded funds (ETFs) has admittedly had a challenging run since her blowout performance in 2020, but this also means that there are some surprising bargains to be found in her portfolios. Roku (NASDAQ: ROKU), Deere & Company (NYSE: DE), and General Motors (NYSE: GM) are three of her holdings that I think are bargains right now.
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2022-05-23 00:00:00 UTC
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Company News for May 23, 2022
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Deere & Co.’s DE shares plunged 14.1% after the company reported second-quarter fiscal 2022 revenues of $12,034 million, missing the Zacks Consensus Estimate of $13,442 million.
Foot Locker Inc.’s FL shares jumped 4.1% after the company posted first-quarter fiscal 2022 adjusted earnings per share of $1.60, outpacing the Zacks Consensus Estimate of $1.47.
Shares of Applied Materials Inc. AMAT tumbled 3.9% after reporting second-quarter fiscal 2022 adjusted earnings per share of $1.85, lagging the Zacks Consensus Estimate of $1.89.
Shares of Palo Alto Networks Inc. PANW climbed 9.7% after posting third-quarter fiscal 2022 adjusted earnings per share of $1.79, beating the Zacks Consensus Estimate of $1.67.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW): 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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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Deere & Co.’s DE shares plunged 14.1% after the company reported second-quarter fiscal 2022 revenues of $12,034 million, missing the Zacks Consensus Estimate of $13,442 million. Deere & Company (DE): Free Stock Analysis Report
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Deere & Co.’s DE shares plunged 14.1% after the company reported second-quarter fiscal 2022 revenues of $12,034 million, missing the Zacks Consensus Estimate of $13,442 million. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Deere & Company (DE): Free Stock Analysis Report
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Deere & Co.’s DE shares plunged 14.1% after the company reported second-quarter fiscal 2022 revenues of $12,034 million, missing the Zacks Consensus Estimate of $13,442 million. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Deere & Company (DE): Free Stock Analysis Report
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Deere & Company (DE): Free Stock Analysis Report Deere & Co.’s DE shares plunged 14.1% after the company reported second-quarter fiscal 2022 revenues of $12,034 million, missing the Zacks Consensus Estimate of $13,442 million. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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2022-05-22 00:00:00 UTC
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Deere's Profits Double. Investors Sell.
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https://www.nasdaq.com/articles/deeres-profits-double.-investors-sell.
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On Friday morning, agricultural equipment giant Deere & Company (NYSE: DE) announced that it just grew its profits about twice as fast as it grew its sales. So of course investors...dumped the stock!
Reporting its financial results for its fiscal second quarter 2022 Friday, Deere said its net sales and revenue came in at $13.4 billion, up 11% year-over-year. Earnings, however, rose 20% year-over-year, to $6.81 per share, exceeding sales growth thanks to a net profit margin that grew by nearly a full percentage point.
Regardless, investors sold off Deere in droves. In just the first two hours of trading Friday, Deere stock fell 11.5%.
Image source: Getty Images.
Planting seeds, harvesting profits
Given the current macroeconomic environment (i.e. a war in the "breadbasket of Europe" that has decimated grain exports to the developing world, and driven fertilizer prices through the roof), it will surprise no one to learn that Deere's industrial-scale farming division ("production and precision agriculture") was the sales driver this past quarter. Sales in this, Deere's biggest business segment, surged 13% year-over-year, offsetting slower growth in construction and forestry (sales up 9%) and especially in consumer-focused small agriculture and turf segment (sales up 5%).
What's more, Deere predicts these dynamics will gain strength all year long (if not longer). Giving new guidance for the rest of fiscal 2022, Deere expects end up growing Large Ag sales by 25% to 30% this year, and to grow both construction and Small Ag sales as much as 15% each.
Management further predicted that its earnings this year will range from $7 billion to $7.4 billion. Spread out across approximately 307 million shares outstanding, that works out to $23.45 per share at the midpoint of the guidance range, and implies that Deere stock is selling for about 13.8 times current-year earnings. It also implies that Deere will soundly thump analyst projections for it to earn only $22.70 per share this year. So...why are investors dumping Deere stock in response to this good news?
That's really hard to say. By all accounts, Deere is driving toward its most successful and profitable year ever. With demand high and rising, farmers likely to be flush on grain profits and well-able to afford new farm equipment, Deere beat earnings in Q2, and is promising to keep on beating earnings all year long.
Granted, at 13.8 times earnings, Deere looks a little bit expensive based on its projected 15% long-term growth rate and tiny 1.2% dividend yield. Still, on balance the earnings news looks good to me -- and a better reason to buy Deere stock than to sell it.
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 April 27, 2022
Rich Smith 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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Planting seeds, harvesting profits Given the current macroeconomic environment (i.e. a war in the "breadbasket of Europe" that has decimated grain exports to the developing world, and driven fertilizer prices through the roof), it will surprise no one to learn that Deere's industrial-scale farming division ("production and precision agriculture") was the sales driver this past quarter. Granted, at 13.8 times earnings, Deere looks a little bit expensive based on its projected 15% long-term growth rate and tiny 1.2% dividend yield. On Friday morning, agricultural equipment giant Deere & Company (NYSE: DE) announced that it just grew its profits about twice as fast as it grew its sales.
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Giving new guidance for the rest of fiscal 2022, Deere expects end up growing Large Ag sales by 25% to 30% this year, and to grow both construction and Small Ag sales as much as 15% each. Spread out across approximately 307 million shares outstanding, that works out to $23.45 per share at the midpoint of the guidance range, and implies that Deere stock is selling for about 13.8 times current-year earnings. With demand high and rising, farmers likely to be flush on grain profits and well-able to afford new farm equipment, Deere beat earnings in Q2, and is promising to keep on beating earnings all year long.
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Spread out across approximately 307 million shares outstanding, that works out to $23.45 per share at the midpoint of the guidance range, and implies that Deere stock is selling for about 13.8 times current-year earnings. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. On Friday morning, agricultural equipment giant Deere & Company (NYSE: DE) announced that it just grew its profits about twice as fast as it grew its sales.
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Reporting its financial results for its fiscal second quarter 2022 Friday, Deere said its net sales and revenue came in at $13.4 billion, up 11% year-over-year. * 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! On Friday morning, agricultural equipment giant Deere & Company (NYSE: DE) announced that it just grew its profits about twice as fast as it grew its sales.
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9a45da22-f200-4774-8e3c-9bf0925ae9a6
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721159.0
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2022-05-20 00:00:00 UTC
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Deere (DE) Earnings Beat Estimates in Q2, Hikes '22 View
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DE
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https://www.nasdaq.com/articles/deere-de-earnings-beat-estimates-in-q2-hikes-22-view
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Deere & Company DE reported second-quarter fiscal 2022 (ended May 1, 2022) earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65. The bottom line increased 19.9% from the prior-year quarter’s levels. Continued strong demand despite supply chain constraints contributed to the bottom line.
Net sales of equipment operations (comprising Agriculture and Turf, Construction and Forestry) were $12,034 million, up 9% year over year. Revenues lagged the Zacks Consensus Estimate of $13,442 million. Total net sales (including financial services and others) were $13,370 million, up 11% year over year.
Operational Update
The cost of sales in the reported quarter was up 12% year over year to $8,918 million. Total gross profit in the reported quarter increased 10% year over year to $2,552 million. Selling, administrative and general expenses rose 11% to $932 million from the prior-year period’s levels.
Total operating profit (including financial services) was up 9% year over year to $2,670 million in the fiscal second 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 13% year over year to $5,117 million, primarily driven by higher shipment volumes and price realization. Operating profit in the segment increased 5% year over year to $1,057 million.
Small Agriculture & Turf sales rose 5% to $3,570 million from the year-earlier quarter’s levels as benefits from price realization offset by the unfavorable impact of currency translation. The segment’s operating profit fell 20% year over year to $520 million.
Construction & forestry segment sales were $3,347 million, up 9% year over year, backed by higher shipment volumes and price realization. The segment’s operating profit flared up 66% year over year to $814 million.
Net revenues in Deere’s Financial Services division were $864 million in the reported quarter, down 3% year on year. The segment’s operating profit amounted to $279 million, down 5% year over year.
Financial Update
Deere reported cash and cash equivalents of $3,878 million at the end of second-quarter fiscal 2022 compared with $7,182 million recorded at the end of the year-ago quarter. Cash utilized in operating activities was $1,762 million in the first half of fiscal 2022 against cash generation of $1,786 million in the prior-year period. At the end of the quarter, the long-term borrowing was nearly $32 billion compared with $33 billion in the year-ago quarter’s end.
Outlook
Deere expects net income for fiscal 2022 to be between $7.0 billion and $7.4 billion, up from the prior estimate of $6.7-$7.1 billion. Demand for farm and construction equipment will continue to be supported by positive fundamentals.
Price Performance
Deere’s shares have gained 1.4% in the past year compared with the industry’s decline of 0.4%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK, Myers Industries MYE and Packaging Corporation of America PKG. While GPK and MYE flaunt a Zacks Rank #1 (Strong Buy), PKG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.
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Deere & Company (DE): Free Stock Analysis Report
Packaging Corporation of America (PKG): Free Stock Analysis Report
Graphic Packaging Holding Company (GPK): Free Stock Analysis Report
Myers Industries, Inc. (MYE): 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 second-quarter fiscal 2022 (ended May 1, 2022) earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. Continued strong demand despite supply chain constraints contributed to the bottom line.
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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 13% year over year to $5,117 million, primarily driven by 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 second-quarter fiscal 2022 (ended May 1, 2022) earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65.
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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 13% year over year to $5,117 million, primarily driven by higher shipment volumes and price realization. Net revenues in Deere’s Financial Services division were $864 million in the reported quarter, down 3% year on year. Deere & Company DE reported second-quarter fiscal 2022 (ended May 1, 2022) earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65.
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Deere & Company DE reported second-quarter fiscal 2022 (ended May 1, 2022) earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65. 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 13% year over year to $5,117 million, primarily driven by 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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721160.0
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2022-05-20 00:00:00 UTC
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US STOCKS-Wall Street ends mixed, Tesla falls
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-mixed-tesla-falls
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By Amruta Khandekar and Noel Randewich
May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
Worries about surging inflation and rising interest rates have pummeled the U.S. stock market this year, with danger signals from Walmart Inc WMT.N and other retailers this week adding to fears about the economy.
Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week.
The S&P 500 closed about 18% down from its Jan. 3 record high close. Closing down 20% from that record level would confirm it has been in a bear market since reaching that high, according to a common definition. That would be the S&P 500's second bear market since the 2020 global selloff caused by the coronavirus pandemic.
The tech-heavy Nasdaq .IXIC was last down close to 29% from its record close in November 2021.
Weighing heavily on the S&P 500, Tesla TSLA.O tumbled after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016.
Other megacap stocks also fell, with Apple, Google-owner Alphabet Inc GOOGL.O, Microsoft MSFT.O and Nvidia NVDA.O losing ground.
Shares of Deere & Co DE.N dropped after the heavy equipment maker posted downbeat quarterly revenue.
Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
On Friday, Ross Stores ROST.O plunged after the discount apparel retailer cut its 2022 forecasts for sales and profit, while Vans brand owner VF Corp VFC.N gained on strong 2023 revenue outlook.
The S&P 500 and the Nasdaq are set for their seventh straight week of losses, their longest losing streak since the end of the dotcom bubble in 2001.
The Dow .DJI is on track for its eighth consecutive weekly decline, its longest since 1932 during the Great Depression.
Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH
According to preliminary data, the S&P 500 .SPX gained 0.72 points, or 0.02%, to end at 3,901.51 points, while the Nasdaq Composite .IXIC lost 33.12 points, or 0.29%, to 11,355.38. The Dow Jones Industrial Average .DJI rose 9.81 points, or 0.03%, to 31,262.94.
Expiration of monthly options contracts on Friday was likely to boost trading volumes and could also add to volatility, especially toward the end of the session.
About two thirds of S&P 500 stocks are down 20% or more from their 52-week highs.
S&P 500's busiest tradeshttps://tmsnrt.rs/3Lte7Zj
S&P 500 bear marketshttps://tmsnrt.rs/3lrWFKr
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta, Arun Koyyur and Grant McCool)
((noel.randewich@tr.com; Twitter: @randewich))
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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Weighing heavily on the S&P 500, Tesla TSLA.O tumbled after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016. Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. By Amruta Khandekar and Noel Randewich May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
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By Amruta Khandekar and Noel Randewich May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground. Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week. Closing down 20% from that record level would confirm it has been in a bear market since reaching that high, according to a common definition.
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By Amruta Khandekar and Noel Randewich May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground. S&P 500's busiest tradeshttps://tmsnrt.rs/3Lte7Zj S&P 500 bear marketshttps://tmsnrt.rs/3lrWFKr (Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta, Arun Koyyur and Grant McCool) ((noel.randewich@tr.com; Twitter: @randewich)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week.
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By Amruta Khandekar and Noel Randewich May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground. Closing down 20% from that record level would confirm it has been in a bear market since reaching that high, according to a common definition. Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
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5754a09f-c619-4881-a9ec-124d11464f4c
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721161.0
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2022-05-20 00:00:00 UTC
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US STOCKS-S&P 500 tumbles, on verge of confirming bear market
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https://www.nasdaq.com/articles/us-stocks-sp-500-tumbles-on-verge-of-confirming-bear-market
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By Amruta Khandekar and Noel Randewich
May 20 (Reuters) - The S&P 500 tumbled on Friday, putting the widely followed benchmark on the verge of confirming it has been in a bear market since hitting a record high in January.
Worries about surging inflation and rising interest rates have pummeled the U.S. stock market this year, with danger signals from Walmart Inc WMT.N and other retailers this week adding to fears about the economy.
Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week.
"Any positivity is being sold in a very heavy and high-volume fashion, and that's very concerning," said Keith Buchanan, a portfolio manager at Globalt Investments. "It feels like it's fear driven."
The S&P 500 was on track to close down 19.4% from its Jan. 3 record high close. Closing down 20% from that record level would confirm it has been in a bear market since reaching that high, according to a common definition. That would be the S&P 500's second bear market since the 2020 global selloff caused by the coronavirus pandemic.
Earlier in Friday's session, the S&P 500 was down almost 21% from its January high.
The tech-heavy Nasdaq .IXIC was last down 29% from its record close in November 2021.
Weighing heavily on the S&P 500, Tesla TSLA.O dropped 9.8% after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016.
Other megacap stocks also fell, with Apple down 2.7% and Google-owner Alphabet Inc GOOGL.O losing 3.7%.
Ten of the 11 major S&P sectors declined, with consumer discretionary .SPLRCD and industrials .SPLRCI down 3.5% and 2.4%, respectively.
Shares of Deere & Co DE.N tumbled about 14% after the heavy equipment maker posted downbeat quarterly revenue.
Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
On Friday, Ross Stores ROST.O plunged over 20% after the discount apparel retailer cut its 2022 forecasts for sales and profit, while Vans brand owner VF Corp VFC.N gained 3.9% on strong 2023 revenue outlook.
The S&P 500 and the Nasdaq are set for their seventh straight week of losses, their longest losing streak since the end of the dotcom bubble in 2001.
The Dow .DJI is on track for its eighth consecutive weekly decline, its longest since 1932 during the Great Depression.
Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH
In afternoon trading, the S&P 500 was down 1.97% at 3,823.92 points.
The Nasdaq declined 2.61% to 11,091.22 points, while the Dow Jones Industrial Average was down 1.72% at 30,714.43 points.
Expiration of monthly options contracts on Friday was likely to boost trading volumes and could also add to volatility, especially toward the end of the session.
About two thirds of S&P 500 stocks are down 20% or more from their 52-week highs.
Declining issues outnumbered advancing ones on the NYSE by a 3.00-to-1 ratio; on Nasdaq, a 2.61-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 48 new lows; the Nasdaq Composite recorded 10 new highs and 325 new lows.
S&P 500's busiest tradeshttps://tmsnrt.rs/3Lte7Zj
S&P 500 bear marketshttps://tmsnrt.rs/3lrWFKr
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta, Arun Koyyur and Grant McCool)
((noel.randewich@tr.com; Twitter: @randewich))
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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Weighing heavily on the S&P 500, Tesla TSLA.O dropped 9.8% after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016. Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. By Amruta Khandekar and Noel Randewich May 20 (Reuters) - The S&P 500 tumbled on Friday, putting the widely followed benchmark on the verge of confirming it has been in a bear market since hitting a record high in January.
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By Amruta Khandekar and Noel Randewich May 20 (Reuters) - The S&P 500 tumbled on Friday, putting the widely followed benchmark on the verge of confirming it has been in a bear market since hitting a record high in January. The S&P 500 posted 1 new 52-week highs and 48 new lows; the Nasdaq Composite recorded 10 new highs and 325 new lows. Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week.
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By Amruta Khandekar and Noel Randewich May 20 (Reuters) - The S&P 500 tumbled on Friday, putting the widely followed benchmark on the verge of confirming it has been in a bear market since hitting a record high in January. The S&P 500 posted 1 new 52-week highs and 48 new lows; the Nasdaq Composite recorded 10 new highs and 325 new lows. Wall Street opened stronger on Friday morning before turning sharply negative and adding to deep losses sustained earlier in the week.
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Closing down 20% from that record level would confirm it has been in a bear market since reaching that high, according to a common definition. The Nasdaq declined 2.61% to 11,091.22 points, while the Dow Jones Industrial Average was down 1.72% at 30,714.43 points. By Amruta Khandekar and Noel Randewich May 20 (Reuters) - The S&P 500 tumbled on Friday, putting the widely followed benchmark on the verge of confirming it has been in a bear market since hitting a record high in January.
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721162.0
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2022-05-20 00:00:00 UTC
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Deere Falls Sharply as Industrials Weigh on Wall Street
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DE
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https://www.nasdaq.com/articles/deere-falls-sharply-as-industrials-weigh-on-wall-street
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Stocks tried to mount a rally to start Friday's trading session, but the gains didn't last long. By early afternoon, Wall Street was seeing sizable losses, with the S&P 500 (SNPINDEX: ^GSPC) coming closer to a 20% decline that would signify a bear market in many investors' eyes. As of 12:45 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 417 points to 30,836. The S&P dropped 64 points to 3,836, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 274 points to 11,115.
Most big companies have reported their earnings for the first part of 2022, but there are still some stragglers that are weighing in and offering a view of what certain parts of the economy look like right now. Deere (NYSE: DE) is a well-known manufacturer of heavy equipment, and it has its fingers on the pulse of the industrial sector. Deere announced its financial results this morning, and despite showing signs of strength, investors weren't impressed, and the stock fell sharply.
Image source: Getty Images.
Deere in the headlights
Shares of Deere were down almost 14% on Friday afternoon. The equipment manufacturer's business seemed to hold up reasonably well, but shareholders had apparently wanted to see more from the company.
Deere reported that revenue in its fiscal second quarter ending May 1 rose 11% to $13.37 billion. Net income was up 17% to $2.10 billion, and that produced earnings of $6.81 per share.
The company cited robust market conditions and industry fundamentals that it believes should help support ongoing strength. Despite somewhat sluggish performance in its small agriculture and turf segment, Deere was able to produce solid gains in sales and operating profit in its production and precision agriculture business. Moreover, the construction and forestry segment was the standout performer, with operating profit soaring 66% on a combination of higher shipment volumes and better price realizations.
Deere even boosted its net income guidance for the full 2022 fiscal year, now anticipating $7 billion to $7.4 billion on the bottom line. Yet even with shares that are priced at reasonable levels and despite calls for ongoing growth, the stock lost ground.
Worries about recession
The apparent disconnect between what Deere said about its prospects and the move in its stock price gets clearer when you put it into the broader macroeconomic context, at least as many investors are seeing it right now. Rising interest rates are designed to slow down the economy, and if customers don't have as much capacity to purchase more equipment for their farms and other needs, then Deere can expect to see a reversal in the strong demand that has helped its business lately.
Indeed, that theme is dominant across much of the entire industrial sector on Friday. The Industrial Select Sector SPDR (NYSEMKT: XLI) was down more than 2%, underperforming the broader S&P as key components fell. In particular, aerospace giant and Dow component Boeing (NYSE: BA) was down 7%, as investors continue to fear that the economic fallout from ailing airlines could hurt longer-term demand to such an extent as to cause lasting damage to the aircraft manufacturer.
Unfortunately, it'll take time to tell what impact current events will have on the industrial sector and the broader economy. For now, though, investors aren't willing to put up with any uncertainty at all, and that's what's motivating steep declines in the markets.
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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Dan Caplinger has positions in Boeing. 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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By early afternoon, Wall Street was seeing sizable losses, with the S&P 500 (SNPINDEX: ^GSPC) coming closer to a 20% decline that would signify a bear market in many investors' eyes. Rising interest rates are designed to slow down the economy, and if customers don't have as much capacity to purchase more equipment for their farms and other needs, then Deere can expect to see a reversal in the strong demand that has helped its business lately. In particular, aerospace giant and Dow component Boeing (NYSE: BA) was down 7%, as investors continue to fear that the economic fallout from ailing airlines could hurt longer-term demand to such an extent as to cause lasting damage to the aircraft manufacturer.
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Despite somewhat sluggish performance in its small agriculture and turf segment, Deere was able to produce solid gains in sales and operating profit in its production and precision agriculture business. In particular, aerospace giant and Dow component Boeing (NYSE: BA) was down 7%, as investors continue to fear that the economic fallout from ailing airlines could hurt longer-term demand to such an extent as to cause lasting damage to the aircraft manufacturer. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Deere announced its financial results this morning, and despite showing signs of strength, investors weren't impressed, and the stock fell sharply. 10 stocks we like better than Deere & Company When our award-winning analyst team has a stock tip, it can pay to listen. * 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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Deere (NYSE: DE) is a well-known manufacturer of heavy equipment, and it has its fingers on the pulse of the industrial sector. Deere in the headlights Shares of Deere were down almost 14% on Friday afternoon. * 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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2022-05-20 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, AFL, WMT
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-de-afl-wmt
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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 65,095 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 364.6% of DE's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $300 strike put option expiring May 20, 2022, with 3,018 contracts trading so far today, representing approximately 301,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $300 strike highlighted in orange:
AFLAC Inc (Symbol: AFL) saw options trading volume of 76,650 contracts, representing approximately 7.7 million underlying shares or approximately 261.6% of AFL's average daily trading volume over the past month, of 2.9 million shares. Especially high volume was seen for the $60 strike call option expiring August 19, 2022, with 18,940 contracts trading so far today, representing approximately 1.9 million underlying shares of AFL. Below is a chart showing AFL's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Walmart Inc (Symbol: WMT) saw options trading volume of 148,181 contracts, representing approximately 14.8 million underlying shares or approximately 130.1% of WMT's average daily trading volume over the past month, of 11.4 million shares. Especially high volume was seen for the $120 strike call option expiring May 27, 2022, with 15,926 contracts trading so far today, representing approximately 1.6 million underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for DE options, AFL options, or WMT 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 $300 strike put option expiring May 20, 2022, with 3,018 contracts trading so far today, representing approximately 301,800 underlying shares of DE. Especially high volume was seen for the $60 strike call option expiring August 19, 2022, with 18,940 contracts trading so far today, representing approximately 1.9 million underlying shares of AFL. Especially high volume was seen for the $120 strike call option expiring May 27, 2022, with 15,926 contracts trading so far today, representing approximately 1.6 million underlying shares of WMT.
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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 65,095 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million 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 $300 strike highlighted in orange: AFLAC Inc (Symbol: AFL) saw options trading volume of 76,650 contracts, representing approximately 7.7 million underlying shares or approximately 261.6% of AFL's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing AFL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Walmart Inc (Symbol: WMT) saw options trading volume of 148,181 contracts, representing approximately 14.8 million underlying shares or approximately 130.1% of WMT's average daily trading volume over the past month, of 11.4 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 65,095 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million 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 $300 strike highlighted in orange: AFLAC Inc (Symbol: AFL) saw options trading volume of 76,650 contracts, representing approximately 7.7 million underlying shares or approximately 261.6% of AFL's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing AFL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Walmart Inc (Symbol: WMT) saw options trading volume of 148,181 contracts, representing approximately 14.8 million underlying shares or approximately 130.1% of WMT's average daily trading volume over the past month, of 11.4 million shares.
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Especially high volume was seen for the $300 strike put option expiring May 20, 2022, with 3,018 contracts trading so far today, representing approximately 301,800 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $300 strike highlighted in orange: AFLAC Inc (Symbol: AFL) saw options trading volume of 76,650 contracts, representing approximately 7.7 million underlying shares or approximately 261.6% of AFL's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing AFL's trailing twelve month trading history, with the $60 strike highlighted in orange: And Walmart Inc (Symbol: WMT) saw options trading volume of 148,181 contracts, representing approximately 14.8 million underlying shares or approximately 130.1% of WMT's average daily trading volume over the past month, of 11.4 million shares.
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4ecbf10f-94cf-4142-bca9-3f2531849975
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721164.0
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2022-05-20 00:00:00 UTC
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US STOCKS-S&P 500 on pace to confirm bear market, falls 20% from record close
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DE
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https://www.nasdaq.com/articles/us-stocks-sp-500-on-pace-to-confirm-bear-market-falls-20-from-record-close
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nan
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nan
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By Amruta Khandekar and Devik Jain
May 20 (Reuters) - The benchmark S&P 500 index .SPX is trading down 20% from its Jan. 3 record close in volatile trading on Friday, as investors fretted over the impact of rising inflation on earnings and the fallout of interest rate hikes on economic growth.
A close of 20% or more below that level will confirm the S&P 500 is in a bear market for the first time since the 2020 Wall Street plunge brought on by the coronavirus pandemic.
The tech-heavy Nasdaq .IXIC is already in a bear market, down 30.7% from its record close in November 2021.
Ten of the 11 major S&P sectors declined, with consumer discretionary .SPLRCD and industrials .SPLRCI down 3.5% and 2.2%, respectively.
Apple Inc AAPL.O, Google-owner Alphabet Inc GOOGL.O, Nvidia Corp NVDA.O and Tesla TSLA.O slid between 2.5% and 9.9%, weighing the most on the S&P 500 and the Nasdaq. Both the indexes had climbed above 1% in morning trading.
Shares of Deere & Co DE.N tumbled 12.1% and were the biggest drag on the industrial sector after the heavy equipment maker posted downbeat quarterly revenue.
"In this process of a bear market, it is very common to have these intraday swings and counter cyclical rallies in it," said Will Nasgovitz, chief executive officer at Heartland Advisors.
"We are going to probably see a bear market (in S&P 500). The market is reflecting that the economy is not standing extremely tall, there are some cracks in the foundation."
Disappointing forecasts from big retailers Walmart Inc WMT.N and Target Inc TGT.N rattled market sentiment this week, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
The S&P 500 and the Nasdaq are set for their seventh straight week of losses, their longest losing streak since the end of the dotcom bubble in 2001.
The Dow .DJI is on track for its eighth consecutive weekly decline, its longest since 1932 during the Great Depression.
The three major indexes are down between 15.1% and 28.6% so far this year as investors adjust to supply-chain snarls, lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates.
Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH
At 12:54 p.m. ET, the Dow Jones Industrial Average .DJI was down 439.27 points, or 1.41%, at 30,813.86, the S&P 500 .SPX was down 69.83 points, or 1.79%, at 3,830.96, and the Nasdaq Composite .IXIC was down 291.39 points, or 2.56%, at 11,097.11.
Expiration of monthly options contracts on Friday was likely to boost trading volumes and could also add to volatility, especially toward the end of the session.
Ross Stores ROST.O plunged 23.8% after the discount apparel retailer cut its 2022 forecasts for sales and profit, while Vans brand owner VF Corp VFC.N gained 3% on strong 2023 revenue outlook.
Declining issues outnumbered advancers for a 2.84-to-1 ratio on the NYSE and for a 2.85-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 47 new lows, while the Nasdaq recorded 10 new highs and 285 new lows.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((Amruta.Khandekar@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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Disappointing forecasts from big retailers Walmart Inc WMT.N and Target Inc TGT.N rattled market sentiment this week, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. The three major indexes are down between 15.1% and 28.6% so far this year as investors adjust to supply-chain snarls, lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates. By Amruta Khandekar and Devik Jain May 20 (Reuters) - The benchmark S&P 500 index .SPX is trading down 20% from its Jan. 3 record close in volatile trading on Friday, as investors fretted over the impact of rising inflation on earnings and the fallout of interest rate hikes on economic growth.
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By Amruta Khandekar and Devik Jain May 20 (Reuters) - The benchmark S&P 500 index .SPX is trading down 20% from its Jan. 3 record close in volatile trading on Friday, as investors fretted over the impact of rising inflation on earnings and the fallout of interest rate hikes on economic growth. Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. The S&P index recorded one new 52-week high and 47 new lows, while the Nasdaq recorded 10 new highs and 285 new lows.
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By Amruta Khandekar and Devik Jain May 20 (Reuters) - The benchmark S&P 500 index .SPX is trading down 20% from its Jan. 3 record close in volatile trading on Friday, as investors fretted over the impact of rising inflation on earnings and the fallout of interest rate hikes on economic growth. A close of 20% or more below that level will confirm the S&P 500 is in a bear market for the first time since the 2020 Wall Street plunge brought on by the coronavirus pandemic. Ten of the 11 major S&P sectors declined, with consumer discretionary .SPLRCD and industrials .SPLRCI down 3.5% and 2.2%, respectively.
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By Amruta Khandekar and Devik Jain May 20 (Reuters) - The benchmark S&P 500 index .SPX is trading down 20% from its Jan. 3 record close in volatile trading on Friday, as investors fretted over the impact of rising inflation on earnings and the fallout of interest rate hikes on economic growth. A close of 20% or more below that level will confirm the S&P 500 is in a bear market for the first time since the 2020 Wall Street plunge brought on by the coronavirus pandemic. Ten of the 11 major S&P sectors declined, with consumer discretionary .SPLRCD and industrials .SPLRCI down 3.5% and 2.2%, respectively.
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923ff7e3-da55-4c7d-8174-10303848f734
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721165.0
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2022-05-20 00:00:00 UTC
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DE Stock Falls as Inflation and Supply Chain Worries Rise
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DE
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https://www.nasdaq.com/articles/de-stock-falls-as-inflation-and-supply-chain-worries-rise
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere & Company (NYSE:DE) reported largely positive Q2 earnings today
However, concerns about inflation and supply chain problems are sending DE stock down
Shares of DE stock are down about 12% at the time of writing
Source: Jim Lambert / Shutterstock.com
Deere & Company (NYSE:DE) reported Q2 earnings this morning. The company beat earnings estimates by 10 cents, reporting a profit of $6.81 per share. That’s a 20% boost from last year. An increase in worldwide crop prices helped in this regard. However, the company’s revenue missed Wall Street forecasts, sending its stock sharply lower alongside inflation and supply chain concerns.
Prior to today, DE stock had been up about 4% on the year, hitting a record high of $446.76 in March. The company’s shares are now changing hands at $320.67 at the time of writing.
What Happened During DE Stock Earnings
Deere & Co. also raised its annual profit outlook for this year, saying it expects a boost from farm-equipment demand. That demand looks to remain strong and outpace inflation as well as supply-chain snarls that have impacted delivery schedules in recent months.
Additionally, the company’s worldwide sales in the quarter rose 11% from a year ago to $13.37 billion, narrowly beating analysts’ forecasts of $13.36 billion.
Looking ahead, the company forecast net income of between $7 billion and $7.4 billion for the entire year, up from an earlier forecast of $6.7 billion to $7.1 billion. Deere attributed the upward revision to strong demand for farm equipment and rising crop prices.
Why It Matters
While Deere & Co.’s quarterly earnings were decent, and raising its forward guidance is positive, the company has not succeeded in persuading analysts and investors that it can overcome the ongoing supply chain problems that are afflicting companies worldwide.
On top of that, inflation remains a concerns for many investors. Can demand for Deere’s equipment outrun inflation that is running at a 40-year high in much of the world? Only time will tell. Rising interest rates could also put a crimp in equipment sales throughout this year as companies put off capital expenditures.
While Deere’s latest results were strong, there are simply too many uncertainties for investors moving forward.
What’s Next for DE Stock
DE stock is suffering a steep drop today. While disappointing, shareholders can take comfort in the fact that Deere & Co. outperformed the broader market this year up until today. If the company can continue to post strong earnings throughout the remainder of this year, its stock will likely recover and continue advancing.
On the date of publication, Joel Baglole 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 DE Stock Falls as Inflation and Supply Chain Worries Rise 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, the company’s revenue missed Wall Street forecasts, sending its stock sharply lower alongside inflation and supply chain concerns. What Happened During DE Stock Earnings Deere & Co. also raised its annual profit outlook for this year, saying it expects a boost from farm-equipment demand. That demand looks to remain strong and outpace inflation as well as supply-chain snarls that have impacted delivery schedules in recent months.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) reported largely positive Q2 earnings today However, concerns about inflation and supply chain problems are sending DE stock down Shares of DE stock are down about 12% at the time of writing Source: Jim Lambert / Shutterstock.com Deere & Company (NYSE:DE) reported Q2 earnings this morning. Additionally, the company’s worldwide sales in the quarter rose 11% from a year ago to $13.37 billion, narrowly beating analysts’ forecasts of $13.36 billion. The post DE Stock Falls as Inflation and Supply Chain Worries Rise appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) reported largely positive Q2 earnings today However, concerns about inflation and supply chain problems are sending DE stock down Shares of DE stock are down about 12% at the time of writing Source: Jim Lambert / Shutterstock.com Deere & Company (NYSE:DE) reported Q2 earnings this morning. What Happened During DE Stock Earnings Deere & Co. also raised its annual profit outlook for this year, saying it expects a boost from farm-equipment demand. Why It Matters While Deere & Co.’s quarterly earnings were decent, and raising its forward guidance is positive, the company has not succeeded in persuading analysts and investors that it can overcome the ongoing supply chain problems that are afflicting companies worldwide.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere & Company (NYSE:DE) reported largely positive Q2 earnings today However, concerns about inflation and supply chain problems are sending DE stock down Shares of DE stock are down about 12% at the time of writing Source: Jim Lambert / Shutterstock.com Deere & Company (NYSE:DE) reported Q2 earnings this morning. What Happened During DE Stock Earnings Deere & Co. also raised its annual profit outlook for this year, saying it expects a boost from farm-equipment demand. Deere attributed the upward revision to strong demand for farm equipment and rising crop prices.
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071dbe09-85c3-4be0-8460-fe18a2ecc098
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721166.0
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2022-05-20 00:00:00 UTC
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US STOCKS-Wall Street ends mixed after punishing week
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-mixed-after-punishing-week
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nan
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nan
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By Noel Randewich and Amruta Khandekar
May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
The S&P 500 and the Nasdaq logged their seventh straight week of losses, their longest losing streak since the end of the dotcom bubble in 2001.
The Dow .DJI suffered its eighth consecutive weekly decline, its longest since 1932 during the Great Depression.
Worries about surging inflation and rising interest rates have pummeled the U.S. stock market this year, with danger signals from Walmart Inc WMT.N and other retailers this week adding to fears about the economy.
The S&P 500 spent most of the session in negative territory and at one point was down just over 20% from its Jan. 3 record high close before ending down 18% from that level and flat for the day.
Closing down 20% from that record level would confirm the S&P 500 has been in a bear market since reaching that January high, according to a common definition.
The tech-heavy Nasdaq .IXIC was last down about 27% from its record close in November 2021.
Weighing heavily on the S&P 500, Tesla TSLA.O tumbled 6.4% after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016.
Other megacap stocks also fell, with Apple Google-owner Alphabet Inc GOOGL.O down 1.3% and Nvidia NVDA.O losing 2.5%.
Shares of Deere & Co DE.N dropped 14% after the heavy equipment maker posted downbeat quarterly revenue.
Pfizer PFE.N rose 3.6%, helping the S&P 500 avoid a loss for the day.
Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
On Friday, Ross Stores ROST.O plunged 22.5% after the discount apparel retailer cut its 2022 forecasts for sales and profit, while Vans brand owner VF Corp VFC.N gained 6.1% on strong 2023 revenue outlook.
Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH
The S&P 500 edged up 0.01% to end the session at 3,901.36 points.
The Nasdaq declined 0.30% to 11,354.62 points, while the Dow Jones Industrial Average rose 0.03% to 31,261.90 points.
For the week, the S&P 500 fell 3.0%, the Dow lost 2.9% and the Nasdaq declined 3.8%.
About two thirds of S&P 500 stocks are down 20% or more from their 52-week highs.
Volume on U.S. exchanges was 13.0 billion shares, compared with a 13.5 billion average over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.24-to-1 ratio favored decliners.
The S&P 500 posted 1 new 52-week highs and 48 new lows; the Nasdaq Composite recorded 11 new highs and 353 new lows.
S&P 500's busiest tradeshttps://tmsnrt.rs/3Lte7Zj
S&P 500 bear marketshttps://tmsnrt.rs/3lrWFKr
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta, Arun Koyyur and Grant McCool)
((noel.randewich@tr.com; Twitter: @randewich))
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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Weighing heavily on the S&P 500, Tesla TSLA.O tumbled 6.4% after Chief Executive Elon Musk denounced as "utterly untrue" claims in a news report that he sexually harassed a flight attendant on a private jet in 2016. Recent disappointing forecasts from big retailers Walmart, Kohl's Corp KSS.N and Target Inc TGT.N have rattled market sentiment, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. By Noel Randewich and Amruta Khandekar May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
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By Noel Randewich and Amruta Khandekar May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground. The Nasdaq declined 0.30% to 11,354.62 points, while the Dow Jones Industrial Average rose 0.03% to 31,261.90 points. The S&P 500 posted 1 new 52-week highs and 48 new lows; the Nasdaq Composite recorded 11 new highs and 353 new lows.
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The Nasdaq declined 0.30% to 11,354.62 points, while the Dow Jones Industrial Average rose 0.03% to 31,261.90 points. S&P 500's busiest tradeshttps://tmsnrt.rs/3Lte7Zj S&P 500 bear marketshttps://tmsnrt.rs/3lrWFKr (Reporting by Amruta Khandekar and Devik Jain in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta, Arun Koyyur and Grant McCool) ((noel.randewich@tr.com; Twitter: @randewich)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. By Noel Randewich and Amruta Khandekar May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
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The Nasdaq declined 0.30% to 11,354.62 points, while the Dow Jones Industrial Average rose 0.03% to 31,261.90 points. For the week, the S&P 500 fell 3.0%, the Dow lost 2.9% and the Nasdaq declined 3.8%. By Noel Randewich and Amruta Khandekar May 20 (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground.
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b10b1a69-a36e-4d8a-ae48-6c27304b03aa
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721167.0
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2022-05-20 00:00:00 UTC
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Will Deere Stock See Higher Levels Following Its Q2 Results?
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DE
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https://www.nasdaq.com/articles/will-deere-stock-see-higher-levels-following-its-q2-results
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nan
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nan
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Deere & Company (NYSE: DE) is scheduled to report its fiscal second-quarter results on Friday, May 20. We expect Deere to post revenues in line, and earnings above the consensus estimate. The company should benefit from a continued uptick in demand for agriculture and construction equipment. Higher commodity prices and a strong demand environment likely aided the pricing growth for Deere. Furthermore, we find Deere stock to be undervalued currently, as discussed below. Our interactive dashboard analysis of Deere’s Earnings Preview has additional details.
(1) Revenues expected to align with the consensus estimate
Trefis estimates Deere’s Q2 fiscal 2022 total revenues to be around $13.1 billion, in line with the consensus estimate.
The company saw a strong rebound in demand for construction and 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 6% y-o-y to $8.5 billion, driven by a 7% rise in agricultural and turf-related equipment sales, while construction and forestry equipment sales were up 3%.
Our dashboard on Deere Revenues provides more details.
(2) EPS likely to be above the consensus estimates
Deere’s Q2 fiscal 2022 earnings per share (EPS) is expected to be $6.80 per Trefis analysis, above the consensus estimate of $6.71.
Deere’s net income of $903 million in Q1 reflected a 26% decline from its $1.2 billion profit in the prior-year quarter. This can primarily be attributed to work disruption at some of Deere’s plants.
Looking at the full fiscal 2022, we expect EPS to be $22.90, compared to the $18.99 seen in fiscal 2021.
(3) DE stock has more room for growth
We estimate Deere’s Valuation to be $452 per share, reflecting an 18% upside from its current market price of $384.
This represents a forward P/EBITDA multiple of 9x based on our Deere’s EBITDA forecast.
That said, if the company reports upbeat Q2 results and FY2022 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 looks like it has more 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 Deere vs. Williams-Sonoma.
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 May 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
DE Return 2% 12% 273%
S&P 500 Return -1% -14% 83%
Trefis Multi-Strategy Portfolio -3% -19% 217%
[1] Month-to-date and year-to-date as of 5/18/2022
[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 second-quarter results on Friday, May 20. (3) DE stock has more room for growth We estimate Deere’s Valuation to be $452 per share, reflecting an 18% upside from its current market price of $384. While DE stock looks like it has more room for growth, it is helpful to see how Deere’s Peers fare on metrics that matter.
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(1) Revenues expected to align with the consensus estimate Trefis estimates Deere’s Q2 fiscal 2022 total revenues to be around $13.1 billion, in line with the consensus estimate. (2) EPS likely to be above the consensus estimates Deere’s Q2 fiscal 2022 earnings per share (EPS) is expected to be $6.80 per Trefis analysis, above the consensus estimate of $6.71. Total [2] DE Return 2% 12% 273% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio -3% -19% 217% [1] Month-to-date and year-to-date as of 5/18/2022 [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 expected to align with the consensus estimate Trefis estimates Deere’s Q2 fiscal 2022 total revenues to be around $13.1 billion, in line with the consensus estimate. (2) EPS likely to be above the consensus estimates Deere’s Q2 fiscal 2022 earnings per share (EPS) is expected to be $6.80 per Trefis analysis, above the consensus estimate of $6.71. Total [2] DE Return 2% 12% 273% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio -3% -19% 217% [1] Month-to-date and year-to-date as of 5/18/2022 [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 company saw a strong rebound in demand for construction and agriculture equipment over the last few quarters, a trend that likely continued over the latest quarter. (3) DE stock has more room for growth We estimate Deere’s Valuation to be $452 per share, reflecting an 18% upside from its current market price of $384. Total [2] DE Return 2% 12% 273% S&P 500 Return -1% -14% 83% Trefis Multi-Strategy Portfolio -3% -19% 217% [1] Month-to-date and year-to-date as of 5/18/2022 [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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393616f8-e094-4c04-9a5e-bdfbfbb5903b
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721168.0
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2022-05-20 00:00:00 UTC
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S&P 500 Movers: ROST, FTNT
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DE
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https://www.nasdaq.com/articles/sp-500-movers%3A-rost-ftnt
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nan
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nan
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In early trading on Friday, shares of Fortinet topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Year to date, Fortinet has lost about 20.0% of its value.
And the worst performing S&P 500 component thus far on the day is Ross Stores, trading down 22.6%. Ross Stores is lower by about 37.2% looking at the year to date performance.
Two other components making moves today are Deere, trading down 9.2%, and Match Group, trading up 4.3% on the day.
VIDEO: S&P 500 Movers: ROST, FTNT
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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VIDEO: S&P 500 Movers: ROST, FTNT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Fortinet topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Two other components making moves today are Deere, trading down 9.2%, and Match Group, trading up 4.3% on the day.
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In early trading on Friday, shares of Fortinet topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Two other components making moves today are Deere, trading down 9.2%, and Match Group, trading up 4.3% on the day. VIDEO: S&P 500 Movers: ROST, FTNT 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 early trading on Friday, shares of Fortinet topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Two other components making moves today are Deere, trading down 9.2%, and Match Group, trading up 4.3% on the day. VIDEO: S&P 500 Movers: ROST, FTNT 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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VIDEO: S&P 500 Movers: ROST, FTNT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Fortinet topped the list of the day's best performing components of the S&P 500 index, trading up 4.5%. Two other components making moves today are Deere, trading down 9.2%, and Match Group, trading up 4.3% on the day.
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6994a493-2514-436f-8669-26e59c64b2ec
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721169.0
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2022-05-20 00:00:00 UTC
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Deere (DE) Q2 Earnings Top Estimates
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DE
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https://www.nasdaq.com/articles/deere-de-q2-earnings-top-estimates
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nan
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Deere (DE) came out with quarterly earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65 per share. This compares to earnings of $5.68 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.41%. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.28 per share when it actually produced earnings of $2.92, delivering a surprise of 28.07%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $12.03 billion for the quarter ended April 2022, missing the Zacks Consensus Estimate by 10.48%. This compares to year-ago revenues of $11 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 6.3% since the beginning of the year versus the S&P 500's decline of -18.2%.
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 $6.92 on $12.83 billion in revenues for the coming quarter and $22.69 on $47.58 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 bottom 22% 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.
One other stock from the broader Zacks Industrial Products sector, EnerSys (ENS), is yet to report results for the quarter ended March 2022. The results are expected to be released on May 25.
This maker of industrial batteries is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of -11.5%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
EnerSys' revenues are expected to be $881.25 million, up 8.3% from the year-ago quarter.
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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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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. One other stock from the broader Zacks Industrial Products sector, EnerSys (ENS), is yet to report results for the quarter ended March 2022. Deere (DE) came out with quarterly earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65 per share.
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Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $12.03 billion for the quarter ended April 2022, missing the Zacks Consensus Estimate by 10.48%. Deere & Company (DE): Free Stock Analysis Report Deere (DE) came out with quarterly earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65 per share.
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Deere (DE) came out with quarterly earnings of $6.81 per share, beating the Zacks Consensus Estimate of $6.65 per share. Deere, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $12.03 billion for the quarter ended April 2022, missing the Zacks Consensus Estimate by 10.48%. 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 $6.81 per share, beating the Zacks Consensus Estimate of $6.65 per share. 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. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $2.28 per share when it actually produced earnings of $2.92, delivering a surprise of 28.07%.
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db0346c2-a23b-417b-962d-e6ad2f8b5677
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721170.0
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2022-05-20 00:00:00 UTC
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Deere & Co. Boosts FY22 Net Income Outlook- Update
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DE
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https://www.nasdaq.com/articles/deere-co.-boosts-fy22-net-income-outlook-update
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(RTTNews) - While reporting financial results for the second quarter on Friday, Deere & Co. (DE) raised its guidance for net income attributable to the company for the full-year 2022 to a range of $7.0 billion to $7.4 billion from the prior forecast range of $6.7 billion to $7.1 billion.
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) - While reporting financial results for the second quarter on Friday, Deere & Co. (DE) raised its guidance for net income attributable to the company for the full-year 2022 to a range of $7.0 billion to $7.4 billion from the prior forecast range of $6.7 billion to $7.1 billion. 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) - While reporting financial results for the second quarter on Friday, Deere & Co. (DE) raised its guidance for net income attributable to the company for the full-year 2022 to a range of $7.0 billion to $7.4 billion from the prior forecast range of $6.7 billion to $7.1 billion. 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) - While reporting financial results for the second quarter on Friday, Deere & Co. (DE) raised its guidance for net income attributable to the company for the full-year 2022 to a range of $7.0 billion to $7.4 billion from the prior forecast range of $6.7 billion to $7.1 billion. 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) - While reporting financial results for the second quarter on Friday, Deere & Co. (DE) raised its guidance for net income attributable to the company for the full-year 2022 to a range of $7.0 billion to $7.4 billion from the prior forecast range of $6.7 billion to $7.1 billion. 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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b11ad50d-2600-4002-9dfd-3ef056d1a828
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721171.0
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2022-05-20 00:00:00 UTC
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Deere raises profit forecast as equipment demand soars
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DE
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https://www.nasdaq.com/articles/deere-raises-profit-forecast-as-equipment-demand-soars
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Adds details from the results, background
May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand.
A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. Demand will likely outpace crop supplies until at least 2024, grains giant Archer-Daniels-Midland CoADM.N said last month.
Shares of the world's largest farm equipment maker surged to record highs in March as investors bet on stronger demand.
Including special items, the company forecast fiscal 2022 net income between $7.0 billion and $7.4 billion, up from a prior estimate of $6.7 billion and $7.1 billion.
The Moline, Illinois-based firm's net income was $2.09 billion or $6.81 per share for the quarter ended May 1, compared $1.79 billion or $5.68 per share a year earlier.
Total net sales and revenue rose about 11% to $13.37 billion from $12.06 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 details from the results, background May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand. A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. Shares of the world's largest farm equipment maker surged to record highs in March as investors bet on stronger demand.
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A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. The Moline, Illinois-based firm's net income was $2.09 billion or $6.81 per share for the quarter ended May 1, compared $1.79 billion or $5.68 per share a year earlier. Adds details from the results, background May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand.
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Adds details from the results, background May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand. The Moline, Illinois-based firm's net income was $2.09 billion or $6.81 per share for the quarter ended May 1, compared $1.79 billion or $5.68 per share a year earlier. A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet.
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Adds details from the results, background May 20 (Reuters) - Deere & Co DE.N raised its annual profit forecast on Friday boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the Russia's invasion of Ukraine fueled crop prices and spurred demand. A tight supply of grains elevated prices, supporting healthy farm income and encouraged farmers to upgrade their fleet. Demand will likely outpace crop supplies until at least 2024, grains giant Archer-Daniels-Midland CoADM.N said last month.
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90f05515-ca0b-42c4-a836-02ad1794bad2
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721172.0
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2022-05-20 00:00:00 UTC
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Deere quarterly profit rises on higher equipment demand
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DE
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https://www.nasdaq.com/articles/deere-quarterly-profit-rises-on-higher-equipment-demand
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nan
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nan
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May 20 (Reuters) - Deere & Co DE.N reported a 17% rise in quarterly profit on Friday, boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the war in Ukraine fueled crop prices and spurred demand.
Net income rose to $2.09 billion from the quarter ended May 1, from $1.79 billion a year ago.
(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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May 20 (Reuters) - Deere & Co DE.N reported a 17% rise in quarterly profit on Friday, boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the war in Ukraine fueled crop prices and spurred demand. Net income rose to $2.09 billion from the quarter ended May 1, from $1.79 billion a year ago. (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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May 20 (Reuters) - Deere & Co DE.N reported a 17% rise in quarterly profit on Friday, boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the war in Ukraine fueled crop prices and spurred demand. Net income rose to $2.09 billion from the quarter ended May 1, from $1.79 billion a year ago. (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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May 20 (Reuters) - Deere & Co DE.N reported a 17% rise in quarterly profit on Friday, boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the war in Ukraine fueled crop prices and spurred demand. Net income rose to $2.09 billion from the quarter ended May 1, from $1.79 billion a year ago. (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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May 20 (Reuters) - Deere & Co DE.N reported a 17% rise in quarterly profit on Friday, boosted by higher sales for its tractors, combines and sprayers as gaps in global grain supply triggered by the war in Ukraine fueled crop prices and spurred demand. Net income rose to $2.09 billion from the quarter ended May 1, from $1.79 billion a year ago. (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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d1a7584e-8c2e-4eba-8984-9dc3b6e155f5
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721173.0
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2022-05-20 00:00:00 UTC
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Deere And Co Q2 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-q2-22-earnings-conference-call-at-10%3A00-am-et
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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 May 20, 2022, to discuss Q2 22 earnings results. Deere And Co is scheduled to report results on Friday, May 20, 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 May 20, 2022, to discuss Q2 22 earnings results. Deere And Co is scheduled to report results on Friday, May 20, 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 May 20, 2022, to discuss Q2 22 earnings results. Deere And Co is scheduled to report results on Friday, May 20, 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 May 20, 2022, to discuss Q2 22 earnings results. Deere And Co is scheduled to report results on Friday, May 20, 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 May 20, 2022, to discuss Q2 22 earnings results. Deere And Co is scheduled to report results on Friday, May 20, 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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09e1cf81-1aa9-4689-8a01-8e91f6e2f19c
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721174.0
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2022-05-20 00:00:00 UTC
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Wall St rises as growth stocks gain after two days of selloff
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DE
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https://www.nasdaq.com/articles/wall-st-rises-as-growth-stocks-gain-after-two-days-of-selloff
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By Amruta Khandekar and Devik Jain
May 20 (Reuters) - U.S. stock indexes rose on Friday led by megacap growth and healthcare shares at the end of a volatile week, roiled by concerns over the impact of rising inflation on earnings and the fallout of rate hikes on economic growth.
Nine of the 11 major S&P sectors advanced in morning trade. Energy .SPNY was the top performer, up 2.2%, followed by healthcare .SPXHC and technology .SPLRCT sectors.
Microsoft Corp MSFT.O, Amazon.com AMZN.O and Apple Inc AAPL.O, rose between 1.5% and 1.8%, providing the biggest boost to the S&P 500 .SPX and the Nasdaq .IXIC.
"Some traders are taking advantage of the price weakness, at least in the short term, to make some money. The real question is whether this will last by the end of the day," Sam Stovall, chief investment strategist at CFRA Research, said.
"It is definitely going to be a traders' battle today. The market is trying to orchestrate at least a near-term relief rally, which is normal within bear market trends."
Disappointing forecasts from big retailers Walmart Inc WMT.N and Target Inc TGT.N rattled market sentiment this week, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers.
The S&P 500 .SPX and the Nasdaq .IXIC are set for their seventh straight week of losses, their longest losing streak since the end of dotcom bubble. The Dow .DJI is on track for its eighth consecutive weekly decline, its longest since 1932, during the Great Depression.
The indexes are down between 13.3% and 26.1% so far this year as investors adjust to supply-chain snarls, lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates.
Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH
The benchmark index is down about 18.1% from its record close on Jan. 3. A close of 20% or more below that level will confirm the S&P 500 has been in a bear market since hitting the peak.
At 10:01 a.m. ET, the Dow Jones Industrial Average .DJI was up 189.32 points, or 0.61%, at 31,442.45, the S&P 500 .SPX was up 34.31 points, or 0.88%, at 3,935.10, and the Nasdaq Composite .IXIC was up 117.90 points, or 1.04%, at 11,506.40.
Asian and European shares rebounded on Friday after China cut a key lending benchmark to support its economy.
Among other stocks, Ross Stores ROST.O plunged 23.3% after the discount apparel retailer cut its 2022 forecasts for sales and profit, while Vans brand owner VF Corp VFC.N gained 4.5% on strong 2023 revenue outlook.
Deere & Co DE.N slid 10% after the heavy equipment maker posted downbeat quarterly revenue.
Match Group Inc MTCH.O climbed 4.6% to the top of S&P 500 index as Alphabet Inc's GOOGL.O Google would allow the dating apps maker to offer users a choice in payment systems.
Advancing issues outnumbered decliners by a 2.28-to-1 ratio on the NYSE and by a 2.03-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 36 new lows, while the Nasdaq recorded 11 new highs and 143 new lows.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((Amruta.Khandekar@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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Disappointing forecasts from big retailers Walmart Inc WMT.N and Target Inc TGT.N rattled market sentiment this week, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. The indexes are down between 13.3% and 26.1% so far this year as investors adjust to supply-chain snarls, lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates. By Amruta Khandekar and Devik Jain May 20 (Reuters) - U.S. stock indexes rose on Friday led by megacap growth and healthcare shares at the end of a volatile week, roiled by concerns over the impact of rising inflation on earnings and the fallout of rate hikes on economic growth.
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By Amruta Khandekar and Devik Jain May 20 (Reuters) - U.S. stock indexes rose on Friday led by megacap growth and healthcare shares at the end of a volatile week, roiled by concerns over the impact of rising inflation on earnings and the fallout of rate hikes on economic growth. Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. The S&P index recorded one new 52-week high and 36 new lows, while the Nasdaq recorded 11 new highs and 143 new lows.
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By Amruta Khandekar and Devik Jain May 20 (Reuters) - U.S. stock indexes rose on Friday led by megacap growth and healthcare shares at the end of a volatile week, roiled by concerns over the impact of rising inflation on earnings and the fallout of rate hikes on economic growth. Disappointing forecasts from big retailers Walmart Inc WMT.N and Target Inc TGT.N rattled market sentiment this week, adding to evidence that rising prices have started to hurt the purchasing power of U.S. consumers. The S&P index recorded one new 52-week high and 36 new lows, while the Nasdaq recorded 11 new highs and 143 new lows.
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Nine of the 11 major S&P sectors advanced in morning trade. Traders are pricing in 50-basis point rate hikes by the U.S. central bank in June and July. FEDWATCH The benchmark index is down about 18.1% from its record close on Jan. 3.
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721175.0
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2022-05-19 00:00:00 UTC
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Pre-Market Earnings Report for May 20, 2022 : DE, BAH, FL, ATEX
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-may-20-2022-%3A-de-bah-fl-atex-0
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nan
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The following companies are expected to report earnings prior to market open on 05/20/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE)is reporting for the quarter ending April 30, 2022. The farm machinery company's consensus earnings per share forecast from the 10 analysts that follow the stock is $6.65. This value represents a 17.08% 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 1st calendar quarter where they beat the consensus by 28.07%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Booz Allen Hamilton Holding Corporation (BAH)is reporting for the quarter ending March 31, 2022. The government services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.83. This value represents a 6.74% decrease compared to the same quarter last year. In the past year BAH has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 5.15%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BAH is 19.07 vs. an industry ratio of 17.30, 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 April 30, 2022. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.38. This value represents a 29.59% 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 1st calendar quarter where they beat the consensus by 16.78%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for FL is 6.96 vs. an industry ratio of 11.40.
Anterix Inc. (ATEX)is reporting for the quarter ending March 31, 2022. The infrastructure company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.13. This value represents a 79.03% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the Price to Earnings ratio for ATEX is 0.00 vs. an industry ratio of 14.10.
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 April 30, 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 16.25 vs. an industry ratio of 14.60, 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 16.25 vs. an industry ratio of 14.60, 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 April 30, 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 16.25 vs. an industry ratio of 14.60, 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 April 30, 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 April 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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9c98afa4-faaf-4b18-90de-41ecac071bf4
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721176.0
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2022-05-19 00:00:00 UTC
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Pre-Market Earnings Report for May 20, 2022 : DE, BAH, FL, ATEX
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-may-20-2022-%3A-de-bah-fl-atex
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nan
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nan
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The following companies are expected to report earnings prior to market open on 05/20/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE)is reporting for the quarter ending April 30, 2022. The farm machinery company's consensus earnings per share forecast from the 10 analysts that follow the stock is $6.65. This value represents a 17.08% 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 1st calendar quarter where they beat the consensus by 28.07%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Booz Allen Hamilton Holding Corporation (BAH)is reporting for the quarter ending March 31, 2022. The government services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.83. This value represents a 6.74% decrease compared to the same quarter last year. In the past year BAH has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 5.15%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BAH is 19.07 vs. an industry ratio of 17.30, 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 April 30, 2022. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.38. This value represents a 29.59% 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 1st calendar quarter where they beat the consensus by 16.78%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for FL is 6.96 vs. an industry ratio of 11.40.
Anterix Inc. (ATEX)is reporting for the quarter ending March 31, 2022. The infrastructure company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.13. This value represents a 79.03% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the Price to Earnings ratio for ATEX is 0.00 vs. an industry ratio of 14.10.
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 April 30, 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 16.25 vs. an industry ratio of 14.60, 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 16.25 vs. an industry ratio of 14.60, 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 April 30, 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 16.25 vs. an industry ratio of 14.60, 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 April 30, 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 April 30, 2022. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DE is 16.25 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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bfcb79fb-4027-4ee9-b4f2-d99c249f9f34
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721177.0
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2022-05-19 00:00:00 UTC
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John Deere Q2 Preview: 11th Consecutive EPS Beat in Store?
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DE
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https://www.nasdaq.com/articles/john-deere-q2-preview%3A-11th-consecutive-eps-beat-in-store
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nan
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nan
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Earnings season continues to unwind. The bulk of the action is over, as we’ve received quarterly reports from countless companies over the last several weeks. To say the least, it’s been one for the books – the first quarter of 2021 has been one of the most ruthless markets we’ve seen in recent times.
We’ve witnessed numerous adverse market reactions to many Q1 reports, and we all know by now that supply-chain bottlenecks, rising costs, and a hawkish Fed have been three of the main driving forces. Coming out of an unprecedented pandemic, we have found ourselves in a rather unique economic situation.
Nonetheless, the show must go on – the market waits for nobody. The big-time agriculture machinery giant Deere and Company DE is on deck to report quarterly results tomorrow before trading begins.
Share Performance & Valuation
John Deere shares have been a stellar place to park cash throughout 2022. Year-to-date, shares have returned a mighty 7%, while the S&P 500 has declined roughly 18%. With all of the valuation slashes we’ve seen in 2022, a company whose shares have remained strong bodes very well for the state of the business.
Image Source: Zacks Investment Research
When expanding the time frame over the past year, we can see the DE shares have still outpaced the general market quite handily, gaining 4% in value while the S&P 500 has declined roughly 5%. In the market conditions we have witnessed, it is uplifting to see the company’s shares still penciling in a positive return over the last year.
Image Source: Zacks Investment Research
John Deere’s current forward earnings multiple is sitting nicely at 16.2X, nearly half of its 2020 high of 33.2X, and nicely below the median of 18X over the last five years. Additionally, the value represents a 7% discount relative to the S&P 500’s forward earnings multiple of 17.5X.
Image Source: Zacks Investment Research
Previous Earnings & Impact On Shares
John Deere has posted stellar EPS results over the last several years. The company has chained together ten straight consecutive EPS beats, and over its previous four quarterly reports, DE has an average EPS surprise in the double-digits of 21%.
The top-line has shown strength again and again as well. Over its last ten quarterly reports, the company has missed sales expectations only once; the one revenue miss came in 2021 Q4, when DE fell short of sales expectations by a marginal 0.6%.
Overall, the quarterly results have been robust for the agriculture machinery giant. Now, how has the market reacted to these results?
Over its last six EPS beats, shares have moved upwards four times following the quarterly reports. One of the two times that shares reacted negatively was in its latest quarterly report; shares moved downwards by 3%. Additionally, shares moved downwards following the 2020 Q4 report, when shares inched down 2%.
Earnings Surprise
Image Source: Zacks Investment Research
Pairing a positive Earnings ESP value with a Zacks Rank #1 (Strong Buy), Zacks Rank #2 (Buy), or Zacks Rank #3 (Hold) produces a positive EPS surprise nearly 70% of the time – those are some great odds. Now, DE has a positive ESP Score of 0.06% and is currently a Zacks Rank #3 (Hold). This means that the company has a high chance of beating on EPS, and with the overall positive reactions the market has had to its quarterly reports, it seems that shares are in a strong spot heading into the quarterly report.
EPS & Revenue Estimates
Heading into tomorrow, the Consensus Estimate Trend for the quarter has retraced 2.2% to $6.65 per share over the last 60 days, with four analysts lowering their earnings outlook for the quarter. At first glance, the adverse revision action does raise some concern, but the quarterly estimate displays a sizable 17% growth in earnings from the year-ago quarter.
Additionally, revenue estimates display a considerable expansion in the top line as well. The Zacks Consensus Estimate has DE raking in $13.4 billion in revenue for the quarter, a 23% increase from the year-ago quarter. The graphic below illustrates forecasted annual EPS and Sales numbers.
Image Source: Zacks Investment Research
Titan International
For investors interested in the Zacks Manufacturing – Farm Equipment industry (where John Deere also operates), a stellar company that has received substantial positive estimate revisions across the board is Titan International TWI.
Over the last 60 days, the Consensus Estimate Trend for Titan International’s upcoming quarterly release has soared 55% up to $0.53 per share; this reflects a massive 140% growth in earnings from the year-ago quarter.
Image Source: Zacks Investment Research
Additionally, two analysts have upped their current fiscal year outlook on earnings for TWI, sending the Consensus Estimate Trend up 35% up to $1.57 per share and reflecting a sizable 85% growth in earnings year-over-year.
Over its last four quarters, TWI has acquired a rock-solid average EPS surprise of 52% while beating estimates by a sizable 51% in its latest quarter. Titan International carries a highly-coveted Zacks Rank #1 (Strong Buy).
Year-to-date, TWI shares are up a massive 56%, representing an enormous amount of relative strength compared to the general market.
Titan International, Inc. Price, Consensus and EPS Surprise
Titan International, Inc. price-consensus-eps-surprise-chart | Titan International, Inc. Quote
Bottom Line
A surge in commodity prices is expected to continue fueling agricultural equipment demand, with farmers boosting spending on new agriculture machinery to replace old equipment. Additionally, John Deere is expected to benefit from favorable crop prices, economic growth, and increased infrastructure spending in FY22.
John Deere has been on a hot streak of exceeding EPS estimates, and shares generally act favorably following the quarterly releases. Additionally, DE has a positive ESP score heading into tomorrow, quarterly estimates display sizable year-over-year growth rates, year-to-date share performance has been stellar, and its forward earnings multiple is below its five-year median.
I have an optimistic view heading into the quarterly report for these reasons. Since the current market conditions have caused investors to shrug off robust quarterly reports, it could be worthwhile to heed caution until the market figures out what it wants to do. However, all signs are pointing towards another EPS beat.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
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Deere & Company (DE): Free Stock Analysis Report
Titan International, Inc. (TWI): 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 When expanding the time frame over the past year, we can see the DE shares have still outpaced the general market quite handily, gaining 4% in value while the S&P 500 has declined roughly 5%. Image Source: Zacks Investment Research Previous Earnings & Impact On Shares John Deere has posted stellar EPS results over the last several years. Additionally, DE has a positive ESP score heading into tomorrow, quarterly estimates display sizable year-over-year growth rates, year-to-date share performance has been stellar, and its forward earnings multiple is below its five-year median.
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Titan International, Inc. Price, Consensus and EPS Surprise Titan International, Inc. price-consensus-eps-surprise-chart | Titan International, Inc. Quote Bottom Line A surge in commodity prices is expected to continue fueling agricultural equipment demand, with farmers boosting spending on new agriculture machinery to replace old equipment. Additionally, DE has a positive ESP score heading into tomorrow, quarterly estimates display sizable year-over-year growth rates, year-to-date share performance has been stellar, and its forward earnings multiple is below its five-year median. Coming out of an unprecedented pandemic, we have found ourselves in a rather unique economic situation.
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Coming out of an unprecedented pandemic, we have found ourselves in a rather unique economic situation. The big-time agriculture machinery giant Deere and Company DE is on deck to report quarterly results tomorrow before trading begins. Share Performance & Valuation John Deere shares have been a stellar place to park cash throughout 2022.
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Additionally, DE has a positive ESP score heading into tomorrow, quarterly estimates display sizable year-over-year growth rates, year-to-date share performance has been stellar, and its forward earnings multiple is below its five-year median. Coming out of an unprecedented pandemic, we have found ourselves in a rather unique economic situation. The big-time agriculture machinery giant Deere and Company DE is on deck to report quarterly results tomorrow before trading begins.
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c92cce92-359d-450c-b07c-a4d8c95c6751
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721178.0
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2022-05-19 00:00:00 UTC
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3 Cathie Wood Stocks That Could Deliver Bigger Gains Than the Market
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DE
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https://www.nasdaq.com/articles/3-cathie-wood-stocks-that-could-deliver-bigger-gains-than-the-market-0
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nan
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nan
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Cathie Wood had a rough 2021, and 2022 isn't proving any better. However, the CEO, co-founder, and chief investment officer of Ark Invest's family of exchange-traded funds (ETFs) clobbered the market in 2020. She has a great comeback seat for when investors rotate back into dynamic growth stocks.
I think some of her investments are ready to recover. I really like Deere & Company (NYSE: DE), DraftKings (NASDAQ: DKNG), and Grayscale Bitcoin Trust (OTC: GBTC) at this point. Let's see why I believe these three very different companies within Wood's portfolios can beat the market at this point.
Image source: Getty Images.
Deere & Company
Cathie Wood ETFs are loaded with next-gen and disruptive growth stocks. You don't expect the old-school industrials giant behind John Deere to be a core Ark Invest holding, but you can be sure that Wood is grateful for the inclusion. Deere stock is down just 17% from its recent all-time high, while some of her stocks are down more than 70%.
Deere isn't necessarily a stodgy behemoth. Sure, it's the company behind agricultural, commercial, and construction equipment, but there's more to the story than just that. The same 180-year-old company that makes the tractors help farms reap their seasonal harvests is also a leader in tech, automation, and even artificial intelligence.
It's not your prototypical Wood stock. It even pays a small dividend. However, the current climate is ripe for Deere. There's a world to feed and developing markets to develop. Deere also comes as a potential value stock with some growth appeal. It's trading for 16 times this year's projected earnings, but analysts see revenue growing 20% this year.
DraftKings
Wood is betting big on DraftKings, even if it seems a bit like an underdog these days. The same online gambling and fantasy sports specialist that more than quadrupled in 2020 has given back nearly all of those gains.
DraftKings isn't fading away anytime soon. Revenue rose 34% in its latest quarter, just ahead of Wall Street expectations. Its quarterly loss widened, but it was better than the market was forecasting. DraftKings also boosted its full-year outlook for revenue and adjusted EBITDA. The market didn't applaud the "beat and raise" performance, but it does mean that the company's fundamentals are moving up even as the stock is moving down. There are regulatory hurdles to clear and acquisitions to digest, but our love for sports and confidence in sporting-related wagering has only strengthened through the pandemic. DraftKings is down, but it's not the long shot that the stock chart suggests it should be in sizing up today's odds.
Grayscale Bitcoin Trust
Crypto has been hit hard. The entire market for digital currencies has shed $1 trillion in value over the past month, and that's a pretty big deal with Bitcoin's (CRYPTO: BTC) valuation down to $560 million. Bitcoin's 28% slide over the past month is actually holding up better than the overall cryptocurrency market, and I think it will stay that way when bullish sentiment returns. There will be a flight to quality, and Bitcoin will continue to be a leader.
It's never been easier to buy Bitcoin directly, but Wood's approach over the past couple of years has been to buy into Grayscale Bitcoin Trust. It's the largest exchange-traded trust with direct ownership in crypto. Grayscale operates a family of trusts that play nice under the current regulatory environment by operating as trusts. Grayscale Bitcoin Trust has $18.7 billion in cold-stored Bitcoin under management.
These exchange-traded trusts more closely resemble closed-end funds than traditional ETFs, and they sometimes trade at significant premiums or discounts to their net asset value (NAV). The discount right now is as wide as I've seen given investor sentiment for crypto. Grayscale Bitcoin Trust had $27.04 in Bitcoin per share as of Wednesday's market close, but the shares -- at $18.56 -- are trading at a 31% discount to NAV.
The downside here is that Grayscale Bitcoin Trust charges a stiff 2% annual management fee, whittled away through the year in the form of transferring out Bitcoin to pay for the trust expenses. However, at the current discount, you'd have to hold it for more than a decade before the fees eat into the value of the underlying Bitcoin.
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.
See the 10 stocks
*Stock Advisor returns as of April 27, 2022
Rick Munarriz has positions in Bitcoin, Deere & Company, and Grayscale Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin. 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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You don't expect the old-school industrials giant behind John Deere to be a core Ark Invest holding, but you can be sure that Wood is grateful for the inclusion. The entire market for digital currencies has shed $1 trillion in value over the past month, and that's a pretty big deal with Bitcoin's (CRYPTO: BTC) valuation down to $560 million. These exchange-traded trusts more closely resemble closed-end funds than traditional ETFs, and they sometimes trade at significant premiums or discounts to their net asset value (NAV).
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Deere & Company Cathie Wood ETFs are loaded with next-gen and disruptive growth stocks. See the 10 stocks *Stock Advisor returns as of April 27, 2022 Rick Munarriz has positions in Bitcoin, Deere & Company, and Grayscale Bitcoin Trust. However, the CEO, co-founder, and chief investment officer of Ark Invest's family of exchange-traded funds (ETFs) clobbered the market in 2020.
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See the 10 stocks *Stock Advisor returns as of April 27, 2022 Rick Munarriz has positions in Bitcoin, Deere & Company, and Grayscale Bitcoin Trust. However, the CEO, co-founder, and chief investment officer of Ark Invest's family of exchange-traded funds (ETFs) clobbered the market in 2020. I really like Deere & Company (NYSE: DE), DraftKings (NASDAQ: DKNG), and Grayscale Bitcoin Trust (OTC: GBTC) at this point.
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The downside here is that Grayscale Bitcoin Trust charges a stiff 2% annual management fee, whittled away through the year in the form of transferring out Bitcoin to pay for the trust expenses. * 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 April 27, 2022 Rick Munarriz has positions in Bitcoin, Deere & Company, and Grayscale Bitcoin Trust.
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29025c5a-bcc1-443d-ad1f-ac437ef5799e
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721179.0
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2022-05-18 00:00:00 UTC
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Why Deere (DE) Might Surprise This Earnings Season
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DE
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https://www.nasdaq.com/articles/why-deere-de-might-surprise-this-earnings-season
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and Deere & Company DE may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Deere is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for DE in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $6.66 per share for DE, compared to a broader Zacks Consensus Estimate of $6.65 per share. This suggests that analysts have very recently bumped up their estimates for DE, giving the stock a Zacks Earnings ESP of +0.06% heading into earnings season.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that DE has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere, and that a beat might be in the cards for the upcoming report.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for DE in this report. Given that DE has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere, and that a beat might be in the cards for the upcoming report.
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Clearly, recent earnings estimate revisions suggest that good things are ahead for Deere, and that a beat might be in the cards for the upcoming report. Deere & Company (DE): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and Deere & Company DE may be one such company.
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This suggests that analysts have very recently bumped up their estimates for DE, giving the stock a Zacks Earnings ESP of +0.06% heading into earnings season. Given that DE has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and Deere & Company DE may be one such company.
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Investors are always looking for stocks that are poised to beat at earnings season and Deere & Company DE may be one such company. Given that DE has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. That is because Deere is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.
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098bdcd8-893a-4843-bd34-ecd22c96f343
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721180.0
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2022-05-17 00:00:00 UTC
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3 ETFs to Fight Surging Food Inflation
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DE
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https://www.nasdaq.com/articles/3-etfs-to-fight-surging-food-inflation
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nan
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nan
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Inflation is now running at its 40-year high, and the food index is one of the three biggest contributors lately. Prices of food items that we buy regularly had been climbing due to supply chain disruptions caused by the pandemic and rising labor costs.
The war in Ukraine then sent food prices surging at their fastest pace ever. Russia and Ukraine are major exporters of grains and they together account for more than a quarter of the global trade in wheat, and a fifth in corn. Ukraine is also the biggest exporter of sunflower oil.
As the war has entered its third month, Ukrainian farmers will miss critical planting and harvesting seasons. Further, many farmworkers are now fighting the war.
Russia and its ally Belarus are also the world’s major fertilizer exporters. In addition to sanctions, the spike in energy prices have raised production and transportation costs of fertilizers, raising the possibility of continued surge in food prices.
Many countries have resorted to food protectionism amid rising shortages. India—the world’s second largest producer of wheat, banned its export recently. Indonesia, which produces more than half of the world’s palm oil, had banned its export earlier.
Turkey has halted shipments of grains, oilseeds, cooking oil, and a few other agricultural commodities. Export restrictions are making food prices even more expensive.
The VanEck Agribusiness ETF (MOO) invests in companies that derive more than 50% of revenues from agribusiness. In addition to supply headwinds arising from the pandemic and Ukraine conflict, global population growth that is driving increasing food demand and the need for efficient agricultural solutions, will benefit this ETF.
The fund has over $1.9 billion in assets and charges 0.56% in expense ratio. Bayer (BAYRY) and Deere (DE) are its top holdings.
The iShares MSCI Global Agriculture Producers ETF (VEGI) tracks an index of global companies primarily engaged in the business of agriculture. The fund has $289 million in assets and has an expense ratio of 39 basis points. Deere & Company (DE) and Nutrien (NE) are its top holdings.
Invesco DB Agriculture Fund (DBA) invests in futures on 10 popular agriculture commodities while aiming to minimize contango. The fund has $2.2 billion in assets and comes with an expense ratio of 93 basis points.
To learn more about these ETFs, please watch the short video above.
Disclosure: Neena holds MOO in the ETF Investor Portfolio.
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 >>
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Noble Corporation (NE): Get Free Report
Deere & Company (DE): Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report
VanEck Agribusiness ETF (MOO): ETF Research Reports
iShares MSCI Global Agriculture Producers ETF (VEGI): ETF Research Reports
Invesco DB Agriculture ETF (DBA): 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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Prices of food items that we buy regularly had been climbing due to supply chain disruptions caused by the pandemic and rising labor costs. In addition to supply headwinds arising from the pandemic and Ukraine conflict, global population growth that is driving increasing food demand and the need for efficient agricultural solutions, will benefit this ETF. 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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The iShares MSCI Global Agriculture Producers ETF (VEGI) tracks an index of global companies primarily engaged in the business of agriculture. Inflation is now running at its 40-year high, and the food index is one of the three biggest contributors lately. Prices of food items that we buy regularly had been climbing due to supply chain disruptions caused by the pandemic and rising labor costs.
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The iShares MSCI Global Agriculture Producers ETF (VEGI) tracks an index of global companies primarily engaged in the business of agriculture. Inflation is now running at its 40-year high, and the food index is one of the three biggest contributors lately. Prices of food items that we buy regularly had been climbing due to supply chain disruptions caused by the pandemic and rising labor costs.
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Deere & Company (DE): Free Stock Analysis Report Inflation is now running at its 40-year high, and the food index is one of the three biggest contributors lately. Prices of food items that we buy regularly had been climbing due to supply chain disruptions caused by the pandemic and rising labor costs.
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35cedc82-5bab-4bbc-86ce-1ca1e4a9d0a2
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721181.0
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2022-05-17 00:00:00 UTC
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Will Deere (DE) Beat Estimates Again in Its Next Earnings Report?
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DE
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https://www.nasdaq.com/articles/will-deere-de-beat-estimates-again-in-its-next-earnings-report
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nan
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nan
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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.
When looking at the last two reports, this agricultural equipment manufacturer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 17.96%, on average, in the last two quarters.
For the last reported quarter, Deere came out with earnings of $2.92 per share versus the Zacks Consensus Estimate of $2.28 per share, representing a surprise of 28.07%. For the previous quarter, the company was expected to post earnings of $3.82 per share and it actually produced earnings of $4.12 per share, delivering a surprise of 7.85%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Deere. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice 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 +0.06% 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 May 20, 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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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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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. When looking at the last two reports, this agricultural equipment manufacturer has recorded a strong streak of surpassing earnings estimates.
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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). When looking at the last two reports, this agricultural equipment manufacturer has recorded a strong streak of surpassing earnings estimates.
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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). When looking at the last two reports, this agricultural equipment manufacturer has recorded a strong streak of surpassing earnings estimates.
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For the last reported quarter, Deere came out with earnings of $2.92 per share versus the Zacks Consensus Estimate of $2.28 per share, representing a surprise of 28.07%. 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). When looking at the last two reports, this agricultural equipment manufacturer has recorded a strong streak of surpassing earnings estimates.
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721182.0
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2022-05-16 00:00:00 UTC
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Deere (DE) to Report Q2 Earnings: What's in the Offing?
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https://www.nasdaq.com/articles/deere-de-to-report-q2-earnings%3A-whats-in-the-offing
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Deere & Company DE is scheduled to report second-quarter fiscal 2022 results on May 20, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.63 for the fiscal second quarter, suggesting growth of 17% year over year. The Zacks Consensus Estimate for total revenues is pinned at $13.4 billion for the period, calling for a year-over-year improvement of 22%. Earnings estimates for the fiscal second quarter have moved down in the past 30 days.
Q1 Results
In the last reported quarter, Deere’s earnings and sales surpassed the Zacks Consensus Estimates. While the bottom line declined, the top-line figure increased year over year. The company has a trailing four-quarter earnings surprise of 20.6%, 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 -1.37%.
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 commodity 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 first-quarter revenues. A robust order book driven by strong production and upbeat commodity prices is likely to have contributed to Deere’s performance during the quarter.
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 $5,912 million for the fiscal second quarter, suggesting year-over-year increase of 31%. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $1,343 million, up 33% year over year.
Small Agriculture & Turf segment’s Zacks Consensus Estimate for revenues is pegged at $3,916 million for the fiscal second quarter, indicating a 16% growth from the prior-year quarter’s levels. The segment’s operating profit is estimated at $672 million, up 4% year over year.
The Construction & Forestry segment’s sales is estimated at $3,527 million in the fiscal second quarter, up 15% from the prior-year quarter’s levels. The segment’s operating profit is expected to increase 10% to $540 million from the prior-year quarter’s levels. The segment’s sales are expected to have benefited from strong demand for farm and construction equipment, continued strength in the housing market and increased oil and gas sector activity during the fiscal second quarter. Demand for earthmoving and compact construction equipment, particularly in North America, remains strong. Robust lumber demand is anticipated to have aided forestry sales during the quarter under review.
The Zacks Consensus Estimate for the Financial Services segment’s revenues is pegged at $891 million for the fiscal second quarter, up 10% from the year-ago quarter’s tally. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $313 million.
Price Performance
Deere’s shares have declined 4.4% in the past year compared with the industry’s loss of 6.3%.
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.
Costco Wholesale Corporation COST has an Earnings ESP of +1.90% and a Zacks Rank #2. The Zacks Consensus Estimate for the company’s revenues of $51.7 billion for the third quarter of fiscal 2022 indicates year-over-year growth of 14.3%.
The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 earnings is currently at $3.04, suggesting year-over-year growth of 10.6%. COST’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 13.3%.
Star Bulk Carriers Corp. SBLK currently has an Earnings ESP of +1.77% and a Zacks Rank of 2. The Zacks Consensus Estimate for Star Bulk Carriers’ first-quarter 2022 earnings is pegged at $1.41 per share, suggesting a 291.6% surge from the year-ago quarter’s levels.
The Zacks Consensus Estimate for its quarterly revenues is pegged at $339 million, suggesting year-over-year growth of 69%.
Advance Auto Parts, Inc. AAP currently has an Earnings ESP of +4.89% and a Zacks Rank #3. The Zacks Consensus Estimate for Advance Auto Parts’ first-quarter 2022 earnings per share is currently pegged at $3.50, indicating 4.8% growth from the prior-year quarter’s tally.
The Zacks Consensus Estimate for AAP’s quarterly revenues is pegged at $3.4 million, which indicates year-over-year growth of 1.3%. The company has a trailing four quarters earnings surprise of 11%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Deere & Company (DE): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Star Bulk Carriers Corp. (SBLK): 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 are expected to have benefited from strong demand for farm and construction equipment, continued strength in the housing market and increased oil and gas sector activity during the fiscal second quarter. Deere & Company DE is scheduled to report second-quarter fiscal 2022 results on May 20, before the opening bell. The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.63 for the fiscal second quarter, suggesting growth of 17% year over year.
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Deere & Company DE is scheduled to report second-quarter fiscal 2022 results on May 20, before the opening bell. The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.63 for the fiscal second quarter, suggesting growth of 17% year over year. Q1 Results In the last reported quarter, Deere’s earnings and sales surpassed the Zacks Consensus Estimates.
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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.63 for the fiscal second quarter, suggesting growth of 17% year over year. Deere & Company DE is scheduled to report second-quarter fiscal 2022 results on May 20, before the opening bell. Q1 Results In the last reported quarter, Deere’s earnings and sales surpassed the Zacks Consensus Estimates.
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Deere & Company Price and EPS Surprise Deere & Company price-eps-surprise | Deere & Company Quote What Does Our Model Indicate? Deere & Company DE is scheduled to report second-quarter fiscal 2022 results on May 20, before the opening bell. The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $6.63 for the fiscal second quarter, suggesting growth of 17% year over year.
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2022-05-13 00:00:00 UTC
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Deere (DE) Reports Next Week: Wall Street Expects Earnings Growth
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https://www.nasdaq.com/articles/deere-de-reports-next-week%3A-wall-street-expects-earnings-growth
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Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended April 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 20, 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 $6.65 per share in its upcoming report, which represents a year-over-year change of +17.1%.
Revenues are expected to be $13.44 billion, up 22.2% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 0.05% 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 -1.77%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Deere will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. 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 $2.28 per share when it actually produced earnings of $2.92, delivering a surprise of +28.07%.
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.
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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While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact 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. Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended April 2022.
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Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended April 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact 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.
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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). Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended April 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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For the last reported quarter, it was expected that Deere would post earnings of $2.28 per share when it actually produced earnings of $2.92, delivering a surprise of +28.07%. Wall Street expects a year-over-year increase in earnings on higher revenues when Deere (DE) reports results for the quarter ended April 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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721184.0
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2022-05-13 00:00:00 UTC
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Notable ETF Inflow Detected - IWF, NVDA, DE, CAT
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-iwf-nvda-de-cat
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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 $191.2 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 254,100,000 to 254,950,000). Among the largest underlying components of IWF, in trading today NVIDIA Corp (Symbol: NVDA) is up about 7.9%, Deere & Co. (Symbol: DE) is up about 1.2%, and Caterpillar Inc. (Symbol: CAT) is up by about 1.4%. 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 $220.17 per share, with $311.95 as the 52 week high point — that compares with a last trade of $232.19. 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 had notable inflows »
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 $220.17 per share, with $311.95 as the 52 week high point — that compares with a last trade of $232.19. 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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Among the largest underlying components of IWF, in trading today NVIDIA Corp (Symbol: NVDA) is up about 7.9%, Deere & Co. (Symbol: DE) is up about 1.2%, and Caterpillar Inc. (Symbol: CAT) is up by about 1.4%. 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 $220.17 per share, with $311.95 as the 52 week high point — that compares with a last trade of $232.19. 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 $191.2 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 254,100,000 to 254,950,000).
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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 $191.2 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 254,100,000 to 254,950,000). 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 $220.17 per share, with $311.95 as the 52 week high point — that compares with a last trade of $232.19. 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 $191.2 million dollar inflow -- that's a 0.3% increase week over week in outstanding units (from 254,100,000 to 254,950,000). 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 $220.17 per share, with $311.95 as the 52 week high point — that compares with a last trade of $232.19. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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721185.0
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2022-05-13 00:00:00 UTC
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Why This Surprising AI Leader's Future Looks Bright
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https://www.nasdaq.com/articles/why-this-surprising-ai-leaders-future-looks-bright
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When most people think of John Deere (NYSE: DE), the term "artificial intelligence" usually isn't the first (or even the fifth!) thing that comes to mind. But the company known for its iconic tractors has been on the leading edge of technology and innovation in agriculture for decades. Here's why the unlikely contender is becoming one of the world's most important AI businesses.
A brand that just keeps running
Throughout its 180-year history, John Deere has built an impressive brand as the premier manufacturer of farming and industrial machinery. Its reputation for high-quality products and unmatched service has become arguably one of the company's greatest competitive advantages – and maintaining it is a central part of Deere's strategy.
Technology and automation have long been crucial in helping Deere provide best-in-class products. In the 1990s, John Deere acquired a GPS start-up called NavCom to build a satellite-directed guidance system for tractors. The company then partnered with NASA (yes, the NASA) to create the world's very first internet-based GPS tracking system.
Image source: Getty Images.
During this time, John Deere also created its Intelligent Solutions Group (ISG), an internal innovation team of data scientists and software engineers responsible for developing and implementing advanced technology solutions and processes across the business. In 2017, John Deere acquired Blue River Technology, a company that develops AI and computer vision solutions to power autonomous agriculture robots, which marked another important step in developing the next generation of Deere's farming equipment.
Today, John Deere sells numerous vehicles, tractors, and other smart equipment that target each phase of the farming process. These next-generation machines offer embedded technology, from guidance systems and hand-free driver assistance, to seed placement and customized spraying applications, that leverage AI to exponentially increase efficiencies, enabling farmers to produce more with less work and at a lower cost. For example, John Deere's autonomous "See and Spray" system reduces herbicide use by 77% on average using machine learning and vision processing technology to identify and spray weeds with unrivaled precision. This not only saves farmers money, but also increases productivity and reduces food waste by accidentally killing fewer primary crops.
John Deere has also successfully parlayed its advantage as the pioneer of cutting-edge, digitally enhanced farming equipment into a robust offering of software and agricultural data systems. These systems, which include its cloud-enabled telematics system, JDLink, and its A.I.-based data platform, John Deere Operations Center, allow farmers to connect and manage all the machines on a farm from a single interface, and provide them with access to robust farm-related data. This data helps farmers determine how to best utilize equipment, and what crops to plan where and when to produce the greatest yield with the least amount of waste. Today, John Deere has amassed a large network of more than 440,000 connected machines that use their core underlying technologies and leverage their centralized platform.
Plowing forward through challenges
By successfully combining its best-in-class hardware with cutting-edge software, data, and expertise, and as the first in the industry to provide customers machine connectivity and data sharing at no additional cost, without making farmers pay subscription fees, John Deere has helped customers get more done at a lower cost while bolstering its brand reputation and competitive advantage. This network effect will become increasingly important as farms become more technologically advanced, and more farmers seek a consistent line of products with integrated software and data.
John Deere's next generation of products and services – and the premium it's been able to charge for them – have led to impressive financial results. Combined with its scale and vast dealer network, which drives both initial equipment sales and a subsequent stream of revenue from those products' ongoing maintenance, Deere has been able to generate and maintain significant margins relative to competitors throughout various cycles. Its EBITDA margin of 18.6% sits well above the sector median of 10.9%, and its 16.6% operating income margin is more than double the sector median of 7.7%.
However, equipment manufacturers broadly have encountered increasing inflationary pressures and rising raw material costs resulting from the Russia-Ukraine war. Moreover, rising fuel and fertilizer prices are expected to significantly hurt farmers, which could force them to scale down equipment upgrades in the coming years.
Despite all that, John Deere increased its 2022 annual net income forecast to between $6.7 billion and $7.1 billion, predicting that "demand for farm and construction equipment will continue to benefit from strong fundamentals." Additionally, John Deere's established network of connected machines and its pricing power will likely enable the company to better mitigate any longer-term impacts of these challenges relative to its competitors.
Green fields ahead for John Deere
John Deere spent $1.5 billion, or roughly 3.6% of net sales and revenues, on R&D in 2021 alone. Though that percentage has shrunk over the past few years, Deere has increased R&D investment for 2022 by a massive 17%, highlighting the company's commitment to modernizing agriculture broadly in the coming decades. Earlier this year, John Deere debuted its fully autonomous tractor at the Consumer Electronics Show (CES) in Las Vegas, and although it likely won't be ready until the end of this year, it will certainly be a long-term growth driver for the company.
By 2050, the global population is expected to grow to close to 10 billion people, with a more than 50% increase in food demand. That makes productivity and efficiency in farming and food production more important than ever. As the leader in developing sophisticated data and technology to help drive efficiencies and cut waste in farming and food production, John Deere will be key to the long-term equation of feeding the world, and thus is poised to become one of the most important AI companies in the world.
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Fool contributor Kelly McShane holds no financial position in any companies 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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These next-generation machines offer embedded technology, from guidance systems and hand-free driver assistance, to seed placement and customized spraying applications, that leverage AI to exponentially increase efficiencies, enabling farmers to produce more with less work and at a lower cost. Combined with its scale and vast dealer network, which drives both initial equipment sales and a subsequent stream of revenue from those products' ongoing maintenance, Deere has been able to generate and maintain significant margins relative to competitors throughout various cycles. Additionally, John Deere's established network of connected machines and its pricing power will likely enable the company to better mitigate any longer-term impacts of these challenges relative to its competitors.
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In 2017, John Deere acquired Blue River Technology, a company that develops AI and computer vision solutions to power autonomous agriculture robots, which marked another important step in developing the next generation of Deere's farming equipment. Plowing forward through challenges By successfully combining its best-in-class hardware with cutting-edge software, data, and expertise, and as the first in the industry to provide customers machine connectivity and data sharing at no additional cost, without making farmers pay subscription fees, John Deere has helped customers get more done at a lower cost while bolstering its brand reputation and competitive advantage. As the leader in developing sophisticated data and technology to help drive efficiencies and cut waste in farming and food production, John Deere will be key to the long-term equation of feeding the world, and thus is poised to become one of the most important AI companies in the world.
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In 2017, John Deere acquired Blue River Technology, a company that develops AI and computer vision solutions to power autonomous agriculture robots, which marked another important step in developing the next generation of Deere's farming equipment. Plowing forward through challenges By successfully combining its best-in-class hardware with cutting-edge software, data, and expertise, and as the first in the industry to provide customers machine connectivity and data sharing at no additional cost, without making farmers pay subscription fees, John Deere has helped customers get more done at a lower cost while bolstering its brand reputation and competitive advantage. As the leader in developing sophisticated data and technology to help drive efficiencies and cut waste in farming and food production, John Deere will be key to the long-term equation of feeding the world, and thus is poised to become one of the most important AI companies in the world.
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Today, John Deere has amassed a large network of more than 440,000 connected machines that use their core underlying technologies and leverage their centralized platform. Plowing forward through challenges By successfully combining its best-in-class hardware with cutting-edge software, data, and expertise, and as the first in the industry to provide customers machine connectivity and data sharing at no additional cost, without making farmers pay subscription fees, John Deere has helped customers get more done at a lower cost while bolstering its brand reputation and competitive advantage. When most people think of John Deere (NYSE: DE), the term "artificial intelligence" usually isn't the first (or even the fifth!)
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c8cb8ca2-b963-497e-8f91-0c5d56cff0d6
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721186.0
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2022-05-11 00:00:00 UTC
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Agriculture Stocks are Rising; These 3 Could Harvest Healthy Returns
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DE
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https://www.nasdaq.com/articles/agriculture-stocks-are-rising-these-3-could-harvest-healthy-returns
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nan
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nan
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The Russia-Ukraine war has been pushing up commodity prices ever since rumors began about its onset. Moreover, supply chain issues have been disrupting food supplies globally, leading to elevated food prices. Also, the economic recovery after the pandemic has increased the spending capacity of consumers.
Recently, corn and soybean prices increased to record highs and are currently trading around them. This is important because these two grains are key in the cash crop farming scene of the U.S. These catalysts are also boosting agriculture income, providing an incentive for farmers to ramp up their production.
Accompanying the elevated farm activities is the demand for farm equipment, which is also being pulled up along with rising commodity prices. Agricultural equipment like tractors, excavators, and other engines and tools have been seeing strong sales traction this year due to their ability to reduce the overall costs for farms.
Importantly, the use of advanced agriculture technology to improve farming processes and keep up with evolving customer demand is a major catalyst, which is expected to drive long-term growth.
According to Mordor Intelligence, the agricultural machinery market is expected to grow at a 5.4% CAGR from 2022 to 2027.
Also, farm equipment and machinery, being depreciating assets, need to be replaced after a certain period. This means that the equipment industry is blessed with a sustainable demand, which will keep generating sustainable income for companies in this industry.
Riding on these upsides are three agriculture equipment companies whose stock valuations are on a steady uphill track this year.
Agco (NYSE: AGCO)
Agco manufactures and markets advanced farm equipment and replacement parts. The company’s shares have increased about 3% year-to-date.
Increased farm activities, demand for agricultural produce, and demand for replacement equipment have been driving the company’s growth in the past few months. The company’s focused investments in farming technology and solutions, while implementing efficient cost reduction measures, are contributing to margin efficiencies.
In line with its strategy, earlier this month, Agco acquired JCA Industries to gain a firmer footing in the autonomous software development for agricultural machines, implement controls, and electronic system components.
Moreover, another encouraging point is the recent price target increase by Morgan Stanley analyst Courtney Yakavonis to $160 from $158 while maintaining a Buy rating.
Wall Street is fairly optimistic about the stock, with a Strong Buy rating based on five Buys and one Hold. The average AGCO stock price projection of $165.83 indicates 39.4% upside potential from current levels.
Deere (NYSE: DE)
Apart from being the world’s largest manufacturer of agriculture, forestry, and construction equipment, Deere also provides leasing and financial services to organizations. DE stock has rallied 4.45% so far this year.
Deere’s efforts in the precision agriculture space, along with a consistent demand for replacement equipment, are expected to boost growth in the long run. Looking into the near term, the upward trek of agricultural commodity prices is very well suited for the growth of the company.
Recently, Oppenheimer increased its price target to $446 from $432 while reiterating a Buy rating. However, Bank of America analyst Ross Gilardi was a little cautious of the persistent fertilizer shortage-related headwinds. He noted that dealers were upbeat on pricing and inventory, but he “detected a little more caution on order trends due to fertilizer shortages than anticipated.”
Nonetheless, Wall Street is fairly optimistic about the stock, with a Moderate Buy rating based on five Buys and five Hold ratings. The average Deere price target is $442.67, indicating upside potential of 21.4% from Wednesday’s price levels.
Caterpillar (NYSE: CAT)
Construction equipment maker Caterpillar has performed better than the overall market in the past three months, fueled by the strong demand for farming equipment and machinery. Moreover, like its aforementioned peers, demand for replacement equipment is also driving its revenues.
The company is known to refurbish and market old equipment. CAT was thrust into the limelight when it took approximately 127 million pounds of old equipment to be reprocessed as part of its efforts to be more environmentally friendly while boosting service revenues. The company believes that the success of its efforts can give it a competitive edge.
Caterpillar is working toward growing its services revenues by about 100% to $28 billion by 2026, which highlights its encouraging prospects.
Recently, Argus analyst John Eade maintained a Buy rating on the CAT stock with a price target of $235. He believes that the recent stock price dip has opened a good investment opportunity. The analyst is encouraged by the comeback of demand for its remanufactured products after witnessing weakness during the coronavirus crisis.
Caterpillar’s strong balance sheet makes it an excellent candidate to pursue growth-driving initiatives like product innovations, mergers & acquisitions, partnerships, etc. Notably, the company recently upped its dividend payments by 8%, which is another point to be optimistic about.
Wall Street is also bullish on the prospects of Caterpillar, with a Strong Buy consensus rating based on 10 Buys, one Hold, and one Sell. The average Caterpillar price target is $247.42, implying 20.7% upside potential.
Parting Thoughts
The agriculture/farming sector has been an essential industry and will always be. This means that the demand for most of the industries within this sector, including the agricultural equipment industry, is likely to always be blessed with consistent demand despite some hiccups here and there.
However, the present situation of high commodity prices, which is expected to continue for some time now, is likely to benefit Agco, Deere, and Caterpillar more than their peers.
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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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Importantly, the use of advanced agriculture technology to improve farming processes and keep up with evolving customer demand is a major catalyst, which is expected to drive long-term growth. In line with its strategy, earlier this month, Agco acquired JCA Industries to gain a firmer footing in the autonomous software development for agricultural machines, implement controls, and electronic system components. Also, the economic recovery after the pandemic has increased the spending capacity of consumers.
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Increased farm activities, demand for agricultural produce, and demand for replacement equipment have been driving the company’s growth in the past few months. He noted that dealers were upbeat on pricing and inventory, but he “detected a little more caution on order trends due to fertilizer shortages than anticipated.” Nonetheless, Wall Street is fairly optimistic about the stock, with a Moderate Buy rating based on five Buys and five Hold ratings. Also, the economic recovery after the pandemic has increased the spending capacity of consumers.
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Accompanying the elevated farm activities is the demand for farm equipment, which is also being pulled up along with rising commodity prices. Increased farm activities, demand for agricultural produce, and demand for replacement equipment have been driving the company’s growth in the past few months. Caterpillar (NYSE: CAT) Construction equipment maker Caterpillar has performed better than the overall market in the past three months, fueled by the strong demand for farming equipment and machinery.
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Increased farm activities, demand for agricultural produce, and demand for replacement equipment have been driving the company’s growth in the past few months. Also, the economic recovery after the pandemic has increased the spending capacity of consumers. Accompanying the elevated farm activities is the demand for farm equipment, which is also being pulled up along with rising commodity prices.
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15c7ad07-4689-47e0-bb22-d73629856465
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721187.0
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2022-05-10 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-2
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nan
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nan
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Deere (DE) closed at $364.75 in the latest trading session, marking a +0.06% move from the prior day. This move lagged the S&P 500's daily gain of 0.25%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.54%.
Coming into today, shares of the agricultural equipment manufacturer had lost 12.9% in the past month. In that same time, the Industrial Products sector lost 11.53%, while the S&P 500 lost 11.03%.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022. In that report, analysts expect Deere to post earnings of $6.65 per share. This would mark year-over-year growth of 17.08%. Our most recent consensus estimate is calling for quarterly revenue of $13.44 billion, up 22.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.69 per share and revenue of $48.18 billion, which would represent changes of +19.48% and +21.24%, respectively, from the prior year.
Investors should also note any 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.
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, 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 0.29% lower within the past month. 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 16.07. This represents a premium compared to its industry's average Forward P/E of 14.14.
Also, we should mention that DE has a PEG ratio of 1.19. 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. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
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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 at $364.75 in the latest trading session, marking a +0.06% move from the prior day. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022. In that report, analysts expect Deere to post earnings of $6.65 per share.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed at $364.75 in the latest trading session, marking a +0.06% move from the prior day. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022.
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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 $364.75 in the latest trading session, marking a +0.06% move from the prior day. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022.
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Deere (DE) closed at $364.75 in the latest trading session, marking a +0.06% move from the prior day. 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. Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022.
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e98fa2b9-7016-4bc3-9285-696088e2a360
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721188.0
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2022-05-09 00:00:00 UTC
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Deere is Oversold
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DE
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https://www.nasdaq.com/articles/deere-is-oversold
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nan
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nan
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Deere & Co. (Symbol: DE) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Deere & Co. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of DE entered into oversold territory, changing hands as low as $365.36 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Deere & Co., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, DE's recent annualized dividend of 4.2/share (currently paid in quarterly installments) works out to an annual yield of 1.11% based upon the recent $377.46 share price.
A bullish investor could look at DE's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DE is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out what 9 other oversold dividend stocks you need to know about »
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 define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. A bullish investor could look at DE's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. In the case of Deere & Co., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.2. Indeed, DE's recent annualized dividend of 4.2/share (currently paid in quarterly installments) works out to an annual yield of 1.11% based upon the recent $377.46 share price.
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The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. In the case of Deere & Co., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.2. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out what 9 other oversold dividend stocks you need to know about » 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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A stock is considered to be oversold if the RSI reading falls below 30. In the case of Deere & Co., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 40.2. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on DE is its dividend history.
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4439fedd-44e8-4176-beee-c504b9da187e
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721189.0
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2022-05-09 00:00:00 UTC
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DE Makes Notable Cross Below Critical Moving Average
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DE
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https://www.nasdaq.com/articles/de-makes-notable-cross-below-critical-moving-average
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nan
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nan
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In trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $370.16, changing hands as low as $367.64 per share. Deere & Co. shares are currently trading off about 2.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average:
Looking at the chart above, DE's low point in its 52 week range is $320.50 per share, with $446.76 as the 52 week high point — that compares with a last trade of $369.31. The DE DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
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 trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $370.16, changing hands as low as $367.64 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $320.50 per share, with $446.76 as the 52 week high point — that compares with a last trade of $369.31. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » 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 trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $370.16, changing hands as low as $367.64 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $320.50 per share, with $446.76 as the 52 week high point — that compares with a last trade of $369.31. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » 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 trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $370.16, changing hands as low as $367.64 per share. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $320.50 per share, with $446.76 as the 52 week high point — that compares with a last trade of $369.31. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » 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 trading on Monday, shares of Deere & Co. (Symbol: DE) crossed below their 200 day moving average of $370.16, changing hands as low as $367.64 per share. Deere & Co. shares are currently trading off about 2.4% on the day. The chart below shows the one year performance of DE shares, versus its 200 day moving average: Looking at the chart above, DE's low point in its 52 week range is $320.50 per share, with $446.76 as the 52 week high point — that compares with a last trade of $369.31.
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0ad1e70d-b43d-424f-a6b6-cfffe2e29e65
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721190.0
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2022-05-06 00:00:00 UTC
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Zacks Industry Outlook Highlights Deere, AGCO, Lindsay and Titan International
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DE
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-deere-agco-lindsay-and-titan-international
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nan
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nan
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For Immediate Release
Chicago, IL – May 6, 2022 – Today, Zacks Equity Research discusses Deere & Company DE, AGCO Corp. AGCO, Lindsay Corp. LNN and Titan International, Inc. TWI.
Industry: Farm Equipment
Link: https://www.zacks.com/commentary/1916873/4-farm-equipment-stocks-to-watch-amid-industry-challenges
The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which in turn will boost farm income and lead to higher spending on agricultural equipment. However, ongoing supply chain disruptions and inflationary costs remain near-term concerns.
The industry remains focused on revolutionizing agriculture with technology to make farming automated, easy to execute and more precise across the production process. Players like Deere & Company, AGCO Corp., Lindsay Corp. and Titan International, Inc. are well-poised to gain on 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 Commodity Prices: Corn and soybean are the most important grains for cash crop farming in the United States. Corn prices recently hit the peak of $8.30 a bushel and are currently trading at around $8 a bushel. Planting delays in parts of the US Midwest and persistent shipment disruptions due to Russia's invasion of Ukraine have been supporting prices.
Soybean also hit a record $17.5 per bushel in late April. Prices are being spurred by prospects of solid demand for U.S. supplies and tight global supplies amid adverse weather conditions in South America and ongoing shipment disruptions from the Black Sea region. High commodity prices will drive farm income and persuade farmers to continue spending on agricultural equipment. Apart from this, the need to replace ageing equipment will sustain demand.
High Costs & Supply Chain Issues Remain Woes: The COVID-19 pandemic had affected U.S. agricultural exports and impacted commodity prices. Even though commodity prices have been gaining lately, renewed coronavirus-induced lockdowns in China have 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.
The industry participants are currently facing raw material cost inflation, particularly steel, as well as increased transportation costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Shortage of labor might impact 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 the evolving demands of customers.
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 Weak Prospects
The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #168, which places it at the bottom 34% 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 dim 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.
Despite the bleak near-term prospects of the industry, we will present a few Manufacturing - Farm Equipment stocks that can be retained in one's portfolio. It's worth taking a look at the industry's stock-market performance and valuation picture before that.
Industry Lags Sector and S&P 500
The Zacks Manufacturing - Farm Equipment industry has underperformed its own sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have fallen 15.6% in the past 12 months compared with the Zacks Industrial Products sector and the S&P 500's declines of 2.3%. and 0.8%, respectively.
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 13.53X compared with the S&P 500's 14.09X. The Industrial Products sector's forward 12-month EV/EBITDA is 16.91X.
Over the last five years, the industry has traded as high as 24.75X and as low as 10.43X, with the median being at 15.62X.
4 Manufacturing - Farm Equipment Stocks to Keep an Eye On
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, being 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 as well. Its cost-control actions will drive margins. Backed by upbeat demand in its end-markets, its shares have appreciated 6.5% in the past three months.
The Zacks Consensus Estimate for the Moline, IL-based company's fiscal 2022 earnings is currently pegged at $22.69. The estimate has moved up 2% over the past 90 days and indicates growth of around 19.5% year over year. It has a trailing four-quarter earnings surprise of 20.6%, on average. Deere has an estimated long-term earnings growth rate of 13.5%. DE currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AGCO: The company has been gaining on 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 gained 17.5% in the past three months.
The Zacks Consensus Estimate for the company's fiscal 2022 earnings currently stands at $11.83 and suggests growth of 13% year over year. The estimate has moved north by 12.6% in the past 90 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 43.4%, on average. The company has an estimated long-term earnings growth rate of 9.9%.
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 days ahead. 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 increased 11.8% over the past three months.
The Zacks Consensus Estimate for Lindsay's earnings for fiscal 2022 is currently pegged at $4.64, suggesting year-over-year growth of 12.4%. The estimates have moved north by 2.4% in the past 90 days. The company has a trailing four-quarter earnings surprise of 22.3%, on average. The company carries a Zacks Rank #3.
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 will 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 soared 73% in the past three months. The company's continued cost reduction and cash preservation measures position it well for growth.
The Zacks Consensus Estimate for the company's earnings for fiscal 2022 has been revised upward by 23.4% over the past 90 days to $1.16 per share. The consensus mark suggests a year-over-year improvement of 36.5%. It has a trailing four-quarter earnings surprise of 56.4%, on average. TWI currently carries a Zacks Rank #3.
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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
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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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Players like Deere & Company, AGCO Corp., Lindsay Corp. and Titan International, Inc. are well-poised to gain on their investment in technologies, strong demand and cost-control efforts. 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. 4 Manufacturing - Farm Equipment Stocks to Keep an Eye On 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.
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For Immediate Release Chicago, IL – May 6, 2022 – Today, Zacks Equity Research discusses Deere & Company DE, AGCO Corp. AGCO, Lindsay Corp. LNN and Titan International, Inc. TWI. Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company's irrigation equipment. Players like Deere & Company, AGCO Corp., Lindsay Corp. and Titan International, Inc. are well-poised to gain on their investment in technologies, strong demand and cost-control efforts.
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Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. Zacks Industry Rank Indicates Weak Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. For Immediate Release Chicago, IL – May 6, 2022 – Today, Zacks Equity Research discusses Deere & Company DE, AGCO Corp. AGCO, Lindsay Corp. LNN and Titan International, Inc. TWI.
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Players like Deere & Company, AGCO Corp., Lindsay Corp. and Titan International, Inc. are well-poised to gain on their investment in technologies, strong demand and cost-control efforts. Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. For Immediate Release Chicago, IL – May 6, 2022 – Today, Zacks Equity Research discusses Deere & Company DE, AGCO Corp. AGCO, Lindsay Corp. LNN and Titan International, Inc. TWI.
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4 Farm Equipment Stocks to Watch Amid Industry Challenges
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The Zacks Manufacturing - Farm Equipment industry will benefit from upbeat commodity prices, which in turn will boost farm income and lead to higher spending on agricultural equipment. However, ongoing supply chain disruptions and inflationary costs remain near-term concerns. The industry remains focused on revolutionizing agriculture with technology to make farming automated, easy to execute and more precise across the production process. Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN and Titan International, Inc. TWI are well-poised to gain on 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 Commodity Prices: Corn and soybean are the most important grains for cash crop farming in the United States. Corn prices recently hit the peak of $8.30 a bushel and are currently trading at around $8 a bushel. Planting delays in parts of the US Midwest and persistent shipment disruptions due to Russia's invasion of Ukraine have been supporting prices. Soybean also hit a record $17.5 per bushel in late April. Prices are being spurred by prospects of solid demand for U.S. supplies and tight global supplies amid adverse weather conditions in South America and ongoing shipment disruptions from the Black Sea region. High commodity prices will drive farm income and persuade farmers to continue spending on agricultural equipment. Apart from this, the need to replace ageing equipment will sustain demand.
High Costs & Supply Chain Issues Remain Woes: The COVID-19 pandemic had affected U.S. agricultural exports and impacted commodity prices. Even though commodity prices have been gaining lately, renewed coronavirus-induced lockdowns in China have 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. The industry participants are currently facing raw material cost inflation, particularly steel, as well as increased transportation costs. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. Shortage of labor might impact 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 the evolving demands of customers. 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 Weak Prospects
The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #168, which places it at the bottom 34% 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 dim 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.
Despite the bleak near-term prospects of the industry, we will present a few Manufacturing - Farm Equipment stocks that can be retained in one’s portfolio. It’s worth taking a look at the industry’s stock-market performance and valuation picture before that.
Industry Lags Sector and S&P 500
The Zacks Manufacturing - Farm Equipment industry has underperformed its own sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have fallen 15.6% in the past 12 months compared with the Zacks Industrial Products sector and the S&P 500’s declines of 2.3%. and 0.8%, respectively.
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 13.53X compared with the S&P 500’s 14.09X. The Industrial Products sector’s forward 12-month EV/EBITDA is 16.91X. 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 24.75X and as low as 10.43X, with the median being at 15.62X.
4 Manufacturing - Farm Equipment Stocks to Keep an Eye on
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, being 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 as well. Its cost-control actions will drive margins. Backed by upbeat demand in its end-markets, its shares have appreciated 6.5% in the past three months.
The Zacks Consensus Estimate for the Moline, IL-based company’s fiscal 2022 earnings is currently pegged at $22.69. The estimate has moved up 2% over the past 90 days and indicates growth of around 19.5% year over year. It has a trailing four-quarter earnings surprise of 20.6%, on average. Deere has an estimated long-term earnings growth rate of 13.5%. DE currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: DE
AGCO: The company has been gaining on 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 gained 17.5% in the past three months.
The Zacks Consensus Estimate for the company’s fiscal 2022 earnings currently stands at $11.83 and suggests growth of 13% year over year. The estimate has moved north by 12.6% in the past 90 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 43.4%, on average. The company has an estimated long-term earnings growth rate of 9.9%.
Price & Consensus: AGCO
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 days ahead. 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 increased 11.8% over the past three months.
The Zacks Consensus Estimate for Lindsay’s earnings for fiscal 2022 is currently pegged at $4.64, suggesting year-over-year growth of 12.4%. The estimates have moved north by 2.4% in the past 90 days. The company has a trailing four-quarter earnings surprise of 22.3%, on average. The company carries a Zacks Rank #3.
Price & Consensus: LNN
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 will 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 soared 73% in the past three months. The company’s continued cost reduction and cash preservation measures position it well for growth.
The Zacks Consensus Estimate for the company’s earnings for fiscal 2022 has been revised upward by 23.4% over the past 90 days to $1.16 per share. The consensus mark suggests a year-over-year improvement of 36.5%. It has a trailing four-quarter earnings surprise of 56.4%, on average. TWI currently carries a Zacks Rank #3.
Price & Consensus: TWI
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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
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. 4 Manufacturing - Farm Equipment Stocks to Keep an Eye on 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. Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN and Titan International, Inc. TWI are well-poised to gain on their investment in technologies, strong demand and cost-control efforts.
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Players like Deere & Company DE, AGCO Corporation AGCO, Lindsay Corporation LNN and Titan International, Inc. TWI are well-poised to gain on their investment in technologies, strong demand and cost-control efforts. Price & Consensus: AGCO Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company’s irrigation equipment. 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 Weak 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 and Titan International, Inc. TWI are well-poised to gain on their investment in technologies, strong demand and cost-control efforts.
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Industry Description The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. Zacks Industry Rank Indicates Weak Prospects The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. Price & Consensus: AGCO Lindsay: Improving agricultural commodity prices will continue to boost farm income, fueling demand for the company’s irrigation equipment.
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2022-05-03 00:00:00 UTC
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4 Value Stocks to Add to Your Portfolio in May
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s a good time to buy value stocks on weakness.
General Motors (GM): Should be lifted by strong demand for its electric vehicles and its autonomous vehicles.
General Electric (GE): Reported fairly strong Q1 results, and GE stock should get a big lift from the travel boom.
Deere (DE): Should continue to benefit from high food prices.
Cheniere (LNG): Investors are underestimating the energy company’s outlook as Europe looks for new sources of natural gas.
Source: patpitchaya / Shutterstock.com
In an environment in which growth stocks and value stocks aren’t doing particularly well, picking names with low valuations and high profits makes sense. That’s because even investors who are skeptical about the market’s outlook should see the attractiveness of such stocks sooner or later.
Meanwhile, there are multiple signs that, over the longer term, those who buy high-quality value stocks on weakness now are going to make a great deal of money. Indeed, with sentiment towards the market terrible and the macro situation poised to improve, it looks like, if the market hasn’t bottomed, it will do so within the next several weeks.
Among the macro developments likely to reassure investors are the (likely correct) growing consensus that inflation has peaked. The latter situation, in turn, will probably make the Federal Reserve more dovish than many expect, and many anticipate that the Russia-Ukraine war will end sometime this month.
Also boding well for stocks, both Tesla’s (NASDAQ:TSLA) CEO Elon Musk and Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) have recently decided to make huge investments. If they thought stocks were still far from bottoming, they probably would have waited for valuations to drop further before they made their moves.
7 Warren Buffett Stocks to Buy in May and Hold for Years
Let’s dig into these four very attractive value stocks to buy on weakness:
GM General Motors $39.79
GE General Electric $77.18
DE Deere $389.87
LNG Cheniere $140.63
General Motors (GM)
Source: Formatoriginal / Shutterstock.com
Despite inflation and supply chain pressures, General Motors’ (NYSE:GM) first-quarter earnings per share (EPS), excluding certain items, came in at a robust $2.09. versus analysts’ average estimate of just $1.67. The midpoint of GM’s 2022 adjusted EPS guidance is $7, well above analysts’ mean estimates.
With GM’s EV sales likely to surge next year, GM stock is likely to start pricing in that positive catalyst within a few months. Moreover, Wedbush analyst Dan Ives is upbeat on the company’s future in the EV sector.
GM CEO Mary Barra recently indicated that the company plans to deploy a robotaxi service early next year, a development that should also be extremely positive for the automaker and its shares.
Even with all of these positive catalysts, the forward price-earnings (P/E) ratio of GM stock is now a truly paltry 5.6.
General Electric (GE)
Source: Sundry Photography / Shutterstock.com
Bearishness towards General Electric (NYSE:GE) stock seems to have hit a fever pitch, just as the conglomerate’s medium-term outlook appears to have reached its highest point in years.
Specifically, with travel booming and likely to stay hot for some time, airlines are like to order many more planes and service their planes’ engines much more often than they have since the pandemic began. Those trends should tremendously boost GE’s Aviation unit, whose profit came in at $908 million in Q1. Additionally, the unit’s orders soared 31% year-over-year.
And because electric-vehicle sales are soaring while many countries are replacing coal plants with natural gas, the medium-term and long-term outlook of GE’s Power business is bright. Already last quarter, the unit, which GE stock bears had left for dead, generated a $63 million profit, and a 14% YOY increase in its orders.
GE stock sank because CEO Larry Culp said that the company is “trending toward the low end of (its 2022 ERPS guidance) range” due to “inflation and other pressures.” But inflation looks to have peaked, while the “other pressures” cited by Culp, including the war in Ukraine and supply chain issues, should improve in the second half of the year.
7 Long-Term Stocks to Buy for a Robust Retirement
GE’s 2022 EPS guidance range is $2.80-$3.50. Assuming its EPS comes in at $3, GE stock is now trading at a forward P/E ratio of slightly below 25. Given the company’s multiple, strong, positive catalysts, that’s a cheap price to pay for the shares.
Deere (DE)
Source: Jim Lambert / Shutterstock.com
Deere (NYSE:DE) stock is up 10% so far this year, although it has fallen 10% in the last month. Bank of America (NYSE:BAC) recently stated that the company is the “market leader in precision ag at a time of insatiable farmer demand for new technology.” Indeed, with food prices quite elevated and likely to stay high due to the damage from the war in Ukraine, many farmers will likely continue to look to buy Deere’s products to boost their crop yields.
As Barclays stated in March: “High grain prices bode well for farm incomes, and elevated farm incomes are typically reinvested back into the farm, including machinery and grain storage,”
On Feb. 18, Deere reported “beat-and-raise” Q1 results. It increased its FY22 net income outlook to “$6.7B-$7.1B, up from its prior forecast of $6.5B-$7B.”
After its recent pullback, DE stock is trading at an affordable forward P/E ratio of 16.6.
Cheniere (LNG)
Source: IgorGolovniov / Shutterstock.com
With Europe looking to stop importing Russian gas, Cheniere Energy (NYSE:LNG), which exports American natural gas, should grow rapidly in the coming quarters and years. Some pundits have worried that the Biden administration is opposed to allowing U.S. natural gas exports to surge. But the Department of Energy in March “authorized additional liquefied natural gas exports from Cheniere Energy’s… Sabine Pass, La., and Corpus Christi, Texas, terminals.”
Cheniere will be able to quickly take advantage of the permit as its “facilities already are making more gas than is covered by previous export permits.”
What’s more, from Cheniere’s perspective, U.S. natural gas prices are in a “sweet spot” — high enough to convince U.S. producers to step up their output, but still much lower than European prices.
7 A-Rated Dividend Stocks to Buy Forever
LNG stock is trading at a very low forward P/E ratio of just 10.
On the date of publication, Larry Ramer held a long position in GE. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 4 Value Stocks to Add to Your Portfolio in May 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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GM CEO Mary Barra recently indicated that the company plans to deploy a robotaxi service early next year, a development that should also be extremely positive for the automaker and its shares. It increased its FY22 net income outlook to “$6.7B-$7.1B, up from its prior forecast of $6.5B-$7B.” After its recent pullback, DE stock is trading at an affordable forward P/E ratio of 16.6. General Motors (GM): Should be lifted by strong demand for its electric vehicles and its autonomous vehicles.
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7 Warren Buffett Stocks to Buy in May and Hold for Years Let’s dig into these four very attractive value stocks to buy on weakness: GM General Motors $39.79 GE General Electric $77.18 DE Deere $389.87 LNG Cheniere $140.63 General Motors (GM) Source: Formatoriginal / Shutterstock.com Despite inflation and supply chain pressures, General Motors’ (NYSE:GM) first-quarter earnings per share (EPS), excluding certain items, came in at a robust $2.09. As Barclays stated in March: “High grain prices bode well for farm incomes, and elevated farm incomes are typically reinvested back into the farm, including machinery and grain storage,” On Feb. 18, Deere reported “beat-and-raise” Q1 results. General Motors (GM): Should be lifted by strong demand for its electric vehicles and its autonomous vehicles.
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7 Warren Buffett Stocks to Buy in May and Hold for Years Let’s dig into these four very attractive value stocks to buy on weakness: GM General Motors $39.79 GE General Electric $77.18 DE Deere $389.87 LNG Cheniere $140.63 General Motors (GM) Source: Formatoriginal / Shutterstock.com Despite inflation and supply chain pressures, General Motors’ (NYSE:GM) first-quarter earnings per share (EPS), excluding certain items, came in at a robust $2.09. But the Department of Energy in March “authorized additional liquefied natural gas exports from Cheniere Energy’s… Sabine Pass, La., and Corpus Christi, Texas, terminals.” Cheniere will be able to quickly take advantage of the permit as its “facilities already are making more gas than is covered by previous export permits.” What’s more, from Cheniere’s perspective, U.S. natural gas prices are in a “sweet spot” — high enough to convince U.S. producers to step up their output, but still much lower than European prices. General Motors (GM): Should be lifted by strong demand for its electric vehicles and its autonomous vehicles.
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7 Warren Buffett Stocks to Buy in May and Hold for Years Let’s dig into these four very attractive value stocks to buy on weakness: GM General Motors $39.79 GE General Electric $77.18 DE Deere $389.87 LNG Cheniere $140.63 General Motors (GM) Source: Formatoriginal / Shutterstock.com Despite inflation and supply chain pressures, General Motors’ (NYSE:GM) first-quarter earnings per share (EPS), excluding certain items, came in at a robust $2.09. General Motors (GM): Should be lifted by strong demand for its electric vehicles and its autonomous vehicles. Deere (DE): Should continue to benefit from high food prices.
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2022-05-02 00:00:00 UTC
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Some CNH Industrial workers in U.S. start strike -UAW union statement
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https://www.nasdaq.com/articles/some-cnh-industrial-workers-in-u.s.-start-strike-uaw-union-statement-0
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Adds comment for CNHI
CHICAGO, May 2 (Reuters) - Over 1,000 CNH Industrial CNHI.MI workers in Racine, Wisconsin, and Burlington, Iowa, started a strike on Monday, the United Auto Workers union said in a statement.
The six-year contract agreement at both facilities expired at midnight on April 30.
"Our members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules," Chuck Browning, Vice President and director of the UAW's Agricultural Implement Department said. He said the workers were committed to bargaining until goals are achieved.
A spokesperson for the Italian-American agricultural and construction equipment maker said in a statement that CNH Industrial "remained committed" to reaching an agreement with UAW.
"We recognize the union's decision creates high anxiety among our represented employees in Burlington and Racine. We will continue to negotiate in good faith and trust that the Union will do the same."
Factory workers at other major manufacturing companies, including Caterpillar CAT.N and Deere & Co. DE.N, have gone on strike in the past year demanding better labor conditions and increased wages to keep pace with rising inflation.
(Reporting by Bianca Flowers Editing by Tomasz Janowski)
((caroline.stauffer@thomsonreuters.com; +1-757-390-0985; Reuters Messaging: caroline.stauffer.thomsonreuters.com@reuters.net))
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 members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules," Chuck Browning, Vice President and director of the UAW's Agricultural Implement Department said. Factory workers at other major manufacturing companies, including Caterpillar CAT.N and Deere & Co. DE.N, have gone on strike in the past year demanding better labor conditions and increased wages to keep pace with rising inflation. "We recognize the union's decision creates high anxiety among our represented employees in Burlington and Racine.
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"Our members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules," Chuck Browning, Vice President and director of the UAW's Agricultural Implement Department said. "We recognize the union's decision creates high anxiety among our represented employees in Burlington and Racine. Factory workers at other major manufacturing companies, including Caterpillar CAT.N and Deere & Co. DE.N, have gone on strike in the past year demanding better labor conditions and increased wages to keep pace with rising inflation.
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"Our members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules," Chuck Browning, Vice President and director of the UAW's Agricultural Implement Department said. "We recognize the union's decision creates high anxiety among our represented employees in Burlington and Racine. Factory workers at other major manufacturing companies, including Caterpillar CAT.N and Deere & Co. DE.N, have gone on strike in the past year demanding better labor conditions and increased wages to keep pace with rising inflation.
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"Our members at CNHi strike for the ability to earn a decent living, retire with dignity and establish fair work rules," Chuck Browning, Vice President and director of the UAW's Agricultural Implement Department said. "We recognize the union's decision creates high anxiety among our represented employees in Burlington and Racine. Factory workers at other major manufacturing companies, including Caterpillar CAT.N and Deere & Co. DE.N, have gone on strike in the past year demanding better labor conditions and increased wages to keep pace with rising inflation.
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2022-05-02 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Deere
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-deere
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 12 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in DE positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
McDonald Partners LLC NEW +688 +$286
Park Avenue Securities LLC Existing +161 +$294
BKA Wealth Consulting Inc. NEW +591 +$246
Libra Wealth LLC NEW +600 +$250
FourThought Financial LLC Existing +1,135 +$505
Northwest Wealth Management LLC Existing -12 +$112
Garner Asset Management Corp Existing +1 +$185
Versant Capital Management Inc Existing UNCH +$3
Markel Corp Existing UNCH +$54,849
Whittier Trust Co. Existing +270 +$1,889
Birmingham Capital Management Co. Inc. AL Existing -2,040 +$2,867
Waycross Partners LLC Existing UNCH +$608
Aggregate Change: +1,394 +$62,094
In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 12/31/2021 to 03/31/2022, with 2 having decreased their positions and 3 new positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the DE share count in the aggregate among all of the funds which held DE at the 03/31/2022 reporting period (out of the 1,667 we looked at in total). We then compared that number to the sum total of DE shares those same funds held back at the 12/31/2021 period, to see how the aggregate share count held by hedge funds has moved for DE. We found that between these two periods, funds increased their holdings by 768,029 shares in the aggregate, from 9,896,746 up to 10,664,775 for a share count increase of approximately 7.76%. The overall top three funds holding DE on 03/31/2022 were:
» FUND SHARES OF DE HELD
1. Sumitomo Mitsui Trust Holdings Inc. 1,517,765
2. Rothschild & Co Wealth Management UK Ltd 1,227,392
3. Nordea Investment Management AB 839,905
4-10 Find out the full Top 10 Hedge Funds Holding DE »
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Deere & Co. (Symbol: DE).
10 S&P 500 Components Hedge Funds Are Buying »
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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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 12 of these funds. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Deere & Co. (Symbol: DE).
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 12 of these funds. Existing +270 +$1,889 Birmingham Capital Management Co. Inc. AL Existing -2,040 +$2,867 Waycross Partners LLC Existing UNCH +$608 Aggregate Change: +1,394 +$62,094 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 12/31/2021 to 03/31/2022, with 2 having decreased their positions and 3 new positions. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
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Existing +270 +$1,889 Birmingham Capital Management Co. Inc. AL Existing -2,040 +$2,867 Waycross Partners LLC Existing UNCH +$608 Aggregate Change: +1,394 +$62,094 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 12/31/2021 to 03/31/2022, with 2 having decreased their positions and 3 new positions. Nordea Investment Management AB 839,905 4-10 Find out the full Top 10 Hedge Funds Holding DE » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 12 of these funds.
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At Holdings Channel, we have reviewed the latest batch of the 22 most recent 13F filings for the 03/31/2022 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 12 of these funds. Nordea Investment Management AB 839,905 4-10 Find out the full Top 10 Hedge Funds Holding DE » We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
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35f65ea9-4d77-4b9e-8d0d-e035f21c80cc
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721195.0
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2022-05-02 00:00:00 UTC
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The Zacks Analyst Blog Highlights T-Mobile US, Deere, PayPal, The PNC Financial Services Group and Edwards Lifesciences
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-t-mobile-us-deere-paypal-the-pnc-financial-services
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nan
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For Immediate Release
Chicago, IL – May 2, 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: T-Mobile US, Inc. TMUS, Deere & Co. DE, PayPal Holdings, Inc. PYPL, The PNC Financial Services Group, Inc. PNC, and Edwards Lifesciences Corp. EW.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for T-Mobile, Deere and PayPal
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 T-Mobile US, Inc., Deere & Co., and PayPal Holdings, 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 >>>
Shares of T-Mobile have outperformed the Zacks Wireless National industry over the year to date basis (+12.6% vs. +2.5%). The company is on track to complete the Sprint customer network migration mid-year and decommissioning by the year-end. Its Extended Range 5G covers 315 million people or 95% of Americans. The Ultra Capacity 5G covers 225 million people and nearly 85% of T-Mobile's customers. About 45% of postpaid customers are using a 5G phone, and 5G devices account for more than half of the total network traffic.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market. Low-priced plans for consumers and small enterprises have not improved the bottom line. Promotional activities to lure customers from rivals hurt its profitability.
(You can read the full research report on T-Mobile here >>>)
Shares of Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+5.6% vs. +2.8%). The Zacks analyst believes the ongoing 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. Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022.
Deere is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies. 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 are likely to dent margin.
(You can read the full research report on Deere here >>>)
PayPal shares have declined -64.8% over the past year against the Zacks Internet - Software industry's decline of -51.4%, primarily reflecting sentiment shift in the current rising rate environment. The company's intensifying competition in the digital payment market poses a serious risk to the company's market position. Also, foreign exchange headwinds remain concerns. The stock has underperformed its industry on a year-to-date basis.
However, first quarter results were driven by strong growth in total payments volume owing to increasing net new active accounts. Strengthening customer engagement was a positive. Also, strong performance by Venmo and merchant services contributed well to the TPV growth. Additionally, boom in digital payment owing to the coronavirus pandemic, remains a tailwind.
The Zacks analyst believes that growing transaction revenues are likely to continue driving the top-line growth. Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. PayPal's growing traction in the United States is a positive.
(You can read the full research report on PayPal here >>>)
Other noteworthy reports we are featuring today include The PNC Financial Services Group, Inc., and Edwards Lifesciences 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.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
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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
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
TMobile US, Inc. (TMUS): 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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(You can read the full research report on T-Mobile here >>>) Shares of Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+5.6% vs. +2.8%). Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022. 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.
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Stocks recently featured in the blog include: T-Mobile US, Inc. TMUS, Deere & Co. DE, PayPal Holdings, Inc. PYPL, The PNC Financial Services Group, Inc. PNC, and Edwards Lifesciences Corp. EW. Here are highlights from Friday’s Analyst Blog: Top Research Reports for T-Mobile, Deere and PayPal The Zacks Research Daily presents the best research output of our analyst team. (You can read the full research report on PayPal here >>>) Other noteworthy reports we are featuring today include The PNC Financial Services Group, Inc., and Edwards Lifesciences Corp. Why Haven't You Looked at Zacks' Top Stocks?
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Here are highlights from Friday’s Analyst Blog: Top Research Reports for T-Mobile, Deere and PayPal 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 T-Mobile US, Inc., Deere & Co., and PayPal Holdings, Inc. (You can read the full research report on PayPal here >>>) Other noteworthy reports we are featuring today include The PNC Financial Services Group, Inc., and Edwards Lifesciences Corp. Why Haven't You Looked at Zacks' Top Stocks?
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(You can read the full research report on T-Mobile here >>>) Shares of Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+5.6% vs. +2.8%). Stocks recently featured in the blog include: T-Mobile US, Inc. TMUS, Deere & Co. DE, PayPal Holdings, Inc. PYPL, The PNC Financial Services Group, Inc. PNC, and Edwards Lifesciences Corp. EW. Here are highlights from Friday’s Analyst Blog: Top Research Reports for T-Mobile, Deere and PayPal The Zacks Research Daily presents the best research output of our analyst team.
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849fff42-b59a-477b-8933-6e096c833ed5
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721196.0
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2022-04-29 00:00:00 UTC
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Top Research Reports for T-Mobile, Deere & PayPal
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https://www.nasdaq.com/articles/top-research-reports-for-t-mobile-deere-paypal
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Friday, April 29, 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 T-Mobile US, Inc. (TMUS), Deere & Company (DE), and PayPal Holdings, Inc. (PYPL). 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 >>>
Shares of T-Mobile have outperformed the Zacks Wireless National industry over the year to date basis (+12.6% vs. +2.5%). The company is on track to complete the Sprint customer network migration mid-year and decommissioning by the year-end. Its Extended Range 5G covers 315 million people or 95% of Americans. The Ultra Capacity 5G covers 225 million people and nearly 85% of T-Mobile’s customers. About 45% of postpaid customers are using a 5G phone, and 5G devices account for more than half of the total network traffic.
However, it operates in a fiercely competitive and almost saturated U.S. telecom market. Low-priced plans for consumers and small enterprises have not improved the bottom line. Promotional activities to lure customers from rivals hurt its profitability.
(You can read the full research report on T-Mobile here >>>)
Shares of Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+5.6% vs. +2.8%). The Zacks analyst believes the ongoing 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. Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022.
Deere is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies. 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 are likely to dent margin.
(You can read the full research report on Deere here >>>)
PayPal shares have declined -64.8% over the past year against the Zacks Internet - Software industry’s decline of -51.4%, primarily reflecting sentiment shift in the current rising rate environment. The company’s intensifying competition in the digital payment market poses a serious risk to the company’s market position. Also, foreign exchange headwinds remain concerns. The stock has underperformed its industry on a year-to-date basis.
However, first quarter results were driven by strong growth in total payments volume owing to increasing net new active accounts. Strengthening customer engagement was a positive. Also, strong performance by Venmo and merchant services contributed well to the TPV growth. Additionally, boom in digital payment owing to the coronavirus pandemic, remains a tailwind.
The Zacks analyst believes that growing transaction revenues are likely to continue driving the top-line growth. Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. PayPal’s growing traction in the United States is a positive.
(You can read the full research report on PayPal here >>>)
Other noteworthy reports we are featuring today include Raytheon Technologies Corporation (RTX), The PNC Financial Services Group, Inc. (PNC), and Edwards Lifesciences Corporation (EW).
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
T-Mobile (TMUS) Rides on 5G Leadership, Customer Growth
Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Featured Reports
Order Growth Aids Raytheon (RTX) Amid Purchase Oder Fall
Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost Raytheon. Yet, purchase order declines due to OEM order cancellation might hurt the stock.
Acquisitions Support PNC Financial (PNC) Despite High Costs
Per the Zacks analyst, PNC Financial's solid balance-sheet position allows it to grow through acquisitions. Yet, persistent rising costs due to investment in technology might limit bottom-line growth
Edwards' (EW) Banks on TAVR Arm Amid Stiff Competition
The Zacks analyst is impressed with Edwards' TAVR arm robust growth in the first quarter 2022 banking on increased customer adoption for the SAPIEN platform. Yet, stiff rivalry remains a concern.
lululemon (LULU) Tracks Well with E-commerce Expansion Plans
Per the Zacks analyst, lululemon is heavily investing in e-commerce capabilities like developing sites, transactional omni functionality and fulfilment options to capture the growing online demand.
Dividends Lift Norfolk Southern (NSC) Despite Cost Woes
The Zacks analyst is impressed with the company's efforts to pay out dividends even in the current uncertain scenario. High costs due to elevated oil price are, however, limiting bottom-line growth.
New Buyouts Aid Boston Scientific (BSX), Core CRM Sales Grow
Per the Zacks analyst, Boston Scientific is gaining from its strategic buyouts of Preventice, Farapulse and Lumenis Surgical. Growth in core Cardiac Rhythm Management (CRM) organic sales Aids.
Discover Financial (DFS) High Card Sales Aid Amid High Costs
Per the Zacks analyst, increasing card sales volume, backed by alliances and partnerships, is driving Discover Financial's performance. Yet, rising expenses remain a concern for the company.
New Upgrades
Strong Demand for Key Drugs Drive BioMarin's (BMRN) Topline
While BioMarin's (BMRN) key drugs like Vimzim and Naglazyme have been driving sales, the Zacks Analyst is encouraged by rapid uptake for new drug, Voxzogo which has opened up a new sales opportunity.
Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio, Frequent new product launches will further drive the growth momentum.
NVR Benefits From Solid Housing Market & Business Model
Per the Zacks analysts, solid housing market backdrop, unique business model and strong orders are helping NVR to generate higher revenues and thereby profits.
New Downgrades
Game Launch Delay, Stiff Competition Hurts Activision (ATVI)
Per the Zacks analyst, Activision is suffering from intensifying competition from the likes of EA, Take Two Interactive and Nintendo. Delayed launch of Overwatch 2 and Diablo IV is a concern.
Escalating Costs & High Debts Hurt Community Health (CYH)
Per the Zacks analyst, the company's high costs can put margins under pressure. Rising debts remain a concern as it leads to escalated interest expenses.
Staffing Challenges & Inflation Hurt Domino's (DPZ) Prospects
Per the Zacks analyst, Domino's is experiencing Omicron-induced staffing and supply-chain challenges. Also, commodity and restaurant labor cost inflation is a concern.
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
The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
TMobile US, Inc. (TMUS): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Raytheon Technologies Corporation (RTX): 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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(You can read the full research report on T-Mobile here >>>) Shares of Deere have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+5.6% vs. +2.8%). Demand for farm and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read T-Mobile (TMUS) Rides on 5G Leadership, Customer Growth Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs PayPal (PYPL) Benefits From Increasing Total Payment Volume Featured Reports Order Growth Aids Raytheon (RTX) Amid Purchase Oder Fall Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost Raytheon.
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(You can read the full research report on PayPal here >>>) Other noteworthy reports we are featuring today include Raytheon Technologies Corporation (RTX), The PNC Financial Services Group, Inc. (PNC), and Edwards Lifesciences Corporation (EW). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read T-Mobile (TMUS) Rides on 5G Leadership, Customer Growth Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs PayPal (PYPL) Benefits From Increasing Total Payment Volume Featured Reports Order Growth Aids Raytheon (RTX) Amid Purchase Oder Fall Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost Raytheon. Today's Research Daily features new research reports on 16 major stocks, including T-Mobile US, Inc. (TMUS), Deere & Company (DE), and PayPal Holdings, Inc. (PYPL).
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Today's Research Daily features new research reports on 16 major stocks, including T-Mobile US, Inc. (TMUS), Deere & Company (DE), and PayPal Holdings, Inc. (PYPL). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read T-Mobile (TMUS) Rides on 5G Leadership, Customer Growth Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs PayPal (PYPL) Benefits From Increasing Total Payment Volume Featured Reports Order Growth Aids Raytheon (RTX) Amid Purchase Oder Fall Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost Raytheon. The company is on track to complete the Sprint customer network migration mid-year and decommissioning by the year-end.
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Deere is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies. If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read T-Mobile (TMUS) Rides on 5G Leadership, Customer Growth Deere (DE) Rides on Farm Equipment Demand Amid Higher Costs PayPal (PYPL) Benefits From Increasing Total Payment Volume Featured Reports Order Growth Aids Raytheon (RTX) Amid Purchase Oder Fall Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost Raytheon. Today's Research Daily features new research reports on 16 major stocks, including T-Mobile US, Inc. (TMUS), Deere & Company (DE), and PayPal Holdings, Inc. (PYPL).
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721197.0
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2022-04-29 00:00:00 UTC
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3 Agriculture Stocks for Long-Term Growth and Dividends
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DE
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https://www.nasdaq.com/articles/3-agriculture-stocks-for-long-term-growth-and-dividends
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Russia’s invasion of Ukraine has sparked interest in agriculture stocks.
Archer-Daniels-Midland (ADM): Archer-Daniels-Midland is the largest publicly traded farmland product company in the U.S.
Deere (DE): Deere is a top name in the manufacturing of farm equipment.
Scotts Miracle-Gro (SMG) : A leading provider of consumer lawn and garden products, Scotts Miracle-Gro offers many household names.
Russia’s invasion of Ukraine has sparked interest in agriculture stocks after the conflict triggered substantial increases in commodity prices since it began several months ago.
Ukraine is one of the leading exporters of corn, sunflower oil and wheat. Grain exports used to total nearly 5 million tons per month for the country, but now exports sit at close to just 500,000 tons per month.
As a result, food prices are likely to remain high for at least as long as the war continues.
In addition, the United Nations reports that the world will need to produce 60% more food to feed an estimated 9.3 billion people by 2050.
Near record highs for global food products in the short term coupled with the need for aggressive food production in the long term will likely mean strong results for companies operating in the agricultural space.
Here are three of our favorite agricultural stocks.
Ticker Company Price
ADM Archer-Daniels-Midland $91.41
DE Deere $388.50
SMG Scotts Miracle-Gro $103.75
Archer-Daniels-Midland (ADM)
Source: Katherine Welles / Shutterstock.com
Our first pick among agricultural stocks is Archer-Daniels-Midland (NYSE:ADM), the largest publicly traded farmland product company in the U.S. The $53 billion company has generated revenue of more than $85 billion last year.
Thanks to its size, Archer-Daniels-Midland benefits from economies of size and scale. The company had approximately 450 crop procurement locations, 320 food and feed processing facilities, and more than 60 innovation centers. The company also has a significant presence in international markets due to its global distribution system. There are few, if any, companies that can match Archer-Daniels-Midland’s infrastructure both domestically and internationally.
Archer-Daniels-Midland has four segments, including carbohydrate solutions, nutrition, origination, and oilseeds. The company produces a vast variety of products and services used in the agricultural industry, which will be needed to meet the ever-growing demand for food production to feed increases in population.
7 A-Rated Dividend Stocks to Buy Forever
And with a large product portfolio, the company can act as a one-stop-shop for customers seeking to fill their needs. These factors should allow the company to be well-positioned to see growth not just in the short-term, but also the long-term as world population’s need for food increases.
Archer-Daniels-Midland’s business model has proven to be very recession proof as food demand often remains consistent during economic downturns. The company saw earnings-per-share grow almost 29% from 2007 to 2009. More recently, Archer-Daniels-Midland weathered the worst of the Covid-19 pandemic extremely well as bottom-line results improved 29% from 2019 to 2020.
This ability to grow in recessions is a major reason why Archer-Daniels-Midland has raised its dividend for 47 years, qualifying the company as a Dividend Aristocrat and placing it just three years away from attaining Dividend King status. It is likely that Archer-Daniels-Midland’s dividend growth streak continues as the expected payout ratio for 2022 is just 31%. Shares of the company yield 1.7%, slightly above the average yield of 1.5% for the S&P 500.
Deere (DE)
Source: JCLobo / Shutterstock
Next up is Deere & Company (NYSE:DE), a top name in the manufacturing of farm equipment. The company has a market capitalization of $119 billion and has produced revenue of $44.5 billion over the last twelve-months.
Deere is the largest farm equipment manufacturer in the world, which provides it advantages over its smaller competitors due to the sheer size and reach of its business. The company also produces equipment used by customers in such areas such as construction and forestry and turf care.
Deere’s size prevents would be competitors from taking market share from the company as its global network of dealers is financially difficult to copy. This also helps the company secure top pricing as it doesn’t have to discount its products in order to capture market share.
Deere has taken steps to augment its business with strategic acquisitions. Sometimes acquisitions are more of the smaller, bolt-on type, such as the company’s $305 million purchase of Blue River Technology in 2017 that added robotic herbicide sprayers to the product portfolio.
Other times, Deere makes larger purchases to improve its standing in an area it doesn’t have much of a presence. A good example of this is the company’s $5.2 billion addition of Wirtgen Group, which manufactures road construction equipment. Prior to this deal, Deere did not produce road building equipment, such as pavers, but now is an industry leader in such equipment.
Unlike Archer-Daniels-Midland, Deere is much more of a cyclical company. Customers tend to make new investment in machinery when their businesses are seeing growth. When times are more challenging, they put off making massive outlays of capital. As a result, earnings-per-share were cut in half during the last recession. Then Covid-19, and the resulting shutdown of large parts of the global economy, caused a 14% decrease in earnings-per-share in 2020.
The good news is that while Deere is susceptible to downturns in the economy, demand for its products in periods of growth is substantial. The company experienced sharp rebounds in its business immediately after these difficult periods. Earnings-per-share grew 111% in fiscal year 2010 and surged almost 119% last fiscal year.
Deere has paused its dividend several times over the long term, including from 2015 to 2017 and from 2019 to 2020. These were likely prudent decisions as the company dealt with some uncertainty in its business. Investors will note that the company hasn’t cut its dividend during this time. We expect that Deere will continue to grow its dividend going forward as the projected payout ratio for this year is just 19%. Deere yields 1.1% currently.
Scotts Miracle-Gro (SMG)
Source: Casimiro PT / Shutterstock.com
Our final agricultural name for consideration is Scotts Miracle-Gro Company (NYSE:SMG), a leading provider of consumer lawn and garden products. The company is valued at nearly $6 billion and generates close to $5 billion of annual sales.
Scotts Miracle-Gro’s portfolio contains several household names, including the namesakes Scotts and Miracle-Gro. The company is the most recognizable name in lawn and garden care in the U.S.
7 Biggest Loser Stocks That Could Become Surprising Buys
Having well-known and trusted brands gives Scotts Miracle-Gro a leg up on the competition. Home improvement stores, both national and local, favor the company’s products as they can help drive store traffic. Brand recognition and prime shelf space affords the company the ability to charge premium prices compared to its competitors without negatively impacting its market share. Scotts Miracle-Gro is the rare company that can increases its product pricing while also improving its standing in its industry.
Scotts Miracle-Gro has a growing hydroponics business as well. Currently just a 25% contributor to sales, this area should become more important as the need for indoor and year-round food production increases along with food demand.
The company struggled during the Great Recession as earnings-per-share turned negative in 2008. Scotts Miracle-Gro did rebound to record a new high for earnings-per-share the very next year. During 2020, bottom-line results declined 7%, before establishing another new high in 2021.
Scotts Miracle-Gro has raised its dividend for the past 12 years. We believe that the company will continue to provide future dividend growth as well as the payout ratio is expected to be 31% this year. Shares of the company yield 2.6%, nearly twice the average yield of the S&P 500 Index.
Final Thoughts
The ongoing war in Ukraine has caused commodity prices to hit fresh highs in recent months. Looking out further, food production is going to need to ramp up in order to meet growing demand over the next three decades.
With both short-term and long-term tailwinds, the agricultural industry should be one of the higher growth areas in the market place. This likely means higher dividend yields as well.
Archer-Daniels-Midland, Deere and Scotts Miracle-Gro have competitive advantages over its peer group, making each the best-of-breed in its respective industry. Investors looking to profit from growing demand for agricultural products, we suggest they consider one of these stocks for their portfolio.
On the date of publication, Bob Ciura did not have (either directly or indirectly) positions in any of 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 Agriculture Stocks for Long-Term Growth and Dividends 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 company is the most recognizable name in lawn and garden care in the U.S. 7 Biggest Loser Stocks That Could Become Surprising Buys Having well-known and trusted brands gives Scotts Miracle-Gro a leg up on the competition. Archer-Daniels-Midland (ADM): Archer-Daniels-Midland is the largest publicly traded farmland product company in the U.S. Deere (DE): Deere is a top name in the manufacturing of farm equipment. Scotts Miracle-Gro (SMG) : A leading provider of consumer lawn and garden products, Scotts Miracle-Gro offers many household names.
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Archer-Daniels-Midland (ADM): Archer-Daniels-Midland is the largest publicly traded farmland product company in the U.S. Deere (DE): Deere is a top name in the manufacturing of farm equipment. Ticker Company Price ADM Archer-Daniels-Midland $91.41 DE Deere $388.50 SMG Scotts Miracle-Gro $103.75 Archer-Daniels-Midland (ADM) Source: Katherine Welles / Shutterstock.com Our first pick among agricultural stocks is Archer-Daniels-Midland (NYSE:ADM), the largest publicly traded farmland product company in the U.S. Scotts Miracle-Gro (SMG) Source: Casimiro PT / Shutterstock.com Our final agricultural name for consideration is Scotts Miracle-Gro Company (NYSE:SMG), a leading provider of consumer lawn and garden products.
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Archer-Daniels-Midland (ADM): Archer-Daniels-Midland is the largest publicly traded farmland product company in the U.S. Deere (DE): Deere is a top name in the manufacturing of farm equipment. Ticker Company Price ADM Archer-Daniels-Midland $91.41 DE Deere $388.50 SMG Scotts Miracle-Gro $103.75 Archer-Daniels-Midland (ADM) Source: Katherine Welles / Shutterstock.com Our first pick among agricultural stocks is Archer-Daniels-Midland (NYSE:ADM), the largest publicly traded farmland product company in the U.S. Scotts Miracle-Gro (SMG) Source: Casimiro PT / Shutterstock.com Our final agricultural name for consideration is Scotts Miracle-Gro Company (NYSE:SMG), a leading provider of consumer lawn and garden products.
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Archer-Daniels-Midland (ADM): Archer-Daniels-Midland is the largest publicly traded farmland product company in the U.S. Deere (DE): Deere is a top name in the manufacturing of farm equipment. Scotts Miracle-Gro (SMG) : A leading provider of consumer lawn and garden products, Scotts Miracle-Gro offers many household names. Ticker Company Price ADM Archer-Daniels-Midland $91.41 DE Deere $388.50 SMG Scotts Miracle-Gro $103.75 Archer-Daniels-Midland (ADM) Source: Katherine Welles / Shutterstock.com Our first pick among agricultural stocks is Archer-Daniels-Midland (NYSE:ADM), the largest publicly traded farmland product company in the U.S.
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ff9bbdc1-aaac-44be-a9e4-dcd8dc6cf3a7
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721198.0
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2022-04-29 00:00:00 UTC
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Sealed Air (SEE) to Report Q1 Earnings: Is a Beat in Store?
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https://www.nasdaq.com/articles/sealed-air-see-to-report-q1-earnings%3A-is-a-beat-in-store
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Sealed Air Corporation SEE is scheduled to report first-quarter 2022 results on May 3, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for the first-quarter revenues is pegged at $1.39 billion, suggesting growth of 10% from the year-ago reported figure. The Zacks Consensus Estimate for quarterly earnings currently stands at 92 cents per share, indicating year-over-year growth of 18%.
Q4 Performance
Sealed Air’s fourth-quarter 2021 earnings and sales increased year over year. While revenues beat the Zacks Consensus Estimate, earnings missed the same. The company has a trailing four-quarter earnings surprise of 2.9%, on average.
Sealed Air Corporation Price and EPS Surprise
Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote
What the Zacks Model Indicates
Our proven model conclusively predicts an earnings beat for Sealed Air this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Sealed Air has an Earnings ESP of +1.09%.
Zacks Rank: Sealed Air currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Note
Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. Around 62% of the company’s revenues are generated from the packaging of protein, foods, fluids and goods for the medical and life-sciences industries, while e-commerce sales contribute nearly 12%.
In December 2018, Sealed Air announced a reformation plan called Reinvent SEE Strategy along with a fresh restructuring program to boost growth and earnings. The strategy is focused on innovations, SG&A productivity, product-cost efficiency, channel optimization and customer-service enhancements. The capabilities, operational disciplines, and governance processes established through the Reinvent SEE business transformation are now embedded in the company’s on-going productivity improvement system, SEE Operating Engine. Savings from these initiatives are likely to have driven the operating margin performance during the March-ended quarter. However, higher raw material costs and freight costs might have weighed on the company’s performance in the quarter to be reported.
Segment Estimates
The Zacks Consensus Estimate for the Food segment’s first-quarter net sales is pegged at $782 million, suggesting growth of 11% from the prior-year period. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $173 million, indicating an increase of 10% from the year-ago quarter’s levels. The segment is likely to have witnessed higher foodservice demand on the reopening of restaurants and other public venues, and strong demand for automated equipment solutions.
The Zacks Consensus Estimate for the Protective Packaging segment’s first-quarter net sales is pegged at $606 million, indicating a year-over-year improvement of 7%. The Zacks Consensus Estimate for the segment’s adjusted EBITDA stands at $114 million, suggesting growth of 4% from the year-earlier reported figure. The segment’s medical and life sciences portfolio continues to gain from strong demand for medical supplies, pharmaceuticals and personal protective equipment coupled with higher demand for temperature assurance packaging solutions.
Continued growth in e-commerce and fulfillment and higher demand in the industrial-end markets might have boosted the segment’s to-be-reported quarter’s performance. A strong demand for automated equipment and sustainable packaging solutions continues to fuel growth in the food and protected packaging segments.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Sealed Air have gained 33% compared with the industry’s growth of 0.7%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other Industrial Products stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases.
Eaton Corporation ETN has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.6%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $1.60, suggesting year-over-year growth of 11%. ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Deere & Company DE currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues stands at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average.
Illinois Tool Works Inc. ITW currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for Illinois Tool’s first-quarter 2022 earnings is currently pegged at $2.07 per share, unchanged in the past 30 days. The projection indicates a 1.9% decline from the prior-year quarter’s tally.
The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 +25.4% 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
Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sealed Air Corporation (SEE): 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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Key Factors to Note Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. In December 2018, Sealed Air announced a reformation plan called Reinvent SEE Strategy along with a fresh restructuring program to boost growth and earnings. The Zacks Consensus Estimate for the segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is pegged at $173 million, indicating an increase of 10% from the year-ago quarter’s levels.
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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote What the Zacks Model Indicates Our proven model conclusively predicts an earnings beat for Sealed Air this season. Key Factors to Note Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. In December 2018, Sealed Air announced a reformation plan called Reinvent SEE Strategy along with a fresh restructuring program to boost growth and earnings.
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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote What the Zacks Model Indicates Our proven model conclusively predicts an earnings beat for Sealed Air this season. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter. Key Factors to Note Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities.
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Sealed Air Corporation Price and EPS Surprise Sealed Air Corporation price-eps-surprise | Sealed Air Corporation Quote What the Zacks Model Indicates Our proven model conclusively predicts an earnings beat for Sealed Air this season. Key Factors to Note Sealed Air’s first-quarter performance is likely to have benefited from elevated demand for packaging of food, beverage and healthcare products and surging e-commerce activities. In December 2018, Sealed Air announced a reformation plan called Reinvent SEE Strategy along with a fresh restructuring program to boost growth and earnings.
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88467439-5ba3-4a26-894e-850bea6bae63
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721199.0
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2022-04-29 00:00:00 UTC
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Amcor (AMCR) to Report Q3 Earnings: What's in the Cards?
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DE
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https://www.nasdaq.com/articles/amcor-amcr-to-report-q3-earnings%3A-whats-in-the-cards
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Amcor Plc AMCR is scheduled to report third-quarter fiscal 2022 results on May 3, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for the fiscal third-quarter revenues is pegged at $3.56 billion, indicating growth of 11% from the prior-year quarter. The consensus mark for quarterly earnings currently stands at 20 cents, suggesting year-over-year growth of 17.6%. The estimate has remained unchanged over the past 30 days.
Q2 Results
Amcor’s second quarter fiscal 2022 earnings came in line with the Zacks Consensus Estimate as well as the year-ago quarter. Revenues beat the Zacks Consensus Estimate and improved year on year. The company has a trailing four-quarter negative earnings surprise of 0.25%, on average.
Amcor PLC Price and EPS Surprise
Amcor PLC price-eps-surprise | Amcor PLC Quote
Key Factors to Note
Amcor’s Rigid Packaging and Flexible Packaging segments have been performing well through a combination of organic growth and disciplined cost control. The Flexibles segment has witnessed HSD growth in healthcare and DD growth in pet food and coffee in the first half of fiscal 2022.
The Rigid packaging segment has been witnessing strong consumer demand. In North America, beverage volumes were up 3% year over year in the first half of fiscal 2022, while hot fill container volumes were in line with last year. The segment has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories. Brand extensions and the introduction of new health and wellness oriented products in PET containers has been supporting growth. These factors might get reflected in Amcor’s third-quarter fiscal 2022 top line.
Amcor’s acquisition of Bemis Company in June 2019 has expanded its global footprint, opened up new attractive end markets and customers for the company’s products, and greater economies of scale, thus driving efficiencies and higher margins. The integration has been essentially completed and the company has realized cost synergies of $75 million in fiscal 2021. Amcor anticipates exceeding the original target of $180 million by the end of fiscal 2022 by at least 10%. These synergies might have favored the to-be-reported quarter’s margin performance.
However, this benefit might have been offset by higher raw material, chemical labor and transportation costs. The company has been witnessing raw material price volatility due to supply shortages of certain resins and raw materials, which might have marred the to-be-reported quarter’s performance.
What the Zacks Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Amcor this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds 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 Amcor is 0.00%.
Zacks Rank: Amcor currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Image Source: Zacks Investment Research
Over the past year, shares of Amcor have gained 2.1% against the industry’s growth of 0.7%.
Stocks Poised to Beat Earnings Estimates
Here are some Industrial Products stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Eaton Corporation ETN has an Earnings ESP of +0.85% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s revenues of $4.81 billion for the first quarter of 2022 indicates year-over-year growth of 2.6%.
The Zacks Consensus Estimate for the company’s earnings for the first quarter of 2022 currently stands at $1.60, suggesting year-over-year growth of 11%. ETN’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7%.
Deere & Company DE currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues stands at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average.
Sealed Air Corporation SEE currently has an Earnings ESP of +1.09% and a Zacks Rank of 3. The Zacks Consensus Estimate for SEE’s quarterly revenues is pegged at $1.39 billion, which indicates an increase of 9.6% from the prior-year quarter’s levels.
The Zacks Consensus Estimate for Sealed Air’s first-quarter 2022 earnings has been stable in the past 30 days at 92 cents per share, suggesting year-over-year growth of 18%. SEE has a trailing four-quarter earnings surprise of 2.94%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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 +25.4% 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
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Sealed Air Corporation (SEE): Free Stock Analysis Report
Amcor PLC (AMCR): 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 has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories. The Rigid packaging segment has been witnessing strong consumer demand.
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The Rigid packaging segment has been witnessing strong consumer demand. The segment has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories.
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The Rigid packaging segment has been witnessing strong consumer demand. The segment has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories.
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The Rigid packaging segment has been witnessing strong consumer demand. The segment has been seeing volume growth in isotonics, as well as iced tea categories, where customer demand for 100% recycled PET bottles has been strong. Strong consumer demand reflects higher-at-home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories.
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9b900a6c-60b6-436e-b941-9e475cfba26b
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