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721300.0
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2022-02-11 00:00:00 UTC
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3 Zacks Ranked 'Buy' Stocks Leading the Pack Through February
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DE
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https://www.nasdaq.com/articles/3-zacks-ranked-buy-stocks-leading-the-pack-through-february
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nan
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nan
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It’s been a rocky start for 2022, as the market pulled back substantially in January and now threatens to retest the lows of that move as we enter the latter half of February. Thursday’s price action was swift as the market opened sharply lower, pared those losses in the early afternoon, only to finish near where it started the day.
The University of Michigan’s preliminary Consumer Sentiment Index reading is due out at 10am this morning. Sentiment is likely to remain subdued this month as consumers continue to feel the effects of higher inflation and lingering supply chain shortages. Estimates are calling for a reading of 67.0, down from 67.2 from the prior reading.
As we attempt to navigate a volatile and uncertain market, investors may be tempted to pull the trigger and buy some beaten down names as they appear ‘cheap’. The problem with this approach is that cheap stocks are normally trading cheaply for a reason, and they will likely become cheaper before potentially staging a turnaround. A much more prudent approach involves identifying stocks that are leading in the current market environment and waiting for proper entry points to present themselves.
On that note, we’re going to analyze three stocks that are all ranked a Zacks #2 Buy or better and have held up well through the recent volatility. All three stocks are components of the Zacks Industrial Products sector, which currently ranks in the top 44% of all Zacks Ranked Sectors. Digging a bit deeper, these companies are contained within the Zacks Manufacturing – Farm Equipment industry group, which ranks in the top 29% of all Zacks Ranked Industries.
It's no secret that investing in stocks located within the top sectors and industries can provide a boost to portfolio returns. This phenomenon been well-researched and documented, illustrating that about half of a stock’s future price appreciation is due to its industry grouping. Our own proprietary study has shown that stocks contained within the top 50% of Zacks Ranked Industries outperformed the bottom 50% by a factor of more than 2 to 1.
To that end, let’s delve into three stocks that sport this favorable sector and industry combination.
Deere & Co. (DE)
Deere & Co. is an American manufacturer of construction, agricultural, engine, forestry, and lawn care equipment. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The company is well-known for its tractors, mowing equipment, excavators, milling machines, and sports turf care applications. Deere was founded in 1837 and is headquartered in Moline, IL.
DE is benefitting from technological advances and agricultural mechanization, which are expanding existing markets and creating new ones for the company to thrive in. Deere expects net income for the current fiscal year to lie in the range of $6.5-7 billion on improvements in farming and construction. As commodity prices continue to soar, farmers will fuel demand for the company’s agricultural equipment. The company’s revenue trends are impressive, and sales are expected to climb 18.21% this year to $46.97 billion.
Image Source: Zacks Investment Research
DE is the 78th largest company in the S&P 500, sporting a $121.17 billion dollar market capitalization. Earnings surprises are a bright spot for the machinery manufacturer, as DE has beaten estimates in each quarter for the past two years. The company most recently reported Q4 EPS of $4.12, delivering a +7.85% surprise over the $3.82 consensus estimate. During the past four quarters, DE has posted an average earnings surprise of +33.57%. Shares have risen in stride, advancing nearly 27% in the past year.
Deere & Company Price and EPS Surprise
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate revision activity. This more recent information can be a better predictor of the future and give investors a leg up during earnings season. In fact, when combining Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive earnings surprise 70% of the time according to our 10-year backtest.
DE is a Zacks Rank #2 (Buy) and boasts an impressive +17.33% Earnings ESP. Another beat may be in the cards when the company reports next week on February 18th.
Analysts are expecting growth to continue in 2022 and beyond. The Zacks Consensus Estimate for 2022 EPS is $22.21, translating to growth of 16.96% relative to last year.
Titan International, Inc. (TWI)
Titan International is a global manufacturer of wheels, tires, and undercarriage systems and components for off-highway vehicles. The company operates in North America, Europe, Latin America, the Middle East, Africa, and Russia. TWI offers components for agricultural equipment including tractors, skidders, plows, and irrigation equipment. Titan International was founded in 1890 and is based in Quincy, IL.
A Zacks #2 (Buy) stock, TWI has surpassed earnings estimates in each of the past six quarters. The company has delivered a trailing four-quarter average earnings beat of +32.09%, supporting the stock’s 42.65% advance in the past year. Despite the firm’s remarkable performance, TWI trades at just an 11.41 forward P/E. The manufacturer is relatively undervalued when compared to its industry average (16.55).
Titan International, Inc. Price and EPS Surprise
For the most recent quarter, analysts are anticipating EPS of $0.17, which would represent growth of 270% versus Q4 2020. TWI is scheduled to report earnings on March 3rd. Analysts have increased their 2022 EPS estimates by 13.25% in the past 60 days. The Zacks Consensus Estimate now stands at $0.94 – an implied 48.41% growth rate compared to last year.
AGCO Corp. (AGCO)
AGCO Corp. is a global manufacturer and distributor of agricultural equipment and related replacement parts. The company offers tractors, loader wagons, spreaders, mowers, ventilation and watering systems, and field cultivators. AGCO markets its products under the Challenger, Fendt, Massy Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO was founded in 1990 and is based in Duluth, GA.
AGCO is a Zacks Rank #1 (Strong Buy) and has exceeded earnings estimates in each of the past eight quarters. The company most recently reported Q4 EPS earlier this month of $3.08, a +79.07% surprise over the $1.72 consensus. AGCO is averaging a positive surprise of 56.65% during the past four quarters. The stock is up better than 12% this year.
AGCO Corporation Price and EPS Surprise
AGCO expects earnings growth to continue in the current year on robust end-market demand and strong farm prospects. The company is relatively undervalued, trading at an 11.35 forward P/E which is substantially lower than the industry average (16.55). Analysts covering AGCO have upped their 2022 EPS estimates by 10.59% in the past 60 days. The ’22 Zacks Consensus Estimate is now $11.49, reflecting growth of 10.69% versus last year. The picture looks even brighter for 2023, with analysts anticipating EPS growth of 22.72% to $14.10.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): 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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The University of Michigan’s preliminary Consumer Sentiment Index reading is due out at 10am this morning. A much more prudent approach involves identifying stocks that are leading in the current market environment and waiting for proper entry points to present themselves. Digging a bit deeper, these companies are contained within the Zacks Manufacturing – Farm Equipment industry group, which ranks in the top 29% of all Zacks Ranked Industries.
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Digging a bit deeper, these companies are contained within the Zacks Manufacturing – Farm Equipment industry group, which ranks in the top 29% of all Zacks Ranked Industries. AGCO Corporation Price and EPS Surprise AGCO expects earnings growth to continue in the current year on robust end-market demand and strong farm prospects. The University of Michigan’s preliminary Consumer Sentiment Index reading is due out at 10am this morning.
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Digging a bit deeper, these companies are contained within the Zacks Manufacturing – Farm Equipment industry group, which ranks in the top 29% of all Zacks Ranked Industries. Deere & Company Price and EPS Surprise What the Zacks Model Unveils The Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate revision activity. AGCO was founded in 1990 and is based in Duluth, GA. AGCO is a Zacks Rank #1 (Strong Buy) and has exceeded earnings estimates in each of the past eight quarters.
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Digging a bit deeper, these companies are contained within the Zacks Manufacturing – Farm Equipment industry group, which ranks in the top 29% of all Zacks Ranked Industries. Deere & Company (DE): Free Stock Analysis Report The University of Michigan’s preliminary Consumer Sentiment Index reading is due out at 10am this morning.
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e57ece88-3548-4dd3-8bab-53688cb54f59
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721301.0
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2022-02-11 00:00:00 UTC
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Here's How Investors Can Find Strong Industrial Products Stocks with the Zacks ESP Screener
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DE
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https://www.nasdaq.com/articles/heres-how-investors-can-find-strong-industrial-products-stocks-with-the-zacks-esp-4
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Deere?
The final step today is to look at a stock that meets our ESP qualifications. Deere (DE) earns a #2 (Buy) seven days from its next quarterly earnings release on February 18, 2022, and its Most Accurate Estimate comes in at $2.60 a share.
By taking the percentage difference between the $2.60 Most Accurate Estimate and the $2.22 Zacks Consensus Estimate, Deere has an Earnings ESP of 17.33%. Investors should also know that DE is just one of a large group of stocks with positive ESPs. All of these qualifying stocks can be filtered by ESP, Zacks Rank, % Surprise (Last Qtr.), and Reporting date.
Don't forget to head to the Earnings ESP Home Page. There, you'll find lots more earnings-related investing strategies to help build a winning portfolio.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Should You Consider Deere?
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By taking the percentage difference between the $2.60 Most Accurate Estimate and the $2.22 Zacks Consensus Estimate, Deere has an Earnings ESP of 17.33%. Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market.
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Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Should You Consider Deere?
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Deere (DE) earns a #2 (Buy) seven days from its next quarterly earnings release on February 18, 2022, and its Most Accurate Estimate comes in at $2.60 a share. Deere & Company (DE): Free Stock Analysis Report Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works.
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0a311b67-433d-4a02-b016-4448fbf91461
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721302.0
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2022-02-11 00:00:00 UTC
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Deere & Co. Shares Close in on 52-Week High - Market Mover
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DE
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https://www.nasdaq.com/articles/deere-co.-shares-close-in-on-52-week-high-market-mover
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nan
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nan
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Deere & Co. (DE) shares closed today at 1.6% below its 52 week high of $399.63, giving the company a market cap of $121B. The stock is currently up 15.3% year-to-date, up 26.4% over the past 12 months, and up 293.0% over the past five years. This week, the Dow Jones Industrial Average rose 0.5%, and the S&P 500 rose 0.0%.
Trading Activity
Trading volume this week was 9.8% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 382.2%
The company's stock price performance over the past 12 months beats the peer average by 719.1%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -8.7% lower than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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 & Co. (DE) shares closed today at 1.6% below its 52 week high of $399.63, giving the company a market cap of $121B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 382.2% The company's stock price performance over the past 12 months beats the peer average by 719.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -8.7% lower than the average peer. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 382.2% The company's stock price performance over the past 12 months beats the peer average by 719.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -8.7% lower than the average peer. Deere & Co. (DE) shares closed today at 1.6% below its 52 week high of $399.63, giving the company a market cap of $121B. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 382.2% The company's stock price performance over the past 12 months beats the peer average by 719.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -8.7% lower than the average peer. Deere & Co. (DE) shares closed today at 1.6% below its 52 week high of $399.63, giving the company a market cap of $121B. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Industrials industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 382.2% The company's stock price performance over the past 12 months beats the peer average by 719.1% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -8.7% lower than the average peer. Deere & Co. (DE) shares closed today at 1.6% below its 52 week high of $399.63, giving the company a market cap of $121B.
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e1c5c4d4-a523-41ac-8c80-48eb02cf9649
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721303.0
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2022-02-10 00:00:00 UTC
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XLI, RTX, BA, DE: Large Outflows Detected at ETF
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DE
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https://www.nasdaq.com/articles/xli-rtx-ba-de%3A-large-outflows-detected-at-etf
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $307.7 million dollar outflow -- that's a 1.8% decrease week over week (from 168,030,000 to 165,030,000). Among the largest underlying components of XLI, in trading today Raytheon Technologies Corp (Symbol: RTX) is up about 0.6%, Boeing Co. (Symbol: BA) is up about 2.4%, and Deere & Co. (Symbol: DE) is up by about 0.5%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $88.74 per share, with $107.88 as the 52 week high point — that compares with a last trade of $102.35. 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 ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $307.7 million dollar outflow -- that's a 1.8% decrease week over week (from 168,030,000 to 165,030,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $88.74 per share, with $107.88 as the 52 week high point — that compares with a last trade of $102.35. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $307.7 million dollar outflow -- that's a 1.8% decrease week over week (from 168,030,000 to 165,030,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR— Fund (Symbol: XLI) where we have detected an approximate $307.7 million dollar outflow -- that's a 1.8% decrease week over week (from 168,030,000 to 165,030,000). For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $88.74 per share, with $107.88 as the 52 week high point — that compares with a last trade of $102.35. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $88.74 per share, with $107.88 as the 52 week high point — that compares with a last trade of $102.35. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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fe954102-62f3-4bd6-8930-5a7ddc657173
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721304.0
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2022-02-09 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-1
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nan
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nan
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In the latest trading session, Deere (DE) closed at $395.40, marking a +1.42% move from the previous day. This change lagged the S&P 500's 1.45% gain on the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.
Coming into today, shares of the agricultural equipment manufacturer had gained 2.45% in the past month. In that same time, the Industrial Products sector lost 6.32%, while the S&P 500 lost 3.26%.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.22 per share. This would mark a year-over-year decline of 42.64%. Meanwhile, our latest consensus estimate is calling for revenue of $8.09 billion, up 0.52% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. These results would represent year-over-year changes of +16.96% and +18.21%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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% higher. Deere is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 17.56. For comparison, its industry has an average Forward P/E of 16.78, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE's industry had an average PEG ratio of 1.23 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 67, putting it in the top 27% 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.
To follow DE in the coming trading sessions, be sure to utilize 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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, Deere (DE) closed at $395.40, marking a +1.42% move from the previous day. DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. 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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In the latest trading session, Deere (DE) closed at $395.40, marking a +1.42% move from the previous day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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In the latest trading session, Deere (DE) closed at $395.40, marking a +1.42% move from the previous day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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In the latest trading session, Deere (DE) closed at $395.40, marking a +1.42% move from the previous day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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721305.0
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2022-02-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Chevron, Exxon Mobil, Advanced Micro Devices, Costco Wholesale and Deere & Co
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-chevron-exxon-mobil-advanced-micro-devices-costco
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For Immediate Release
Chicago, IL – February 8, 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: Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. COST and Deere & Co. DE.
Here are highlights from Monday’s Analyst Blog:
U.S. Economy Firing on All Cylinders: Top 5 Picks
The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years. The labor market is gradually approaching the pre-pandemic period and the product market (both manufacturing and services segments) is witnessing expansionary activities.
Higher activities in foreign trade are expected as the global economy is recovering from the pandemic. In the money market, the anticipation of a relatively hawkish Fed and a higher tax regime, after two years of a nearly 0% tax level, are unlikely to create market turbulence for a longer time.
At this stage, it will be prudent to invest in a U.S. corporate behemoth with a favorable Zacks Rank and strong potential for 2022. Five of them are Chevron Corp., Exxon Mobil Corp., Advanced Micro Devices Inc., Costco Wholesale Corp. and Deere & Co.
A Recovering Labor Market
The U.S. labor market that suffered the most during the pandemic is quickly approaching the pre-pandemic level. The Department of Labor reported that nonfarm payrolls in January jumped to 467,000 compared with the consensus estimate of 116,000. Moreover, December and November’s data were revised upward to add a combined 709,000 more jobs to the previously released data.
Importantly, the labor force participation rate finally broke the 61.9% barrier and grew 0.3% sequentially to 62.2%. The unemployment edged up to 4% in January from 3.9% in December. However, the long-term unemployment (the number of Americans out of work for at least six months) dropped 317,000 since December to 1.7 million in January.
In January long-term unemployment was 25.9% of total unemployment compared with 31.7% in December, marking the largest monthly decline since March 2021. Notably, all these positives happened in the labor market at the peak of the Omicron infections of coronavirus.
Strong GDP and Corporate Earnings
In the fourth quarter of 2021, U.S. GDP climbed 6.9% compared with the consensus estimate of 5.4%. In 2021, U.S. GDP surged 5.7%, marking its best performance since 1984. The momentum is likely to continue as the average estimate of 2022 is currently at 3.5%.
Wall Street has seen solid fourth-quarter 2021 earnings results so far. Total earnings of the market’s benchmark the S&P 500 Index have skyrocketed in the two pandemic-ridden years of 2020 and 2021. Going forward this momentum is likely to continue. At present, total earnings and revenues of the S&P 500 Index have been estimated at 9.6% and 7.7%, respectively for 2022 and 9.6% and 5.5% in 2023.
Robust Government Spending
The U.S. economy will get more upside from the government’s infrastructure spending. On Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
The infrastructure development project will be a key catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, utilities and telecommunications should benefit immensely with further job creation.
Moreover, the White House has pressured on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease the shortage of the components vital to many industries.
Our Top Picks
We have narrowed our search to five U.S. corporate behemoths (market capital >$50 billion) as these companies have a well-established business model across the world. These stocks have strong growth potential for 2022 and have seen solid earnings estimate revisions within the last 30 days indicating strong business opportunities.
Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is one of the best-placed global integrated oil firms to achieve a sustainable production ramp-up. CVX’s existing project pipeline is one of the best in the industry, thanks to its premier position in the lucrative Permian Basin.
Chevron’s Noble Energy takeover has expanded its footprint in the region and the DJ Basin. CVX now has access to Noble Energy’s low-cost, proven reserves along with cash-generating offshore assets in Israel — particularly the flagship Leviathan natural gas project — thereby boosting its footing in the Mediterranean.
Zacks Rank #1 Chevron has an expected earnings growth rate of 36.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 6.2% over the last 7 days.
Exxon Mobil made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. XOM has raised the estimate for discovered recoverable resources from the Stabroek Block to approximately 10 billion oil-equivalent barrels.
Exxon Mobile’s bellwether status and an optimal integrated capital structure, which have historically led to industry-leading returns make it a relatively lower-risk energy sector play. The integrated oil behemoth expects to reduce greenhouse gas emissions by 30% in its upstream business. By the same time, XOM expects to reduce flaring and methane emissions by 40%.
Zacks Rank #1 Exxon Mobile has an expected earnings growth rate of 29.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.6% over the last 7 days.
Advanced Micro Devices is riding on robust performance from the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. AMD is benefiting from the strong sales of its Ryzen and EPYC server processors, owing to the increasing proliferation of AI and Machine Learning in industries like cloud, gaming and supercomputing.
The growing clout of 7 nanometer products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst of Advanced Micro Devices. AMD has raised its 2021 guidance for revenues on the back of strong growth across all businesses.
Zacks Rank #1 Advanced Micro Devices has an expected earnings growth rate of 43.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 20.5% over the last 7 days.
Costco operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. COST offers branded and private-label products in a range of merchandise categories.
Costco’s growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped Costco to draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales numbers.
Zacks Rank #2 Costco has an expected earnings growth rate of 14.3% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days.
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 in the long haul.
The ongoing rally in commodity prices will continue to fuel demand for agricultural equipment, encouraging farmers to boost spending on new farm equipment. Replacement demand triggered by the need to upgrade old equipment will continue to support DEs revenues.
Zacks Rank #2 Deere has an expected earnings growth rate of 17% for the current year (ending October 2022). The Zacks Consensus Estimate for current-year earnings improved 0.1% over the last 30 days.
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 buy-and-hold tickers for the entirety of 2022?
Last year's 2021Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
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
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include: Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. COST and Deere & Co. DE. Here are highlights from Monday’s Analyst Blog: U.S. Economy Firing on All Cylinders: Top 5 Picks The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years.
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Stocks recently featured in the blog include: Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. Five of them are Chevron Corp., Exxon Mobil Corp., Advanced Micro Devices Inc., Costco Wholesale Corp. and Deere & Co. A Recovering Labor Market The U.S. labor market that suffered the most during the pandemic is quickly approaching the pre-pandemic level. Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
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Zacks Rank #1 Advanced Micro Devices has an expected earnings growth rate of 43.4% for the current year. Stocks recently featured in the blog include: Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. COST and Deere & Co. DE.
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Stocks recently featured in the blog include: Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. COST and Deere & Co. DE. Here are highlights from Monday’s Analyst Blog: U.S. Economy Firing on All Cylinders: Top 5 Picks The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years.
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2022-02-08 00:00:00 UTC
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Agco (AGCO) Q4 Earnings and Revenues Beat Estimates
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https://www.nasdaq.com/articles/agco-agco-q4-earnings-and-revenues-beat-estimates
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Agco (AGCO) came out with quarterly earnings of $3.08 per share, beating the Zacks Consensus Estimate of $1.72 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 79.07%. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.79 per share when it actually produced earnings of $2.41, delivering a surprise of 34.64%.
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 $3.16 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 3.55%. This compares to year-ago revenues of $2.72 billion. The company has topped consensus revenue estimates three 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 0.2% since the beginning of the year versus the S&P 500's decline of -5.9%.
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: favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $2.04 on $2.55 billion in revenues for the coming quarter and $10.51 on $11.87 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 26% 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 same industry, Deere (DE), is yet to report results for the quarter ended January 2022. The results are expected to be released on February 18.
This agricultural equipment manufacturer is expected to post quarterly earnings of $2.22 per share in its upcoming report, which represents a year-over-year change of -42.6%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
Deere's revenues are expected to be $8.09 billion, up 0.5% 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.
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 #2 (Buy) 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 $1.79 per share when it actually produced earnings of $2.41, delivering a surprise of 34.64%.
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Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $3.16 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 3.55%. Deere & Company (DE): Free Stock Analysis Report A quarter ago, it was expected that this farm equipment maker would post earnings of $1.79 per share when it actually produced earnings of $2.41, delivering a surprise of 34.64%.
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Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $3.16 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 3.55%. 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 #2 (Buy) for the stock. A quarter ago, it was expected that this farm equipment maker would post earnings of $1.79 per share when it actually produced earnings of $2.41, delivering a surprise of 34.64%.
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A quarter ago, it was expected that this farm equipment maker would post earnings of $1.79 per share when it actually produced earnings of $2.41, delivering a surprise of 34.64%. Agco, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $3.16 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 3.55%. 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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721307.0
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2022-02-08 00:00:00 UTC
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Zebra (ZBRA) to Report Q4 Earnings: What's in the Cards?
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https://www.nasdaq.com/articles/zebra-zbra-to-report-q4-earnings%3A-whats-in-the-cards
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Zebra Technologies Corporation ZBRA is slated to report fourth-quarter 2021 results on Feb 10, before market open.
The company’s earnings surpassed expectations in each of the trailing four quarters, the surprise being 12.89%, on average. In the last reported quarter, earnings of $4.55 per share beat the Zacks Consensus Estimate of $3.98 by 14.32%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%.
Key Factors
Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter. Strength across the company’s manufacturing, transportation, retail, healthcare and e-commerce markets is likely to have supported its performance in the quarter. Also, its investment in growth initiatives, along with its focus on supply-chain optimization and cost management actions, is likely to have been a tailwind.
Acquired assets boosted Zebra’s sales by 1.4%, 1.6% and 1.3% in the first, second and third quarters of 2021, respectively. The trend is likely to have continued in the fourth quarter, owing to strength across its acquired businesses. The company’s acquisition of antuit.ai (October 2021) strengthened its offerings in the consumer products industries. The buyout of Fetch Robotics, Inc. (August 2021) enhanced its capability to offer a comprehensive line of advanced robotics solutions to customers. Also, the acquired business of Reflexis Systems (September 2020) boosted its growth opportunities in the retail market.
However, escalating costs and expenses have been a concern for Zebra over the past few quarters. In third-quarter 2021, its cost of sales increased 23.6% year over year, while total operating expenses soared 19.2%. Despite its focus on supply-chain optimization, it has been witnessing supply-chain challenges and an increase in raw material costs. High costs and expenses might have affected its margin and profitability in the fourth quarter as well.
Given Zebra’s extensive regional presence, its operations are subject to global economic, political risks and forex woes. A stronger U.S. dollar might have hurt the company's overseas business in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fourth-quarter total revenues is currently pegged at $1,447 million, suggesting 10.6% and 0.8% growth from the year-ago and quarter-ago reported numbers, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase 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: Zebra has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $4.32.
Zebra Technologies Corporation Price and EPS Surprise
Zebra Technologies Corporation price-eps-surprise | Zebra Technologies Corporation Quote
Zacks Rank: The company carries a Zacks Rank #3.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
Deere & Company DE has an Earnings ESP of +17.33% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deere & Company’s earnings is pegged at $2.22 per share for first-quarter fiscal 2022 (ended January 2022). DE’ shares have gained 4.6% in the past three months.
Expedia Group, Inc. EXPE has an Earnings ESP of +34.77% and a Zacks Rank of 3, currently.
The Zacks Consensus Estimate for Expedia’s earnings is pegged at 97 cents per share for the fourth quarter of 2021. EXPE’s shares have lost 0.4% in the past three months.
Sealed Air Corporation SEE has an Earnings ESP of +1.43% and a Zacks Rank of 2, currently.
The Zacks Consensus Estimate for Sealed Air’s earnings is pegged at $1.14 per share for the fourth quarter of 2021. SEE’s shares have lost 1.7% 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
Sealed Air Corporation (SEE): Free Stock Analysis Report
Expedia Group, Inc. (EXPE): Free Stock Analysis Report
Zebra Technologies Corporation (ZBRA): 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 Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter. Key Picks Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season: Image Source: Zacks Investment Research In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%.
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Deere & Company (DE): Free Stock Analysis Report Image Source: Zacks Investment Research In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%. Key Factors Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter.
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Earnings Whispers According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. Image Source: Zacks Investment Research In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%. Key Factors Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter.
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Image Source: Zacks Investment Research In the past three months, the company’s shares have lost 16.4% compared with the industry’s decline of 17.5%. Key Factors Zebra is expected to have benefited from healthy demand for its enterprise mobile computing, intelligent automation solutions, printing & supplies as well as services and software in the fourth quarter. Despite its focus on supply-chain optimization, it has been witnessing supply-chain challenges and an increase in raw material costs.
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721308.0
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2022-02-08 00:00:00 UTC
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Deere & Co. Completes Acquisition Of Majority Ownership In Kreisel Electric
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https://www.nasdaq.com/articles/deere-co.-completes-acquisition-of-majority-ownership-in-kreisel-electric
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(RTTNews) - Deere & Co. (DE) said that it has completed acquisition of majority ownership in Kreisel Electric Inc. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO).
The transaction was announced in December 2021.
Kreisel Electric is based in Rainbach im Mühlkreis, Austria. The company was founded in 2014 and has about 180 full-time employees. The business will retain its brand name and trademark.
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 & Co. (DE) said that it has completed acquisition of majority ownership in Kreisel Electric Inc. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO). The transaction was announced in December 2021.
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(RTTNews) - Deere & Co. (DE) said that it has completed acquisition of majority ownership in Kreisel Electric Inc. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO). The transaction was announced in December 2021.
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The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO). The business will retain its brand name and trademark. (RTTNews) - Deere & Co. (DE) said that it has completed acquisition of majority ownership in Kreisel Electric Inc.
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(RTTNews) - Deere & Co. (DE) said that it has completed acquisition of majority ownership in Kreisel Electric Inc. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform (CHIMERO). The transaction was announced in December 2021.
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721309.0
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2022-02-07 00:00:00 UTC
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Deere (DE) Gains As Market Dips: What You Should Know
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https://www.nasdaq.com/articles/deere-de-gains-as-market-dips%3A-what-you-should-know-0
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Deere (DE) closed the most recent trading day at $372.20, moving +0.73% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.37%.
Coming into today, shares of the agricultural equipment manufacturer had lost 2.42% in the past month. In that same time, the Industrial Products sector lost 9.19%, while the S&P 500 lost 6.01%.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be February 18, 2022. The company is expected to report EPS of $2.22, down 42.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.09 billion, up 0.52% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. These results would represent year-over-year changes of +16.96% and +18.21%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 16.64. This valuation marks a premium compared to its industry's average Forward P/E of 16.38.
Investors should also note that DE has a PEG ratio of 1.49 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
Just Released: Zacks Top 10 Stocks for 2022
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Access Zacks Top 10 Stocks for 2022 today >>
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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. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Deere (DE) closed the most recent trading day at $372.20, moving +0.73% from the previous trading session.
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Deere (DE) closed the most recent trading day at $372.20, moving +0.73% from the previous trading session. Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion.
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DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. 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 the most recent trading day at $372.20, moving +0.73% from the previous trading session.
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Deere is currently sporting a Zacks Rank of #2 (Buy). 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 the most recent trading day at $372.20, moving +0.73% from the previous trading session.
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17e8d3cf-9696-4fda-b51c-07981d6ad50c
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721310.0
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2022-02-07 00:00:00 UTC
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U.S. Economy Firing on All Cylinders: 5 Top Picks
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DE
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https://www.nasdaq.com/articles/u.s.-economy-firing-on-all-cylinders%3A-5-top-picks
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nan
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The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years. The labor market is gradually approaching the pre-pandemic period and the product market (both manufacturing and services segments) is witnessing expansionary activities.
Higher activities in foreign trade are expected as the global economy is recovering from the pandemic. In the money market, the anticipation of a relatively hawkish Fed and a higher tax regime, after two years of a nearly 0% tax level, are unlikely to create market turbulence for a longer time.
At this stage, it will be prudent to invest in a U.S. corporate behemoth with a favorable Zacks Rank and strong potential for 2022. Five of them are Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. COST and Deere & Co. DE.
A Recovering Labor Market
The U.S. labor market that suffered the most during the pandemic is quickly approaching the pre-pandemic level. The Department of Labor reported that nonfarm payrolls in January jumped to 467,000 compared with the consensus estimate of 116,000. Moreover, December and November’s data were revised upward to add a combined 709,000 more jobs to the previously released data.
Importantly, the labor force participation rate finally broke the 61.9% barrier and grew 0.3% sequentially to 62.2%. The unemployment edged up to 4% in January from 3.9% in December. However, the long-term unemployment (the number of Americans out of work for at least six months) dropped 317,000 since December to 1.7 million in January.
In January long-term unemployment was 25.9% of total unemployment compared with 31.7% in December, marking the largest monthly decline since March 2021. Notably, all these positives happened in the labor market at the peak of the Omicron infections of coronavirus.
Strong GDP and Corporate Earnings
In the fourth quarter of 2021, U.S. GDP climbed 6.9% compared with the consensus estimate of 5.4%. In 2021, U.S. GDP surged 5.7%, marking its best performance since 1984. The momentum is likely to continue as the average estimate of 2022 is currently at 3.5%.
Wall Street has seen solid fourth-quarter 2021 earnings results so far. Total earnings of the market’s benchmark the S&P 500 Index have skyrocketed in the two pandemic-ridden years of 2020 and 2021. Going forward this momentum is likely to continue. At present, total earnings and revenues of the S&P 500 Index have been estimated at 9.6% and 7.7%, respectively for 2022 and 9.6% and 5.5% in 2023.
Robust Government Spending
The U.S. economy will get more upside from the government’s infrastructure spending. On Nov 15, President Joe Biden signed a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
The infrastructure development project will be a key catalyst for the U.S. stock markets in 2022. Various segments of the economy such as basic materials, industrials, utilities and telecommunications should benefit immensely with further job creation.
Moreover, the White House has pressured on Congress to quickly pass legislation providing $52 billion to help computer chip manufacturers and ease the shortage of the components vital to many industries.
Our Top Picks
We have narrowed our search to five U.S. corporate behemoths (market capital >$50 billion) as these companies have a well-established business model across the world. These stocks have strong growth potential for 2022 and have seen solid earnings estimate revisions within the last 30 days indicating strong business opportunities. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performancew ofc our five picks in the past three months.
Image Source: Zacks Investment Research
Chevron is one of the best-placed global integrated oil firms to achieve a sustainable production ramp-up. CVX’s existing project pipeline is one of the best in the industry, thanks to its premier position in the lucrative Permian Basin.
Chevron’s Noble Energy takeover has expanded its footprint in the region and the DJ Basin. CVX now has access to Noble Energy’s low-cost, proven reserves along with cash-generating offshore assets in Israel — particularly the flagship Leviathan natural gas project — thereby boosting its footing in the Mediterranean.
Zacks Rank #1 Chevron has an expected earnings growth rate of 36.2% for the current year. The Zacks Consensus Estimate for current-year earnings improved 6.2% over the last 7 days.
Exxon Mobil made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. XOM has raised the estimate for discovered recoverable resources from the Stabroek Block to approximately 10 billion oil-equivalent barrels.
Exxon Mobile’s bellwether status and an optimal integrated capital structure, which have historically led to industry-leading returns make it a relatively lower-risk energy sector play. The integrated oil behemoth expects to reduce greenhouse gas emissions by 30% in its upstream business. By the same time, XOM expects to reduce flaring and methane emissions by 40%.
Zacks Rank #1 Exxon Mobile has an expected earnings growth rate of 29.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 4.6% over the last 7 days.
Advanced Micro Devices is riding on robust performance from the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. AMD is benefiting from the strong sales of its Ryzen and EPYC server processors, owing to the increasing proliferation of AI and Machine Learning in industries like cloud, gaming and supercomputing.
The growing clout of 7 nanometer products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst of Advanced Micro Devices. AMD has raised its 2021 guidance for revenues on the back of strong growth across all businesses.
Zacks Rank #1 Advanced Micro Devices has an expected earnings growth rate of 43.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 20.5% over the last 7 days.
Costco operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. COST offers branded and private-label products in a range of merchandise categories.
Costco’s growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped Costco to draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales numbers.
Zacks Rank #2 Costco has an expected earnings growth rate of 14.3% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings improved 0.2% over the last 7 days.
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 in the long haul.
The ongoing rally in commodity prices will continue to fuel demand for agricultural equipment, encouraging farmers to boost spending on new farm equipment. Replacement demand triggered by the need to upgrade old equipment will continue to support DEs revenues.
Zacks Rank #2 Deere has an expected earnings growth rate of 17% for the current year (ending October 2022). The Zacks Consensus Estimate for current-year earnings improved 0.1% over the last 30 days.
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 buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Costco Wholesale Corporation (COST): 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 U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years. The labor market is gradually approaching the pre-pandemic period and the product market (both manufacturing and services segments) is witnessing expansionary activities. Higher activities in foreign trade are expected as the global economy is recovering from the pandemic.
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Five of them are Chevron Corp. CVX, Exxon Mobil Corp. XOM, Advanced Micro Devices Inc. AMD, Costco Wholesale Corp. Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years.
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Zacks Rank #1 Advanced Micro Devices has an expected earnings growth rate of 43.4% for the current year. The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years. The labor market is gradually approaching the pre-pandemic period and the product market (both manufacturing and services segments) is witnessing expansionary activities.
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A Recovering Labor Market The U.S. labor market that suffered the most during the pandemic is quickly approaching the pre-pandemic level. The U.S. economy is going through an astonishing recovery from the coronavirus-ridden last two years. The labor market is gradually approaching the pre-pandemic period and the product market (both manufacturing and services segments) is witnessing expansionary activities.
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836eac36-584a-4fd1-901c-329bedcc1a42
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721311.0
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2022-02-06 00:00:00 UTC
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Should You Buy Caterpillar Stock After Its Upbeat Q4 Results?
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DE
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https://www.nasdaq.com/articles/should-you-buy-caterpillar-stock-after-its-upbeat-q4-results
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nan
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nan
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[Updated: Feb 2, 2022] CAT Q4 Earnings Update
The stock price of Caterpillar (NYSE: CAT) saw a decline of 5% following its Q4 results announcement on Friday, Jan 28. Now, Caterpillar’s Q4 results were actually above ours as well as the consensus estimates. The company reported revenue of $13.8 billion, up 23% y-o-y, and comfortably above our forecast of $12.6 billion and the consensus estimate of $13.1 billion. Similarly, its adjusted EPS of $2.69 was well above our forecast of $2.22 and the consensus estimate of $2.26.
However, what didn’t sit well with the investors was the rising costs and its impact on the company’s operating margins. Caterpillar saw its total operating costs increase 23.7% to $12.2 billion, resulting in a 60 bps decline in operating margin to 11.7%. The rise in costs can primarily be attributed to inflationary pressure. Furthermore, the company’s management in itsearnings conference callstated that it expects the margins to continue to face pressure in Q1 as well, and improve thereafter.
Given the outlook on margins, CAT stock has seen some correction over the past few days, and we believe investors will be better off buying into this dip for gains in the long run. We have revised our model to reflect the latest quarterly results, and we now estimate Caterpillar’s Valuation to be around $244 per share, which is 19% above its current market price of $205. This represents a P/E multiple of around 22x based on our $11.25 EPS forecast for 2022. This compares with the $10.81 EPS seen in 2021 and $6.56 in 2020. The valuation multiple of 22x is higher than the comparable average of 19x for the last three years. We believe that a higher multiple is justified for CAT stock, given the strong earnings growth seen in the recent past, a trend likely to continue going forward, as well.
[Updated: Jan 26, 2022] CAT Q4 Earnings Preview
Caterpillar (NYSE: CAT) is scheduled to report its Q4 2021 results on Friday, January 28. We expect Caterpillar to post revenue and earnings below the consensus estimates. While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds.
That said, our forecast indicates that Caterpillar’s valuation is $242 per share, which is 13% above the current market price of $214, implying that the stock has more room for growth, in our view. Our interactive dashboard analysis of Caterpillar’s Pre-Earnings has additional details.
Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up. Check out how Caterpillar’s Peers fare on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q4 2021 revenues to be around $12.6 billion, up 12% y-o-y, but below the $13.1 billion consensus estimate.
All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q4 as well, driven by a 4% rise in industrial production.
However, rising labor costs may have weighed on the overall construction activity and, in turn, the equipment demand for the same, adversely impacting the construction segment revenue growth.
Looking back at Q3 2021, total revenues grew a solid 25% y-o-y to $12.4 billion, with gains across the company’s businesses. Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
(2) EPS likely to be below the consensus estimates
Caterpillar’s Q4 2021 adjusted earnings per share (EPS) is expected to be $2.22 per Trefis analysis, compared to the consensus estimate of $2.26.
Caterpillar’s adjusted net income of $1.5 billion in Q3 2021 reflected a large 75% y-o-y rise, compared to $0.8 billion seen in the prior-year quarter.
This growth was driven by higher revenues and higher operating profit margins. The company usually sees a lower operating margin in Q4 vs. Q3, a trend expected in Q4 21 as well. Furthermore, inflationary headwinds and supply-chain constraints remain a concern in the near term.
While these headwinds may impact Caterpillar’s earnings growth in Q4, looking forward, for the full-year 2022, we do expect the adjusted EPS to be higher at $12.25, compared to $8.74 in 2020 and an estimated $10.35 in 2021, with easing of inflationary headwinds.
(3) Stock price estimate above the current market price
We estimate Caterpillar Valuation to be around $242 per share, which is 13% above its current market price of $214.
This represents a P/EBITDA multiple of 15x for the company based on Caterpillar’s EBITDA for the last twelve months.
That said, if the company reports upbeat results, with sales growth as well as 2022 guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in even higher levels for CAT stock.
Still, there are near-term macro risks. With the U.S. Federal Reserve monetary policy-setting meeting coming up on January 26, there are rising concerns of tighter financial conditions that may weigh on the overall markets at large.
While CAT stock may see lower levels in the near term, 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 Caterpillar vs. eBay.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 4% 4% 131%
S&P 500 Return -9% -9% 95%
Trefis MS Portfolio Return -13% -13% 242%
[1] Month-to-date and year-to-date as of 1/26/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up. With the U.S. Federal Reserve monetary policy-setting meeting coming up on January 26, there are rising concerns of tighter financial conditions that may weigh on the overall markets at large.
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[Updated: Feb 2, 2022] CAT Q4 Earnings Update The stock price of Caterpillar (NYSE: CAT) saw a decline of 5% following its Q4 results announcement on Friday, Jan 28. Caterpillar saw its total operating costs increase 23.7% to $12.2 billion, resulting in a 60 bps decline in operating margin to 11.7%. We have revised our model to reflect the latest quarterly results, and we now estimate Caterpillar’s Valuation to be around $244 per share, which is 19% above its current market price of $205.
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[Updated: Feb 2, 2022] CAT Q4 Earnings Update The stock price of Caterpillar (NYSE: CAT) saw a decline of 5% following its Q4 results announcement on Friday, Jan 28. Caterpillar saw its total operating costs increase 23.7% to $12.2 billion, resulting in a 60 bps decline in operating margin to 11.7%. We have revised our model to reflect the latest quarterly results, and we now estimate Caterpillar’s Valuation to be around $244 per share, which is 19% above its current market price of $205.
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[Updated: Feb 2, 2022] CAT Q4 Earnings Update The stock price of Caterpillar (NYSE: CAT) saw a decline of 5% following its Q4 results announcement on Friday, Jan 28. Caterpillar saw its total operating costs increase 23.7% to $12.2 billion, resulting in a 60 bps decline in operating margin to 11.7%. We have revised our model to reflect the latest quarterly results, and we now estimate Caterpillar’s Valuation to be around $244 per share, which is 19% above its current market price of $205.
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64f42c8a-4f7f-4d39-8461-1c55ba79154d
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721312.0
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2022-02-02 00:00:00 UTC
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Why Deere (DE) is Poised to Beat Earnings Estimates Again
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DE
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https://www.nasdaq.com/articles/why-deere-de-is-poised-to-beat-earnings-estimates-again
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nan
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Deere (DE), which belongs to the Zacks Manufacturing - Farm Equipment industry, could be a great candidate to consider.
This agricultural equipment manufacturer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.17%.
For the most recent quarter, Deere was expected to post earnings of $3.82 per share, but it reported $4.12 per share instead, representing a surprise of 7.85%. For the previous quarter, the consensus estimate was $4.49 per share, while it actually produced $5.32 per share, a surprise of 18.49%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Deere lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Deere currently has an Earnings ESP of +17.33%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on February 18, 2022.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's 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.
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 +25.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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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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 (DE), which belongs to the Zacks Manufacturing - Farm Equipment industry, could be a great candidate to consider. For the most recent quarter, Deere was expected to post earnings of $3.82 per share, but it reported $4.12 per share instead, representing a surprise of 7.85%.
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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. Deere (DE), which belongs to the Zacks Manufacturing - Farm Equipment industry, could be a great candidate to consider. For the most recent quarter, Deere was expected to post earnings of $3.82 per share, but it reported $4.12 per share instead, representing a surprise of 7.85%.
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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. Deere (DE), which belongs to the Zacks Manufacturing - Farm Equipment industry, could be a great candidate to consider. For the most recent quarter, Deere was expected to post earnings of $3.82 per share, but it reported $4.12 per share instead, representing a surprise of 7.85%.
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For the most recent quarter, Deere was expected to post earnings of $3.82 per share, but it reported $4.12 per share instead, representing a surprise of 7.85%. 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. Deere (DE), which belongs to the Zacks Manufacturing - Farm Equipment industry, could be a great candidate to consider.
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311e6031-6043-4a73-88f1-07086197ebed
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721313.0
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2022-02-01 00:00:00 UTC
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DE July 15th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-july-15th-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 begin trading today, for the July 15th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 164 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $370.00 strike price has a current bid of $27.10. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $370.00, but will also collect the premium, putting the cost basis of the shares at $342.90 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $374.04/share today.
Because the $370.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. 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 7.32% return on the cash commitment, or 16.31% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $25.30. If an investor was to purchase shares of DE stock at the current price level of $374.04/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $380.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.36% if the stock gets called away at the July 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red:
Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 50%. 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 6.76% boost of extra return to the investor, or 15.06% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 34%, while the implied volatility in the call contract example is 32%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $374.04) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the July 15th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the July 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 15th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $25.30. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new July 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the July 15th expiration.
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96892503-ff0b-4e22-8c39-7609b5152954
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721314.0
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2022-02-01 00:00:00 UTC
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Deere (DE) Just Reclaimed the 20-Day Moving Average
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https://www.nasdaq.com/articles/deere-de-just-reclaimed-the-20-day-moving-average
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Deere (DE) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DE broke through the 20-day moving average, which suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, DE has gained 7.5%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
Looking at DE's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch DE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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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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Deere (DE) reached a significant support level, and could be a good pick for investors from a technical perspective. A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. Investors may want to watch DE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Investors may want to watch DE for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Deere & Company (DE): Free Stock Analysis Report Deere (DE) reached a significant support level, and could be a good pick for investors from a technical perspective.
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This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages. Deere (DE) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, DE broke through the 20-day moving average, which suggests a short-term bullish trend.
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This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages. Investors may want to watch DE for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Deere (DE) reached a significant support level, and could be a good pick for investors from a technical perspective.
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b1648dfc-504d-4128-9529-94705ef583da
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721315.0
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2022-01-31 00:00:00 UTC
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Deere (NYSE:DE) Might Have The Makings Of A Multi-Bagger
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https://www.nasdaq.com/articles/deere-nyse%3Ade-might-have-the-makings-of-a-multi-bagger
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Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So on that note, Deere (NYSE:DE) looks quite promising in regards to its trends of return on capital.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Deere, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.14 = US$8.1b ÷ (US$84b - US$28b) (Based on the trailing twelve months to October 2021).
Therefore, Deere has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 10% generated by the Machinery industry.
NYSE:DE Return on Capital Employed January 31st 2022
In the above chart we have measured Deere's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
What The Trend Of ROCE Can Tell Us
Deere is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 14%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 46%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
The Bottom Line On Deere's ROCE
In summary, it's great to see that Deere can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And a remarkable 277% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
On a final note, we've found 1 warning sign for Deere that we think you should be aware of.
While Deere isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To calculate this metric for Deere, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = US$8.1b ÷ (US$84b - US$28b) (Based on the trailing twelve months to October 2021). We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. So on that note, Deere (NYSE:DE) looks quite promising in regards to its trends of return on capital.
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NYSE:DE Return on Capital Employed January 31st 2022 In the above chart we have measured Deere's prior ROCE against its prior performance, but the future is arguably more important. The Bottom Line On Deere's ROCE In summary, it's great to see that Deere can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. So on that note, Deere (NYSE:DE) looks quite promising in regards to its trends of return on capital.
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Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The Bottom Line On Deere's ROCE In summary, it's great to see that Deere can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. So on that note, Deere (NYSE:DE) looks quite promising in regards to its trends of return on capital.
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So on that note, Deere (NYSE:DE) looks quite promising in regards to its trends of return on capital. Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The Bottom Line On Deere's ROCE In summary, it's great to see that Deere can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers.
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2022-01-31 00:00:00 UTC
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Deere (DE) Gains But Lags Market: What You Should Know
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https://www.nasdaq.com/articles/deere-de-gains-but-lags-market%3A-what-you-should-know-0
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Deere (DE) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the agricultural equipment manufacturer had gained 9.01% over the past month, outpacing the Industrial Products sector's loss of 8.37% and the S&P 500's loss of 7.36% in that time.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. On that day, Deere is projected to report earnings of $2.22 per share, which would represent a year-over-year decline of 42.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.09 billion, up 0.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.21 per share and revenue of $46.97 billion, which would represent changes of +16.96% and +18.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 16.83 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.83.
It is also worth noting that DE currently has a PEG ratio of 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.2 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed at $376.40 in the latest trading session, marking a +0.7% 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. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
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Deere (DE) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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Deere (DE) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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Deere (DE) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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ce36f62b-ad92-4689-a424-42c3bb97ef59
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721317.0
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2022-01-31 00:00:00 UTC
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4 Cathie Wood Stocks to Buy in the Market Sell-Off
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https://www.nasdaq.com/articles/4-cathie-wood-stocks-to-buy-in-the-market-sell-off
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It's no secret that the market has been selling off riskier assets lately. It's likely due to a combination of geopolitical risk, tightening interest rate policy, and -- more importantly from our perspective -- a reversal from frothy valuations. As such, it's time to start looking at some of the beaten-up technology companies that still have excellent long-term growth prospects.
A good place to start would be in the holdings in Cathie Wood's ARK Investment Management ETFs. Wood is a leading fund manager who specializes in innovative companies with disruptive technologies and long-term potential. So here are four ARK ETF holdings for your consideration.
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Image source: Getty Images.
Trimble
The top holding in ARK's Space Exploration & Innovation ETF, positioning company Trimble (NASDAQ: TRMB) is an exciting way to play the change in how companies work with digital technology.
Trimble provides hardware, software, and services to help companies connect and monitor their physical assets and activity with the digital world. Examples include transportation companies monitoring and controlling their trucking fleets in real time. Construction companies use Trimble technology to do the same with equipment to reduce waste and better follow design models. Another key end market comes from farmers using precision agriculture to guide everything from preparing the soil to planting, nurturing, and harvesting.
Trimble's long-term growth opportunity comes from the growing adoption of these smart technologies in improving work processes. It's a revenue growth opportunity and a margin expansion opportunity, as it should lead to more higher-margin software and recurring services revenue in the future. Meanwhile, the stock is down about 25% from its recent highs and trading at roughly 25 times expected earnings per share (EPS) for the next 12 months.
Deere & Co.
Speaking of precision agriculture, ARK holding and agriculture and construction equipment company Deere & Co. (NYSE: DE) is firing on all cylinders right now. Sales of its agriculture equipment are being boosted by a rise in key crop prices (wheat, corn, soybean) not seen since 2014. In addition, strong take-up rates of its precision agriculture solutions have led management to forecast 20% to 25% sales growth in fiscal 2022 (Deere's fiscal year ends on Oct. 31) in its production and precision agriculture segment. In addition, small ag and turf sales are forecast to grow 15% to 20% in 2022.
Image source: Getty Images.
Finally, ongoing recovery in construction activity and a positive outlook for road spending have led management to forecast 10% to 15% growth in sales in 2022 within the construction and forestry segment.
Investors constantly fret about where Deere is in the agriculture cycle, but as long as crop prices stay elevated, Deere should have good growth prospects. Throw in underlying growth from precision agriculture and infrastructural spending on roads, and the outlook is even better. While Deere's stock is actually trading close to its 52-week highs, its valuation around 17 times forward EPS leaves room for growth.
Alphabet
Google's owner Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is held in two ARK ETFs, a demonstration of the search engine giant's capability to appeal to a range of investors. I use the word "capability" to reflect on the incredible financial firepower at management's disposal. Simply put, its leadership has a golden opportunity to generate significant amounts of wealth for shareholders.
The numbers are staggering. According to Wall Street analyst estimates, Alphabet will generate $237 billion in free cash flow (FCF) in the three-year period ending in 2023. That's only a few billion shy of the market cap of the darling of the last tech stock boom, Cisco Systems. In other words, Alphabet could buy Cisco in three years and still grow its business at the mid-teens rate Wall Street is expecting.
Meanwhile, at recent prices, Alphabet was valued at just 22 times estimated FCF for 2022. That's an excellent multiple for a company growing revenue and earnings at a mid-teens rate. Throw in the possibility that management generates value through product development and acquisitions, and Alphabet remains an excellent value stock.
Image source: Getty Images.
Magna International
Auto parts manufacturer Magna International (NYSE: MGA) is in ARK's Autonomous Technology and Robotics ETF. The stock is attractive for two reasons.
First, after a few challenging years, the automotive industry looks set for a multiyear ramp in light vehicle production (LVP). The auto chip makers are investing heavily to expand capacity, and industry observers expect the chip supply issue to ease through 2022. As a result, LVP should improve through 2022, especially in the second half.
Second, most of Magna's products are equally relevant in electric vehicle production. Some of them (electric drive systems, advanced driver assistance systems, battery enclosures, and contract vehicle manufacturing for companies like Fisker) are beneficiaries of a shift to EV production. Moreover, Magna is actively investing in electrification solutions.
It all adds up to a favorable multiyear outlook, and with the stock recently trading at 16.5 times estimated FCF for 2022, Magna looks like an excellent value.
10 stocks we like better than Deere & Company
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns and recommends Alphabet (A shares) and Cisco Systems. The Motley Fool recommends Alphabet (C shares), Magna Int’l, and Trimble Inc. 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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So here are four ARK ETF holdings for your consideration. Trimble provides hardware, software, and services to help companies connect and monitor their physical assets and activity with the digital world. Examples include transportation companies monitoring and controlling their trucking fleets in real time.
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Speaking of precision agriculture, ARK holding and agriculture and construction equipment company Deere & Co. (NYSE: DE) is firing on all cylinders right now. In addition, strong take-up rates of its precision agriculture solutions have led management to forecast 20% to 25% sales growth in fiscal 2022 (Deere's fiscal year ends on Oct. 31) in its production and precision agriculture segment. So here are four ARK ETF holdings for your consideration.
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Speaking of precision agriculture, ARK holding and agriculture and construction equipment company Deere & Co. (NYSE: DE) is firing on all cylinders right now. In addition, strong take-up rates of its precision agriculture solutions have led management to forecast 20% to 25% sales growth in fiscal 2022 (Deere's fiscal year ends on Oct. 31) in its production and precision agriculture segment. So here are four ARK ETF holdings for your consideration.
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Speaking of precision agriculture, ARK holding and agriculture and construction equipment company Deere & Co. (NYSE: DE) is firing on all cylinders right now. So here are four ARK ETF holdings for your consideration. Trimble provides hardware, software, and services to help companies connect and monitor their physical assets and activity with the digital world.
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2022-01-28 00:00:00 UTC
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Best Value Stocks To Buy For 2022? 4 Industrial Stocks In Focus
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https://www.nasdaq.com/articles/best-value-stocks-to-buy-for-2022-4-industrial-stocks-in-focus
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Are These The Best Value Stocks To Buy In 2022?
While tech stocks may be stealing headlines in the stock market this earnings week, industrial firms are also performing. Because of this, investors may want to consider watching some of the best value stocks in the industrial industry for 2022. If anything, this part of the cyclical sector would stand to benefit from the overall economic recovery.
After all, investors received several key pieces of economic data this week. As of earlier today, the personal consumption expenditure (PCE) figures, a key inflation measure, are in at an increase of 4.9%. This would be its fastest gain since September 1983. Additionally, the latest initial jobless claims figures are in at 260,000, below estimates of 265,000. Moreover, quarterly GDP estimates came in higher by a 6.9% annualized pace yesterday, smashing expectations of a 5.5% increase.
Now, with a seemingly recovering job market and a red hot economy, industrials would, in theory, have busy times ahead. Even now, companies such as Caterpillar (NYSE: CAT) and 3M (NYSE: MMM) are already kicking into high gear. For starters, Caterpillar posted solid figures in its latest quarterly earnings report earlier today. The heavy machinery manufacturer posted earnings of $2.69 on revenue of $13.8 billion, beating Wall Street’s forecasts. Notably, Caterpillar cites an ongoing surge in demand for construction equipment alongside rising commodity prices. Secondly, 3M topped earnings per share expectations by a whopping 30 cents earlier this week in its latest financial update. With all this in mind, here are four more industrial stocks to consider in thestock market today
Best Value Stocks To Buy [Or Sell] Ahead Of February 2022
Nucor Corporation (NYSE: NUE)
United Rentals Inc. (NYSE:URI)
Deere & Company (NYSE: DE)
Raytheon Technologies Corporation (NYSE:RTX)
Nucor Corporation
Nucor is a manufacturer of steel and steel products. It has facilities in the U.S., Canada, and Mexico. In essence, it produces carbon and alloy steel in bars, beams, sheets, and plates. It also fabricates concrete reinforced steel, precision castings, and steel fasteners. Through its David J. Joseph Company, the company also brokers ferrous and nonferrous metals, pig iron, and hot briquetted iron. NUE stock currently trades at $98.49 as of 12:52 p.m. ET and is up by over 90% in the past year alone.
On Thursday, the company reported its fourth-quarter earnings. Diving in, the company announced a consolidated net earnings of $2.25 billion or $7.97 per diluted share. Nucor says that 2021 has been an extraordinary year, given the incredible financial and operational results in 2021. For its first quarter of 2022 outlook, the company says that the end-use market demand remains strong for steel and steel products. With that being said, Nucor is confident that 2022 will be another year of strong profitability. All things considered, is NUE stock worth investing in right now?
Source: TD Ameritrade TOS
[Read More] Best Artificial Intelligence Stocks To Buy Right Now? 5 To Watch
United Rentals Inc.
Following that, we have United Rentals, one of the world’s largest equipment rental companies. It has an integrated network of 1,288 rental locations in North America and 11 in Europe. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 20,400 employees serve construction and industrial customers, utilities, municipalities, and homeowners among others. URI stock currently trades at $313.24 as of 12:54 p.m. ET.
Earlier this week, the company also reported its fourth-quarter financials and provided a 2022 outlook. Firstly, total revenue for the quarter was $2.776 billion, including rental revenue of $2.312 billion. Secondly, its fleet productivity increased by 10.3% year-over-year. Impressively, net income for the quarter also increased by 62% year-over-year to $481 million. Also worth noting is that its used equipment sales increased by 17.8% year-over-year, at $324 million. The company’s Board of Directors also authorized a new $1 billion share repurchase program which will commence somewhere in the first quarter of 2022. With the impressive financials, will you be on the lookout for URI stock?
Source: TD Ameritrade TOS
Deere & Company
Deere & Company or John Deere is a world leader in providing advanced products and services for the agricultural and construction businesses. With over 180 years of experience and terabytes of precision data, the company knows its business better than anyone else. Impressively, the company offers a portfolio of more than 25 brands that provide a full line of innovative solutions for its customers in a variety of production systems. DE stock currently trades at $371.20 as of 12:55 p.m. ET.
Last week, the company announced that it has added seven companies to its 2022 Startup Collaborator program. The company launched the program in 2019 to enhance and deepen its interaction with startup companies whose technology could add value for customers. Notably, these companies include Burro, a company that provides people-scale robotic platforms to help farm laborers work more productively, and also Four Growers, a company that provides robotic harvesting and analytics for high-value crops. I could see the company benefitting from next-generation technologies with this program. With that being said, is DE stock worth adding to your portfolio?
Source: TD Ameritrade TOS
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Raytheon Technologies Corporation
Last but not least, we will be taking a look at Raytheon Technologies. In brief, Raytheon is a multinational aerospace and defense conglomerate. By Raytheon’s estimates, it is among the largest aerospace, intelligence service providers, and defense manufacturers worldwide. This would be in terms of revenue and market cap. In theory, as the return to normalcy persists, so too would demand for Raytheon’s core offerings. The likes of which include its work in the areas of artificial intelligence, advanced propulsions, and thermal management among others. As it stands, RTX stock currently trades at $88.86 as of 12:55 p.m. ET.
Even with the company’s shares mostly trading sideways this year, Raytheon continues to press forward. Evidently, the company posted solid gains in its fiscal 2021 earnings report earlier this week. In it, Raytheon recorded earnings per share of $2.56 on revenue of $64.4 billion for the year.
For comparison, this marks notable year-over-year gains of 198% and 13% respectively. Commenting on the company’s outlook for the current fiscal year is CEO Greg Hayes. Hayes says, “The long-term outlook for our commercial aerospace and defense markets remains strong. Our focused A&D portfolio and intense focus on program execution position us well to deliver sales, earnings, and free cash flow growth, as well as margin expansion across all businesses in 2022.” As such, would you consider RTX stock a buy now?
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
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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Impressively, the company offers a portfolio of more than 25 brands that provide a full line of innovative solutions for its customers in a variety of production systems. Source: TD Ameritrade TOS If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. Because of this, investors may want to consider watching some of the best value stocks in the industrial industry for 2022.
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With all this in mind, here are four more industrial stocks to consider in thestock market today Best Value Stocks To Buy [Or Sell] Ahead Of February 2022 Nucor Corporation (NYSE: NUE) United Rentals Inc. (NYSE:URI) Deere & Company (NYSE: DE) Raytheon Technologies Corporation (NYSE:RTX) Nucor Corporation Nucor is a manufacturer of steel and steel products. Source: TD Ameritrade TOS Deere & Company Deere & Company or John Deere is a world leader in providing advanced products and services for the agricultural and construction businesses. Because of this, investors may want to consider watching some of the best value stocks in the industrial industry for 2022.
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With all this in mind, here are four more industrial stocks to consider in thestock market today Best Value Stocks To Buy [Or Sell] Ahead Of February 2022 Nucor Corporation (NYSE: NUE) United Rentals Inc. (NYSE:URI) Deere & Company (NYSE: DE) Raytheon Technologies Corporation (NYSE:RTX) Nucor Corporation Nucor is a manufacturer of steel and steel products. Source: TD Ameritrade TOS Deere & Company Deere & Company or John Deere is a world leader in providing advanced products and services for the agricultural and construction businesses. Notably, these companies include Burro, a company that provides people-scale robotic platforms to help farm laborers work more productively, and also Four Growers, a company that provides robotic harvesting and analytics for high-value crops.
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With all this in mind, here are four more industrial stocks to consider in thestock market today Best Value Stocks To Buy [Or Sell] Ahead Of February 2022 Nucor Corporation (NYSE: NUE) United Rentals Inc. (NYSE:URI) Deere & Company (NYSE: DE) Raytheon Technologies Corporation (NYSE:RTX) Nucor Corporation Nucor is a manufacturer of steel and steel products. Earlier this week, the company also reported its fourth-quarter financials and provided a 2022 outlook. Because of this, investors may want to consider watching some of the best value stocks in the industrial industry for 2022.
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cf38b97c-80c1-4efc-ab02-f2bf73da7217
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721319.0
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2022-01-28 00:00:00 UTC
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Is John Deere an Underrated AI Stock?
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DE
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https://www.nasdaq.com/articles/is-john-deere-an-underrated-ai-stock
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nan
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nan
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John Deere's (NYSE: DE) new autonomous tractor is equipped with an Nvidia graphics card and can be controlled by farmers with a smartphone app. In this Backstage Pass clip from "The AI/ML Show" recorded on Jan. 12, Motley Fool contributors Toby Bordelon, Jamie Louko, and Jose Najarro discuss this fascinating new use for AI technology.
{% sfr %}
Toby Bordelon: At CES, John Deere comes out with this autonomous tractor. They reveal their autonomous tractor and we've known this is in the works for a while. They've been talking about this. But they've got this autonomous tractor, they hope to have it in production by this year, by the end of the year, if you are a farmer, you can go buy it and put it in your field. I was going to a show video, we don't have time for that, but I do encourage you to go to John Deere's website. Let me just screen share this real quickly so you can see this. If you want to go to their website. They have a whole. You got to johndeere.com. You're going to see, learn more about John Deere CES right here. You can click there and it takes you to their CES where they've got videos from CES they have got resources. They've got factsheets on there. So you can learn more about this area. Watch these videos, they are really cool.
But this tractor, it's just a regular John Deere tractor but it's autonomous. It uses 12 pairs of cameras and GPS. No RADAR, no LiDAR. This is more like Tesla. They are just using the cameras for this one. It can carry a plow behind it, it can tow other equipment. It uses a smartphone app for the farmer to control it. Very simple, basic smartphone app. The tractor also has sensors for data gathering, so while it's out plowing the field, you can gather data as well.
Jose, it uses an Nvidia card. Nvidia Jetson Xavier GPU is what is powering this John Deere tractor. But they took it. It's not totally off-the-shelf, they took it and they made a custom passive cooling assembly that actually is optimized for the dusty field environments, because the typical air coolers won't work. If you're out of the farm, just get clogged up. They put a custom cooling unit on that, but it's an Nvidia graphics card, GPU power in this thing.
We talked on a previous show about Blue River, which is the John Deere subsidiary. They are working on AI farming tech, including an AI-powered weeding device. You can stick that on the back of the tractors. You can autonomously weed your field too with this. Now the advantage, part of what Bradley talks about is what if the camera fails, what's the redundancy?
The advantage to this tractor over say the Tesla system is, if it encounters something it can't figure out, it just stops, and it'll ping the farmer in the smartphone app and he goes and deals with it. But it's in the field. So it's not a problem. It's not like, "Oh, what if something happened at 75 miles an hour on the freeway?" That's a bigger concern. What if something happens to the tractor at five miles an hour plowing the field with no one else there, who cares? You can fix that. That can be dealt with half an hour later, the consequences of catastrophic failure are a lot lower I think, when you're plowing a field than you're driving a car in an environment with a bunch of other people.
I think that's one reason that we may be seeing this come to market very quickly. Because the very controlled, constrained environment in which is being used. It's interesting, and is fascinating. Again, go to the website checkout these videos, we're going to talk more about this on a later show. It's a very fascinating piece of equipment there. You talk about growing populations and John Deere talks about this, need to increase productivity. They save by 16, 17 percent to feed everyone. But the average farmer in the US they were 55. Labor shortage on farms like everyone else, but increasingly on farms. What you do with that, autonomy can help with some of these concerns. Potentially, letting family farms continue to operate these family farms. Because you just need fewer hands. If you can plow your field with a tractor while you go do other things. Tractors do its thing. Interesting, fascinating, and we'll see if these actually makes to the market this year, but I hope they do, it's quite fascinating. Any closing thoughts, guys, before we end here?
Trevor Jennewine: I think it'd be interesting to do a whole show on the autonomous agriculture stuff. I think that's worth doing.
Toby Bordelon: Yeah. I think so. I don't know, Jamie, you've spent some time looking at John Deere. Right?
Jamie Louko: Not days and nights and sleepless nights, but yes. Out of all autonomous vehicle stocks, John Deere is definitely my favorite.
Toby Bordelon: It's overlooked. People don't think about it.
Jamie Louko: It's so overlooked.
Toby Bordelon: If you think about what's an autonomous company, I'm not sure John Deere comes to mind. Go ahead.
Jamie Louko: In terms of AI and machine learning they use so much more other than just their tractor, they have so much more other technology to optimize field production usage. Land, everything. They have so much more AI capabilities than just this and I think it's really, really underrated and overlooked completely.
Toby Bordelon: Yeah. I think it's worth looking at the whole space. I like that we can do this and we can find companies that are unexpected in this field and bring this to people. Final comments, Jose? Do anything left to add?
Jose Najarro: Yes, I just wanted to say, in the autonomous market. When we hear that word, I think everybody just things automatically of autonomous driving. But there's so many more autonomous market I feel is already doing really well. Like a ton automation in like factories and stuff like that with automatic robots. I think there are definitely a few companies that hit that kind of market that are doing pretty well. I just want to remind that there is a whole different world in autonomous outside of just driving.
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 January 10, 2022
Jamie Louko owns Nvidia and Tesla. Jose Najarro owns Nvidia and Tesla. Toby Bordelon has no position in any of the stocks mentioned. Trevor Jennewine owns Nvidia and Tesla. The Motley Fool owns and recommends Nvidia 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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In this Backstage Pass clip from "The AI/ML Show" recorded on Jan. 12, Motley Fool contributors Toby Bordelon, Jamie Louko, and Jose Najarro discuss this fascinating new use for AI technology. It's not totally off-the-shelf, they took it and they made a custom passive cooling assembly that actually is optimized for the dusty field environments, because the typical air coolers won't work. That can be dealt with half an hour later, the consequences of catastrophic failure are a lot lower I think, when you're plowing a field than you're driving a car in an environment with a bunch of other people.
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John Deere's (NYSE: DE) new autonomous tractor is equipped with an Nvidia graphics card and can be controlled by farmers with a smartphone app. In this Backstage Pass clip from "The AI/ML Show" recorded on Jan. 12, Motley Fool contributors Toby Bordelon, Jamie Louko, and Jose Najarro discuss this fascinating new use for AI technology. Toby Bordelon: Yeah.
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John Deere's (NYSE: DE) new autonomous tractor is equipped with an Nvidia graphics card and can be controlled by farmers with a smartphone app. {% sfr %} Toby Bordelon: At CES, John Deere comes out with this autonomous tractor. But this tractor, it's just a regular John Deere tractor but it's autonomous.
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John Deere's (NYSE: DE) new autonomous tractor is equipped with an Nvidia graphics card and can be controlled by farmers with a smartphone app. In this Backstage Pass clip from "The AI/ML Show" recorded on Jan. 12, Motley Fool contributors Toby Bordelon, Jamie Louko, and Jose Najarro discuss this fascinating new use for AI technology. Toby Bordelon: Yeah.
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931a5de7-9fd6-4fd0-b689-09ac862b9cd4
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721320.0
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2022-01-28 00:00:00 UTC
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Will Caterpillar Stock Rise Following Its Q4 Earnings?
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DE
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https://www.nasdaq.com/articles/will-caterpillar-stock-rise-following-its-q4-earnings
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nan
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nan
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Caterpillar (NYSE:CAT) is scheduled to report its Q4 2021 results on Friday, January 28. We expect Caterpillar to post revenue and earnings below the consensus estimates. While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds.
That said, our forecast indicates that Caterpillar’s valuation is $242 per share, which is 13% above the current market price of $214, implying that the stock has more room for growth, in our view. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details.
Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up. Check out how Caterpillar’s Peers fare on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q4 2021 revenues to be around $12.6 billion, up 12% y-o-y, but below the $13.1 billion consensus estimate.
All of Caterpillar’s segments have seen steady growth over the recent quarters, a trend expected to continue in Q4 as well, driven by a 4% rise in industrial production.
However, rising labor costs may have weighed on the overall construction activity and, in turn, the equipment demand for the same, adversely impacting the construction segment revenue growth.
Looking back at Q3 2021, total revenues grew a solid 25% y-o-y to $12.4 billion, with gains across the company’s businesses. Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
(2) EPS likely to be below the consensus estimates
Caterpillar’s Q4 2021 adjusted earnings per share (EPS) is expected to be $2.22 per Trefis analysis, compared to the consensus estimate of $2.26.
Caterpillar’s adjusted net income of $1.5 billion in Q3 2021 reflected a large 75% y-o-y rise, compared to $0.8 billion seen in the prior year quarter.
This growth was driven by higher revenues and higher operating profit margin. The company usually sees a lower operating margin in Q4 vs. Q3, a trend expected in Q4 21 as well. Furthermore, inflationary headwinds and supply-chain constraints remain a concern in the near term.
While these headwinds may impact Caterpillar’s earnings growth in Q4, looking forward, for the full-year 2022, we do expect the adjusted EPS to be higher at $12.25, compared to $8.74 in 2020 and an estimated $10.35 in 2021, with easing of inflationary headwinds.
(3) Stock price estimate above the current market price
We estimate Caterpillar Valuation to be around $242 per share, which is 13% above its current market price of $214.
This represents a P/EBITDA multiple of 15x for the company based on Caterpillar EBITDA for the last twelve months.
That said, if the company reports upbeat results, with sales growth as well as 2022 guidance better than the street estimates, it is likely that the P/EBITDA multiple will be revised upward, resulting in even higher levels for CAT stock.
Still, there are near term macro risks. With the U.S. Federal Reserve monetary policy-setting meeting coming up on January 26, there are rising concerns of tighter financial conditions that may weigh on the overall markets at large.
While CAT stock may see lower levels in the near term, 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 Caterpillar vs. eBay.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 4% 4% 131%
S&P 500 Return -9% -9% 95%
Trefis MS Portfolio Return -13% -13% 242%
[1] Month-to-date and year-to-date as of 1/26/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up. With the U.S. Federal Reserve monetary policy-setting meeting coming up on January 26, there are rising concerns of tighter financial conditions that may weigh on the overall markets at large.
|
While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up.
|
While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up.
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While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand for the construction industry over the recent quarters, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. Although CAT stock may trade lower in the near term, based on our Q4 forecast of revenue and earnings falling below the street estimates, it is helpful to see how its peers stack up.
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f3b640c3-c714-4e19-b71c-577ab10d0432
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721321.0
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2022-01-27 00:00:00 UTC
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Interesting DE Put And Call Options For March 11th
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DE
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https://www.nasdaq.com/articles/interesting-de-put-and-call-options-for-march-11th
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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 March 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new March 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $375.00 strike price has a current bid of $14.55. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $375.00, but will also collect the premium, putting the cost basis of the shares at $360.45 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $377.16/share today.
Because the $375.00 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 3.88% return on the cash commitment, or 32.93% 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 $375.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $14.15. If an investor was to purchase shares of DE stock at the current price level of $377.16/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $380.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.50% if the stock gets called away at the March 11th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red:
Considering the fact that the $380.00 strike represents an approximate 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 3.75% boost of extra return to the investor, or 31.85% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $377.16) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 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 become available today, for the March 11th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 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 become available today, for the March 11th 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 $375.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $380.00 strike price has a current bid of $14.15. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 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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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new March 11th contracts and identified one put and one call contract of particular interest. Below is a chart showing DE's trailing twelve month trading history, with the $380.00 strike highlighted in red: Considering the fact that the $380.00 strike represents an approximate 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 become available today, for the March 11th expiration.
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2fd48dac-c826-4e40-93c6-e69df4d2944a
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721322.0
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2022-01-26 00:00:00 UTC
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"Grand Theft Auto" Comes to "FarmVille" as Take-Two Buys Zynga
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DE
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https://www.nasdaq.com/articles/grand-theft-auto-comes-to-farmville-as-take-two-buys-zynga
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nan
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nan
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Shares of Lululemon Athletica (NASDAQ: LULU) fall as the retailer lowers expectations for its next quarterly report. Asit Sharma analyzes those stories, the latest innovation from Deere & Co.(NYSE: DE), and why he's focusing on both capital-light and capital-heavy businesses this upcoming earnings season.
Later in the show, Ricky Mulvey talks with Maria Gallagher about how trading costs can still affect investors in a world where the cost of executing a trade is $0.
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 Take-Two Interactive
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 Take-Two Interactive 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 January 10, 2022
This video was recorded on Jan. 10, 2022.
Chris Hill: Today on Motley Fool Money, a closer look at trading costs, and what do you get when you cross FarmVille with Grand Theft Auto? That's coming up right now.
I'm Chris Hill, joined by Motley Fool Senior Analyst, Asit Sharma. Thanks for being here.
Asit Sharma: Chris, thank you for having me.
Hill: We've also got a warning in the retail industry and yet another self-driving vehicle. But we're going to start with the deal of the day. Take-Two Interactive (NASDAQ: TTWO) is buying Zynga in a cash and stock deal worth $12.7 billion. Take-Two has a number of gaming brands under its umbrella, probably best known for things like Grand Theft Auto and BioShock. Zynga, probably still best known for FarmVille, but it's a mobile company and that's a fast-growing segment within the gaming industry. Interesting to me that Zynga apparently didn't go shopping themselves around. Take-Two Interactive came knocking at their door, and technically Zynga's still has 45 days to shop for a higher price. But for now, let's just assume that this deal is going to go through. Do you think that Take-Two Interactive is paying too much? Because when you look at shares of Take-Two falling a bit today, that seems to be the reaction on Wall Street. They're paying too much for Zynga.
Sharma: Chris, I don't think they're paying too much. I think that Wall Street is taken aback just by that premium of what, 60, 64% to the closing price of Zynga on the last trading day? So it looks expensive that the question when you see that kind of gain is, oh wow, why did you pay that much? But Wall Street has awarded Zynga with a lower multiple over time than Take-Two Interactive has received. If you compare their forward multiples, just take their enterprise value to their EBITDA or earnings before interest, taxes, depreciation, and amortization, Zynga trades at a discount of something like 50 percent to Take-Two Interactive give or take the month. What this means is that the management of Take-Two Interactive says, "Yes, we can afford to give enough here so that shareholders and the board feels good about it on Zynga side. Then we can capitalize and start working on some of these synergies." So they are looking ahead. The current shareholder of Take-Two Interactive wants to know, "Did you pay a fair price?"
Management of Take-Two Interactive wants to know, "Hey, what can we get out of these two companies if we combine them and look forward?" They've mentioned a $100 million in cost synergies over the next couple of years. But they've also mentioned about half a billion dollars in revenue synergies, that is, being able to combine these two platforms. I think it's a good deal for Take-Two Interactive because as its leader in the PC and console gaming space, they really haven't been able to crack that mobile market to the degree you might have expected them to. But this gives them that instant entry into that space. For me, I foresee overtime being able to transition some of these great titles on Take-Two's side into the mobile formats. That's very powerful. The last thing I'll say before asking for your perspective is that this is an annuity business to me, this software gaming business. Over time, titles that you think would whither away and fade, they've got this staying power. It's almost like you have to keep acquiring in this business. Both companies are serial acquirers of smaller studios and technologies. This is just par for the course for a company like Take-Two that wants to keep growing at scale. It's pretty big already with a market cap, I think, of somewhere of north of 16 billion bucks.
Hill: Well, one of the points you made earlier is, Zynga just has never gotten the respect on Wall Street that some of the other video game companies have. This is a hits business, and in the case of Take-Two Interactive, they have more hits. I think it's a fair criticism of Zynga that they never really had a second act to FarmVille. If they had more hits, even close to FarmVille, then maybe we'd be talking about a different situation here. But to your other point, there is something to be said for the management at Take-Two Interactive saying, "We want to get this deal done quickly. If we take a hit in the short-term because some people think we're overpaying, the flip side of that is its not being dragged out." Because I think if you're a shareholder of either company, you don't want to see something like this really get drawn out over a long period of time.
We were talking way before we started recording, this is something that obviously has a direct impact on these two groups of shareholders. But whatever company you're a shareholder of, there's a chance that you're going to wake up one morning and the news is going to be a stock in your portfolio just got acquired. What are a couple of questions that, in this case Zynga shareholders, but in the future, any shareholder should be asking? What are a couple of questions people should ask when they find themselves in this situation and they have to decide for themselves, "Do I want to be a shareholder of this new company?" Because this is a cash and stock deal; Zynga shareholders get some cash, but then they are also going to get some Take-Two Interactive stock. Maybe they want to keep it, maybe they don't.
Sharma: Often at times, a growth investor will see such an acquisition as the end of the road. You bought a stock, you had high expectations. Let's say that you've purchased Zynga in the last five years and you believed management's narrative about its attempts to rejuvenate the business, to purchase smaller companies, and rekindle that growth. I should pause here and say, Chris, we're probably giving short shrift to those Words With Friends fans. They're probably wondering why we haven't called them out yet. They have a couple of other well known titles. Zynga does.
Hill: Fair.
Sharma: It's not all FarmVille, but it sometimes seems like that. The knee-jerk reaction probably is, "OK. I'm going to sale the shares, either I sale beforehand or I wait until the deal is done and then get out of this new entity." But I think it's a good practice to figure out, "The company that acquired, what do I know about it and where might it be going?" Easiest place to get that is to look at the most recentearnings calltranscript where you hear management talk about their financial performance and their strategy. You can get a pretty good bird's eye view in most cases just by reading that last earnings transcript. Then if you've got the acumen for it or if you've got the time, patience, you can dig in a little further. Sometimes it's worth hanging on and just trying to understand, "Wow, OK, if the management of this company purchased my company, they seem very enthusiastic about it. What does it mean for the new entity?" Sometimes I've just let things run and benefited from it. But I think that's the first order of business, is to step in the shoes of the acquiring company, figure out why they wanted the company you owned and where they're going, and if you believe that story.
Hill: Shares of Lululemon Athletica down six percent today after the company warned, fourth-quarter results are going to come in at the low end of their estimates. Lululemon is dealing with not enough staff and as a result, shortening the store hours. How do I put this? This really doesn't look good. So soon after the holidays, particularly when you think back to the end of last year, Asit, and management was pretty bullish about the start they had to the holiday season. We're a couple of months away from the actual earnings report coming out, so this is one of those situations where I'm not suggesting that people who own shares of the stock need to run out and sell immediately, but I will say that we've got a couple of months before their earnings report comes out and this could get worse before it gets better.
Sharma: You could. I mean, there are actually a few weeks left, 21 odd days left in their quarter. So they still have time in this fiscal year that they're talking about. You're right, Chris, I distinctly remember. I follow, I'm a fan of it. Management was very positive about this start to this last quarter. They were looking forward to a strong holiday season. They weren't really focused on omicron at that point. This was several weeks ago. I'm not sure anyone picked up for many companies toward the end of the year. So I'm willing to spot them some blindsidedness there. They did talk about, during that call, the problems they were having with their supply chain. But also, on the flip side of the coin, they mentioned that they were dealing with those issues. I can see the shortened store hours as something that would be a curve ball that management didn't foresee at the time.
One always wonders, "Is there some of just you not meeting expectations for your holiday sales that's wrapped into this or maybe we're looking at a convenient excuse?" I don't think that's the case here. I think Lululemon's management is a very operationally focused team and they don't tend to whitewash things or to sell a story to investors. I'm looking at this more as a stumble, "Guys, maybe you should have seen this coming or not been so optimistic." But at the same time, if we go back to that same call, they were also adjusting this forward sales of their mirror business. That is the connected fitness company that they purchased, has been doing well, but now it's starting to slow down. Maybe they have taken one hit after another unexpectedly, but they're trying to get it out now, which is good. I mean, if you've seen that that writing is on the wall, get out in front of investors, don't wait till that next quarter report. I'm not sure quite what I make of this as a longtime fan of the business, I think their brand is very strong. But yes, it's given me pause this morning.
Hill: Yeah, and to your point, this is a management team that appears to be very straight shooters when it comes to talking about their business. They've been clear in the past when things haven't gone as well for the Mirror acquisition as they had hoped, and certainly as their shareholders had hoped. You look at the stock, it's down from its highs, it's basically, I was going to say it's flat over the past 12 months, but with the drop today, let's just say it's 6% underwater over the past 12 months. Do you look at the stock as being particularly expensive right now? Because they really have done a better-than-expected job of growing this business. There was a good stretch of time when they were starting out that people thought nobody is going to continue to pay these prices. Yoga pants are not a luxury item. No one is going to be able to sustain this as a business and they have defied expectations in that regard. So if you look at the stock down from its highs, if it doesn't appear expensive, this could be a good entry point.
Sharma: You're getting a business in Lululemon that manages to grow its comparable sales double-digits as a matter of course. Even if you account for some of the slowdown in 2020 and easy comparisons, they've been doing this for several quarters and I think they're capable of doing that for several quarters still. Part of this is because they are expanding internationally, part of it is because they've mastered the game of selling high-tech athleisure wear and understanding where the trends are going. I feel that this is a high-quality company in this retail space. It's a tough space, as we both know. I mean, you're competing against companies like Nike on some fronts. It's not a space that is very kind to companies that can't execute.
This is the one thing I like about Lululemon, that they are able to consistently execute in just a mathematical part of their business, which is that store expansion, they are still opening new stores, also managing their inventory, just the pace of introduction of new products. I think all-in-all, yes, if you look at this company, it's well off its highs. It's a high-growth company for this sector, which again, I don't need to remind anyone. Usually the typical compay's growing less than 10% a year and then this company has lately been growing in excess of 25%. I think it's worth a look at. As for whether it's expensive, I'm holding back thoughts of that until we see where interest rates are going this year. I can have a totally different answer a few months from now.
Hill: Fair enough. Earnings season kicks off later this week with the big banks. I want to get to what you're watching. But before that real quick, you brought something to my attention because last week on the show, we talked about CES, some of the news coming out of the trade show. Increasingly, some of the most important announcements have been in the automotive industry and along those same lines. You pointed out some news, the self-driving tractor. John Deere, one of the go-to brands in the agriculture industry, they came out with a self-driving tractor that they're putting into production this fall and I have to say I like the fact that they were very clear about the fact that they're not going from 0-60 in one fell swoop here. They've been methodically improving the technology over time, but coming this fall, self-driving tractors.
Sharma: I love it. This gives me more time to hang out on Zoom with you while my tractor is running in the field, Chris. Well, this is just the way they presented actually because it's essentially an app controlled self driving vehicle, autonomous vehicle. The farmer will get notifications via app if let's say an animal has come in front of the tractor. The story that I read on The Verge says that the AI layer can distinguish between flock of birds or maybe a larger animal, something that the farmer would have to pay attention to. Now this isn't a completely robotic experience. There is a team of outsourced contractors that act like a call center. If they see an obstacle in the course, then there's some human intervention to alert the farmer. But it does illustrate the principle that technology is pervasive everywhere and if we think that it's only focused in the highest flying companies like Tesla, innovation in this space is going around everywhere. I should say though, moving one big piece of heavy equipment linearly in a field is a lot different than trying to teach a car how to drive, let's say in New York City. Still I'm impressed though. Your thoughts.
Hill: I'll just close with this. For anyone listening who is thinking, "What do I care about this?" Well, if you are an investor who likes market-beating stocks, you might want to take a look at John Deere because over the last one, five, and 10 years, Deere is a stock that has solidly beaten the market. Before we move along, one thing you are watching this earnings season. It could be a company, it could be a group, an industry. What are you going to be watching this season?
Sharma: Chris, I think I'm going to be watching to groups of companies. One, our capital light high flier companies. As you and I were discussing the notes, and you suggested software-as-a-service company is a great group to follow. Because if they're still delivering the type of customer growth and net dollar retention so selling this to the same customers and incorporating churn, but selling more of their products, it will reaffirm my personal thesis that you have to stay focused five years ahead, buy those quality companies that you like now. Yes, so many of them are getting beat up, but that doesn't mean that you stop investing. You invest now, plant that seed for what will mature and ripen five years down the road. That's one group that I am looking forward to.
The other is like a whole suite of companies that are the complete opposite, the capital heavy companies, the companies with the lower gross margins, those that are bellwethers for the U.S. economy. We talk about these companies like UniFirst, the big retailers like Home Depot. I'm going to be taking a pulse on various sectors of the economy just by how these companies are doing. Because, again, if they are able to have fairly strong results, it means that they are exercising their purchasing power, whether it's a manufacturing firm or a big box retailer of do-it-yourself equipment. In that scenario then, inflation is not so scary to me because I understand that the economy itself is rebounding from a really stagnant and difficult period in 2020. We're just now starting to see that acceleration. You have to expect inflation when an economy picks up steam. There is a certain scenario in which, look, it's not all that bad. I know this a scary time for many investors, but funnily enough, it's the big industrial companies, the big retailers that will tell us that it's OK to be comfortable with investing in them and the other side, those capital-light high-flying growth companies.
Hill: Asit Sharma, great talking to you. Thanks for being here.
Sharma: Always fun to be here. Thanks so much, Chris.
Hill: Over the past 20 years, a number of trends have benefited individual investors. Maybe at the top of that list is the fact that with many brokerages, the cost of executing a trade is zero dollars. Why should trading costs matter in a world where trading stocks is free? For more, here's Ricky Mulvey.
Ricky Mulvey: I'm Ricky Mulvey and this is the Long View where we look at historical events and trends to see how that history affects us today as investors. Joining me now is Maria Gallagher. We're talking about trading costs. Maria, I guess what is the point of talking about trading costs when for most of us stock trading is something that is completely free?
Maria Gallagher: I think it's important to understand well the history of what led us to zero trading costs. As we know, not everything is free, nothing is really free. So understanding really what those commissions end up looking like on the other side. I think zooming out and seeing it all together is really important for us as investors.
Mulvey: This is something that has always existed, these costs, whether they are apparent or they are inherent. Back in London when people would have to buy and sell these paper shares, it's hard to believe, in these coffee shops and sometimes that was free. It was frictionless because you would find a seller for your share of stock or you would go to a coffee house and you'd find a broker who is willing to take it. That created something we know now is the spread.
Gallagher: There's this thing called the spread and you can make money in two ways. You can make money for commission, you can make money with the spreads. Cutting the spread was not really a slow-moving process. Spreads on the Dow Jones stocks were around 0.6% for sustained periods around 1910 and the 1920s. They were at similar levels in the 1950s and the 1980s. They were at this level for quite a long time and we've been having this conversation for a while now. For most of the 20th century, trading costs actually rose.
Mulvey: That was because, at the time, the New York Stock Exchange really acted as what some would call a quasi cartel. They had these very specific rates that the brokers had to set for trading costs and they were not happy to let that go.
Gallagher: The cost was typically a percentage of the value of the shares traded. When we were talking about reforms, the New Deal reformers didn't really want to touch those minimum commissions. They were scared that the removal would spark dangerous speculation in the stock market. We all talked about fear a lot and that was really pervasive in the way the New York Stock Exchange cartel acted. In contrast to spreads average proportional commissions on the New York Stock Exchange, stocks climbed steadily to high of almost 1%. So you had high commissions and pretty standard spreads trading as well for the New York Stock Exchange.
Mulvey: The New York Stock Exchange was able to really enforce this. Because if you wanted to trade either as a broker or principal at the New York Stock Exchange, you could only trade there, you couldn't go to these outside markets. They really had a firm grip on these trading costs. But then something happened in the mid-20th century, which is that institutional investors started making up more and more of these trades. It wasn't just something like a wealthy trader was coming in and finding a broker and these institutional investors wanted a little bit of a deal if they were going to pay for their stock trades.
Gallagher: What we saw is in the 1960s, the Justice Department and Antitrust Division, they knew what was happening. They tried to urge the New York Stock Exchange to abandon its attachment to these fixed commissions. We had someone named Robert Hack, he was the New York Stock Exchange president, their price fixing ended in 1975 on May Day after he spent many years trying to really hammer home that this was a dangerous practice. We have him to thank for really starting to push toward the end of this cartel.
Mulvey: At first, he was against it because what they had started to notice is these institutional investors would come in, they would pay the fee, but then they would camouflage how these fees would get redirected, "Hey, my buddy did some equity research for this. Let's send some of that money his way." Upwards of 70% of these fixed fees were getting redirected. It created this whole mess that they realized they needed to break something. In 1975, as you said Maria, there was May Day and the first winners of this weren't the small investors. Again, the winners tended to be these institutional investors and brokerage fees for them declined as much as 50% in the days of deregulation. Wealthy investors saw some benefits as well, but it took a long time for the small investors to start to see the benefits of the deregulation.
Gallagher: Small investors initially actually saw their rates going up. This was mainly because the big brokerage houses had no interest in arguing over fees at that small of a trade.
Mulvey: But then slowly and slowly, you started seeing these discount brokerages come in which realized, "Hey, maybe we can make a little bit of money charging a little bit for a trade. Then the small investors are going to be able to be on our platform and we're not going to give them advice, we're just going to charge them for the trade." The most famous of course being E*Trade, they had those commercials with dancing chimpanzees and toddlers on mobile phones. This is something where, if you look at the 90s commercials on YouTube, it is insane that those things got put on television. They said, "Hey, Morgan Stanley. We know that those jacked up fees are an entitlement for you, so we're going to make a lot of fun of it."
Gallagher: We see that e-trade was launched in 1982. E*Trade charged about $40.95 commission for most New York Stock Exchange market orders in '98. Fidelity charge the same amount, but only if you had $100,000 or more in your account or traded more than 12 times a year. Some brokerages also charged more for investors to place limit order about five dollars. You saw those fees really changing in the '90s.
Mulvey: They start to come down, but it was still expensive. There's the famous, in the economics and the investing world, there is a very famous paper, it's called "Trading is Hazardous to your Wealth." They found that the more trades that small investors made, the worst that they tended to perform. They said that was because of essentially behavioral biases and also because of trading costs. They found that in the year 2000, the average round trip trade of about $1,000 cost 3% in commissions and 1% in the bid-ask spread. But, as you said Maria, there's more competition there. Eventually, this created a race to zero where trading became free because of the introduction of Robinhood in 2015. Now you have this whole generation of investors who came up expecting free trading for stocks.
Gallagher: Yeah. I'm one of those investors. I started with some $5 trades and then within a couple of years, we're at zero dollar trades and I love it. Robinhood currently has $81 billion in assets under custody, which is far less than places like E*Trade which has $600 billion, TD Ameritrade which has $1.3 trillion, Charles Schwab with $3.8 trillion. But trades move prices.
Mulvey: Yeah because that's what ultimately determines is who are the buyers and who are the sellers. The people on Robinhood tend to be a little bit more active, which is what those old suits at the New York Stock Exchange were worried about in the first place. Robinhood, of course, they offer free trading, but trading isn't free. How do they make money? It's through this thing called order flow, which is that when you place an order on a trading app like Robinhood, they may sell that information to market makers who come in and then give you the order of providing liquidity and then making money in the middle between buyer and seller in these very quick, computerized, automated processes.
Gallagher: Another way as well, stock trading is free at most of these major discount brokerages, it's now also a foot in the door for other services. You have them saying, "We saw you opened your new IRA, do you want some life insurance? Would you like a loan so you can buy even more stocks that you see?" These ancillary services as well are part of these platforms.
Mulvey: You become a marketing lead. How delightful. This trading is free and it's still expensive. Now the real cost for a lot of investors is essentially act as an investor, not a trader. There's been some research done, particularly on Robinhood, about these events called herding events, which is where a bunch of traders, investors, pile onto a rapidly gaining or losing stock. On Robinhood, they have this list called the top movers. This is where a lot of traders, investors act like traders, and end up losing money because the price shoots up originally. Then there's this sugar high that cools off, and then the stock goes down. People aren't going to investments or companies because they think it's a great stock, they're going because they're seeing it on this top movers list.
Gallagher: Usually, it's counted as days when the number of Robinhood users who owned a stock grows by a 1,000 users, and 50% from the previous day. These stocks posted abnormally large gains on the day of herding, averaging 14% for regular herding event and 42% for an extreme herding event. The next day, however, returns turned significantly negative and we're still down 5%, 9% respectively after 20 days. You're seeing a lot of this behavioral bias when it comes into herding events.
Mulvey: There's other biases that you'd have to contend with when trading is free. You can pick pretty much what ever you want. One of the ones I really see myself having to deal with and avoid is loss of version.
Gallagher: Yes. Loss aversion's are really big when I feel it as well. Behavioral economist, Daniel Kahneman, would say loss looms larger than gains. What that means is really that the intensity of losing $10 is greater than the intensity of winning $10 on an absolute basis. You really tend to focus on your losses and really discount your gains in a really meaningful way which can be very dangerous for investors.
Mulvey: What we're finding now is that transaction fees are back for trading, but it's not necessarily for stocks now, it's for cryptocurrencies. For example, if you sell $100 of Ethereum on Coinbase, well, that may subject you to about a 3% transaction fee. They also have these taker and maker fees and that's even if you're on the Coinbase pro accounts. You're seeing expensive trading again, it's not with stocks though, it's with these cryptocurrencies.
Gallagher: Yeah. You have other platforms that offer lower fees or you can pay for premium subscriptions that lower fees. Different coins have different gas fees, which is something that as a transaction fees that coin traders pay miners. As we see with this new area, when you look at the history of trading, you're going to have that beginning of trading costs again in this new asset class, in this new area.
Mulvey: That's tough for me, I think as an investor because that's supposed to be the promise of a lot of these cryptocurrencies in the blockchain which is, "Hey, we are going to deregulate it and break out a lot of those fees." Well, we're still in the early innings, so you're seeing a lot of those fees there. I think the point of all of this though is that while trading for a lot of these more common stocks is free, it's maybe something you shouldn't treat like it is free. That's the Long View. Joining me is Maria Gallagher. This segment is produced by Dan Boyd.
Hill: That's all for today. But coming up tomorrow, Alison Southwick and Robert Brokamp will be here with a few tips on increasing your net worth in the next five years. As always, people on the program may have interest in the stocks they talk about. The Motley Fool may have formal recommendations for or against. Don't buy yourselves stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. TD Ameritrade is an advertising partner of The Ascent, a Motley Fool company. Asit Sharma has no position in any of the stocks mentioned. Chris Hill owns Alphabet (A shares), Home Depot, and Zynga. Maria Gallagher has no position in any of the stocks mentioned. The Motley Fool owns and recommends Alphabet (A shares), Coinbase Global, Inc., Ethereum, Home Depot, Lululemon Athletica, Take-Two Interactive, Tesla, Zoom Video Communications, and Zynga. The Motley Fool recommends Alphabet (C shares) and Charles Schwab and recommends the following options: long January 2023 $115 calls on Take-Two Interactive. 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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I think it's a good deal for Take-Two Interactive because as its leader in the PC and console gaming space, they really haven't been able to crack that mobile market to the degree you might have expected them to. We had someone named Robert Hack, he was the New York Stock Exchange president, their price fixing ended in 1975 on May Day after he spent many years trying to really hammer home that this was a dangerous practice. The Motley Fool owns and recommends Alphabet (A shares), Coinbase Global, Inc., Ethereum, Home Depot, Lululemon Athletica, Take-Two Interactive, Tesla, Zoom Video Communications, and Zynga.
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Later in the show, Ricky Mulvey talks with Maria Gallagher about how trading costs can still affect investors in a world where the cost of executing a trade is $0. The Motley Fool owns and recommends Alphabet (A shares), Coinbase Global, Inc., Ethereum, Home Depot, Lululemon Athletica, Take-Two Interactive, Tesla, Zoom Video Communications, and Zynga. Asit Sharma analyzes those stories, the latest innovation from Deere & Co.(NYSE: DE), and why he's focusing on both capital-light and capital-heavy businesses this upcoming earnings season.
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Later in the show, Ricky Mulvey talks with Maria Gallagher about how trading costs can still affect investors in a world where the cost of executing a trade is $0. It wasn't just something like a wealthy trader was coming in and finding a broker and these institutional investors wanted a little bit of a deal if they were going to pay for their stock trades. Asit Sharma analyzes those stories, the latest innovation from Deere & Co.(NYSE: DE), and why he's focusing on both capital-light and capital-heavy businesses this upcoming earnings season.
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But we're going to start with the deal of the day. Asit Sharma analyzes those stories, the latest innovation from Deere & Co.(NYSE: DE), and why he's focusing on both capital-light and capital-heavy businesses this upcoming earnings season. Later in the show, Ricky Mulvey talks with Maria Gallagher about how trading costs can still affect investors in a world where the cost of executing a trade is $0.
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2022-01-25 00:00:00 UTC
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See Which Of The Latest 13F Filers Holds Deere & Co.
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https://www.nasdaq.com/articles/see-which-of-the-latest-13f-filers-holds-deere-co.
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At Holdings Channel, we have reviewed the latest batch of the 21 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 14 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in DE positions, for this latest batch of 13F filers:
FUND NEW POSITION? CHANGE IN SHARE COUNT CHANGE IN MARKET VALUE ($ IN 1000'S)
Allen Capital Group LLC Existing +37,410 +$12,838
First Command Bank Existing UNCH $UNCH
First Command Financial Services Inc. Existing UNCH +$4
Cornerstone Wealth Group LLC Existing +8 +$9
OLD National Bancorp IN Existing -181 -$20
Farmers & Merchants Trust Co of Chambersburg PA Existing UNCH +$2
Genesee Capital Advisors LLC Existing -11 +$2
First National Bank Sioux Falls Existing +13 +$10
Foster & Motley Inc. Existing +1,416 +$507
Hancock Whitney Corp Existing -79 +$76
Garrison Asset Management LLC Existing -182 +$27
Convergence Investment Partners LLC Existing -543 -$177
Allred Capital Management LLC NEW +586 +$200
Sepio Capital LP Existing -5,828 -$1,729
Aggregate Change: +32,609 +$11,749
In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2021 to 12/31/2021, with 6 having decreased their positions and 1 new position.
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 12/31/2021 reporting period (out of the 1,010 we looked at in total). We then compared that number to the sum total of DE shares those same funds held back at the 09/30/2021 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 271,791 shares in the aggregate, from 5,242,818 up to 5,514,609 for a share count increase of approximately 5.18%. The overall top three funds holding DE on 12/31/2021 were:
» FUND SHARES OF DE HELD
1. Baillie Gifford & Co. 1,111,190
2. Sarasin & Partners LLP 906,577
3. New York State Teachers Retirement System 329,050
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 21 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 14 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 21 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 14 of these funds. Existing +1,416 +$507 Hancock Whitney Corp Existing -79 +$76 Garrison Asset Management LLC Existing -182 +$27 Convergence Investment Partners LLC Existing -543 -$177 Allred Capital Management LLC NEW +586 +$200 Sepio Capital LP Existing -5,828 -$1,729 Aggregate Change: +32,609 +$11,749 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2021 to 12/31/2021, with 6 having decreased their positions and 1 new position. 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 +1,416 +$507 Hancock Whitney Corp Existing -79 +$76 Garrison Asset Management LLC Existing -182 +$27 Convergence Investment Partners LLC Existing -543 -$177 Allred Capital Management LLC NEW +586 +$200 Sepio Capital LP Existing -5,828 -$1,729 Aggregate Change: +32,609 +$11,749 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2021 to 12/31/2021, with 6 having decreased their positions and 1 new position. We then compared that number to the sum total of DE shares those same funds held back at the 09/30/2021 period, to see how the aggregate share count held by hedge funds has moved for DE. New York State Teachers Retirement System 329,050 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.
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Existing +1,416 +$507 Hancock Whitney Corp Existing -79 +$76 Garrison Asset Management LLC Existing -182 +$27 Convergence Investment Partners LLC Existing -543 -$177 Allred Capital Management LLC NEW +586 +$200 Sepio Capital LP Existing -5,828 -$1,729 Aggregate Change: +32,609 +$11,749 In terms of shares owned, we count 4 of the above funds having increased existing DE positions from 09/30/2021 to 12/31/2021, with 6 having decreased their positions and 1 new position. New York State Teachers Retirement System 329,050 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 21 most recent 13F filings for the 12/31/2021 reporting period, and noticed that Deere & Co. (Symbol: DE) was held by 14 of these funds.
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9301a97e-8daf-4050-8fd0-5439552e3948
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721324.0
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2022-01-24 00:00:00 UTC
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-sinks-as-market-gains%3A-what-you-should-know-1
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nan
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nan
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Deere (DE) closed the most recent trading day at $364.03, moving -0.07% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 4.31% over the past month. This has outpaced the Industrial Products sector's loss of 3.12% and the S&P 500's loss of 5.39% in that time.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.24 per share. This would mark a year-over-year decline of 42.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 0.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.18 per share and revenue of $46.97 billion. These totals would mark changes of +16.8% and +18.21%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Deere is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 16.42. For comparison, its industry has an average Forward P/E of 15.68, which means Deere is trading at a premium to the group.
Also, we should mention that DE has a PEG ratio of 1.47. 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. DE's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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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 $364.03, moving -0.07% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed the most recent trading day at $364.03, moving -0.07% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.
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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 the most recent trading day at $364.03, moving -0.07% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.
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Deere & Company (DE): Free Stock Analysis Report Deere (DE) closed the most recent trading day at $364.03, moving -0.07% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.
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f5ceaf3a-2659-4fdb-bfdd-fa8667820ec4
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721325.0
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2022-01-24 00:00:00 UTC
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Could Industrial Autonomous Vehicles Outpace Autonomous Cars By 2025?
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DE
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https://www.nasdaq.com/articles/could-industrial-autonomous-vehicles-outpace-autonomous-cars-by-2025
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nan
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nan
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With all the hype surrounding self-driving cars, some investors may be overlooking another sector that could be revolutionized by autonomous technology.
In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss a recent article by The Verge about Deere & Company's (NYSE: DE) soon-to-be-released autonomous tractor and whether industrial autonomous vehicle usage could outpace that of self-driving cars by the middle or end of the decade.
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 January 10, 2022
Rachel Warren: Apparently, "agricultural equipment maker, John Deere, has announced its latest piece of autonomous farming kit, a package of hardware and software that combines machine-learning with the company's GPS-powered auto-steer features to create a fully autonomous tractor."
According to the article, "farmers will not only be able to take their hands off the wheel of their tractor or leave the cab, they'll be able to leave the field altogether and let the equipment do the work without them while they monitor things remotely." Real quick, guys, what do you --
Jason Hall: I officially want to be a farmer.
Warren: I know, right? [laughs] It's so cool, [laughs] An autonomous tractor. What do you guys think about this? Do you think there will be more autonomous cars or autonomous industrial/agricultural vehicles out by the year 2025? Trevor.
Trevor Jennewine: I tried to do some math to take a rough stab at this. I'm narrowing it down to Tesla (NASDAQ: TSLA) and John Deere. But Tesla said they can grow their deliveries at 50% or more per year. They just delivered 936,000 cars in 2021.
So if you multiply that out by 50% per year, that's 4.7 million units by 2025. John Deere has grown their unit sales by about 5% or 6% over the last few years. So they could be producing 400,000 tractors by 2025.
Elon Musk has said, he said back in September 2020, that he thinks Tesla will have a fully autonomous self-driving car, priced at $25,000 within three years. He said that back in September 2020. So maybe Tesla doesn't hit its mark.
But I'm going to take the autonomous car's side here. Tesla makes a lot more cars than John Deere makes tractors and if just 10% of their sales in 2025 were fully autonomous, I think that would beat John Deere by itself, even if all of their tractors were autonomous.
If you extend the timeline out to 2030, I'm more confident in my answer, but 2025 might be a little soon for self-driving cars.
Warren: True. Jamie, thoughts?
Jamie Louko: I'm definitely in agreement on the 2030 piece. But what really holds me up about the 2025 timeline is regulation, especially in the United States where there's so much concern and regulation over full self-driving.
While Elon Musk wants to get this out by 2023, at September 2023, I really don't think he's going to be able to. I think it'll be 2024, 2025 before regulation, if it comes at all, will allow Tesla and other companies to enable full self-driving.
Whereas clearly, as Deere put out yesterday, that's not the case in agriculture. When it comes to the risk on a street in New York City or a risk on a thousand-acre farm, there's clearly so much more risk in the middle of New York City than there is on a farm.
So when it comes down to regulation, there's definitely less concern and less risk on a huge farm than there is on roads going 50, 60, 70 miles an hour and because of that solely, I'm going to go with Deere.
One really cool thing that I wanted to point out that I read last night from a piece about this Deere tractor. The tractor allows for up to 20% more efficiency in its fields.
I think that is absolutely insane. Just thinking about all the extra crops that we could get from 20% more efficiency is just absolutely astounding.
Hall: It's a reminder that 90% of people assume that they are an above-average driver. [laughs] Tractor or car, it doesn't matter, I'm not. [laughs] Love that, Jamie, absolutely love that.
I think to me it's the industrial equipment, the automation, is going to work in those environments because they're controlled and I don't think it's going to be close.
I will go so far as to say, I don't even think Tesla is going to have the most autonomous vehicles by 2025.
Warren: Fighting words. [laughs]
Hall: I know that's a bold statement. [laughs] I'm going to get some Twitter (NYSE: TWTR) flack for that, I'm sure. I'm not convinced that the approach that they've taken, backing off on the sensors and focusing more on AI is going to pay off.
I think that's a huge risk they've taken and I don't know that it's going to work for Tesla. I think by 2030 maybe.
But no, I think we're going to see a lot of industrial and farming equipment that's going to be autonomous for a far longer period.
I would go so far as to say that we might even see autonomous 18-wheelers and convoys where the lead is a human driving it and there's a convoy of AI trucks following that.
I would say that's part of the industrial mix just because I like to cheat and add that onto my winning total.
Warren: [laughs] I tend to agree. I think it might be more of that growth in the industrial area, but we will see.
Jamie Louko owns Tesla. Jason Hall has no position in any of the stocks mentioned. Rachel Warren has no position in any of the stocks mentioned. Trevor Jennewine owns Tesla. The Motley Fool owns and recommends Tesla and Twitter. 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 this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss a recent article by The Verge about Deere & Company's (NYSE: DE) soon-to-be-released autonomous tractor and whether industrial autonomous vehicle usage could outpace that of self-driving cars by the middle or end of the decade. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Rachel Warren: Apparently, "agricultural equipment maker, John Deere, has announced its latest piece of autonomous farming kit, a package of hardware and software that combines machine-learning with the company's GPS-powered auto-steer features to create a fully autonomous tractor." 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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In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss a recent article by The Verge about Deere & Company's (NYSE: DE) soon-to-be-released autonomous tractor and whether industrial autonomous vehicle usage could outpace that of self-driving cars by the middle or end of the decade. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Tesla makes a lot more cars than John Deere makes tractors and if just 10% of their sales in 2025 were fully autonomous, I think that would beat John Deere by itself, even if all of their tractors were autonomous.
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In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss a recent article by The Verge about Deere & Company's (NYSE: DE) soon-to-be-released autonomous tractor and whether industrial autonomous vehicle usage could outpace that of self-driving cars by the middle or end of the decade. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Rachel Warren: Apparently, "agricultural equipment maker, John Deere, has announced its latest piece of autonomous farming kit, a package of hardware and software that combines machine-learning with the company's GPS-powered auto-steer features to create a fully autonomous tractor." Tesla makes a lot more cars than John Deere makes tractors and if just 10% of their sales in 2025 were fully autonomous, I think that would beat John Deere by itself, even if all of their tractors were autonomous.
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See the 10 stocks *Stock Advisor returns as of January 10, 2022 Rachel Warren: Apparently, "agricultural equipment maker, John Deere, has announced its latest piece of autonomous farming kit, a package of hardware and software that combines machine-learning with the company's GPS-powered auto-steer features to create a fully autonomous tractor." In this segment of Backstage Pass, recorded on Jan. 5, Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss a recent article by The Verge about Deere & Company's (NYSE: DE) soon-to-be-released autonomous tractor and whether industrial autonomous vehicle usage could outpace that of self-driving cars by the middle or end of the decade. 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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c7a53041-9403-4ee8-965d-f65004a26318
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721326.0
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2022-01-21 00:00:00 UTC
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3 Cheap Stocks Thriving Despite America’s Inflation Issues
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DE
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https://www.nasdaq.com/articles/3-cheap-stocks-thriving-despite-americas-inflation-issues
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is excerpted from Tom Yeung’s Moonshot Investor newsletter. To make sure you don’t miss any of Tom’s potential 100x picks, subscribe to his mailing list here.
Inflation Hits American Pocketbooks
Source: SERSOLL / Shutterstock.com
Did you get a 7% raise last year?
If you didn’t, know this: your real earnings went down.
That’s the problem with inflation. It’s a quiet ghost that snuffs out the wages of the working and middle class. Cars… houses… groceries… everything suddenly becomes less affordable when consumer prices (CPI) are rising almost twice as fast as income.
Even the wealthy aren’t immune. High inflation in the 70s and 80s meant that the S&P 500 closed at the same inflation-adjusted level in 1990 as it did in 1969. Not all stocks, it turns out, are good inflation hedges.
Inflation Insurance
Ordinarily, I use inflationary signals to time deep-value Moonshot picks. Many of my metals and mining recommendations have gone anywhere from 2x to 10x in the past year thanks to mild inflation.
But 7% is different. Unless you’re an emerging-market economy, that’s a level of inflation you don’t want to see. Millions of Americans are now locked out of buying houses or having the number of kids they want. Prices are rising across the entire developed world.
There is, however, some good news. Many investments do survive inflation. Deere (NYSE:DE), Honeywell (NASDAQ:HON) and other industrial companies did well during the 1970s thanks to their ability to pass cost increases to customers. And inflation, as we know, can be transitory.
Today, we’ll take a look at my three favorite “inflation-proof” stocks and see how they’re beating back the scary specter of rising prices.
Source: Catalyst Labs / Shutterstock
The Three Companies Surviving Inflation
All inflation-resistant stocks have several common factors:
High current profits. Inflation makes future profits less valuable. Inflation-resistant companies tend to have high profits today.
Low debt. Rising interest rates (an inflation-taming tool) also make debts more expensive to service. Low-leverage firms tend to outperform high-leverage ones.
Pricing power. Inflation-resistant companies need a “special sauce” to pass on high prices to customers.
Cheap valuation. Deere was a good investment in the 1970s because its shares hovered in the 5-7x P/E range.
And there’s usually just one class of stock that meets all four criteria:
High-quality industrials.
These names — from Timken (NYSE:TKR) to Borg Warner (NYSE:BWA) and yes, Deere and Honeywell — are typically boring companies producing high-value, low-cost products. If you’re selling a critical auto component for $15, safety-minded car manufacturers will sooner accept a one-dollar price increase than try to cut corners.
7 Entertainment Stocks You’ll Want on Your Shortlist
These stocks also tend to move slower than molasses in a New England winter. If you have the DNA of a defensive company, there’s little motivation to pursue risky growth.
Occasionally however, some Moonshots do fulfill these four criteria. And it’s these potential high-returners I’ll focus on today.
Arianne Phospate (DRRSF)
On Monday, I introduced Joanna Makris’ top pick of 2022. This high-grade phosphate producer made the top of her list thanks to its potential use in electric vehicle batteries:
“The high quality of Arianne’s phosphate is important for another reason. It can theoretically be used for applications outside of fertilizer. One of the most exciting areas of growth for Arianne is the use of its phosphate in both electric vehicle batteries and hydrogen fuel cells.”
— Joanna Makris, InvestorPlace.com
But there’s also an inflation-beating aspect of Arianne Phosphate (OTCMKTS:DRRSF) to love:
Its fixed cost basis.
Arianne sits on around 590 tons of high-quality phosphate, giving it an advantage in an industry where high-polluters can spend millions on post-cleanup costs. In other words, no matter how high prices get, the cost of pulling phosphate out of the ground won’t change drastically for Arianne Phosphate (developed oil rigs and high-yield gold mines also boast these advantages).
That’s essential for companies looking to beat inflation. If prices of a commodity are going up, they need to make sure costs (i.e., manpower, mining, land leases) don’t rise as well. Companies achieving that balance will soon find their way to greater profits.
Camtek (CAMT)
Then there’s the second type of inflation-resistant company:
Firms that make essential products.
If you’re running a $5 billion chip foundry reliant on manufacturing perfection, there’s little incentive to try cutting corners. Saving $50,000 on a lower-quality inspection machine could cost you millions of dollars in defective semiconductors.
That’s the reason Camtek (NASDAQ:CAMT) makes my list of top inflation-resistant companies. The Israeli-based firm produces some of the highest-quality sensors to inspect wafers, chips and other micro-electronic devices. And because production values for Camtek’s customers are so high, they’re usually willing to pay CAMT a premium for its top-tier quality control devices.
The result: Camtek has developed incredible pricing power. The firm now generates $24 in net profit for every $100 of sales, making it not only stable but one of the highest-margin companies in the semiconductor industry.
There are certainly semiconductor firms with even higher margins. ASML Holdings (NASDAQ:ASML) — the top-tier maker of high-performance chip equipment — boasts margins a full 50% higher. But these top-tier companies also come with price tags to match. Investors looking for 2x… 5x… 10x gains need to go with companies at a slightly larger discount.
POSaBIT Systems (POSAF)
Finally, there are companies with a “special sauce” protecting them from inflation.
Which brings me to POSaBIT Systems (OTCMKTS:POSAF), a point-of-sale (POS) card company servicing the U.S. marijuana industry.
POSaBIT’s “special sauce” is straightforward: It’s one of the few financial firms marijuana dispensaries can actually use. Current federal regulations prohibit federally licensed banks from dealing in Schedule 1 drugs. So unless a dispensary works with POSaBIT, they’ll be forced to either 1) find a willing credit union or 2) conduct business entirely in cash.
The regulatory quagmire has benefitted POSaBIT immensely.
The POS firm has maintained its fee structure even as dispensaries push back against high prices elsewhere. Gross margins have remained in the upper-20% range, rather than falling with the rest of the marijuana industry.
Other “special sauce” companies are similarly thriving. Tech giants and bulge-bracket banks alike are reporting some of their greatest earnings ever. But finding one with Moonshot potential like POSaBIT is far more rare.
Beating Inflation with Winning Investments
You’ll notice none of these inflation-resistant companies I mentioned are unprofitable meme stocks.
That’s by design.
The last time the Federal Reserve raised rates faster than expected in 1999, it ultimately triggered the dot-com crash. Highly-valued startups with barely any revenue plummeted down to earth.
Today, I still believe some unprofitable companies have a way forward. Regular Moonshot readers will recognize names like GameStop (NYSE:GME), Armstrong Flooring (NYSE:AFI) and Volt Information Sciences (NYSEAMERICAN:VOLT) as companies with potential quality in the future.
But for those looking to also reduce inflation risk, it helps to make sure you’re buying quality today.
P.S. Do you want to hear more about cryptocurrencies? Penny stocks? Options? Leave me a note at moonshots@investorplace.com or connect with me on LinkedIn and let me know what you’d like to see.
FREE REPORT: 17 Reddit Penny Stocks to Buy Now
Thomas Yeung is an expert when it comes to finding fast-paced growth opportunities on Reddit. He recommended Dogecoin before it skyrocketed over 8,000%, Ripple before it flew up more than 480% and Cardano before it soared 460%. Now, in a new report, he’s naming 17 of his favorite Reddit penny stocks. Claim your FREE COPY here!
On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing.
The post 3 Cheap Stocks Thriving Despite America’s Inflation Issues 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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If you’re selling a critical auto component for $15, safety-minded car manufacturers will sooner accept a one-dollar price increase than try to cut corners. Cars… houses… groceries… everything suddenly becomes less affordable when consumer prices (CPI) are rising almost twice as fast as income. Inflation Insurance Ordinarily, I use inflationary signals to time deep-value Moonshot picks.
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This high-grade phosphate producer made the top of her list thanks to its potential use in electric vehicle batteries: “The high quality of Arianne’s phosphate is important for another reason. Cars… houses… groceries… everything suddenly becomes less affordable when consumer prices (CPI) are rising almost twice as fast as income. Inflation Insurance Ordinarily, I use inflationary signals to time deep-value Moonshot picks.
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Cars… houses… groceries… everything suddenly becomes less affordable when consumer prices (CPI) are rising almost twice as fast as income. Inflation Insurance Ordinarily, I use inflationary signals to time deep-value Moonshot picks. Prices are rising across the entire developed world.
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Cars… houses… groceries… everything suddenly becomes less affordable when consumer prices (CPI) are rising almost twice as fast as income. Inflation Insurance Ordinarily, I use inflationary signals to time deep-value Moonshot picks. Prices are rising across the entire developed world.
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f9bc8f85-531b-4cb6-b7b3-de1d8535beeb
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721327.0
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2022-01-21 00:00:00 UTC
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Strike at Kroger's King Soopers ends after deal with union
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DE
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https://www.nasdaq.com/articles/strike-at-krogers-king-soopers-ends-after-deal-with-union
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nan
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nan
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Adds details on strike, union statement
Jan 21(Reuters) - More than 8,000 workers at nearly 80 Kroger Co-owned KR.N King Soopers stores on Friday called off their strike after reaching a tentative deal with the U.S. retail giant, the United Food and Commercial Workers Local 7 union said.
The details of the contract would be made public in the coming days to the union members after a voting by workers beginning Monday, the union said in a statement. Kroger did not immediately respond to a request for comment.
The workers went on a strike on Jan. 12 after several failed negotiations. The union had rejected a $170 million offer made last week by Kroger, which termed it as the "last, best and final offer".
The offer proposed wage increases of up to $4.50 per hour depending on job classification and tenure, with the starting rate of pay increased to $16 per hour. The union, however, sought raises of at least $6 per hour for everyone.
Rising COVID-19 infections and inflation have pushed U.S. workers to demand better working conditions and higher pay, with employees at Deere & Co DE.N and Kellogg Co's K.N cereal plants recently securing better deals after weeks of strike.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur)
((Praveen.Paramasivam@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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Adds details on strike, union statement Jan 21(Reuters) - More than 8,000 workers at nearly 80 Kroger Co-owned KR.N King Soopers stores on Friday called off their strike after reaching a tentative deal with the U.S. retail giant, the United Food and Commercial Workers Local 7 union said. Rising COVID-19 infections and inflation have pushed U.S. workers to demand better working conditions and higher pay, with employees at Deere & Co DE.N and Kellogg Co's K.N cereal plants recently securing better deals after weeks of strike. The details of the contract would be made public in the coming days to the union members after a voting by workers beginning Monday, the union said in a statement.
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Adds details on strike, union statement Jan 21(Reuters) - More than 8,000 workers at nearly 80 Kroger Co-owned KR.N King Soopers stores on Friday called off their strike after reaching a tentative deal with the U.S. retail giant, the United Food and Commercial Workers Local 7 union said. The union had rejected a $170 million offer made last week by Kroger, which termed it as the "last, best and final offer". The offer proposed wage increases of up to $4.50 per hour depending on job classification and tenure, with the starting rate of pay increased to $16 per hour.
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Adds details on strike, union statement Jan 21(Reuters) - More than 8,000 workers at nearly 80 Kroger Co-owned KR.N King Soopers stores on Friday called off their strike after reaching a tentative deal with the U.S. retail giant, the United Food and Commercial Workers Local 7 union said. The details of the contract would be made public in the coming days to the union members after a voting by workers beginning Monday, the union said in a statement. The union had rejected a $170 million offer made last week by Kroger, which termed it as the "last, best and final offer".
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Adds details on strike, union statement Jan 21(Reuters) - More than 8,000 workers at nearly 80 Kroger Co-owned KR.N King Soopers stores on Friday called off their strike after reaching a tentative deal with the U.S. retail giant, the United Food and Commercial Workers Local 7 union said. The union had rejected a $170 million offer made last week by Kroger, which termed it as the "last, best and final offer". The details of the contract would be made public in the coming days to the union members after a voting by workers beginning Monday, the union said in a statement.
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2022-01-19 00:00:00 UTC
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3 Under-the-Radar Infrastructure Stocks to Buy in 2022 and Beyond
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https://www.nasdaq.com/articles/3-under-the-radar-infrastructure-stocks-to-buy-in-2022-and-beyond
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Do you want exposure to infrastructure spending while avoiding some of the more overpriced stocks within the sector? If so, then electrical products company nVent Electric (NYSE: NVT), engineering design software company Autodesk (NASDAQ: ADSK), and farming and construction equipment company John Deere (NYSE: DE) are worth a look.
These three stocks all have significant upside potential as we see the advent of a pickup in infrastructure spending that is expected to continue for several years.
Image source: Getty Images.
1. nVent Electric
The electrical products company nVent is a "pick-and-shovel" way to play the trend toward electrification in the economy, including spending in the infrastructure sector. nVent generates around half of its revenue from electrical enclosures (connection and protection of electronics, communication, power, and power equipment). An additional 28% comes from electrical and fastening systems (electrical and mechanical systems), and around a quarter comes from thermal management (heat tracing, wiring, control, and monitoring).
It's not a particularly exciting collection of products, but corporations and governments spend on electrification solutions; they will need nVent's connection and protection systems to meet regulatory requirements and avoid costly failures.
As such, management sees a growth opportunity in infrastructure spending (around 19% of current revenue), mainly from spending on 5G networks, data centers, and investment in power networks. Meanwhile, megatrends like electric vehicles, renewable energy, smart buildings, and infrastructure will provide underlying growth for years to come.
Trading on just 17 times Wall Street analyst estimates for free cash flow in 2022, nVent looks like an excellent value option for a company with good growth prospects in the coming years.
2. Autodesk
Autodesk stock had a disappointing 2021 with a near 8% decline through the year. The reason comes down to a combination of factors. First, the stock started the year on a very high valuation and had a lot of optimism built into it. In such situations, all it takes is a slight disappointment to earnings expectations in the year, and the stock will come under pressure.
Unfortunately, that's precisely what happened when management lowered its fiscal 2022 free cash flow (FCF) guidance. Moreover, in its third-quarter earnings report, management walked back its long-held 2023 guidance for $2.4 billion in FCF. The guidance has been a debating point for bulls and bears this year. In a nutshell, management warned of a risk of $100 million to $200 million to the guidance.
Data by YCharts
But here's the thing. Now that investor expectations have been tempered and the stock has corrected, it's time to get more excited about the engineering design software company. Autodesk's key end market is engineering and construction, which has upside potential from increased infrastructure spending.
Moreover, as CEO Andrew Anagnost noted on the last earnings call, "We don't have any infrastructure uplift built in any of our guidance or anything that we're talking about right now." He went on to say, "the emphasis on digital transformation inside the infrastructure industry is going to be an important catalyst to modernizing and expanding" infrastructure in the U.S.
Image source: Getty Images.
Even if Autodesk misses its 2023 FCF guidance by $200 million (note that Autodesk's fiscal year ends on Jan. 30), it will still generate $2.2 billion in FCF, putting it at 26 times FCF. That's a decent value for a growth stock with mid-teens growth prospects. Throw in some extra growth potential from infrastructure spending, and Autodesk's earnings and FCF growth could start to surprise on the upside in the future.
3. John Deere
John Deere is best known for its agriculture equipment, and rightly so. However, around 29% of its sales come from the construction and forestry segment. Thanks to the $5.2 billion acquisition of road construction equipment company Wirtgen, Deere is a major player in road infrastructure. Deere already offered excavators, loaders, and construction site machinery, and Wirtgen added mixing, paving, and compaction equipment.
Image source: Getty Images.
Deere's construction equipment gives it upside potential from increased infrastructure spending and supports the underlying strength of its agriculture equipment and precision agriculture solutions. It's a favorable mix, particularly as key crop prices like soybean, wheat, and corn remain at relatively elevated prices. Deere expects its North American large agriculture equipment sales to rise 15% in 2022, ably supported by 5%-10% growth in North American construction equipment.
It all adds up to a company on a good earnings trajectory with upside from infrastructure spending.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns and recommends Autodesk. 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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If so, then electrical products company nVent Electric (NYSE: NVT), engineering design software company Autodesk (NASDAQ: ADSK), and farming and construction equipment company John Deere (NYSE: DE) are worth a look. These three stocks all have significant upside potential as we see the advent of a pickup in infrastructure spending that is expected to continue for several years. Meanwhile, megatrends like electric vehicles, renewable energy, smart buildings, and infrastructure will provide underlying growth for years to come.
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If so, then electrical products company nVent Electric (NYSE: NVT), engineering design software company Autodesk (NASDAQ: ADSK), and farming and construction equipment company John Deere (NYSE: DE) are worth a look. Autodesk's key end market is engineering and construction, which has upside potential from increased infrastructure spending. Deere's construction equipment gives it upside potential from increased infrastructure spending and supports the underlying strength of its agriculture equipment and precision agriculture solutions.
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If so, then electrical products company nVent Electric (NYSE: NVT), engineering design software company Autodesk (NASDAQ: ADSK), and farming and construction equipment company John Deere (NYSE: DE) are worth a look. Throw in some extra growth potential from infrastructure spending, and Autodesk's earnings and FCF growth could start to surprise on the upside in the future. Deere's construction equipment gives it upside potential from increased infrastructure spending and supports the underlying strength of its agriculture equipment and precision agriculture solutions.
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Even if Autodesk misses its 2023 FCF guidance by $200 million (note that Autodesk's fiscal year ends on Jan. 30), it will still generate $2.2 billion in FCF, putting it at 26 times FCF. Throw in some extra growth potential from infrastructure spending, and Autodesk's earnings and FCF growth could start to surprise on the upside in the future. If so, then electrical products company nVent Electric (NYSE: NVT), engineering design software company Autodesk (NASDAQ: ADSK), and farming and construction equipment company John Deere (NYSE: DE) are worth a look.
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2022-01-18 00:00:00 UTC
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Top Industrial Stocks To Watch This Week
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https://www.nasdaq.com/articles/top-industrial-stocks-to-watch-this-week
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4 Industrial Stocks To Check Out This Week
With interest rate hikes on the horizon and the bearish moves among hyper-growth names, industrial stocks seem appealing in a volatile stock market. There’s also a lot to like about stocks in the industrial space given the prospects of the improving economy. That’s because many of these businesses tend to perform relatively well. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector. While many signs point toward a strong year for the industrial sector, investors still need to be highly selective when putting up a list of top industrial stocks to buy.
“If GDP continues to expand as we expect in 2022 (short-term setbacks notwithstanding) and interest rates inch higher. Value-oriented sectors such as financials, industrials, materials and energy might once again take the lead.”– Janus Henderson Investors strategists
Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending globally. It’s also important to note that industrial stocks encompass a broad category of companies. And if you expect the residential real estate market to continue to be in demand in the years to come, then an investment in Builders FirstSource (NYSE: BLDR) might be attractive. Its one-stop shop for all manufacturing, supply and installation needs places the company in a strong position within the sector. Amid these shifting sectoral winds, here are some of the prominent industrial stocks to check out in the stock market this week.
Top Industrial Stocks To Watch In January 2022
Boeing Company (NYSE: BA)
Deere & Company (NYSE: DE)
Planet Labs PBC (NYSE: PL)
Caterpillar Inc. (NYSE: CAT)
Boeing
Starting off our list is a top name in the aerospace industry, Boeing. In short, Boeing is a multinational corporation that designs, manufactures, and sells aerospace equipment. This ranges from airplanes, rotorcrafts, and rockets to satellites and telecommunication wares to name a few. Additionally, the company boasts more than 10,000 Boeing-built commercial airlines that are in service worldwide. This makes up for almost half of the world fleet. The company is America’s biggest manufacturing exporter and employs more than 140,000 people across the U.S and in more than 65 countries. Over the past month, BA stock has risen by over 17%.
Just last week, Bloomberg reported that the 737 MAX might be recertified to fly in China by the end of January. Before this, the MAX jet was grounded worldwide from March 2019 to November 2020 after two incidents of MAX jet crashes. However, since then, most countries have recertified the plane for commercial service except for China. In fact, China accounts for about 25% of global jet demand. Also, Chinese airline companies owned 22% of the MAX jets that were built before the grounding. Accordingly, jet orders destined for China represent roughly one-third of Boeing’s inventory of undelivered MAX planes. On that note, would you consider BA stock as it takes off?
Source: TD Ameritrade TOS
[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know
Deere & Company
Next up, we will be taking a look at Deere & Company, otherwise known as John Deere. For the most part, it is a manufacturing company. Namely, the company is in the business of making agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains among others. Since its COVID-era low, DE stock has risen astronomically by over 200%.
Two weeks ago at CES 2022, John Deere revealed a fully autonomous tractor that’s ready for large-scale production. The machine combines Deere’s 8R tractor, TruSet-enabled chisel plow, and other new advanced technologies. Because of this, John Deere is slowly building a reputation for being the ‘Tesla’ of farming. In detail, the autonomous tractor has an array of cameras, allowing 360-degree obstacle detection and distance calculation. This allows the tractor to determine if it should move or stop, depending on if an obstacle is detected. Besides that, farmers can monitor the machine’s status from their mobile devices while they focus on other tasks. With this breakthrough in agriculture tech, would DE stock be a top buy in your book?
Source: TD Ameritrade TOS
[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List
Planet Labs
Following that is Planet Labs. Formerly known as dMY Technology Group, the company is a provider of global, daily satellite imagery and geospatial solutions. In detail, their operations include designing, building, and operating satellites that capture and compile data from over three million images per day. Planet Labs’ automated, cloud-native platform processes and manages that data and extract information. By doing so, it is able to provide imagery, insights, and machine learning for clients to make better decisions. Over the past week, PL stock has increased by over 17%.
On January 13, Planet Labs launched its Flock 4x satellite fleet consisting of 44 SuperDove satellites into orbit. Accordingly, the satellites were launched on a Space X Falcon 9 rocket and joined Planet Labs’ existing fleet of 200 satellites in orbit. Notably, this launch will further improve the company’s ability to collect earth observation data and offer clients the most up-to-date image of their preferred area of interest. In other news, Goldman Sachs (NYSE: GS) analyst Noah Poponak gave PL stock a buy rating, aligning it with analyst consensus which comes from three buy ratings for the stock. The Goldman Sachs analyst also gave the stock a price target of $11 per share, a gain of over 70% from Friday’s closing price of $6.36. Given these developments, does PL stock deserve a spot on your watchlist?
Source: TD Ameritrade TOS
[Read More] Best Artificial Intelligence Stocks To Buy Right Now? 5 To Watch
Caterpillar
Summing up our list is Caterpillar. In brief, Caterpillar is primarily a construction machinery and equipment company. It designs, develops, and manufactures a wide variety of products for the construction industry. Aside from that, it offers customers construction-related financial products and insurance solutions as well. Put together with its global network of operations, it is no wonder that Caterpillar is the world’s largest construction equipment manufacturer. Over the past month, CAT stock has risen by over 13%.
In December, BNSF Railway, Chevron (NYSE: CVX), and Caterpillar announced that they will be collaborating on a locomotive pilot to “confirm the feasibility and performance of hydrogen fuel for use as a viable alternative to traditional fuels for line-haul rail.” Progress Rail, a Caterpillar company, will design and build a prototype hydrogen fuel cell-powered locomotive. Whilst Chevron will develop the fueling concept and infrastructure. On the other hand, BNSF will make available its line for prototype testing. Hence, this collaboration is an important step towards potentially developing a more sustainable, lower-carbon solution for line-haul services. With this in mind, is CAT stock one to watch right now?
Source: TD Ameritrade TOS
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!
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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Value-oriented sectors such as financials, industrials, materials and energy might once again take the lead.”– Janus Henderson Investors strategists Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending globally. Source: TD Ameritrade TOS If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector.
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Top Industrial Stocks To Watch In January 2022 Boeing Company (NYSE: BA) Deere & Company (NYSE: DE) Planet Labs PBC (NYSE: PL) Caterpillar Inc. (NYSE: CAT) Boeing Starting off our list is a top name in the aerospace industry, Boeing. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector. Value-oriented sectors such as financials, industrials, materials and energy might once again take the lead.”– Janus Henderson Investors strategists Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending globally.
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Top Industrial Stocks To Watch In January 2022 Boeing Company (NYSE: BA) Deere & Company (NYSE: DE) Planet Labs PBC (NYSE: PL) Caterpillar Inc. (NYSE: CAT) Boeing Starting off our list is a top name in the aerospace industry, Boeing. In December, BNSF Railway, Chevron (NYSE: CVX), and Caterpillar announced that they will be collaborating on a locomotive pilot to “confirm the feasibility and performance of hydrogen fuel for use as a viable alternative to traditional fuels for line-haul rail.” Progress Rail, a Caterpillar company, will design and build a prototype hydrogen fuel cell-powered locomotive. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector.
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Top Industrial Stocks To Watch In January 2022 Boeing Company (NYSE: BA) Deere & Company (NYSE: DE) Planet Labs PBC (NYSE: PL) Caterpillar Inc. (NYSE: CAT) Boeing Starting off our list is a top name in the aerospace industry, Boeing. It designs, develops, and manufactures a wide variety of products for the construction industry. Further supporting this is the Institute of Supply Management’s manufacturing Purchasing Manager Index which is projecting a 6.5% sales improvement in the industrial sector.
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2022-01-17 00:00:00 UTC
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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https://www.nasdaq.com/articles/deere-de-stock-sinks-as-market-gains%3A-what-you-should-know-0
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In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Coming into today, shares of the agricultural equipment manufacturer had gained 9.37% in the past month. In that same time, the Industrial Products sector gained 1.34%, while the S&P 500 gained 0.64%.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.24 per share. This would mark a year-over-year decline of 42.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 0.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.18 per share and revenue of $46.97 billion. These totals would mark changes of +16.8% and +18.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% 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 17.11. This valuation marks a premium compared to its industry's average Forward P/E of 16.3.
Investors should also note that DE has a PEG ratio of 1.53 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. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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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. In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
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In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%. Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022.
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In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous 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. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
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2022-01-17 00:00:00 UTC
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Earnings Growth & Price Strength Make Deere (DE) a Stock to Watch
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https://www.nasdaq.com/articles/earnings-growth-price-strength-make-deere-de-a-stock-to-watch
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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.
The Zacks Premium service makes this easier. It features 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 of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits 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.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
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.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get 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 81st-largest company in the S&P 500 Index with a market capitalization of around $116 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 199.93% to $379.56 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2022, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $22.18. DE boasts an average earnings surprise of 33.6%.
Additionally, DE's earnings are expected to grow 16.8% 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 >>
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries. Also included in Zacks Premium is the Focus List.
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All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries. Also included in Zacks Premium is the Focus List. The stocks included in the list are set to outperform the market over the next 12 months.
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All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries. Also included in Zacks Premium is the Focus List. The stocks included in the list are set to outperform the market over the next 12 months.
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All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries. Also included in Zacks Premium is the Focus List. The stocks included in the list are set to outperform the market over the next 12 months.
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2022-01-14 00:00:00 UTC
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3 Best Dividend Stocks for 2022
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https://www.nasdaq.com/articles/3-best-dividend-stocks-for-2022
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This week, the consumer price index (CPI), which is a gauge to measure the inflation rate of various goods, increased 7% year over year (YOY) in December. This is the largest CPI inflation rate since 1982, and the report has markets digesting the data. With inflation concerns, many investors are looking toward dividend stocks for 2022 performance. Jeremy Siegel, a professor of finance at Wharton, appeared on CNBC Jan. 12 and told viewers to buy dividend stocks and sell growth and tech stocks. Jerome Powell, Federal Reserve chair, is calling inflation a severe threat and says the central bank is making preparations to increase rates and reduce asset holdings.
So what are the best stocks to invest in for 2022? Should investors buy the dip on the best growth stocks for the next 10 years or focus on dividend stocks? I believe in a diversified portfolio holding both types of stocks. Today, I am bringing you three of my best dividend growth stocks for 2022 and beyond. I build my growth stock portfolio using buckets, which includes dividend stocks for diversification and compound interest. The focus of today's video is dividend growth stocks for the FIRED (financial independence retire early with dividends) strategy.
The first stock covered in the video is John Deere (NYSE: DE). Earlier this month, the John Deere autonomous tractor was announced at the Consumer Electronics Show. That's right, a fully autonomous tractor ready for large-scale production. In June 2021, I discussed how John Deere could be the Tesla (NASDAQ: TSLA) of farming. Although it's a hyperbolic statement, it seems that the possibility is slowly coming to fruition, and farmers will be able to purchase autonomous tractors later this year.
For more info, and to see the other two dividend stock picks, please watch the below video. Don't forget to subscribe and comment. Thanks for watching!
*Stock prices used in the below video were from the trading day of Jan. 13, 2022. The video was published on Jan. 13, 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 January 10, 2022
Eric Cuka owns Deere & Company and Tesla. The Motley Fool owns and recommends Tesla. 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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Jerome Powell, Federal Reserve chair, is calling inflation a severe threat and says the central bank is making preparations to increase rates and reduce asset holdings. Earlier this month, the John Deere autonomous tractor was announced at the Consumer Electronics Show. This week, the consumer price index (CPI), which is a gauge to measure the inflation rate of various goods, increased 7% year over year (YOY) in December.
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The focus of today's video is dividend growth stocks for the FIRED (financial independence retire early with dividends) strategy. Earlier this month, the John Deere autonomous tractor was announced at the Consumer Electronics Show. See the 10 stocks *Stock Advisor returns as of January 10, 2022 Eric Cuka owns Deere & Company and Tesla.
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Jeremy Siegel, a professor of finance at Wharton, appeared on CNBC Jan. 12 and told viewers to buy dividend stocks and sell growth and tech stocks. Should investors buy the dip on the best growth stocks for the next 10 years or focus on dividend stocks? See the 10 stocks *Stock Advisor returns as of January 10, 2022 Eric Cuka owns Deere & Company and Tesla.
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Should investors buy the dip on the best growth stocks for the next 10 years or focus on dividend stocks? For more info, and to see the other two dividend stock picks, please watch the below video. * 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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a28ada3c-33f1-4af6-9019-712555e22d01
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721333.0
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2022-01-13 00:00:00 UTC
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Notable ETF Outflow Detected - IUSG, REGN, MMC, DE
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DE
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-iusg-regn-mmc-de
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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 Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $224.5 million dollar outflow -- that's a 1.6% decrease week over week (from 121,950,000 to 119,950,000). Among the largest underlying components of IUSG, in trading today Regeneron Pharmaceuticals, Inc. (Symbol: REGN) is off about 1.2%, Marsh & McLennan Companies Inc. (Symbol: MMC) is down about 0.6%, and Deere & Co. (Symbol: DE) is up by about 1.4%. For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average:
Looking at the chart above, IUSG's low point in its 52 week range is $84.53 per share, with $117.49 as the 52 week high point — that compares with a last trade of $111.95. 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 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 IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $84.53 per share, with $117.49 as the 52 week high point — that compares with a last trade of $111.95. 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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For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $84.53 per share, with $117.49 as the 52 week high point — that compares with a last trade of $111.95. 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 Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $224.5 million dollar outflow -- that's a 1.6% decrease week over week (from 121,950,000 to 119,950,000).
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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 Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $224.5 million dollar outflow -- that's a 1.6% decrease week over week (from 121,950,000 to 119,950,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $84.53 per share, with $117.49 as the 52 week high point — that compares with a last trade of $111.95. 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 Core S&P U.S. Growth ETF (Symbol: IUSG) where we have detected an approximate $224.5 million dollar outflow -- that's a 1.6% decrease week over week (from 121,950,000 to 119,950,000). For a complete list of holdings, visit the IUSG Holdings page » The chart below shows the one year price performance of IUSG, versus its 200 day moving average: Looking at the chart above, IUSG's low point in its 52 week range is $84.53 per share, with $117.49 as the 52 week high point — that compares with a last trade of $111.95. 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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eb051b3c-1211-4657-80ee-1565eb0cc092
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721334.0
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2022-01-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Sanofi, International Business Machines Corp. and Deere & Company
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DE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-sanofi-international-business-machines-corp.-and-deere
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For Immediate Release
Chicago, IL – January 12, 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: Sanofi SNY, International Business Machines Corp. IBM and Deere & Company DE.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Sanofi, IBM and Deere
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 Sanofi, International Business Machines Corp. and Deere & Company. 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 Sanofi have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+9.4% vs. +22.2%), but things seem to be improving. The Zacks analyst believes that Dupixent has become the key top-line driver for Sanofi. With multiple approvals for new indications expected in the near future, its sales are expected to increase.
Several data read-outs are also expected in 2022. Sanofi has launched several new drugs in the past couple of years and is expanding its pipeline through M&A deals. Weak performance of the Diabetes unit, generic competition for many of its drugs, and COVID-19 woes remain as the major headwinds, though.
(You can read the full research report on Sanofi here >>>)
IBM shares have gained +2% over the past three months against the S&P 500’s gain of +7.3%. IBM’s last quarterly report reflected year-over-year decline in earnings and muted revenue growth. Stiff competition in cloud computing and higher debt are some of its major concerns.
The Zacks analyst, however, believes that steady demand for IBM’s hybrid cloud business is a major catalyst for growth. IBM is poised to gain from the spin-off of legacy infrastructure services business while it focuses on the hybrid cloud strategy. A healthy uptake of IBM’s blockchain, security and other digital transformation offerings bode well in the long term.
(You can read the full research report on IBM here >>>)
Shares of Deere have gained +7.8% in the last six months against the Zacks Farm Equipment industry’s gain of +5.9%. The Zacks analyst believes that demand in agricultural and construction sectors, expansion in precision agriculture, and its margin improvement plan will aid Deere's results.
The ongoing rally in commodity prices is likely to continue fueling demand for agricultural equipment. The need to upgrade old equipment and the demand that is created subsequently will also support Deere's revenues. DE is likely to benefit from growth in non-residential investment and strong order activity from independent rental companies.
(You can read the full research report on Deere here >>>)
Other noteworthy reports we are featuring today include Altria Group, Inc. (MO) and Snap Inc. (SNAP).
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
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.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.
See these 7 breakthrough 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
Sanofi (SNY): Free Stock Analysis Report
International Business Machines Corporation (IBM): 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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Stocks recently featured in the blog include: Sanofi SNY, International Business Machines Corp. IBM and Deere & Company DE. You can see all of today’s research reports here >>> Shares of Sanofi have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+9.4% vs. +22.2%), but things seem to be improving. 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: Sanofi SNY, International Business Machines Corp. IBM and Deere & Company DE. Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Sanofi, IBM and Deere 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 Sanofi, International Business Machines Corp. and Deere & Company.
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Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Sanofi, IBM and Deere 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 Sanofi, International Business Machines Corp. and Deere & Company. (You can read the full research report on IBM here >>>) Shares of Deere have gained +7.8% in the last six months against the Zacks Farm Equipment industry’s gain of +5.9%.
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The Zacks analyst, however, believes that steady demand for IBM’s hybrid cloud business is a major catalyst for growth. Stocks recently featured in the blog include: Sanofi SNY, International Business Machines Corp. IBM and Deere & Company DE. Here are highlights from Tuesday’s Analyst Blog: Top Research Reports for Sanofi, IBM and Deere The Zacks Research Daily presents the best research output of our analyst team.
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721335.0
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2022-01-12 00:00:00 UTC
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Workers at nearly 80 Kroger's King Soopers go on strike as talks stall
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DE
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https://www.nasdaq.com/articles/workers-at-nearly-80-krogers-king-soopers-go-on-strike-as-talks-stall-0
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By Siddharth Cavale and Praveen Paramasivam
Jan 12 (Reuters) - More than 8,000 workers at nearly 80 King Soopers stores went on strike for better wages and benefits on Wednesday after the latest round of negotiations between the Kroger Co-owned KR.N Colorado chain and the union failed.
The strike started at 7:00 a.m. ET and will go on for three weeks, UFCW Local 7 union said. The workers on strike are employed at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, among others.
Kroger said King Soopers would remain open as it has brought in workers from across the country and hired temporary staff to fill in for those striking.
This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation push workers to demand higher wages and better working conditions.
At King Soopers, workers have sought an increase in wages of at least $6 per hour for all. However, the company's "last, best and final offer" proposed raises of up to $4.50 per hour based on job classification and tenure.
The company's final offer, which was made on Tuesday, said it would invest $170 million in wages and bonuses over the next three years. It will offer a starting pay of $16 per hour and will invest more in healthcare benefits.
This came after the union rejected two previous wage offers, the latest among them for $148 million, made last week.
Kim Cordova, the president of UFCW Local 7, said Tuesday's offer was worse than the previous offers in many ways. She said the offer "still doesn't cut it" and retains many of the previously proposed concessions and adds new concessionary items.
Kroger does not disclose sales of King Soopers, which operates more than 110 stores in Colorado and is the No. 1 grocery chain in the state by market share.
Butinvestment researchfirm CFRA said the King Soopers/City Market stores in Colorado account for about 5% of Kroger's annual sales. Kroger recorded sales of $132.5 billion in the year to Jan. 30.
"Depending on how long the strike goes on, there could be long-term implications on market share, as Walmart and Albertsons are top competitors to Kroger in the Colorado area," CFRA Research analyst Arun Sundaram said.
Several customers turned to social media on Wednesday to voice their support for the union and also said they would boycott Kroger during the strike.
"I will not cross a picket line or spend a dollar at @Kroger until workers get respect and protection," Colorado State Senator Jessie Danielson, a Democrat, said in a tweet.
(Reporting by Siddharth Cavale and Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur and Aditya Soni)
((Praveen.Paramasivam@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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This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation push workers to demand higher wages and better working conditions. "Depending on how long the strike goes on, there could be long-term implications on market share, as Walmart and Albertsons are top competitors to Kroger in the Colorado area," CFRA Research analyst Arun Sundaram said. The workers on strike are employed at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, among others.
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The company's final offer, which was made on Tuesday, said it would invest $170 million in wages and bonuses over the next three years. This came after the union rejected two previous wage offers, the latest among them for $148 million, made last week. The workers on strike are employed at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, among others.
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The workers on strike are employed at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, among others. "Depending on how long the strike goes on, there could be long-term implications on market share, as Walmart and Albertsons are top competitors to Kroger in the Colorado area," CFRA Research analyst Arun Sundaram said. This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation push workers to demand higher wages and better working conditions.
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The workers on strike are employed at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, among others. This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation push workers to demand higher wages and better working conditions. The company's final offer, which was made on Tuesday, said it would invest $170 million in wages and bonuses over the next three years.
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b184b9cf-e577-44ac-9237-468608bd83d2
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721336.0
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2022-01-12 00:00:00 UTC
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Workers at nearly 80 Kroger's King Soopers go on strike as talks stall
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DE
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https://www.nasdaq.com/articles/workers-at-nearly-80-krogers-king-soopers-go-on-strike-as-talks-stall
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nan
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Jan 12 (Reuters) - More than 8,000 workers at nearly 80 King Soopers stores went on strike for better wages and benefits on Wednesday after the latest round of negotiations between the Kroger Co-owned KR.N Colorado chain and the union failed.
The strike started at 7:00 a.m. ET. The workers on strike work at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, UFCW Local 7 said.
This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation pushes workers to demand higher wages and better working conditions.
At King Soopers, workers have sought an increase in wages of at least $6 per hour for all. However, the company's "last, best and final offer" proposed raises of up to $4.50 per hour based on job classification and tenure, which was the same as its previous proposal.
The company's final offer, which was made on Tuesday, said it will invest $170 million in wages and bonuses in total over the next three years. It will offer a starting pay of $16 per hour and will invest more in healthcare benefits.
This comes after the union rejected two previous wage offers, the latest among them for $148 million, made last week.
Kim Cordova, president of UFCW Local 7, said Tuesday's offer was worse than its previous offers in many ways. L4N2TR3H3
She said the updated wage offer "still doesn't cut it" and retains many of its previously proposed concessions and adds new concessionary items.
Kroger said in a statement that a study commissioned by the company showed it pays hourly associates more than their peers in the U.S. retail industry.
Nam Pham, the managing partner of the firm that conducted the study, said any argument that Kroger does not pay fair wages and top market rate "is not supported by actual evidence."
King Soopers operates more than 110 stores in Colorado and is the No. 1 grocery chain by market share in the state. Kroger does not disclose King Soopers sales.
The UFCW Local 7 represents thousands of workers, including many who work for Kroger's rival Albertsons Cos Inc's ACI.N namesake as well as Safeway stores and other companies in food processing, agriculture, healthcare, manufacturing and medical cannabis.
"Union employees generally vote to strike as a last resort to signal that they are unwilling to work under what they consider to be unfair or unsafe working conditions," said Helen Rella, an employment attorney at Wilk Auslander.
(Reporting by Siddharth Cavale and Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur)
((Praveen.Paramasivam@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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This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation pushes workers to demand higher wages and better working conditions. The workers on strike work at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, UFCW Local 7 said. The company's final offer, which was made on Tuesday, said it will invest $170 million in wages and bonuses in total over the next three years.
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The workers on strike work at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, UFCW Local 7 said. The company's final offer, which was made on Tuesday, said it will invest $170 million in wages and bonuses in total over the next three years. This comes after the union rejected two previous wage offers, the latest among them for $148 million, made last week.
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The workers on strike work at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, UFCW Local 7 said. This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation pushes workers to demand higher wages and better working conditions. The company's final offer, which was made on Tuesday, said it will invest $170 million in wages and bonuses in total over the next three years.
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The workers on strike work at King Soopers stores in the Denver metropolitan area, Boulder, Parker and Broomfield cities of Colorado, UFCW Local 7 said. This is the latest in a string of labor strikes in the United States following similar events at Kellogg Co's K.N U.S. cereal plants and Deere & Co DE.N as rising cases of the Omicron variant of COVID-19 and inflation pushes workers to demand higher wages and better working conditions. The company's final offer, which was made on Tuesday, said it will invest $170 million in wages and bonuses in total over the next three years.
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8f0d84c3-0784-4212-b279-503d1e7703c6
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721337.0
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2022-01-12 00:00:00 UTC
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Is Now The Time To Put Deere (NYSE:DE) On Your Watchlist?
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DE
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https://www.nasdaq.com/articles/is-now-the-time-to-put-deere-nyse%3Ade-on-your-watchlist
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Deere (NYSE:DE). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Deere's Earnings Per Share Are Growing.
The market is a voting machine in the short term, but a weighing machine in the long term, so share price follows earnings per share (EPS) eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Who among us would not applaud Deere's stratospheric annual EPS growth of 37%, compound, over the last three years? That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Not all of Deere's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. The good news is that Deere is growing revenues, and EBIT margins improved by 5.6 percentage points to 18%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
NYSE:DE Earnings and Revenue History January 12th 2022
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for Deere?
Are Deere Insiders Aligned With All Shareholders?
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
Like a sturdy phalanx Deere insiders have stood united by refusing to sell shares over the last year. But my excitement comes from the US$99k that Independent Director Tamara Erwin spent buying shares (at an average price of about US$360).
On top of the insider buying, it's good to see that Deere insiders have a valuable investment in the business. Indeed, they have a glittering mountain of wealth invested in it, currently valued at US$139m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
Should You Add Deere To Your Watchlist?
Deere's earnings per share growth have been levitating higher, like a mountain goat scaling the Alps. The cherry on top is that insiders own a bunch of shares, and one has been buying more. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Deere deserves timely attention. Still, you should learn about the 1 warning sign we've spotted with Deere .
The good news is that Deere is not the only growth stock with insider buying. Here's a list of them... with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:DE Earnings and Revenue History January 12th 2022 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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The good news is that Deere is growing revenues, and EBIT margins improved by 5.6 percentage points to 18%, over the last year. On top of the insider buying, it's good to see that Deere insiders have a valuable investment in the business. For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit.
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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. On top of the insider buying, it's good to see that Deere insiders have a valuable investment in the business. The good news is that Deere is not the only growth stock with insider buying.
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On top of the insider buying, it's good to see that Deere insiders have a valuable investment in the business. The good news is that Deere is not the only growth stock with insider buying. For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit.
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74d473c0-e702-4e05-9148-e3f9f5cffbe2
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721338.0
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2022-01-11 00:00:00 UTC
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Should You Buy Caterpillar Stock Over This Industrial Company?
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DE
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https://www.nasdaq.com/articles/should-you-buy-caterpillar-stock-over-this-industrial-company
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nan
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nan
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We think that Caterpillar stock (NYSE: CAT) currently is a better pick compared to its industry peer Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Caterpillar being the more expensive of the two with its stock trading at 2.3x trailing revenues, compared to just 0.8x for Terex.
Even if we were to look at the P/EBIT ratio, CAT stock appears to be more expensively priced with 18x P/EBIT ratio, compared to 12x for TEX stock. This gap in valuation is justified given Caterpillar’s better revenue growth and higher profitability, and this trend is likely to continue going forward as well, as we discuss in the sections below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Caterpillar vs Terex: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Caterpillar’s Revenue Growth Is Stronger
Caterpillar’s sales have jumped from $38.5 billion in 2016 to $48.4 billion over the last twelve months, while Terex’s revenues have declined from $4.4 billion to $3.7 billion over the same period, due to the impact of Covid-19 on demand for Terex’s aerial work platforms (elevating work platforms).
However, Terex’s revenue growth of 16% over the last twelve month period was higher than 11% growth for Caterpillar, given a rebound in materials processing equipment demand.
Looking at a slightly longer time frame, both the companies have seen a decline in sales. That said, Caterpillar’s last three-year revenue CAGR of -1.2% is better than -4.6% CAGR for Terex.
Looking forward, with economies now opening up, the demand for construction equipment is likely to remain high in the near term, boding well for revenue growth of both the companies. Our Caterpillar Revenues dashboard provides more insight on the company’s revenues.
Caterpillar’s revenue is expected to continue to grow at a faster pace compared to Terex. The table below summarizes our revenue expectation for CAT and TEX over the next three years, and points to a CAGR of 15% for Caterpillar, compared to a CAGR of 6% for Terex.
2. Caterpillar Is Also More Profitable But It Is Comparatively A Riskier Bet
Caterpillar’s operating margin of 13% over the last twelve month period is better than 7% for Terex.
However, if we were to look at the recent margin growth, Terex stands slightly ahead, with last twelve month vs last three year margin change at 0.8%, compared to -0.2% for Caterpillar. That said, looking at past few years, Caterpillar has seen better operating margins compared to Terex. Our Caterpillar (CAT) Operating Income Comparison and Terex (TEX) Operating Income Comparison dashboards provide more details on the companies’ operating income and margins.
Looking at financial risk, Terex is more attractive with lower risk compared to Caterpillar. Its <1% debt as a percentage of equity is lower than 3% for Caterpillar, while its 18% cash as a percentage of assets is higher than the 12% for Caterpillar, implying that TEX has a better debt and cash position, and CAT stock is a comparatively more risky bet.
3. The Net of It All
We see that the revenue growth has been stronger for Caterpillar and it is more profitable compared to Terex. That said, TEX is a less riskier bet among the two with better debt and cash position, along with its comparatively lower valuation.
Looking at future prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe CAT is the better choice of the two. The table below summarizes our revenue and return expectation for CAT and TEX over the next three years, and points to an expected return of 30% for CAT over this period vs. -1% for TEX, implying that investors are better off buying CAT over TEX, in our view. Our dashboard Caterpillar vs Terex has more details on how we arrive at these numbers.
Note that Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in many geographies, including the U.S. and Europe, are higher than what they were a few months back. The concerns around Omicron have spooked the markets at large. If there is another large spike in Covid-19 cases from the new variant, resulting in any disruption in economic growth, it is likely to impact sales growth of several companies, including Caterpillar and Terex.
While CAT stock may see higher levels, 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 Allison Transmission vs. Autonation.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
CAT Return 6% 6% 137%
TEX Return 2% 2% 43%
S&P 500 Return -1% -1% 110%
Trefis MS Portfolio Return -5% -5% 273%
[1] Month-to-date and year-to-date as of 1/6/2022
[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 think that Caterpillar stock (NYSE: CAT) currently is a better pick compared to its industry peer Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Caterpillar being the more expensive of the two with its stock trading at 2.3x trailing revenues, compared to just 0.8x for Terex. Caterpillar’s Revenue Growth Is Stronger Caterpillar’s sales have jumped from $38.5 billion in 2016 to $48.4 billion over the last twelve months, while Terex’s revenues have declined from $4.4 billion to $3.7 billion over the same period, due to the impact of Covid-19 on demand for Terex’s aerial work platforms (elevating work platforms). However, Terex’s revenue growth of 16% over the last twelve month period was higher than 11% growth for Caterpillar, given a rebound in materials processing equipment demand.
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Caterpillar’s Revenue Growth Is Stronger Caterpillar’s sales have jumped from $38.5 billion in 2016 to $48.4 billion over the last twelve months, while Terex’s revenues have declined from $4.4 billion to $3.7 billion over the same period, due to the impact of Covid-19 on demand for Terex’s aerial work platforms (elevating work platforms). Our Caterpillar (CAT) Operating Income Comparison and Terex (TEX) Operating Income Comparison dashboards provide more details on the companies’ operating income and margins. We think that Caterpillar stock (NYSE: CAT) currently is a better pick compared to its industry peer Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Caterpillar being the more expensive of the two with its stock trading at 2.3x trailing revenues, compared to just 0.8x for Terex.
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We think that Caterpillar stock (NYSE: CAT) currently is a better pick compared to its industry peer Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Caterpillar being the more expensive of the two with its stock trading at 2.3x trailing revenues, compared to just 0.8x for Terex. Caterpillar’s Revenue Growth Is Stronger Caterpillar’s sales have jumped from $38.5 billion in 2016 to $48.4 billion over the last twelve months, while Terex’s revenues have declined from $4.4 billion to $3.7 billion over the same period, due to the impact of Covid-19 on demand for Terex’s aerial work platforms (elevating work platforms). However, Terex’s revenue growth of 16% over the last twelve month period was higher than 11% growth for Caterpillar, given a rebound in materials processing equipment demand.
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We think that Caterpillar stock (NYSE: CAT) currently is a better pick compared to its industry peer Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Caterpillar being the more expensive of the two with its stock trading at 2.3x trailing revenues, compared to just 0.8x for Terex. Caterpillar’s Revenue Growth Is Stronger Caterpillar’s sales have jumped from $38.5 billion in 2016 to $48.4 billion over the last twelve months, while Terex’s revenues have declined from $4.4 billion to $3.7 billion over the same period, due to the impact of Covid-19 on demand for Terex’s aerial work platforms (elevating work platforms). However, Terex’s revenue growth of 16% over the last twelve month period was higher than 11% growth for Caterpillar, given a rebound in materials processing equipment demand.
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677f821c-f333-4fec-ae9c-fd6ff26a6f35
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721339.0
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2022-01-10 00:00:00 UTC
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4 Sectors & Their Stocks the Devastating Kentucky Tornado Stirred Up
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DE
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https://www.nasdaq.com/articles/4-sectors-their-stocks-the-devastating-kentucky-tornado-stirred-up
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Thousands of Americans are still picking up the pieces after deadly tornados through six states last month. More specifically, the damage done from the tornado in Kentucky really stood out. In fact, the destruction of towns and thousands of homes in the deadly tornadoes is now one of the worst disasters to strike Kentucky. However, as cynical as it may seem, there are certain tornado stocks that will benefit from the disaster.
Overall, the local economy is paralyzed. Some sectors will likely suffer more than others. It is difficult for any one group or industry’s profitability in such circumstances due to complicated economic factors like supply-demand ratios, which constantly change according to the severity of the damage. However, certain sectors will benefit as people rebuild their lives.
7 Safe Stocks for Your Retirement
With that in mind, the list below is four of the sectors and stocks that could benefit from this disaster. It is by no means an exhaustive list, and an event as devastating as the Kentucky tornadoes impacts every aspect of our economic life. However, this list only highlights those areas that stand to benefit directly from this latest issue. And as residents rebuild their communities, they will play a key role in these industries and incumbent companies.
Agriculture, Food, and Related Industries
Automotive Industry
Home Furnishings Retail Industry
Critical Infrastructure Sectors
Now, let’s dive in and take a closer look at these sectors and the tornado stocks within them.
Sectors With Tornado Stocks: Agriculture, Food and Related Industries
Source: Shutterstock
Major crops grown in Kentucky include corn, soybeans and hay. Additionally, tobacco is also an important crop for farmers. The Midwest is a region of the United States that has seen increasing planted acres in recent years. The area harvests more than 75% percent in corn and soybeans. But there are other crops too. The harsh winter weather has certainly damaged the crops in this area. The agriculture industry provides various agricultural commodities, including grains and livestock. To begin with, they also produce fertilizers (like phosphorus), packaged foods like soybeans or cereal and machinery used in harvesting these crops.
Stocks in the agriculture sector have been on a roll during the last year, with VanEck Agribusiness ETF (NYSEARCA:MOO) reaching new heights versus the S&P 500. If you want to have a more focused investment, you can pour your capital into companies involved in a particular niche. For example, Corteva (NYSE:CTVA) and Canada-based Nutrien (NYSE:NTR) all have their own unique places within the agricultural industry.
Furthermore, two other companies are doing very well in the sector. ICL Group (NYSE:ICL) is a leading manufacturer of fertilizers and specialty agricultural chemicals to customers in Asia. Shares are up 56% in the last six months. But considering its solid fundamentals, expect more growth in the future.
Rounding up the agriculture stocks is Deere & Co. (NYSE:DE), a company that specializes in agricultural equipment for both farmers and ranchers alike. They provide the necessary parts to keep your machine running smoothly while also raking in millions for replacement supplies. It just upped its dividend by 17%, making this company one of the most generous in the industry. Among tornado stocks, Deere & Co. is a great income play as well.
Automotive Industry
The tornadoes that touched down left a wake of destruction in their path. The severe weather caused extensive damage to cars, homes and businesses across the Midwest — but it didn’t stop many people from going about living life as usual. The supply of tractors will have to increase for farmers to replace damaged equipment.
It’s no surprise that one of the companies doing well during this crisis is Tractor Supply (NASDAQ:TSCO). America’s largest rural lifestyle retailer has recently seen its shares hit a new all-time high, and there are several reasons for investors to be excited about how well they’re performing in the future — not least because it seems like nothing will stop them from firing on all cylinders.
Tractor Supply reported exceptional results in fiscal 2020, with revenue jumping by 27.2% and net income rising 33%. The company attributed this growth to more people paying attention to their homes during the pandemic and an increase in customers purchasing items for agriculture activities like tillage equipment or animal feeders.
7 High Risk Stocks That Are Worth The Volatile Vibes
Shifting gears a bit, the tornadoes will also lead to a large uptick for car companies with a large selection of trucks. There are several automobile manufacturers of the ilk, but Ford is the best if you want to invest in space. The Ford F-Series has been America’s best-selling truck for 40-consecutive years and now has 35-straight wins as Canada’s top vehicle choice. The history of Ford trucks is one filled with innovation. From their early days to today, they have worked tirelessly on improving capabilities for job site owners so that all may be completed efficiently and effectively — even when it comes down to hauling or pulling heavy loads.
Sectors With Tornado Stocks: Critical Infrastructure Sectors
If you are looking to invest in the recovery, consider buying stocks of companies that deal with infrastructure. These include building materials and construction-related products like cement or steel rods. After a devastating storm has passed through an area, residents will need them. The Materials Select Sector SPDR Fund XLB (NYSEARCA:XLB) offers great potential for growth following any natural disaster; it is one such fund worth considering.
After every natural calamity, rebuilding roads and related infrastructure is key. Hence, it makes sense to own Vulcan Materials (NYSE:VMC). It is the largest producer of construction aggregates, including crushed stone sand and gravel; they also produce a variety of asphalt cement. This means they produce most materials needed for paving projects or repairing existing surfaces in need.
The company has more than 360 aggregate facilities spread across the country, with 64 years in operation under its belt, marking them as a clear leader in the field.
Meanwhile, the most iconic construction and mining equipment maker, Caterpillar (NYSE:CAT), is a staple on Wall Street for decades. Their products are so essential that they’re impossible to think about in modern life without their influence. Caterpillar’s yellow trucks and machinery are everywhere, from roadways all over our cities with heavy traffic every day, or intricate machinery used by experts deep below ground level. They’re not just on construction sites, either. You can find them in nearly every major infrastructure project around the world. Considering its size and ubiquitousness, you cannot make a safer investment in tornado stocks.
Home Furnishings Retail Industry
The destruction caused by recent tornadoes in Kentucky will call for rebuilding structures. Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) are thus in a great position as these two retail stocks have already begun taking measures to help their customers recover from the tornado. The storm will act as a tailwind for the homebuilding sector, which is already doing well.
Lennar (NYSE:LEN) has been a staple of the American housing market for decades if you want to invest in housing directly. With more people needing homes, their business should benefit from strong pricing power — which means they are poised nicely right now with an opportunity at just the right moment.
Taking a macro-view, the real estate market experienced one of the hottest home-buying sprees in history last year. The housing market is currently experiencing a nationwide bottleneck. And you can blame it on the pandemic. The number of people who have left urban areas for suburban homes in droves over recent years means there are not enough houses available to meet demand from both buyers and renters — leading up many bottlenecks across different industries, including construction sites. However, in the midst of a crisis, lies great opportunity. You can purchase excellent homebuilding stocks at a steep discount because of these issues.
On the publication date, Faizan Farooque 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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. You can check out his analysis on InvestorPlace and TipRanks.
The post 4 Sectors & Their Stocks the Devastating Kentucky Tornado Stirred Up 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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America’s largest rural lifestyle retailer has recently seen its shares hit a new all-time high, and there are several reasons for investors to be excited about how well they’re performing in the future — not least because it seems like nothing will stop them from firing on all cylinders. The company attributed this growth to more people paying attention to their homes during the pandemic and an increase in customers purchasing items for agriculture activities like tillage equipment or animal feeders. The number of people who have left urban areas for suburban homes in droves over recent years means there are not enough houses available to meet demand from both buyers and renters — leading up many bottlenecks across different industries, including construction sites.
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Sectors With Tornado Stocks: Agriculture, Food and Related Industries Source: Shutterstock Major crops grown in Kentucky include corn, soybeans and hay. The Materials Select Sector SPDR Fund XLB (NYSEARCA:XLB) offers great potential for growth following any natural disaster; it is one such fund worth considering. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Thousands of Americans are still picking up the pieces after deadly tornados through six states last month.
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Sectors With Tornado Stocks: Agriculture, Food and Related Industries Source: Shutterstock Major crops grown in Kentucky include corn, soybeans and hay. Sectors With Tornado Stocks: Critical Infrastructure Sectors If you are looking to invest in the recovery, consider buying stocks of companies that deal with infrastructure. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Thousands of Americans are still picking up the pieces after deadly tornados through six states last month.
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Sectors With Tornado Stocks: Critical Infrastructure Sectors If you are looking to invest in the recovery, consider buying stocks of companies that deal with infrastructure. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Thousands of Americans are still picking up the pieces after deadly tornados through six states last month. In fact, the destruction of towns and thousands of homes in the deadly tornadoes is now one of the worst disasters to strike Kentucky.
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0f86469e-7648-4618-b039-683c51298b2f
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721340.0
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2022-01-06 00:00:00 UTC
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DE February 25th Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-february-25th-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 February 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new February 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $370.00 strike price has a current bid of $13.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $370.00, but will also collect the premium, putting the cost basis of the shares at $356.95 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $372.52/share today.
Because the $370.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.53% return on the cash commitment, or 25.75% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $375.00 strike price has a current bid of $13.90. If an investor was to purchase shares of DE stock at the current price level of $372.52/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $375.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.40% if the stock gets called away at the February 25th 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 $375.00 strike highlighted in red:
Considering the fact that the $375.00 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 3.73% boost of extra return to the investor, or 27.24% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $372.52) to be 30%. 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 $375.00 strike highlighted in red: Considering the fact that the $375.00 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 become available today, for the February 25th expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $375.00 strike highlighted in red: Considering the fact that the $375.00 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 become available today, for the February 25th expiration.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $370.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $375.00 strike price has a current bid of $13.90. Below is a chart showing DE's trailing twelve month trading history, with the $375.00 strike highlighted in red: Considering the fact that the $375.00 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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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new February 25th 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 $375.00 strike highlighted in red: Considering the fact that the $375.00 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 become available today, for the February 25th expiration.
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093c0a72-435e-4d0d-a52a-c16c011e5c99
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721341.0
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2022-01-05 00:00:00 UTC
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Deere Launches Fully Autonomous Tractor
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DE
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https://www.nasdaq.com/articles/deere-launches-fully-autonomous-tractor
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nan
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nan
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Agricultural machinery manufacturer Deere & Company (NYSE:DE) recently launched its fully autonomous tractor for large-scale production. The tractor will be made available to farmers later in the year.
Following the news, shares of the company declined marginally to close at $371.06 in Tuesday's extended trading session.
Strategic Impact
The launch of this autonomous tractor is aimed at making the production process of crops more efficient.
With six pairs of stereo cameras having a deep neural network and the ability to check its position relative to a geofence, farmers just need to configure the tractor for autonomous operation and can then monitor its operations from anywhere.
Analyst Ratings
Recently, D.A. Davidson analyst Michael Shlisky initiated coverage on the stock with a Buy rating and a price target of $400, which implies upside potential of 7.7% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys, 3 Holds and 1 Sell. The average Deere stock prediction of $423.29 implies that the stock has upside potential of 14% from current levels. Shares have gained about 35.4% over the past year.
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Related News:
Algonquin Closes Acquisition of New York American Water
Lockheed Martin Reveals its F-35 Program Growth in 2021
Ford Increases EV Vehicle Production amid Strong Demand
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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Agricultural machinery manufacturer Deere & Company (NYSE:DE) recently launched its fully autonomous tractor for large-scale production. Davidson analyst Michael Shlisky initiated coverage on the stock with a Buy rating and a price target of $400, which implies upside potential of 7.7% from current levels. Related News: Algonquin Closes Acquisition of New York American Water Lockheed Martin Reveals its F-35 Program Growth in 2021 Ford Increases EV Vehicle Production amid Strong Demand 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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Agricultural machinery manufacturer Deere & Company (NYSE:DE) recently launched its fully autonomous tractor for large-scale production. Davidson analyst Michael Shlisky initiated coverage on the stock with a Buy rating and a price target of $400, which implies upside potential of 7.7% from current levels. The average Deere stock prediction of $423.29 implies that the stock has upside potential of 14% from current levels.
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Agricultural machinery manufacturer Deere & Company (NYSE:DE) recently launched its fully autonomous tractor for large-scale production. Davidson analyst Michael Shlisky initiated coverage on the stock with a Buy rating and a price target of $400, which implies upside potential of 7.7% from current levels. Related News: Algonquin Closes Acquisition of New York American Water Lockheed Martin Reveals its F-35 Program Growth in 2021 Ford Increases EV Vehicle Production amid Strong Demand 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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Agricultural machinery manufacturer Deere & Company (NYSE:DE) recently launched its fully autonomous tractor for large-scale production. The tractor will be made available to farmers later in the year. Davidson analyst Michael Shlisky initiated coverage on the stock with a Buy rating and a price target of $400, which implies upside potential of 7.7% from current levels.
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d46ed172-5fbb-4d59-ac71-277ce9fb3a50
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721342.0
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2022-01-04 00:00:00 UTC
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Deere says its robo-tractors are ready to till the fields
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DE
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https://www.nasdaq.com/articles/deere-says-its-robo-tractors-are-ready-to-till-the-fields
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nan
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nan
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By Joseph White
DETROIT, Jan 4 (Reuters) - John Deere & Co DE.N said on Tuesday it will start commercial delivery this year of technology that enables a tractor to till a field without an operator in the cab, a first for the top North American tractor manufacturer after years of effort to automate farm work.
Deere plans a low-volume launch this year delivering systems for 12 to 20 machines, and then scaling up, Jahmy Hindman, Deere's chief technology officer, told Reuters. The company is weighing whether to sell the technology, lease it, or offer it to farmers in a subscription package that could allow for upgrades as hardware and software evolve, he said.
The cameras and computers for automated tilling can be installed on an existing tractor and tiller machine in a day, Hindman said.
Deere and other equipment makers such as Caterpillar CAT.N have invested heavily in technology to automate off-highway vehicles such as farm tractors and mining machines. In the farm sector, finding workers to operate tractors is a chronic problem made more acute by the pandemic.
For the farm equipment industry, Deere's commercial launch is a significant step in a journey that has been underway for nearly two decades, beginning with the use of satellite positioning and later hands-free operation with a driver still in the cab. Deere has been testing fully autonomous tractors for three to four years, Hindman said.
While automated tractors do not have to contend with pedestrians, the chaos of urban traffic or highway safety regulations, Hindman said self-driving tractors do need to be able to navigate accurately, avoid obstacles and precisely control equipment such as a tiller.
Deere's initial automated tractors will use stereo cameras in the front and rear, and can send images of what the cameras see via a smartphone app to a farmer or equipment operator. The operator can take the tractor to a field, swipe the smartphone screen and the machine will start on a programmed path.
The tractor's computerized vision system will monitor the tiller, which will have mirrors installed on the shanks that churn plant stubble into the ground. If one of the shanks hits a rock and gets tipped up, the change in the reflection from the mirror will be visible to a remote operator.
Deere is working on automating other farm operations, with spraying likely the next target for automation, Hindman said.
(Reporting By Joe White Editing by Marguerita Choy)
((Joe.White@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is weighing whether to sell the technology, lease it, or offer it to farmers in a subscription package that could allow for upgrades as hardware and software evolve, he said. Deere and other equipment makers such as Caterpillar CAT.N have invested heavily in technology to automate off-highway vehicles such as farm tractors and mining machines. For the farm equipment industry, Deere's commercial launch is a significant step in a journey that has been underway for nearly two decades, beginning with the use of satellite positioning and later hands-free operation with a driver still in the cab.
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By Joseph White DETROIT, Jan 4 (Reuters) - John Deere & Co DE.N said on Tuesday it will start commercial delivery this year of technology that enables a tractor to till a field without an operator in the cab, a first for the top North American tractor manufacturer after years of effort to automate farm work. For the farm equipment industry, Deere's commercial launch is a significant step in a journey that has been underway for nearly two decades, beginning with the use of satellite positioning and later hands-free operation with a driver still in the cab. Deere plans a low-volume launch this year delivering systems for 12 to 20 machines, and then scaling up, Jahmy Hindman, Deere's chief technology officer, told Reuters.
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By Joseph White DETROIT, Jan 4 (Reuters) - John Deere & Co DE.N said on Tuesday it will start commercial delivery this year of technology that enables a tractor to till a field without an operator in the cab, a first for the top North American tractor manufacturer after years of effort to automate farm work. While automated tractors do not have to contend with pedestrians, the chaos of urban traffic or highway safety regulations, Hindman said self-driving tractors do need to be able to navigate accurately, avoid obstacles and precisely control equipment such as a tiller. Deere's initial automated tractors will use stereo cameras in the front and rear, and can send images of what the cameras see via a smartphone app to a farmer or equipment operator.
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By Joseph White DETROIT, Jan 4 (Reuters) - John Deere & Co DE.N said on Tuesday it will start commercial delivery this year of technology that enables a tractor to till a field without an operator in the cab, a first for the top North American tractor manufacturer after years of effort to automate farm work. Deere is working on automating other farm operations, with spraying likely the next target for automation, Hindman said. Deere plans a low-volume launch this year delivering systems for 12 to 20 machines, and then scaling up, Jahmy Hindman, Deere's chief technology officer, told Reuters.
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141d1e98-8dbf-49ef-884a-1ce19d7f6089
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721343.0
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2022-01-04 00:00:00 UTC
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DE Crosses Above Key Moving Average Level
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DE
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https://www.nasdaq.com/articles/de-crosses-above-key-moving-average-level
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nan
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nan
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In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $358.10, changing hands as high as $368.55 per share. Deere & Co. shares are currently trading up about 4.7% 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 $267.45 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $367.94. The DE DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above 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 Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $358.10, changing hands as high as $368.55 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 $267.45 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $367.94. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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 Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $358.10, changing hands as high as $368.55 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 $267.45 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $367.94. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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 Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $358.10, changing hands as high as $368.55 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 $267.45 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $367.94. The DE DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above 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.
|
In trading on Tuesday, shares of Deere & Co. (Symbol: DE) crossed above their 200 day moving average of $358.10, changing hands as high as $368.55 per share. Deere & Co. shares are currently trading up about 4.7% 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 $267.45 per share, with $400.3399 as the 52 week high point — that compares with a last trade of $367.94.
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69c113ad-7eb5-4fd7-aaaa-f100d2e1d3b0
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721344.0
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2022-01-04 00:00:00 UTC
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7 Best Industrial Stocks to Buy for America’s Manufacturing Renaissance
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DE
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https://www.nasdaq.com/articles/7-best-industrial-stocks-to-buy-for-americas-manufacturing-renaissance
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We are currently in the expansion stage of our business cycle, which means that we have more capacity with many opportunities to grow. Thus, it is an excellent time for industrial companies and their underlying stocks to thrive. The opportunities for infrastructure spending and green energy investments are powerful forces in the manufacturing industry.
Increasing global output and higher capital expenditures are expected to help a wide range of industrial firms achieve revenue growth in the coming years, particularly because of the global economic recovery. Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending worldwide. America stands head and shoulders above all the others in this space.
President Joe Biden has signed the $1 trillion infrastructure bill into law, giving him and others their largest victory to date in pushing for domestic spending. The new legislation will funnel billions toward state-level improvements and upgrades for roads, bridges, and transit systems. It will help Americans in their everyday lives and will also increase jobs. Construction is the heart of our economy. It pumps life into everything from buildings and roads to bridges and power lines, all industries depend on it for their success. Hence, the emphasis on this sector makes sense.
7 Cheapened Stocks to Buy As We Ride Into 2022
Read on for my take on seven industrial stocks that will continue to benefit from this trend, namely:
Caterpillar (NYSE:CAT)
Deere & Company (NYSE:DE)
Johnson Controls International (NYSE:JCI)
Emerson Electric (NYSE:EMR)
Waste Management (NYSE:WM)
FedEx (NYSE:FDX)
Nielsen Holdings (NYSE:NLSN)
Industrial Stocks to Buy: Caterpillar (CAT)
Source: astudio / Shutterstock.com
Industrial giant Caterpillar is a leading construction and mining equipment manufacturer, diesel engines for heavy-duty trucks and natural gas turbines. With a more than 15% market share in 2020 and strong respect from customers all around the globe — it is no wonder why they are also one of America’s most successful companies.
As a bellwether for the economy, infrastructure companies rely on construction to keep going. The pickup in industrial activity is expected to fuel revenue growth for CAT. Consequently, management expects revenues and earnings to continue growing at a healthy pace.
It will benefit from increased demand for its construction equipment, a major component of CAT’s business. The government spending on infrastructure and building activity in China and America are huge tailwinds. Since assuming office, President Biden has been very aggressive in building up infrastructure, highlighted by his trillion-dollar infrastructure project.
The industrial giant reported strong third-quarter earnings as demand for construction equipment increased and commodity prices continued their rebound. Caterpillar’s profits reached a whopping $2.66 per share for the three months ending in September, up nearly 100% from last year and well above analyst expectations of only $2.20. group revenues rose 25% to $12.4 billion. By the end of the quarter, Caterpillar had $19.4 billion in cash, compared to $10.8 billion sequentially.
“Our third-quarter results reflect higher sales and revenues across our three primary segments and in all regions,” said CEO Jim Umpleby. As we head into the new year, Caterpillar is in a prime position to succeed and thrive. According to data from Refinitiv, analyst estimates call for 35.7% revenue growth for fiscal 2022, according to the 17 CAT stock analysts surveyed.
Deere & Company (DE)
Source: Deere & Company
Deere & Company manufactures various products, including agricultural machinery, heavy equipment for the construction and farming, and forestry machines. It also produces diesel engines used in various applications like tractors or trucks.
DE stock is always a favorite among industrial stocks considering its diversified business model. It has leading market shares across multiple large farm categories such as tractors or harvesters that help support farmers all over the globe. Manufacturers see increased production rising in conjunction with the demand for construction equipment and tractors.
The benefits of a strong dollar and higher crop prices are helping to drive Deere’s revenue growth. The firm also sees an incentive in its product replacement bid, which makes it easier for farmers who need new equipment as they switch over from older models that may not withstand today’s agricultural demands.
Net income for the year ended Oct. 30, 2021 rose to $5.963 billion, more than double the $2.751 billion from the year earlier. There has been an impressive improvement just over one single year.
7 of the Best Growth Stocks to Buy for 2022
“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure,” chairman and CEO John C. May said, commenting on the results.
“We anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably,” he added.
Net income for 2022 is projected to be in a range of $6.5 billion to $7.0 billion — a very healthy guidance range.
Industrial Stocks to Buy: Johnson Controls International (JCI)
Source: Jonathan Weiss / Shutterstock.com
Johnson Controls International offers a wide range of HVAC products to keep your facility running smoothly. A major player in the industry, JCI controls provides installation and service for heating, ventilation, air conditioning systems, and industrial refrigeration units like those used at meat processing plants or breweries, among other places where they are needed. They also offer fire protection solutions. JCI’s work includes providing intelligent buildings that are efficient and integrated with other technologies.
As JCI scales up its OpenBlue platform, it should see an acceleration in long-term growth over time. They are expected to continue following through with plans for 150 new product launches throughout fiscal 2021 which will boost their product pipeline even further and lead them into a brighter future as momentum around residential construction continues alongside secular gains within smart buildings/cities marketplaces where Johnson holds an advantage due to their expertise related these technologies; analysts project this trend to continue moving forward.
JCI reported an adjusted earnings per share of 88 cents, up 16% yearly and sales jumped by 7% in the fourth quarter. This growth can be attributed to their effective marketing efforts and the success of new products in distribution. Adjusted net income from continuing operations increased 12% in the past year to $628 million. Apart from these solid numbers, the multinational conglomerate issued upbeat first quarter and full-year fiscal 2022 guidance.
For the first quarter, JCI is forecasting mid-single-digit growth in organic revenue for this year. Adjusted EBITA margin is expected to expand by 40-50 basis points. Meanwhile, the adjusted EPS before special items guidance range of 52 cents to 54 cents signifies 21%-26% growth year-over-year.
JCI is forecasting mid-to-high single-digit revenue growth for the full year. The consensus of seven analysts following JCI stock is for 8.9%.
Emerson Electric (EMR)
Source: Gorodenkoff via Shutterstock
Emerson Electric, maker of power tools and other industrial equipment for use in manufacturing plants, is not having an excellent time as of late. A global enterprise, the company has operations in two major industries: automation solutions and commercial/residential solutions. The automation solutions sector is a leader in providing process management systems that automate everything from valves and pumps to intricate pieces of machinery.
The company’s commercial and residential solutions segment focuses on climate technologies, such as HVAC products. Some of their home innovations include InSinkErator garbage disposals for a cleaner kitchen environment or programmable thermostats to ensure that you’re always maintaining the right temperature in your house.
Industrial companies generally had a great second half of 2021. However, Emerson Electric stumbled a bit in its fiscal fourth quarter. The U.S. technology and engineering company reported a 7% drop in net income from the year-ago period. But they are expecting strong underlying demand for 2022. It posted record earnings of $670 million, a steep drop from last year’s figure of $723.5 million. EPS for the year rose 18% to $3.82, with adjusted EPS up 19% – exceeding guidance by quite a bit. Full-year net sales jumped 9% at $18.2 billion.
7 Cheapened Stocks to Buy As We Ride Into 2022
“We don’t expect the global supply-chain landscape to hinder our success around long-term value creation, and we continue to progress toward our cost reset targets,” CEO Lal Karsanbhai said. These words will instill confidence in Emerson Electric investors.
Overall, EMR stock is a solid performer that has done well over the last five years. Hence, there is no reason why Emerson Electric is not one of the top industrial stocks out there.
Industrial Stocks to Buy: Waste Management (WM)
WM) branded truck in the foreground and building with Waste Management flag in the background." width="300" height="169">
Source: rblfmr / Shutterstock.com
Waste Management is one of North America’s leading providers of collection and disposal services. They also have a track record for developing landfill gas-to-energy facilities that help reduce greenhouse gases in our environment while helping provide clean electricity locally.
Waste Management’s business is more recession-resistant than other industrial companies because it provides residential, commercial, and municipal services. The company saw an increase in revenue and earnings as the Covid-19 crisis subsided. Due to a continuous focus on reducing costs, Waste Management could blunt economic impacts and emerge more profitable than ever before.
WM has invested in an automated fleet of collection trucks, which are now running on natural gas. These investments will help the company reduce its costs and environmental footprint while also contributing to cleaner air for everyone.
It has used its free cash flow to make acquisitions and maintain an investment-grade balance sheet. They paid $4.6 billion for the waste disposal, collection recycling services company Advanced Disposal in 2020 while returning money to shareholders through dividends or repurchases of their shares- all this shows how committed they are towards growing profitable businesses even if it means making some investments upfront.
WM always exhibited slow but steady growth patterns. But 2021 is on track to be a historic year. In its most recent Q3 earnings report, Waste Management reported $4.7 billion in revenue — a 20% increase from last year’s third quarter. The results show that operating and net income are growing at a double-digit rate. Its ability to generate cash from operations is also improving recently, jumping to $1.3 billion for the nine months ending on Sept. 30 compared with $1.01 billion a year ago.
The 16 analysts following WM stock have an average earnings estimate of $1.26 per share for the December 2021 quarter and $4.86 per share for the year.
FedEx (FDX)
Source: Antonio Gravante / Shutterstock.com
E-commerce has been a major driving force behind the increased demand for FedEx services. It offers many other logistics-related products such as express mailings or international freight forwarding for those looking into making global shipments easier than ever before. FedEx delivered over 6.6 million packages daily to its customers in the last fiscal year.
This trend is only expected to continue as consumers further embrace online shopping. FedEx’s cash flow should remain high with the company in a good position to continue generating lots of it. The company has a competitive and consistently growth dividend. With its balance sheet strengthened by investing in new facilities or equipment for faster delivery times, the business can settle debt with increased profits from these projects as well.
7 of the Best Growth Stocks to Buy for 2022
With its strong cash flow, FedEx has the opportunity to invest in innovation. The shipping company is making a conscious effort to become more sustainable, which will ultimately help the business achieve its goal of being carbon neutral by 2040. FedEx is also working hard on autonomous vehicles and self-driving technology.
FDX stock is trading at a steep discount, meaning it is just the right time to acquire more. Zacks Research sees the shares as approaching value status, suggesting that FedEx stock could be “an interesting play” based on its forward PE of 12.2x, its price-to-sales ratio of 0.8, and its dividend yield of 1.2%.
Industrial Stocks to Buy: Nielsen Holdings (NLSN)
Source: Konektus Photo / Shutterstock.com
Nielsen Holdings provides data and analytics for the media industry. It offers services such as audience measurement, which publishers use in marketing their products or brands to consumers through ads on TV programs they watch each week.
Nielsen also tracks how much time these viewers spend with certain commercials versus others during programming breaks – giving companies valuable information about who’s getting attention from potential customers.
Nielsen wants to enhance its national television measurement system by measuring viewing more precisely. It is an exciting development. Marketers looking to get accurate data on their ads’ effectiveness now have that information at their fingertips. Additionally, it gives networks even greater insight into which programming decisions can improve ratings among audiences they serve.
It is a huge step for advertisers who want to get the most bang for their buck. No more guessing how well an ad will perform or its ROI. Now, we can clearly see. It will help companies from all walks of life, and industrial companies are no exception.
As the entertainment industry increasingly shifts to streaming, Nielsen has struggled for relevance. The new initiative will help NLSN stock get its mojo back and help you play industrial stocks in a curveball way.
On the publication date, Faizan Farooque 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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. You can check out his analysis on InvestorPlace and TipRanks.
The post 7 Best Industrial Stocks to Buy for America’s Manufacturing Renaissance 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 firm also sees an incentive in its product replacement bid, which makes it easier for farmers who need new equipment as they switch over from older models that may not withstand today’s agricultural demands. 7 Cheapened Stocks to Buy As We Ride Into 2022 “We don’t expect the global supply-chain landscape to hinder our success around long-term value creation, and we continue to progress toward our cost reset targets,” CEO Lal Karsanbhai said. Zacks Research sees the shares as approaching value status, suggesting that FedEx stock could be “an interesting play” based on its forward PE of 12.2x, its price-to-sales ratio of 0.8, and its dividend yield of 1.2%.
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7 Cheapened Stocks to Buy As We Ride Into 2022 Read on for my take on seven industrial stocks that will continue to benefit from this trend, namely: Caterpillar (NYSE:CAT) Deere & Company (NYSE:DE) Johnson Controls International (NYSE:JCI) Emerson Electric (NYSE:EMR) Waste Management (NYSE:WM) FedEx (NYSE:FDX) Nielsen Holdings (NYSE:NLSN) Industrial Stocks to Buy: Caterpillar (CAT) Source: astudio / Shutterstock.com Industrial giant Caterpillar is a leading construction and mining equipment manufacturer, diesel engines for heavy-duty trucks and natural gas turbines. Deere & Company (DE) Source: Deere & Company Deere & Company manufactures various products, including agricultural machinery, heavy equipment for the construction and farming, and forestry machines. Industrial Stocks to Buy: Johnson Controls International (JCI) Source: Jonathan Weiss / Shutterstock.com Johnson Controls International offers a wide range of HVAC products to keep your facility running smoothly.
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7 Cheapened Stocks to Buy As We Ride Into 2022 Read on for my take on seven industrial stocks that will continue to benefit from this trend, namely: Caterpillar (NYSE:CAT) Deere & Company (NYSE:DE) Johnson Controls International (NYSE:JCI) Emerson Electric (NYSE:EMR) Waste Management (NYSE:WM) FedEx (NYSE:FDX) Nielsen Holdings (NYSE:NLSN) Industrial Stocks to Buy: Caterpillar (CAT) Source: astudio / Shutterstock.com Industrial giant Caterpillar is a leading construction and mining equipment manufacturer, diesel engines for heavy-duty trucks and natural gas turbines. Deere & Company (DE) Source: Deere & Company Deere & Company manufactures various products, including agricultural machinery, heavy equipment for the construction and farming, and forestry machines. 7 of the Best Growth Stocks to Buy for 2022 “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure,” chairman and CEO John C. May said, commenting on the results.
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Thus, it is an excellent time for industrial companies and their underlying stocks to thrive. Increasing global output and higher capital expenditures are expected to help a wide range of industrial firms achieve revenue growth in the coming years, particularly because of the global economic recovery. Additionally, governments are looking to jumpstart their economies through tremendous infrastructure spending worldwide.
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fb40a5e4-1961-476e-996e-2911ffb60242
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721345.0
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2021-12-29 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DE, MDLZ, USB
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DE
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-de-mdlz-usb
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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 15,919 contracts has been traded thus far today, a contract volume which is representative of approximately 1.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 97.3% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $260 strike call option expiring January 21, 2022, with 1,560 contracts trading so far today, representing approximately 156,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange:
Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 68,017 contracts, representing approximately 6.8 million underlying shares or approximately 91.1% of MDLZ's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $60 strike call option expiring January 21, 2022, with 18,065 contracts trading so far today, representing approximately 1.8 million underlying shares of MDLZ. Below is a chart showing MDLZ's trailing twelve month trading history, with the $60 strike highlighted in orange:
And US Bancorp (Symbol: USB) options are showing a volume of 53,892 contracts thus far today. That number of contracts represents approximately 5.4 million underlying shares, working out to a sizeable 87.3% of USB's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $45 strike call option expiring January 21, 2022, with 24,755 contracts trading so far today, representing approximately 2.5 million underlying shares of USB. Below is a chart showing USB's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for DE options, MDLZ options, or USB options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $260 strike call option expiring January 21, 2022, with 1,560 contracts trading so far today, representing approximately 156,000 underlying shares of DE. Particularly high volume was seen for the $60 strike call option expiring January 21, 2022, with 18,065 contracts trading so far today, representing approximately 1.8 million underlying shares of MDLZ. Particularly high volume was seen for the $45 strike call option expiring January 21, 2022, with 24,755 contracts trading so far today, representing approximately 2.5 million underlying shares of USB.
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Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 68,017 contracts, representing approximately 6.8 million underlying shares or approximately 91.1% of MDLZ's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $60 strike call option expiring January 21, 2022, with 18,065 contracts trading so far today, representing approximately 1.8 million underlying shares of MDLZ. 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 15,919 contracts has been traded thus far today, a contract volume which is representative of approximately 1.6 million underlying shares (given that every 1 contract represents 100 underlying 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 15,919 contracts has been traded thus far today, a contract volume which is representative of approximately 1.6 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 $260 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 68,017 contracts, representing approximately 6.8 million underlying shares or approximately 91.1% of MDLZ's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $45 strike call option expiring January 21, 2022, with 24,755 contracts trading so far today, representing approximately 2.5 million underlying shares of USB.
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Below is a chart showing DE's trailing twelve month trading history, with the $260 strike highlighted in orange: Mondelez International Inc (Symbol: MDLZ) saw options trading volume of 68,017 contracts, representing approximately 6.8 million underlying shares or approximately 91.1% of MDLZ's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $60 strike call option expiring January 21, 2022, with 18,065 contracts trading so far today, representing approximately 1.8 million underlying shares of MDLZ. Particularly high volume was seen for the $45 strike call option expiring January 21, 2022, with 24,755 contracts trading so far today, representing approximately 2.5 million underlying shares of USB.
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d303b796-c055-48fd-9cd1-254805efb53b
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721346.0
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2021-12-29 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for December 30, 2021
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-for-december-30-2021
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nan
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Deere & Company (DE) will begin trading ex-dividend on December 30, 2021. A cash dividend payment of $1.05 per share is scheduled to be paid on February 08, 2022. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 38.16% increase over prior dividend payment. At the current stock price of $349.77, the dividend yield is 1.2%.
The previous trading day's last sale of DE was $349.77, representing a -12.63% decrease from the 52 week high of $400.34 and a 33.07% increase over the 52 week low of $262.85.
DE is a part of the Capital Goods sector, which includes companies such as ASML Holding N.V. (ASML) and Applied Materials, Inc. (AMAT). DE's current earnings per share, an indicator of a company's profitability, is $18.99. Zacks Investment Research reports DE's forecasted earnings growth in 2022 as 16.8%, compared to an industry average of 30.1%.
For more information on the declaration, record and payment dates, visit the de Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
First Trust Indxx Global Agriculture ETF (FTAG)
VanEck Natural Resources ETF (HAP)
VanEck Agribusiness ETF (MOO)
ClearBridge Focus Value ESG ETF (CFCV)
iShares MSCI Agriculture Producers Fund (VEGI).
The top-performing ETF of this group is VEGI with an increase of 5.77% over the last 100 days. FTAG has the highest percent weighting of DE at 9.44%.
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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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports DE's forecasted earnings growth in 2022 as 16.8%, compared to an industry average of 30.1%. For more information on the declaration, record and payment dates, visit the de Dividend History page.
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This represents an 38.16% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $18.99. The following ETF(s) have DE as a top-10 holding: First Trust Indxx Global Agriculture ETF (FTAG) VanEck Natural Resources ETF (HAP) VanEck Agribusiness ETF (MOO) ClearBridge Focus Value ESG ETF (CFCV) iShares MSCI Agriculture Producers Fund (VEGI).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the de Dividend History page. The following ETF(s) have DE as a top-10 holding: First Trust Indxx Global Agriculture ETF (FTAG) VanEck Natural Resources ETF (HAP) VanEck Agribusiness ETF (MOO) ClearBridge Focus Value ESG ETF (CFCV) iShares MSCI Agriculture Producers Fund (VEGI).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 38.16% increase over prior dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $18.99.
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36de28b9-631d-42fd-bf22-85f7b11eec33
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721347.0
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2021-12-28 00:00:00 UTC
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Analyzing Deere’s Newly Added Risk Factors
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DE
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https://www.nasdaq.com/articles/analyzing-deeres-newly-added-risk-factors
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nan
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nan
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Illinois-based Deere (DE) manufactures heavy machinery used in agriculture, construction, and forestry. It also makes lawn care equipment.
For Fiscal Q4 2021 ended October 31, Deere reported a 16% year-over-year increase in revenue to $11.3 billion, surpassing the consensus estimate of $10.4 billion. It posted earnings of $4.12 per share versus $2.39 in the same quarter last year and beat the consensus estimate of $3.90.
Deere has recently agreed to acquire a majority stake in Kreisel Electric, an Austria-based battery technology provider. It said the investment aligns with its electrification and sustainability goals. Kreisel has developed high-performance battery modules and packs and built a charging infrastructure platform.
Deere ended Q4 with $8.1 billion in cash. It plans to distribute a quarterly dividend of $1.05 per share on February 8 and has set December 30 as the ex-dividend date. Deere stock currently offers a dividend yield of 1.11%.
With this in mind, we used TipRanks to take a look at the newly added risk factors for Deere.
Risk Factors
According to the new TipRanks Risk Factors tool, Deere’s main risk category is Legal and Regulatory, representing 28% of the total 29 risks identified for the stock. Finance & Corporate and Tech & Innovation are the next two major risk categories, accounting for 21% and 17% of the total risks, respectively. Deere recently updated its profile with three new risk factors across the various categories.
The company informs investors that the LIBOR benchmark is being phased out, yet the effect of that change is not currently fully understood. It cautions that failure to properly transition from LIBOR to alternative benchmark rates could adversely affect its operating results and stock price.
Deere tells investors that its products contain connectivity hardware that allows for remote system updates. The company cautions that while it has taken steps to protect its systems from cyberattacks, there have been attempts to gain unauthorized access to its products. Therefore, it cautions that it could suffer a security breach. If a breach occurs, Deere warns that its operating results could be adversely affected and it may suffer reputational damage.
Deere informs investors that its global operation subjects it to a complex regulatory environment. It mentions regulations related to issues such as antitrust practices, money laundering, advertising, labor, and cash repatriation. It says that regulations may vary significantly from market to market and change frequently, making compliance difficult and costly. The company warns that a violation of the regulations could result in sanctions and adversely affect its business, operating results, and financial condition. Furthermore, its reputation may be harmed.
The Legal and Regulatory risk factor’s sector average is 17%, compared to Deere’s 28%. Deere’s stock has gained about 30% since the beginning of 2021.
Analysts’ Take
D.A. Davidson analyst Michael Shlisky recently initiated coverage on Deere stock with a Buy rating and a price target of $400, which suggests 14.04% upside potential.
Consensus among analysts is a Moderate Buy based on 11 Buys, 3 Holds, and 1 Sell. The average Deere price target of $423.29 implies 20.68% upside potential to current levels.
Related News:
APA Corporation Ratifies Production Sharing Contract Egypt
Vuzix Partners With Verizon to Deliver Augmented Reality Solutions
JD.com Partners With JBS; Street Says Buy
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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Davidson analyst Michael Shlisky recently initiated coverage on Deere stock with a Buy rating and a price target of $400, which suggests 14.04% upside potential. Related News: APA Corporation Ratifies Production Sharing Contract Egypt Vuzix Partners With Verizon to Deliver Augmented Reality Solutions JD.com Partners With JBS; Street Says Buy The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Illinois-based Deere (DE) manufactures heavy machinery used in agriculture, construction, and forestry.
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Risk Factors According to the new TipRanks Risk Factors tool, Deere’s main risk category is Legal and Regulatory, representing 28% of the total 29 risks identified for the stock. If a breach occurs, Deere warns that its operating results could be adversely affected and it may suffer reputational damage. Illinois-based Deere (DE) manufactures heavy machinery used in agriculture, construction, and forestry.
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Risk Factors According to the new TipRanks Risk Factors tool, Deere’s main risk category is Legal and Regulatory, representing 28% of the total 29 risks identified for the stock. If a breach occurs, Deere warns that its operating results could be adversely affected and it may suffer reputational damage. Davidson analyst Michael Shlisky recently initiated coverage on Deere stock with a Buy rating and a price target of $400, which suggests 14.04% upside potential.
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Deere recently updated its profile with three new risk factors across the various categories. The Legal and Regulatory risk factor’s sector average is 17%, compared to Deere’s 28%. Illinois-based Deere (DE) manufactures heavy machinery used in agriculture, construction, and forestry.
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7224de11-34c6-4bdd-986b-37569f010bb5
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721348.0
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2021-12-25 00:00:00 UTC
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Deere & Company (NYSE:DE) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
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DE
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https://www.nasdaq.com/articles/deere-company-nyse%3Ade-looks-like-a-good-stock-and-its-going-ex-dividend-soon
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nan
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nan
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Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Deere & Company (NYSE:DE) is about to go ex-dividend in just four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Deere's shares on or after the 30th of December, you won't be eligible to receive the dividend, when it is paid on the 8th of February.
The company's next dividend payment will be US$1.05 per share, and in the last 12 months, the company paid a total of US$4.20 per share. Last year's total dividend payments show that Deere has a trailing yield of 1.2% on the current share price of $349.22. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Deere is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Luckily it paid out just 20% of its free cash flow last year.
It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:DE Historic Dividend December 25th 2021
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Deere has grown its earnings rapidly, up 32% a year for the past five years. With earnings per share growing rapidly and the company sensibly reinvesting almost all of its profits within the business, Deere looks like a promising growth company.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Deere has delivered an average of 12% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
The Bottom Line
Is Deere worth buying for its dividend? We love that Deere is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. There's a lot to like about Deere, and we would prioritise taking a closer look at it.
In light of that, while Deere has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Deere has 1 warning sign we think you should be aware of.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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NYSE:DE Historic Dividend December 25th 2021 Have Earnings And Dividends Been Growing? It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future.
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It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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It's positive to see that Deere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. With earnings per share growing rapidly and the company sensibly reinvesting almost all of its profits within the business, Deere looks like a promising growth company. We love that Deere is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.
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e206a8ee-45ae-41e7-a227-f2e2da24ecd4
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721349.0
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2021-12-22 00:00:00 UTC
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Electrification Opportunity Could Power Deere Stock Higher
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DE
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https://www.nasdaq.com/articles/electrification-opportunity-could-power-deere-stock-higher
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nan
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nan
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Deere (NYSE: DE) stock is back on the retreat towards multi-month lows on the back of labor strike woes and broader macroeconomic concerns.
Although there are many challenges, most notably at the macro level, long-term trends are still at play, and the fundamentals seem as strong as ever. There's also an electrification opportunity, as farmers look to upgrade current machinery for something more environmentally friendly.
Such a longer-term "electrification" tailwind, I believe, will remain at the end of the day, once strike-induced production pressures, and Omicron's impact on supply chains fade in time.
With a more generous six-year deal to be inked, the 2021 Deere strikes are moving into the rear-view mirror. However, some damage has already been done, with elevated costs on machinery and a swelling order backlog.
I remain bullish and think that nothing much had changed over the past few months with regards to the long-term story, which seems as attractive as it was when the stock was flirting with nearly $400 per share back in May 2021.
Deere Moves Through Rough Patch Post-Earnings
For Q4 2021, Deere clocked in per-share earnings of $4.12, beating the analyst consensus of $3.90. Revenue was up an impressive 16% year-over-year despite navigating through ongoing COVID-induced challenges.
Despite the mildly decent result, investors weren't enthused, even with a generous 15% dividend hike. Undoubtedly, management seems confident in the new year.
Still, with Omicron variant uncertainties, investors would rather take a raincheck on Deere than invest in a name that could continue to face intense volatility over the near term.
While the fourth quarter wasn't much to write home about, recent weakness in Deere stock seems overblown, given the relatively depressed valuation (18.9 times trailing earnings and 2.6 times sales), and innovative capabilities that seem to strengthen with every acquisition the company makes.
Deere Continues Making Smart Acquisitions
The 2021 labor strike and COVID-induced headwinds acted as a one-two punch to Deere, but the company is still standing.
The strike-induced impact on production and elevated costs have likely already been baked into the share price. As the company moves on to meet its order backlog, there could be much in the way of positive surprises in the new year.
Add continued acquisitions into the equation, and it's clear that management is still focusing on the long-term opportunity at hand. Once the dust clears over the medium term, it may be tough to keep Deere down, as it leverages technologies to give customers a solid reason to upgrade.
Such innovations could easily justify a noticeable higher price tag and allow the company to raise prices without suffering a considerable loss of sales to rivals.
Deere's acquisition of autonomous tractor startup Blag Flag Robotics in a deal worth $250 million was remarkable and should have got investors excited in the future over at Deere.
The pace of acquisitions hasn't slowed, with the company scooping up Kreisel Electric and AgriSync. Deere took a majority stake in the former firm, which should accelerate its battery tech in a shift toward electrifying its popular farming equipment.
The acquisitions should get investors excited, as they stand to strengthen the firm's long-term growth profile. For now, though, investors seem to be more concerned with another year of potential headwinds and the possibility of a cyclical downswing.
In due time, Deere will pull through, and its innovations could help it propel higher, even if macro conditions weaken further at the hands of Omicron or other COVID-19 variants in the new year.
For now, expect Deere to continue exploring M&A opportunities to improve its electrification and autonomous hopes — two drivers that will be critical to Deere's next leg higher.
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 11 Buy recommendations, three Hold recommendations and one Sell recommendation.
The average Deere price target is $423.29. Analyst price targets range from a low of $320 per share to a high of $485 per share.
Disclosure: Joey Frenette doesn't own shares of any mentioned companies at the time of publication.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
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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Such a longer-term "electrification" tailwind, I believe, will remain at the end of the day, once strike-induced production pressures, and Omicron's impact on supply chains fade in time. Once the dust clears over the medium term, it may be tough to keep Deere down, as it leverages technologies to give customers a solid reason to upgrade. In due time, Deere will pull through, and its innovations could help it propel higher, even if macro conditions weaken further at the hands of Omicron or other COVID-19 variants in the new year.
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Deere Continues Making Smart Acquisitions The 2021 labor strike and COVID-induced headwinds acted as a one-two punch to Deere, but the company is still standing. Wall Street's Take According to TipRanks’ analyst rating consensus, DE stock comes in as a Moderate Buy. Deere (NYSE: DE) stock is back on the retreat towards multi-month lows on the back of labor strike woes and broader macroeconomic concerns.
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While the fourth quarter wasn't much to write home about, recent weakness in Deere stock seems overblown, given the relatively depressed valuation (18.9 times trailing earnings and 2.6 times sales), and innovative capabilities that seem to strengthen with every acquisition the company makes. Deere Continues Making Smart Acquisitions The 2021 labor strike and COVID-induced headwinds acted as a one-two punch to Deere, but the company is still standing. Deere's acquisition of autonomous tractor startup Blag Flag Robotics in a deal worth $250 million was remarkable and should have got investors excited in the future over at Deere.
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With a more generous six-year deal to be inked, the 2021 Deere strikes are moving into the rear-view mirror. Deere (NYSE: DE) stock is back on the retreat towards multi-month lows on the back of labor strike woes and broader macroeconomic concerns. There's also an electrification opportunity, as farmers look to upgrade current machinery for something more environmentally friendly.
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b511e323-ffe3-4262-acee-3879a8110b53
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721350.0
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2021-12-19 00:00:00 UTC
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Insiders who purchased this year lose US$3.5k as Deere & Company (NYSE:DE) stock drops to US$347
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DE
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https://www.nasdaq.com/articles/insiders-who-purchased-this-year-lose-us%243.5k-as-deere-company-nyse%3Ade-stock-drops-to-us
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nan
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nan
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The recent price decline of 3.2% in Deere & Company's (NYSE:DE) stock may have disappointed insiders who bought US$99k worth of shares at an average price of US$360 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$95k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Deere
Over the last year, we can see that the biggest insider purchase was by Independent Director Tamara Erwin for US$99k worth of shares, at about US$360 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$347). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Tamara Erwin.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:DE Insider Trading Volume December 19th 2021
Deere is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Deere insiders own 0.1% of the company, worth about US$113m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Deere Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Deere insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Deere and understanding this should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether. A high insider ownership often makes company leadership more mindful of shareholder interests. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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The recent price decline of 3.2% in Deere & Company's (NYSE:DE) stock may have disappointed insiders who bought US$99k worth of shares at an average price of US$360 in the past 12 months. The Last 12 Months Of Insider Transactions At Deere Over the last year, we can see that the biggest insider purchase was by Independent Director Tamara Erwin for US$99k worth of shares, at about US$360 per share. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
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The recent price decline of 3.2% in Deere & Company's (NYSE:DE) stock may have disappointed insiders who bought US$99k worth of shares at an average price of US$360 in the past 12 months. The Last 12 Months Of Insider Transactions At Deere Over the last year, we can see that the biggest insider purchase was by Independent Director Tamara Erwin for US$99k worth of shares, at about US$360 per share. It would be great to see more insider buying, but overall it seems like Deere insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future.
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The Last 12 Months Of Insider Transactions At Deere Over the last year, we can see that the biggest insider purchase was by Independent Director Tamara Erwin for US$99k worth of shares, at about US$360 per share. So What Does This Data Suggest About Deere Insiders? The recent price decline of 3.2% in Deere & Company's (NYSE:DE) stock may have disappointed insiders who bought US$99k worth of shares at an average price of US$360 in the past 12 months.
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6ca4e3a1-d9dd-429d-968a-5af8b55cecab
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721351.0
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2021-12-16 00:00:00 UTC
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3 Spatial Computing Stocks to Buy to Get in on the Next Hot Tech Trend
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DE
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https://www.nasdaq.com/articles/3-spatial-computing-stocks-to-buy-to-get-in-on-the-next-hot-tech-trend
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Spatial computing stocks have been in the limelight in recent weeks. These companies are at the forefront of disruptive innovations that converge the physical world with the digital world. In turn, spatial computing stocks have been on the mind of investors.
The technology can be described as “the digitization of activities of machines, people, objects, and the environments in which they take place to enable and optimize actions and interactions.” In other words, spatial computing uses the three-dimensional (3D) space around an object so that it can interact with the rest of the world regardless of its location. It incorporates numerous technologies, including global positioning systems (GPS), artificial intelligence (AI), machine learning (ML) and the Internet of things (IoT).
The growing need to enhance human-machine and machine-to-machine interaction continues to fuel rapid advances in the spatial computing market. In fact, analysts indicate that investing in a small spatial computing stocks now could represent as significant an opportunity as buying an Apple (NASDAQ:AAPL) stock in its early days.
Moreover, spatial computing offers applications in almost all aspects of life, including gaming, shopping, transportation, engineering and agriculture. Zion Market Research’s report indicates that “The global Spatial Computing Market, which was estimated at 22.22 (USD Billion) in 2019 and is anticipated to accrue earnings worth 196.21 (USD Billion) by 2026, is set to record a CAGR of nearly 41% over 2020-2026.”
7 Dividend Stocks to Buy for 2022 With Dividend Yields Over 5%
With that said, here are three spatial computing stocks that should constitute great additions to any portfolio in 2022 and beyond.
Deere (NYSE:DE)
Matterport (NASDAQ:MTTR)
Tesla (NASDAQ:TSLA)
Now, let’s dive in and take a closer look at each one.
Spatial Computing Stocks to Buy: Deere (DE)
Source: mark stephens photography / Shutterstock.com
52-Week Range: $261.54 – $400.34
Dividend Yield: 1.22%
Moline, Illinois-based Deere is a leading manufacturer of heavy agricultural equipment worldwide. It has been hailed as one of the most prominent names in the fourth industrial revolution, “a fusion of advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), genetic engineering, quantum computing, and more.”
In fact, Deere uses machine learning, AI and computer vision applications to boost yields, reduce costs and enhance overall sustainability in agriculture. For example, the company recently announced an allied distribution agreement with Smart Guided Systems to sell its Smart-Apply Intelligent Spray Control System. In turn, tractors use it in high-value crop applications.
This system relies on LiDAR, “which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances) to the Earth.” The technology offered by Deere helps farmers decrease the number of chemicals they use on crops.
Furthermore, Deere announced fourth-quarter results in late November that beat estimates. Revenue increased 16% year-over-year (YOY) to $11.33 billion. Net income came in at $1.28 billion or $4.12 per diluted share, up 70% YOY from $757 million, or $2.39 per diluted share, in the prior-year quarter. Cash and equivalents ended the period at $8.13 billion.
“Our results reflect strong endmarket demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union,” CEO John May said.
For most manufacturers, inflation and supply-chain bottlenecks have been roadblocks in 2021 — and Deere is no exception. However, management anticipates demand for farm and construction equipment to continue benefiting from economic growth and infrastructure investments.
DE stock currently sells for roughly $348 and has soared 29% so far in 2021. Shares are currently trading at 2.6 times trailing sales, and the 12-month median price forecast for Deere stock stands at $415.
Matterport (MTTR)
Source: Ken Wolter / Shutterstock.com
52-Week Range: $10.45 – $37.60
Sunnyvale, California-based Matterport is a spatial data company focused on digitizing and indexing physical spaces such as real estate, factories or travel and leisure locations. On its 3D data platform, individuals can turn physical spaces into accurate as well as immersive digital twins.
Matterport announced Q3 results in early November. Total revenue increased 10% YOY to $27.7 million. The company generated non-GAAP net loss of $14 million, or 6 cents loss per share, compared with non-GAAP net income of $1.5 million in the previous year. Cash and equivalents ended the period at just under $149 million.
If you have recently looked at real estate listings online, you might have noticed digital twins of homes made on Matterport. Millions of users have also downloaded its free app, Matterport for Mobile.
In Q3, over 6 million digital twins were uploaded to the platform. And the number of subscribers went up by 116% YOY. Regular InvestorPlace.com readers are likely to remember that Matterport has strategic partnerships with Meta Platforms (NASDAQ:FB) and Amazon (NASDAQ:AMZN).
7 of the Best Value Stocks for 2022 to Buy Now
MTTR stock is currently at $22.30 per share, up over 50% over the past six months. Additionally, shares are trading at 66 times trailing sales, and the 12-month median price forecast for Matterport stock is $28. Thus, interested investors should consider buying the dips.
Spatial Computing Stocks to Buy: Tesla (TSLA)
TSLA) badge on back end of red Tesla car" width="300" height="169">
Source: Hadrian / Shutterstock.com
52-Week Range: $539.49 – $1,243.49
Palo Alto, California-based Tesla has become a global leader in electric vehicles (EVs). It is also en route to launching a fully autonomous driving service in the coming years.
The self-proclaimed spatial computing evangelist Robert Scoble suggests Tesla “is the only automaker to have a neural network–based system on the road.” He also believes Tesla could disrupt or even replace Apple Maps and Alphabet’s (NASDAQ:GOOG), (NASDAQ:GOOGL) Google Maps within the next two years as Tesla robotaxi will be available widely.
Moreover, Tesla released Q3 results in late October. Total revenue increased 57% YOY to $13.76 billion. Non-GAAP net income went up by 139% YOY to $2.09 billion, or $1.86 per non-GAAP diluted share, up from $874 million, or 76 cents per non-GAAP diluted share, a year ago. Also, the company generated free cash flow of $1.3 billion, and cash and equivalents ended the period at $16.1 billion.
On the results, the firm cited that the “third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, operating profit and gross profit.”
As of now, TSLA stock hovers around $930, up 32% year-to-date (YTD). Additionally, shares are trading at 24.7 times trailing sales, and the 12-month median price forecast for TSLA stock sits at $924.50. Nonetheless, potential investors could consider buying around $900 or even below.
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.
Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.
The post 3 Spatial Computing Stocks to Buy to Get in on the Next Hot Tech Trend 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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Zion Market Research’s report indicates that “The global Spatial Computing Market, which was estimated at 22.22 (USD Billion) in 2019 and is anticipated to accrue earnings worth 196.21 (USD Billion) by 2026, is set to record a CAGR of nearly 41% over 2020-2026.” 7 Dividend Stocks to Buy for 2022 With Dividend Yields Over 5% With that said, here are three spatial computing stocks that should constitute great additions to any portfolio in 2022 and beyond. “Our results reflect strong endmarket demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union,” CEO John May said. The technology can be described as “the digitization of activities of machines, people, objects, and the environments in which they take place to enable and optimize actions and interactions.” In other words, spatial computing uses the three-dimensional (3D) space around an object so that it can interact with the rest of the world regardless of its location.
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It has been hailed as one of the most prominent names in the fourth industrial revolution, “a fusion of advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), genetic engineering, quantum computing, and more.” In fact, Deere uses machine learning, AI and computer vision applications to boost yields, reduce costs and enhance overall sustainability in agriculture. The technology can be described as “the digitization of activities of machines, people, objects, and the environments in which they take place to enable and optimize actions and interactions.” In other words, spatial computing uses the three-dimensional (3D) space around an object so that it can interact with the rest of the world regardless of its location. Zion Market Research’s report indicates that “The global Spatial Computing Market, which was estimated at 22.22 (USD Billion) in 2019 and is anticipated to accrue earnings worth 196.21 (USD Billion) by 2026, is set to record a CAGR of nearly 41% over 2020-2026.” 7 Dividend Stocks to Buy for 2022 With Dividend Yields Over 5% With that said, here are three spatial computing stocks that should constitute great additions to any portfolio in 2022 and beyond.
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Zion Market Research’s report indicates that “The global Spatial Computing Market, which was estimated at 22.22 (USD Billion) in 2019 and is anticipated to accrue earnings worth 196.21 (USD Billion) by 2026, is set to record a CAGR of nearly 41% over 2020-2026.” 7 Dividend Stocks to Buy for 2022 With Dividend Yields Over 5% With that said, here are three spatial computing stocks that should constitute great additions to any portfolio in 2022 and beyond. Spatial Computing Stocks to Buy: Tesla (TSLA) TSLA) badge on back end of red Tesla car" width="300" height="169"> Source: Hadrian / Shutterstock.com 52-Week Range: $539.49 – $1,243.49 Palo Alto, California-based Tesla has become a global leader in electric vehicles (EVs). The technology can be described as “the digitization of activities of machines, people, objects, and the environments in which they take place to enable and optimize actions and interactions.” In other words, spatial computing uses the three-dimensional (3D) space around an object so that it can interact with the rest of the world regardless of its location.
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The technology can be described as “the digitization of activities of machines, people, objects, and the environments in which they take place to enable and optimize actions and interactions.” In other words, spatial computing uses the three-dimensional (3D) space around an object so that it can interact with the rest of the world regardless of its location. Zion Market Research’s report indicates that “The global Spatial Computing Market, which was estimated at 22.22 (USD Billion) in 2019 and is anticipated to accrue earnings worth 196.21 (USD Billion) by 2026, is set to record a CAGR of nearly 41% over 2020-2026.” 7 Dividend Stocks to Buy for 2022 With Dividend Yields Over 5% With that said, here are three spatial computing stocks that should constitute great additions to any portfolio in 2022 and beyond. Deere (NYSE:DE) Matterport (NASDAQ:MTTR) Tesla (NASDAQ:TSLA) Now, let’s dive in and take a closer look at each one.
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031c4bc6-3abb-4eba-82b4-2070e37481a6
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721352.0
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2021-12-16 00:00:00 UTC
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Farm machine maker Claas sees more chip snags in 2022
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DE
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https://www.nasdaq.com/articles/farm-machine-maker-claas-sees-more-chip-snags-in-2022
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nan
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nan
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PARIS, Dec 16 (Reuters) - Agricultural machinery maker Claas said on Thursday it expects difficulties in securing semiconductor chips to persist for the first half of next year, which could curb a surge in profits linked to booming farm demand.
An upturn in orders from farmers, who are benefiting from high crop prices after several lean years, has boosted earnings for equipment makers like U.S. giant Deere & Co DE.N.
Brisk farm machine demand has coincided with soaring costs of raw materials and supply chain disruption during the coronavirus pandemic, with a scarcity of electronic chips causing production snags, like in the car industry.
While steel prices appeared to have peaked, the supply squeeze in chips was not expected to ease until towards the end of 2022, German-based Claas said.
"It's day and night work for our supply chain people," Claas Chief Executive Thomas Bock said at a press conference in Paris. "It's going to be a tough next six months with suppliers."
Procurement efforts by an expanded supply chain team, including some use of air freight, enabled Claas to avoid factory shutdowns except for odd one- or two-day stoppages on some lines, he said.
The farm machine industry was also less exposed than car makers to component shortages because it produced much smaller numbers of vehicles, he added.
Claas expects its earnings to be slightly lower in 2022, after pre-tax profit more than doubled to 357 million euros in its 2021 financial year to Sept. 30.
December's monthly survey by European farm machinery association CEMA showed that order levels were at record highs while nearly half of companies plan a temporary production halt in the month ahead.
High agricultural prices should sustain strong demand, with farmer investments in Europe also likely to be shaped by an upcoming overhaul of European Union farm subsidies, Bock said.
(Reporting by Gus Trompiz; Editing by Dan Grebler)
((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.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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PARIS, Dec 16 (Reuters) - Agricultural machinery maker Claas said on Thursday it expects difficulties in securing semiconductor chips to persist for the first half of next year, which could curb a surge in profits linked to booming farm demand. Brisk farm machine demand has coincided with soaring costs of raw materials and supply chain disruption during the coronavirus pandemic, with a scarcity of electronic chips causing production snags, like in the car industry. Procurement efforts by an expanded supply chain team, including some use of air freight, enabled Claas to avoid factory shutdowns except for odd one- or two-day stoppages on some lines, he said.
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PARIS, Dec 16 (Reuters) - Agricultural machinery maker Claas said on Thursday it expects difficulties in securing semiconductor chips to persist for the first half of next year, which could curb a surge in profits linked to booming farm demand. Brisk farm machine demand has coincided with soaring costs of raw materials and supply chain disruption during the coronavirus pandemic, with a scarcity of electronic chips causing production snags, like in the car industry. The farm machine industry was also less exposed than car makers to component shortages because it produced much smaller numbers of vehicles, he added.
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PARIS, Dec 16 (Reuters) - Agricultural machinery maker Claas said on Thursday it expects difficulties in securing semiconductor chips to persist for the first half of next year, which could curb a surge in profits linked to booming farm demand. Brisk farm machine demand has coincided with soaring costs of raw materials and supply chain disruption during the coronavirus pandemic, with a scarcity of electronic chips causing production snags, like in the car industry. December's monthly survey by European farm machinery association CEMA showed that order levels were at record highs while nearly half of companies plan a temporary production halt in the month ahead.
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PARIS, Dec 16 (Reuters) - Agricultural machinery maker Claas said on Thursday it expects difficulties in securing semiconductor chips to persist for the first half of next year, which could curb a surge in profits linked to booming farm demand. An upturn in orders from farmers, who are benefiting from high crop prices after several lean years, has boosted earnings for equipment makers like U.S. giant Deere & Co DE.N. Brisk farm machine demand has coincided with soaring costs of raw materials and supply chain disruption during the coronavirus pandemic, with a scarcity of electronic chips causing production snags, like in the car industry.
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a8aff992-bac2-4a82-a442-35cc9d538ca9
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721353.0
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2021-12-15 00:00:00 UTC
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Will Honeywell Stock Rise Following A 9% Fall In A Month?
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DE
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https://www.nasdaq.com/articles/will-honeywell-stock-rise-following-a-9-fall-in-a-month
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nan
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nan
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The stock price of Honeywell (NYSE: HON) continues to underperform the broader indices. While the S&P500 index has seen a rise of 10% over the last six months, HON stock is down around 9%. Now, many of the industrial stocks, including MMM, CAT, and GE, have also underperformed the broader markets with negative returns of around 10% or more in the last six months. More recently, the concerns of the new Covid-19 variant – Omicron – and its impact on economic growth has spooked the markets at large. Industrial stocks, such as Honeywell and General Electric, have exposure to the Aerospace segment, with airlines being one of the worst hit sectors during the pandemic. For Honeywell, unlike some of the other industrial companies, including Caterpillar and Deere, the rebound in sales has been slower. In fact, its Aerospace segment sales are still down 5% y-o-y for the nine months period ending September 2021.
Now, with reports emerging that the impact of Omicron on the overall economic growth may not be as profound as earlier anticipated, this has given a breather to the overall markets. And despite the lower sales for Aerospace, the company has posted overall revenue growth so far this year, led by gains across its other segments – Building Technologies, Performance Materials, and Safety & Productivity Solutions. Our Honeywell Revenues dashboard provides more details on the company’s segments.
Looking forward, if Omicron doesn’t result in a spike in total Covid-19 cases, the commercial airlines industry at large should continue to rebound, boding well for Honeywell. And, going by our Honeywell Valuation of $248 per share, based on EPS estimate of $8.03 and a P/E multiple of 31x in 2021, there is an upside potential of 20% from the current market price of around $206.
But what about the near term, given that HON stock has seen a fall of 9.5% in a month? Going by its historical performance, there is a strong chance of a rise in HON stock over the next month. Out of 40 instances in the last ten years that HON stock saw a twenty-one day fall of 9.5% or more, 33 of them resulted in HON stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 33 out of 40, or a strong 83% chance of a rise in HON stock over the coming month. See our analysis on Honeywell Stock Chances of Rise for more details.
While HON stock may see higher levels going forward, it is helpful to see how its peers stack up. Check out Honeywell Stock Comparison With Peers to see how HON stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving 1.0% or more over a five-day period, the stock rose in the next five days on 52% of the occasions.
After moving -2.9% or more over a ten-day period, the stock rose in the next ten days on 67% of the occasions
After moving -9.5% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 83% of the occasions.
This pattern suggests that there are higher chances of a rise in HON stock over the next five to ten days, as well as over the next one month period.
Honeywell (HON) Stock Return (Recent) Comparison With Peers
Five-Day Return: MMM highest at 3.3%; MOG.A lowest at 0.4%
Ten-Day Return: ROK highest at 0.5%; MOG.A lowest at -5.9%
Twenty-One Days Return: ROK highest at 3.3%; MOG.A lowest at -12.4%
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Dec 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
HON Return -10% -3% 86%
S&P 500 Return 0% 24% 109%
Trefis MS Portfolio Return 0% 44% 288%
[1] Month-to-date and year-to-date as of 12/10/2021
[2] Cumulative total returns since 2017
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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And despite the lower sales for Aerospace, the company has posted overall revenue growth so far this year, led by gains across its other segments – Building Technologies, Performance Materials, and Safety & Productivity Solutions. The stock price of Honeywell (NYSE: HON) continues to underperform the broader indices. While the S&P500 index has seen a rise of 10% over the last six months, HON stock is down around 9%.
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The stock price of Honeywell (NYSE: HON) continues to underperform the broader indices. While the S&P500 index has seen a rise of 10% over the last six months, HON stock is down around 9%. Now, many of the industrial stocks, including MMM, CAT, and GE, have also underperformed the broader markets with negative returns of around 10% or more in the last six months.
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The stock price of Honeywell (NYSE: HON) continues to underperform the broader indices. While the S&P500 index has seen a rise of 10% over the last six months, HON stock is down around 9%. Now, many of the industrial stocks, including MMM, CAT, and GE, have also underperformed the broader markets with negative returns of around 10% or more in the last six months.
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The stock price of Honeywell (NYSE: HON) continues to underperform the broader indices. While the S&P500 index has seen a rise of 10% over the last six months, HON stock is down around 9%. Now, many of the industrial stocks, including MMM, CAT, and GE, have also underperformed the broader markets with negative returns of around 10% or more in the last six months.
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bba53cf5-a6c6-46e1-951b-dac6e286f356
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721354.0
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2021-12-14 00:00:00 UTC
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Deere & Co. To Acquire Majority Ownership In Kreisel Electric; Terms Undisclosed
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DE
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https://www.nasdaq.com/articles/deere-co.-to-acquire-majority-ownership-in-kreisel-electric-terms-undisclosed
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nan
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nan
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(RTTNews) - Deere & Co. (DE) agreed to acquire majority ownership in Kreisel Electric, Inc., a battery technology provider based in Rainbach im Mühlkreis, Austria. Financial details are not being disclosed.
Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base. The company was founded by brothers Johann, Markus, and Philipp Kreisel, and has approximately 160 full-time employees.
The transaction requires final regulatory approval in Austria, with closing expected to take place in approximately 60 days.
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 & Co. (DE) agreed to acquire majority ownership in Kreisel Electric, Inc., a battery technology provider based in Rainbach im Mühlkreis, Austria. Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base. Financial details are not being disclosed.
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(RTTNews) - Deere & Co. (DE) agreed to acquire majority ownership in Kreisel Electric, Inc., a battery technology provider based in Rainbach im Mühlkreis, Austria. Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base. The company was founded by brothers Johann, Markus, and Philipp Kreisel, and has approximately 160 full-time employees.
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(RTTNews) - Deere & Co. (DE) agreed to acquire majority ownership in Kreisel Electric, Inc., a battery technology provider based in Rainbach im Mühlkreis, Austria. Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base. Financial details are not being disclosed.
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(RTTNews) - Deere & Co. (DE) agreed to acquire majority ownership in Kreisel Electric, Inc., a battery technology provider based in Rainbach im Mühlkreis, Austria. Financial details are not being disclosed. Kreisel Electric will retain its employees, brand name, and trademark, and continue to operate from its current location in Austria to serve its growing customer base.
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7ead98eb-1077-4ded-ae32-0c9f0a179433
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721355.0
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2021-12-13 00:00:00 UTC
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Chickens, tractors, grain silos destroyed by deadly U.S. tornadoes
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DE
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https://www.nasdaq.com/articles/chickens-tractors-grain-silos-destroyed-by-deadly-u.s.-tornadoes-0
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nan
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nan
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By Tom Polansek
CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday.
At least 64 people, including six children, lost their lives in Kentucky after a raft of tornadoes tore through six states.
"We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner.
The destruction in the Midwest could further raise already high chicken prices and add to supply-chain headaches that have made it difficult for farmers to replace tractor parts.
Poultry is Kentucky's top agricultural commodity, and at least a dozen chicken barns collapsed, Quarles said. The state is working with the U.S. Environmental Protection Agency to properly kill and dispose of injured chickens housed in barns that were destroyed, he said.
President Joe Biden will visit the state on Wednesday to survey the damage.
A Pilgrim's Pride hatchery in Mayfield, Kentucky, that supplied chickens to local farmers was wiped out, Quarles said.
Damage to the hatchery "automatically triggers a multi-month delay in the processing and raising of chickens because the hatchery simply is not there anymore to supply the farmers," Quarles said.
Pilgrim's Pride, which is mostly owned by Brazilian meatpacker JBS SA JBSS3.SA, did not immediately respond to a request for comment.
Mayfield is in Kentucky's top county for agricultural sales, accounting for 6% of the state's total farm sales, according to U.S. Department of Agriculture data, though the state is not a top grain producer. Kentucky held 1.5% of U.S. corn stocks in December 2020, the USDA said.
"Lots of farmer elevators damaged. Some small feed mills have damage with indefinite timelines," said Andrew Jackson, broker at Producers Hedge, in Lancaster, Kentucky.
Mayfield Grain Company, a grain handler, had roofs pulled off of parts of a storage system that holds 6 million bushels of grain in Mayfield, Quarles said. That's enough corn to fill two Panamax vessels -- each ship the length of two football fields.
Photos on Twitter showed yellow corn visible from the tops of bins that lost their roofs. The company had no immediate comment.
"You have millions of bushels of corn, much of which was just freshly harvested, being exposed to the elements, being damaged," Quarles said.
"We're looking for ways to recover spilled grain but also divert the storage and movement of grain to other facilities around the state."
Quarles said the agriculture department will help farmers find buyers for grain amid reduced demand for feed from livestock and poultry producers who suffered losses.
Hutson Inc, a company that sells Deere equipment, said its flagship store in Mayfield was "destroyed by one of the worst natural disasters to ever hit the state."
Workers "waded through debris and used what equipment they could salvage to assist with rescue efforts at a candle plant located next to us that had mass casualties," Chief Executive Josh Waggener said in a statement online.
Deere had no immediate comment about the dealer.
"It's just completely gone," Quarles said.
'From grief to shock': Tornadoes kill at least 64 in Kentucky
FOCUS-'Desperate for tires.' Components shortage roils U.S. harvest
(Reporting by Tom Polansek, Christopher Walljasper and Mark Weinraub in Chicago; Editing by Caroline Stauffer and Lisa Shumaker)
((Thomas.Polansek@thomsonreuters.com; https://twitter.com/tpolansek))
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 Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. Quarles said the agriculture department will help farmers find buyers for grain amid reduced demand for feed from livestock and poultry producers who suffered losses. Workers "waded through debris and used what equipment they could salvage to assist with rescue efforts at a candle plant located next to us that had mass casualties," Chief Executive Josh Waggener said in a statement online.
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By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. A Pilgrim's Pride hatchery in Mayfield, Kentucky, that supplied chickens to local farmers was wiped out, Quarles said. "We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner.
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By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. "We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner. Mayfield is in Kentucky's top county for agricultural sales, accounting for 6% of the state's total farm sales, according to U.S. Department of Agriculture data, though the state is not a top grain producer.
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"We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner. Damage to the hatchery "automatically triggers a multi-month delay in the processing and raising of chickens because the hatchery simply is not there anymore to supply the farmers," Quarles said. By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday.
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5eaf57df-dca6-4461-b827-5757863fe7cb
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721356.0
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2021-12-13 00:00:00 UTC
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Chickens, tractors, grain silos destroyed by deadly U.S. tornadoes
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DE
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https://www.nasdaq.com/articles/chickens-tractors-grain-silos-destroyed-by-deadly-u.s.-tornadoes
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nan
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nan
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By Tom Polansek
CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday.
At least 64 people, including six children, lost their lives in Kentucky after a raft of tornadoes tore through six states.
"We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner.
The destruction in the Midwest could further raise already high chicken prices and add to supply-chain headaches that have made it difficult for farmers to replace tractor parts.
Poultry is Kentucky's top agricultural commodity, and at least a dozen chicken barns collapsed, Quarles said. The state is working with the U.S. Environmental Protection Agency to properly kill and dispose of injured chickens housed in barns that were destroyed, he said.
A Pilgrim's Pride hatchery in Mayfield, Kentucky, that supplied chickens to local farmers was wiped out, Quarles said.
Damage to the hatchery "automatically triggers a multi-month delay in the processing and raising of chickens because the hatchery simply is not there anymore to supply the farmers," Quarles said.
Pilgrim's Pride, which is mostly owned by Brazilian meatpacker JBS SA JBSS3.SA, did not immediately respond to a request for comment.
Mayfield is in Kentucky's top county for agricultural sales, accounting for 6% of the state's total farm sales, according to U.S. Department of Agriculture data, though the state is not a top grain producer. Kentucky held 1.5% of U.S. corn stocks in December 2020, the USDA said.
"Lots of farmer elevators damaged. Some small feed mills have damage with indefinite timelines," said Andrew Jackson, broker at Producers Hedge, in Lancaster, Kentucky.
Mayfield Grain Company, a grain handler, had roofs pulled off of parts of a storage system that holds 6 million bushels of grain in Mayfield, Quarles said. That's enough corn to fill two Panamax vessels -- each ship the length of two football fields.
Photos on Twitter showed yellow corn visible from the tops of bins that lost their roofs. The company had no immediate comment.
"You have millions of bushels of corn, much of which was just freshly harvested, being exposed to the elements, being damaged," Quarles said.
"We're looking for ways to recover spilled grain but also divert the storage and movement of grain to other facilities around the state."
Quarles said the agriculture department will help farmers find buyers for grain amid reduced demand for feed from livestock and poultry producers who suffered losses.
Hutson Inc, a company that sells Deere equipment, said its flagship store in Mayfield was "destroyed by one of the worst natural disasters to ever hit the state."
Workers "waded through debris and used what equipment they could salvage to assist with rescue efforts at a candle plant located next to us that had mass casualties," Chief Executive Josh Waggener said in a statement online.
Deere had no immediate comment about the dealer.
"It's just completely gone," Quarles said.
'From grief to shock': Tornadoes kill at least 64 in Kentucky
FOCUS-'Desperate for tires.' Components shortage roils U.S. harvest
(Reporting by Tom Polansek, Christopher Walljasper and Mark Weinraub in Chicago; Editing by Caroline Stauffer and Lisa Shumaker)
((Thomas.Polansek@thomsonreuters.com; https://twitter.com/tpolansek))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. Quarles said the agriculture department will help farmers find buyers for grain amid reduced demand for feed from livestock and poultry producers who suffered losses. Workers "waded through debris and used what equipment they could salvage to assist with rescue efforts at a candle plant located next to us that had mass casualties," Chief Executive Josh Waggener said in a statement online.
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By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. A Pilgrim's Pride hatchery in Mayfield, Kentucky, that supplied chickens to local farmers was wiped out, Quarles said. "We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner.
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By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday. "We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner. Mayfield is in Kentucky's top county for agricultural sales, accounting for 6% of the state's total farm sales, according to U.S. Department of Agriculture data, though the state is not a top grain producer.
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"We have a 200-mile swath through Kentucky that has pulled-down grain systems, destroyed chicken hatcheries and of course blown-over barns," said Ryan Quarles, Kentucky's agriculture commissioner. Damage to the hatchery "automatically triggers a multi-month delay in the processing and raising of chickens because the hatchery simply is not there anymore to supply the farmers," Quarles said. By Tom Polansek CHICAGO, Dec 13 (Reuters) - A Deere & Co DE.N dealership and a Pilgrim's Pride Corp PPC.O chicken hatchery were destroyed when deadly tornadoes swept through Kentucky on Friday, while silos holding millions of bushels of corn suffered damage, the state's agriculture commissioner said on Monday.
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6325dfaa-d295-4ef2-b300-c1b3ef516731
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721357.0
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2021-12-13 00:00:00 UTC
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John Deere Expands U.S. Footprint; To Add Up To 300 Jobs - Quick Facts
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DE
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https://www.nasdaq.com/articles/john-deere-expands-u.s.-footprint-to-add-up-to-300-jobs-quick-facts
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nan
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nan
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(RTTNews) - Deere & Co. (DE) announced Monday the expansion of its U.S. footprint with the opening of a new Chicago office where it plans to add 150 Information Technology jobs over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles within the company.
Initially, the facility will target IT capabilities in eCommerce, cloud, data and analytics, and a variety of innovation related technical skills.
The new facility, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration. The new office is expected to open in late summer or early fall of 2022.
The investment in Chicago includes an EDGE agreement offered by the Illinois Department of Commerce and Economic Opportunity (DCEO), a program to support companies making large-scale capital investments and long-term job creation commitments in Illinois communities.
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 & Co. (DE) announced Monday the expansion of its U.S. footprint with the opening of a new Chicago office where it plans to add 150 Information Technology jobs over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles within the company. The new facility, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration. The investment in Chicago includes an EDGE agreement offered by the Illinois Department of Commerce and Economic Opportunity (DCEO), a program to support companies making large-scale capital investments and long-term job creation commitments in Illinois communities.
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(RTTNews) - Deere & Co. (DE) announced Monday the expansion of its U.S. footprint with the opening of a new Chicago office where it plans to add 150 Information Technology jobs over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles within the company. The investment in Chicago includes an EDGE agreement offered by the Illinois Department of Commerce and Economic Opportunity (DCEO), a program to support companies making large-scale capital investments and long-term job creation commitments in Illinois communities. The new facility, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration.
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(RTTNews) - Deere & Co. (DE) announced Monday the expansion of its U.S. footprint with the opening of a new Chicago office where it plans to add 150 Information Technology jobs over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles within the company. The investment in Chicago includes an EDGE agreement offered by the Illinois Department of Commerce and Economic Opportunity (DCEO), a program to support companies making large-scale capital investments and long-term job creation commitments in Illinois communities. The new facility, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration.
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(RTTNews) - Deere & Co. (DE) announced Monday the expansion of its U.S. footprint with the opening of a new Chicago office where it plans to add 150 Information Technology jobs over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles within the company. The new facility, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration. The investment in Chicago includes an EDGE agreement offered by the Illinois Department of Commerce and Economic Opportunity (DCEO), a program to support companies making large-scale capital investments and long-term job creation commitments in Illinois communities.
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0c9be020-a427-495f-995b-2f383d371081
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721358.0
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2021-12-09 00:00:00 UTC
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Daily Dividend Report: PM,AXP,SYK,DE,MO,JCI
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DE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-pmaxpsykdemojci
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nan
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nan
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The Board of Directors of Philip Morris International today declared a regular quarterly dividend of $1.25 per common share, payable on January 10, 2022, to shareholders of record as of December 23, 2021. The ex-dividend date is December 22, 2021.
The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on February 10, 2022, to shareholders of record on January 7, 2022.
Stryker announced that its Board of Directors has declared a quarterly dividend of $0.695 per share payable January 31, 2022 to shareholders of record at the close of business on December 31, 2021, representing an increase of 10.3% versus the prior year and previous quarter.
The Deere Board of Directors today declared a regular quarterly dividend of $1.05 per share on the company's common stock. The dividend is payable February 8, 2022 to stockholders of record on December 31, 2021.
Altria Group today announced that its Board of Directors declared a regular quarterly dividend of $0.90 per share, payable on January 10, 2022 to shareholders of record as of December 23, 2021. The ex-dividend date is December 22, 2021.
Johnson Controls, the global leader for smart, healthy and sustainable buildings, today announced an increase to its regular quarterly cash dividend to $0.34 per common share, from $0.27 previously, representing an increase of 26 percent. The increase will be effective from the fiscal first quarter dividend payment, which was approved by the Board of Directors today and will be payable on January 14, 2022 to shareholders of record at the close of business on December 20, 2021. Johnson Controls has paid a consecutive dividend since 1887.
VIDEO: Daily Dividend Report: PM,AXP,SYK,DE,MO,JCI
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 Board of Directors of Philip Morris International today declared a regular quarterly dividend of $1.25 per common share, payable on January 10, 2022, to shareholders of record as of December 23, 2021. The ex-dividend date is December 22, 2021. Altria Group today announced that its Board of Directors declared a regular quarterly dividend of $0.90 per share, payable on January 10, 2022 to shareholders of record as of December 23, 2021.
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The ex-dividend date is December 22, 2021. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on February 10, 2022, to shareholders of record on January 7, 2022. Stryker announced that its Board of Directors has declared a quarterly dividend of $0.695 per share payable January 31, 2022 to shareholders of record at the close of business on December 31, 2021, representing an increase of 10.3% versus the prior year and previous quarter.
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The Board of Directors of Philip Morris International today declared a regular quarterly dividend of $1.25 per common share, payable on January 10, 2022, to shareholders of record as of December 23, 2021. The ex-dividend date is December 22, 2021. Stryker announced that its Board of Directors has declared a quarterly dividend of $0.695 per share payable January 31, 2022 to shareholders of record at the close of business on December 31, 2021, representing an increase of 10.3% versus the prior year and previous quarter.
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The ex-dividend date is December 22, 2021. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on February 10, 2022, to shareholders of record on January 7, 2022. Altria Group today announced that its Board of Directors declared a regular quarterly dividend of $0.90 per share, payable on January 10, 2022 to shareholders of record as of December 23, 2021.
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134f6bd3-887a-44fe-9631-90aeb1d8bf8b
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721359.0
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2021-12-08 00:00:00 UTC
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Interesting DE Put And Call Options For April 2022
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DE
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https://www.nasdaq.com/articles/interesting-de-put-and-call-options-for-april-2022
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the April 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 127 days until expiration the newly trading 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 April 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $350.00 strike price has a current bid of $21.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $350.00, but will also collect the premium, putting the cost basis of the shares at $328.35 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $360.03/share today.
Because the $350.00 strike represents an approximate 3% 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 59%. 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 6.19% return on the cash commitment, or 17.78% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $370.00 strike price has a current bid of $20.90. If an investor was to purchase shares of DE stock at the current price level of $360.03/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $370.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.57% if the stock gets called away at the April 2022 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red:
Considering the fact that the $370.00 strike represents an approximate 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 53%. 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 5.81% boost of extra return to the investor, or 16.69% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 31%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $360.03) to be 30%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if DE shares really soar, which is why looking at the trailing twelve month trading history for Deere & Co., as well as studying the business fundamentals becomes important. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 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 begin trading today, for the April 2022 expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 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 begin trading today, for the April 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new April 2022 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $350.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $370.00 strike price has a current bid of $20.90. Below is a chart showing DE's trailing twelve month trading history, with the $370.00 strike highlighted in red: Considering the fact that the $370.00 strike represents an approximate 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 April 2022 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 $370.00 strike highlighted in red: Considering the fact that the $370.00 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 begin trading today, for the April 2022 expiration.
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8851cfa0-8066-40e0-be48-56215a74a5a8
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721360.0
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2021-12-07 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, C, DXCM
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DE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-de-c-dxcm
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 9,206 contracts have traded so far, representing approximately 920,600 underlying shares. That amounts to about 49.8% of DE's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $370 strike call option expiring December 10, 2021, with 471 contracts trading so far today, representing approximately 47,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange:
Citigroup Inc (Symbol: C) saw options trading volume of 97,590 contracts, representing approximately 9.8 million underlying shares or approximately 46% of C's average daily trading volume over the past month, of 21.2 million shares. Especially high volume was seen for the $55 strike put option expiring December 17, 2021, with 14,306 contracts trading so far today, representing approximately 1.4 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $55 strike highlighted in orange:
And DexCom Inc (Symbol: DXCM) options are showing a volume of 3,086 contracts thus far today. That number of contracts represents approximately 308,600 underlying shares, working out to a sizeable 41.5% of DXCM's average daily trading volume over the past month, of 744,015 shares. Particularly high volume was seen for the $420 strike put option expiring January 21, 2022, with 1,068 contracts trading so far today, representing approximately 106,800 underlying shares of DXCM. Below is a chart showing DXCM's trailing twelve month trading history, with the $420 strike highlighted in orange:
For the various different available expirations for DE options, C options, or DXCM 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 $370 strike call option expiring December 10, 2021, with 471 contracts trading so far today, representing approximately 47,100 underlying shares of DE. Especially high volume was seen for the $55 strike put option expiring December 17, 2021, with 14,306 contracts trading so far today, representing approximately 1.4 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $55 strike highlighted in orange: And DexCom Inc (Symbol: DXCM) options are showing a volume of 3,086 contracts thus far today. Particularly high volume was seen for the $420 strike put option expiring January 21, 2022, with 1,068 contracts trading so far today, representing approximately 106,800 underlying shares of DXCM.
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Especially high volume was seen for the $370 strike call option expiring December 10, 2021, with 471 contracts trading so far today, representing approximately 47,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange: Citigroup Inc (Symbol: C) saw options trading volume of 97,590 contracts, representing approximately 9.8 million underlying shares or approximately 46% of C's average daily trading volume over the past month, of 21.2 million shares. Especially high volume was seen for the $55 strike put option expiring December 17, 2021, with 14,306 contracts trading so far today, representing approximately 1.4 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $55 strike highlighted in orange: And DexCom Inc (Symbol: DXCM) options are showing a volume of 3,086 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 Deere & Co. (Symbol: DE), where a total of 9,206 contracts have traded so far, representing approximately 920,600 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange: Citigroup Inc (Symbol: C) saw options trading volume of 97,590 contracts, representing approximately 9.8 million underlying shares or approximately 46% of C's average daily trading volume over the past month, of 21.2 million shares. Especially high volume was seen for the $55 strike put option expiring December 17, 2021, with 14,306 contracts trading so far today, representing approximately 1.4 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $55 strike highlighted in orange: And DexCom Inc (Symbol: DXCM) options are showing a volume of 3,086 contracts thus far today.
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Especially high volume was seen for the $370 strike call option expiring December 10, 2021, with 471 contracts trading so far today, representing approximately 47,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $370 strike highlighted in orange: Citigroup Inc (Symbol: C) saw options trading volume of 97,590 contracts, representing approximately 9.8 million underlying shares or approximately 46% of C's average daily trading volume over the past month, of 21.2 million shares. Especially high volume was seen for the $55 strike put option expiring December 17, 2021, with 14,306 contracts trading so far today, representing approximately 1.4 million underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $55 strike highlighted in orange: And DexCom Inc (Symbol: DXCM) options are showing a volume of 3,086 contracts thus far today.
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061c05d5-3f93-4a3d-b325-1819df6baa62
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721361.0
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2021-12-05 00:00:00 UTC
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This Transmissions Company Is Likely To Offer Better Returns Over Caterpillar Stock
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DE
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https://www.nasdaq.com/articles/this-transmissions-company-is-likely-to-offer-better-returns-over-caterpillar-stock
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nan
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nan
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We think that Allison Transmission Holdings stock (NYSE: ALSN), a relatively small company that manufactures commercial duty automatic transmissions and hybrid propulsion systems with a market cap of under $4 billion, currently is a better pick compared to its industry peer Caterpillar stock (NYSE: CAT), given its lower valuation. Allison trades at about 1.6x trailing revenues, compared to 2.3x for Caterpillar.
Both the stocks have underperformed with -20% returns for ALSN stock and 6% gains for CAT stock year-to-date, compared to 22% growth for the broader S&P 500. Caterpillar saw a fall in demand for its equipment, primarily for construction use, during the pandemic, but recovered sharply over the last twelve months. Allison’s defense business, although small in size (<10% of total sales), expanded 21% even during the pandemic, partly offsetting the declines from other segments. While both the companies saw around 22% plunge in sales during the pandemic, the recovery in sales has been better for Caterpillar.
However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth. Our dashboard Caterpillar vs Allison Transmission Holdings: Industry Peers; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below.
1. Comparing Revenue Growth of Caterpillar And Allison
Caterpillar’s revenue growth of 25% over the last quarter was much higher than 6% growth for Allison, led by strong 30% growth in construction equipment revenues, driven by a rebound in non-residential construction demand.
Allison’s revenue growth was adversely impacted by supply chain issues, labor, and raw materials constraints that have weighed on the overall commercial vehicle supply.
Looking at an even longer time frame, Caterpillar’s last three-year revenue CAGR of -1.2% is the same as for Allison.
Looking forward, Allison is expected to see slightly better revenue growth of 17%, vs. 15% for Caterpillar, going by the companies’ historical growth pattern.
With economies now opening up, the demand for industrial equipment as well as commercial vehicles is likely to remain high in the near term, boding well for revenue growth of both the companies. Our Caterpillar Revenues dashboard provides more insight on the company’s revenues.
2. Allison Is More Profitable
Allison’s operating margin of 22% over the last twelve month period is much better than the 13% for Caterpillar, and it compares with 28% and 15% figures in 2019, before the pandemic, respectively.
However, if we were to look at the last three-year change in operating margin, Caterpillar’s 20 bps fall is better than a 370 bps decline for Allison.
Overall, Allison’s operating margin has historically been better than Caterpillar, and this trend will likely continue going forward as well. Our Caterpillar Operating Income Comparison and Allison Transmission Holdings Operating Income Comparison provides more details on the margins.
3. The Net of It All
Now that nearly 60% of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for construction as well other industrial equipment is likely to rise going forward, boding well for Caterpillar. For Allison, a broader shift to low emission vehicles is likely to pave the way for continued growth for the company, given its product-line, including eGEN Flex, which is a zero-emission electric hybrid propulsion system.
That said, Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in some of the geographies, including Europe, are higher than what they were a few months back. The concerns around Omicron has spooked the markets at large with one confirmed case in the U.S., as well. If there is another large spike in Covid-19 cases from the new variant, it will disrupt economic recovery and impact sales as well as earnings growth of companies. This may result in pressure on margins in the near term for both the companies.
Not only is the current valuation of Allison a little more attractive than that of Caterpillar, with ALSN stock trading at about 1.6x trailing revenues, versus 2.3x for CAT stock, Allison offers superior operating margins.
However, if we were to look at financial risk, Caterpillar’s debt as a percentage of its equity is lower at 3% vs. 69% for Allison. Also, Caterpillar’s 12% cash as percentage of assets is far better than the 6% figure for Allison, implying that Allison has higher financial risk compared to Caterpillar.
Overall, Allison’s superior profitability and better revenue growth prospects, albeit at a higher risk, make it a better pick between the two.
Looking forward, it is likely that the gap in valuation of these two companies will narrow in favor of the more attractive stock – ALSN, in our view.
The table below summarizes our revenue and return expectation for CAT and ALSN over the next three years, and points to an expected return of 65% for ALSN over this period vs. 39% for CAT. Our dashboard Caterpillar vs Allison Transmission Holdings has more details on how we arrive at these numbers.
While ALSN stock may see higher levels, 2020 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 Allison Transmission vs. Atlas Air.
Wondering how Caterpillar peers stack up? Check out Caterpillar Stock Comparison With Peers to see how CAT stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Dec 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
CAT Return -7% 6% 108%
ALSN Return 6% -17% 6%
S&P 500 Return -1% 22% 104%
Trefis MS Portfolio Return -1% 43% 290%
[1] Month-to-date and year-to-date as of 12/2/2021
[2] Cumulative total returns since 2017
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 Net of It All Now that nearly 60% of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for construction as well other industrial equipment is likely to rise going forward, boding well for Caterpillar. For Allison, a broader shift to low emission vehicles is likely to pave the way for continued growth for the company, given its product-line, including eGEN Flex, which is a zero-emission electric hybrid propulsion system. We think that Allison Transmission Holdings stock (NYSE: ALSN), a relatively small company that manufactures commercial duty automatic transmissions and hybrid propulsion systems with a market cap of under $4 billion, currently is a better pick compared to its industry peer Caterpillar stock (NYSE: CAT), given its lower valuation.
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We think that Allison Transmission Holdings stock (NYSE: ALSN), a relatively small company that manufactures commercial duty automatic transmissions and hybrid propulsion systems with a market cap of under $4 billion, currently is a better pick compared to its industry peer Caterpillar stock (NYSE: CAT), given its lower valuation. Allison trades at about 1.6x trailing revenues, compared to 2.3x for Caterpillar. Both the stocks have underperformed with -20% returns for ALSN stock and 6% gains for CAT stock year-to-date, compared to 22% growth for the broader S&P 500.
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We think that Allison Transmission Holdings stock (NYSE: ALSN), a relatively small company that manufactures commercial duty automatic transmissions and hybrid propulsion systems with a market cap of under $4 billion, currently is a better pick compared to its industry peer Caterpillar stock (NYSE: CAT), given its lower valuation. Comparing Revenue Growth of Caterpillar And Allison Caterpillar’s revenue growth of 25% over the last quarter was much higher than 6% growth for Allison, led by strong 30% growth in construction equipment revenues, driven by a rebound in non-residential construction demand. Allison trades at about 1.6x trailing revenues, compared to 2.3x for Caterpillar.
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Comparing Revenue Growth of Caterpillar And Allison Caterpillar’s revenue growth of 25% over the last quarter was much higher than 6% growth for Allison, led by strong 30% growth in construction equipment revenues, driven by a rebound in non-residential construction demand. Our Caterpillar Operating Income Comparison and Allison Transmission Holdings Operating Income Comparison provides more details on the margins. We think that Allison Transmission Holdings stock (NYSE: ALSN), a relatively small company that manufactures commercial duty automatic transmissions and hybrid propulsion systems with a market cap of under $4 billion, currently is a better pick compared to its industry peer Caterpillar stock (NYSE: CAT), given its lower valuation.
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67d7a9cc-003a-4be0-8c7e-0d90dce3c743
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721362.0
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2021-12-03 00:00:00 UTC
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U.S. job growth likely picked up; unemployment rate seen at 20-month low
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DE
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https://www.nasdaq.com/articles/u.s.-job-growth-likely-picked-up-unemployment-rate-seen-at-20-month-low
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nan
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nan
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By Lucia Mutikani
WASHINGTON, Dec 3 (Reuters) - U.S. employers likely stepped up hiring in November as they scrambled to meet strong demand for goods and services, giving the economy a strong boost as another challenging year draws to a close, though worker shortages remained a constraint.
The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. It would come days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at its Dec. 14-15 policy meeting.
"There is clearly massive demand out there for workers. The bigger issue is the supply to meet that demand," said James Knightley, chief international economist at ING in New York. "If supply doesn't show any meaningful increase, that would suggest we are going to be in a situation where the labor market is going to continue to add to upside inflationary pressures."
Nonfarm payrolls likely increased by 550,000 jobs last month after rising 531,000 in October, according to a Reuters survey of economists. That would leave employment about 3.7 million jobs below its peak in February 2020. Estimates ranged from as low as 306,000 to as high as 800,000 jobs.
Strong employment gains would add to solid consumer spending and manufacturing data in suggesting that the economy was accelerating after hitting a speed bump in the third quarter. They would also put an early interest rate increase from the Fed on the table. The Omicron variant of COVID-19, however, poses a risk to the brightening picture.
While little is known about Omicron, some slowdown in hiring and demand for services is likely, based on the experience with Delta, which was responsible for the slowest economic growth pace in more than a year last quarter.
"No company wants to hire more labor if there isn't going to be a demand for that labor," said David Wagner, portfolio manager at Aptus Capital Advisors in Cincinnati, Ohio.
For now, the stars are perfectly aligned for November's employment report. First-time applications for unemployment benefits were near their pre-pandemic levels in mid-November. The ADP National Employment report on Wednesday showed strong private payrolls growth last month.
A measure of manufacturing employment hit a seven-month high, a survey from the Institute for Supply Management showed.
The Conference Board's labor market differential - derived from data on consumers' views on whether jobs are plentiful or hard to get - jumped to a record high in November.
ELEVATED WAGE PRESSURES
The anticipated drop in the unemployment rate to 4.5% from 4.6% in October would leave the jobless rate down 1.8 percentage points from January. There were 10.4 million job openings at the end of September.
With the labor market tightening, companies are boosting wages. Average hourly earnings are forecast rising 0.4%, matching October's gain. That would lift the annual increase in wages to 5.0% from 4.9% in October.
But the higher wages are not luring millions of Americans who lost their jobs during the pandemic recession back into the labor force. About 3 million people remain outside the workforce also despite generous federal government-funded unemployment benefits ending in September and schools reopening for in-person learning.
Economists say a strong stock market and rising house prices have increased wealth for many Americans, encouraging early retirements. Households have also accumulated massive savings and there has been a surge in self-employment.
"An unwinding of the forces keeping workers out of the labor force will not occur overnight, and with a sizable chunk of exits concentrated among retirees, the jobs market is set to remain tight," said Sarah House, a senior economist at Wells Fargo in Charlotte, North Carolina. "Wage pressures are likely to remain elevated and full employment is nearer in sight."
Employment gains in November were likely led by leisure and hospitality businesses, following a pattern similar to October. Manufacturing likely added 45,000 jobs compared to 60,000 in October, probably held back by a since-ended strike at John Deere DE.N, involving about 10,000 workers.
A rebound in government payrolls is expected after three straight monthly declines. Pandemic-related staffing fluctuations have distorted normal seasonal patterns at state and local government education. There have been shortages of bus drivers and other support staff.
"Governments generally cannot easily raise wages or offer hiring bonuses to compete with private sector employers," said Dean Baker, senior economist at the Center for Economic and Policy Research in Washington. "Over time, they can arrange for needed pay increases, which may lead to a reversal in job loss in November."
(Reporting by Lucia Mutikani; Editing by Dan Burns and Andrea Ricci)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters Messaging: lucia.mutikani.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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The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. It would come days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at its Dec. 14-15 policy meeting. "Governments generally cannot easily raise wages or offer hiring bonuses to compete with private sector employers," said Dean Baker, senior economist at the Center for Economic and Policy Research in Washington.
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By Lucia Mutikani WASHINGTON, Dec 3 (Reuters) - U.S. employers likely stepped up hiring in November as they scrambled to meet strong demand for goods and services, giving the economy a strong boost as another challenging year draws to a close, though worker shortages remained a constraint. The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. It would come days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at its Dec. 14-15 policy meeting.
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By Lucia Mutikani WASHINGTON, Dec 3 (Reuters) - U.S. employers likely stepped up hiring in November as they scrambled to meet strong demand for goods and services, giving the economy a strong boost as another challenging year draws to a close, though worker shortages remained a constraint. The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. It would come days after Federal Reserve Chair Jerome Powell told lawmakers that the U.S. central bank should consider speeding up the winding down of its massive bond purchases at its Dec. 14-15 policy meeting.
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The Labor Department's closely watched employment report on Friday is expected to show a rapidly tightening jobs market, with the unemployment rate seen falling to a 20-month low of 4.5% and wages increasing further. "There is clearly massive demand out there for workers. By Lucia Mutikani WASHINGTON, Dec 3 (Reuters) - U.S. employers likely stepped up hiring in November as they scrambled to meet strong demand for goods and services, giving the economy a strong boost as another challenging year draws to a close, though worker shortages remained a constraint.
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f2db70ee-ef93-4c90-b228-fd2fa7ff28bd
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721363.0
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2021-12-02 00:00:00 UTC
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CNH Industrial buys software house NX9 to bolster agriculture business
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DE
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https://www.nasdaq.com/articles/cnh-industrial-buys-software-house-nx9-to-bolster-agriculture-business
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nan
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nan
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MILAN, Dec 2 (Reuters) - Vehicle maker CNH Industrial CNHI.MI has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations.
U.S.-based NX9 is a small software house specializing in so-called 'ISOBUS' technology for agricultural equipment, an industry-standard communication protocol which allows machines and implements to talk to each other, CNH said in a statement.
No financial details of the deal were disclosed.
The investment builds upon the company's strategic effort "to more efficiently innovate and develop products in the precision agriculture space", CNH Industrial said.
The Italian-American group, which is controlled by Exor EXOR.MI, the holding company of Italy's Agnelli family, will complete on Jan. 3 a plan to spin off its truck and bus units and its FPT engine division and list them under the Iveco Group name.
After the spin-off, CNH - the world's second largest agricultural equipment maker after Deere & Co DE.N, operating under the New Holland, Case IH and Steyr brands - will focus on its agriculture machine and construction equipment businesses.
Earlier this year the group struck a $2.1 billion deal to buy Raven Industries RAVN.O to boost its precision agriculture and autonomy operations.
Last month it entered into a multi-year licensing agreement for electrification technologies with Monarch Tractor, a U.S. company focused on fully electric autonomous tractors.
(Reporting by Giulio Piovaccari; Editing by Jan Harvey)
((giulio.piovaccari@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The investment builds upon the company's strategic effort "to more efficiently innovate and develop products in the precision agriculture space", CNH Industrial said. Earlier this year the group struck a $2.1 billion deal to buy Raven Industries RAVN.O to boost its precision agriculture and autonomy operations. MILAN, Dec 2 (Reuters) - Vehicle maker CNH Industrial CNHI.MI has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations.
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MILAN, Dec 2 (Reuters) - Vehicle maker CNH Industrial CNHI.MI has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations. The investment builds upon the company's strategic effort "to more efficiently innovate and develop products in the precision agriculture space", CNH Industrial said. Earlier this year the group struck a $2.1 billion deal to buy Raven Industries RAVN.O to boost its precision agriculture and autonomy operations.
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MILAN, Dec 2 (Reuters) - Vehicle maker CNH Industrial CNHI.MI has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations. After the spin-off, CNH - the world's second largest agricultural equipment maker after Deere & Co DE.N, operating under the New Holland, Case IH and Steyr brands - will focus on its agriculture machine and construction equipment businesses. Earlier this year the group struck a $2.1 billion deal to buy Raven Industries RAVN.O to boost its precision agriculture and autonomy operations.
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MILAN, Dec 2 (Reuters) - Vehicle maker CNH Industrial CNHI.MI has bought software engineering firm NX9, it said on Thursday, in a further step to boost digital innovation in its agricultural division as it prepares to spin off its truck, bus and engine operations. No financial details of the deal were disclosed. The investment builds upon the company's strategic effort "to more efficiently innovate and develop products in the precision agriculture space", CNH Industrial said.
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a29be5db-bdcf-4be1-a87f-ef1ac0357081
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721364.0
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2021-12-02 00:00:00 UTC
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Kellogg reaches tentative deal with union after 2 months of strike
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DE
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https://www.nasdaq.com/articles/kellogg-reaches-tentative-deal-with-union-after-2-months-of-strike
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nan
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nan
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Adds detail about the agreement, background
Dec 2 (Reuters) - Kellogg Co K.N said on Thursday it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end.
The tentative agreement, reached after multiple rounds of talks with the union, includes wage increases and benefits for all employees and better terms for temporary employees.
The latest agreement allows for all temporary employees with four or more years of service to move to permanent positions with better pay and benefits.
Union members had previously opposed Kellogg's two-tier employment system that did not offer temporary workers, who make up 30% of its workforce, a pathway to become permanent staff.
Employees at Kellogg's cereal plants including Michigan, Nebraska, Pennsylvania and Tennessee went on strike on Oct. 5 after their contracts expired, as negotiations over payment and benefits stalled due to differences between the company and about 1,400 union members.
The new deal, which will be voted on by Kellogg employees on Dec. 5, will also offer permanent employees with better post-retirement benefits.
During lengthy negotiations with union members, Kellogg had hired permanent replacements for some of its plant workers on strike, and also warned of a dent to its annual profit due to the disruption.
Kellogg is one of the several major U.S. companies that has faced worker strikes in the recent past as the labor market tightens and inflation reaches record highs.
Last month, farm equipment maker Deere & Co DE.N reached an agreement with workers after a six week strike.
(Reporting by Maria Ponnezhath in Bengaluru; Editing by Arun Koyyur and Shinjini Ganguli)
((Maria.Ponnezhath@thomsonreuters.com; +91 8061822749;))
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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During lengthy negotiations with union members, Kellogg had hired permanent replacements for some of its plant workers on strike, and also warned of a dent to its annual profit due to the disruption. Adds detail about the agreement, background Dec 2 (Reuters) - Kellogg Co K.N said on Thursday it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end. The tentative agreement, reached after multiple rounds of talks with the union, includes wage increases and benefits for all employees and better terms for temporary employees.
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The new deal, which will be voted on by Kellogg employees on Dec. 5, will also offer permanent employees with better post-retirement benefits. During lengthy negotiations with union members, Kellogg had hired permanent replacements for some of its plant workers on strike, and also warned of a dent to its annual profit due to the disruption. Adds detail about the agreement, background Dec 2 (Reuters) - Kellogg Co K.N said on Thursday it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end.
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Adds detail about the agreement, background Dec 2 (Reuters) - Kellogg Co K.N said on Thursday it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end. The tentative agreement, reached after multiple rounds of talks with the union, includes wage increases and benefits for all employees and better terms for temporary employees. The new deal, which will be voted on by Kellogg employees on Dec. 5, will also offer permanent employees with better post-retirement benefits.
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Adds detail about the agreement, background Dec 2 (Reuters) - Kellogg Co K.N said on Thursday it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end. The new deal, which will be voted on by Kellogg employees on Dec. 5, will also offer permanent employees with better post-retirement benefits. The tentative agreement, reached after multiple rounds of talks with the union, includes wage increases and benefits for all employees and better terms for temporary employees.
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1a81af8d-e463-48dc-8faf-d2f51e459164
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721365.0
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2021-12-01 00:00:00 UTC
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A Look At The Intrinsic Value Of Deere & Company (NYSE:DE)
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DE
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https://www.nasdaq.com/articles/a-look-at-the-intrinsic-value-of-deere-company-nyse%3Ade
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nan
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nan
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Deere & Company (NYSE:DE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
What's the estimated valuation?
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) estimate
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Levered FCF ($, Millions) US$6.17b US$7.03b US$7.50b US$7.06b US$8.11b US$8.38b US$8.61b US$8.84b US$9.05b US$9.25b
Growth Rate Estimate Source Analyst x8 Analyst x10 Analyst x3 Analyst x1 Analyst x1 Est @ 3.23% Est @ 2.85% Est @ 2.58% Est @ 2.4% Est @ 2.27%
Present Value ($, Millions) Discounted @ 7.6% US$5.7k US$6.1k US$6.0k US$5.3k US$5.6k US$5.4k US$5.2k US$4.9k US$4.7k US$4.4k
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$53b
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.6%.
Terminal Value (TV)= FCF2031 × (1 + g) ÷ (r – g) = US$9.3b× (1 + 2.0%) ÷ (7.6%– 2.0%) = US$167b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$167b÷ ( 1 + 7.6%)10= US$80b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$133b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$346, the company appears about fair value at a 20% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
NYSE:DE Discounted Cash Flow December 1st 2021
Important assumptions
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Deere as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 1.292. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Next Steps:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Deere, we've compiled three fundamental factors you should explore:
Risks: Be aware that Deere is showing 1 warning sign in our investment analysis , you should know about...
Future Earnings: How does DE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Deere & Company (NYSE:DE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. We will use the Discounted Cash Flow (DCF) model on this occasion.
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We will use the Discounted Cash Flow (DCF) model on this occasion. NYSE:DE Discounted Cash Flow December 1st 2021 Important assumptions The calculation above is very dependent on two assumptions. Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Deere & Company (NYSE:DE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value.
|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Deere & Company (NYSE:DE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
|
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. For Deere, we've compiled three fundamental factors you should explore: Risks: Be aware that Deere is showing 1 warning sign in our investment analysis , you should know about... Future Earnings: How does DE's growth rate compare to its peers and the wider market? Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Deere & Company (NYSE:DE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value.
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b7c805c4-3867-4b38-aefe-9544ba5401ed
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721366.0
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2021-11-30 00:00:00 UTC
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How The Pieces Add Up: RWL Targets $87
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DE
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https://www.nasdaq.com/articles/how-the-pieces-add-up%3A-rwl-targets-%2487
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nan
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nan
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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 Invesco S&P 500 Revenue ETF (Symbol: RWL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $86.66 per unit.
With RWL trading at a recent price near $77.18 per unit, that means that analysts see 12.28% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RWL's underlying holdings with notable upside to their analyst target prices are Host Hotels & Resorts Inc (Symbol: HST), Deere & Co. (Symbol: DE), and Globe Life Inc (Symbol: GL). Although HST has traded at a recent price of $16.42/share, the average analyst target is 14.84% higher at $18.86/share. Similarly, DE has 13.58% upside from the recent share price of $348.09 if the average analyst target price of $395.36/share is reached, and analysts on average are expecting GL to reach a target price of $100.25/share, which is 13.32% above the recent price of $88.47. Below is a twelve month price history chart comparing the stock performance of HST, DE, and GL:
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
Invesco S&P 500 Revenue ETF RWL $77.18 $86.66 12.28%
Host Hotels & Resorts Inc HST $16.42 $18.86 14.84%
Deere & Co. DE $348.09 $395.36 13.58%
Globe Life Inc GL $88.47 $100.25 13.32%
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 HST has traded at a recent price of $16.42/share, the average analyst target is 14.84% higher at $18.86/share. Invesco S&P 500 Revenue ETF RWL $77.18 $86.66 12.28% Host Hotels & Resorts Inc HST $16.42 $18.86 14.84% Deere & Co. DE $348.09 $395.36 13.58% Globe Life Inc GL $88.47 $100.25 13.32% 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 RWL's underlying holdings with notable upside to their analyst target prices are Host Hotels & Resorts Inc (Symbol: HST), Deere & Co. (Symbol: DE), and Globe Life Inc (Symbol: GL). Similarly, DE has 13.58% upside from the recent share price of $348.09 if the average analyst target price of $395.36/share is reached, and analysts on average are expecting GL to reach a target price of $100.25/share, which is 13.32% above the recent price of $88.47. Invesco S&P 500 Revenue ETF RWL $77.18 $86.66 12.28% Host Hotels & Resorts Inc HST $16.42 $18.86 14.84% Deere & Co. DE $348.09 $395.36 13.58% Globe Life Inc GL $88.47 $100.25 13.32% 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, DE has 13.58% upside from the recent share price of $348.09 if the average analyst target price of $395.36/share is reached, and analysts on average are expecting GL to reach a target price of $100.25/share, which is 13.32% above the recent price of $88.47. 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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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. With RWL trading at a recent price near $77.18 per unit, that means that analysts see 12.28% upside for this ETF looking through to the average analyst targets of the underlying holdings. Invesco S&P 500 Revenue ETF RWL $77.18 $86.66 12.28% Host Hotels & Resorts Inc HST $16.42 $18.86 14.84% Deere & Co. DE $348.09 $395.36 13.58% Globe Life Inc GL $88.47 $100.25 13.32% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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ad5d4243-56c9-45ab-b26d-30243e5f89e4
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721367.0
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2021-11-29 00:00:00 UTC
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Will Deere Stock See Higher Levels After An Upbeat Q4?
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DE
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https://www.nasdaq.com/articles/will-deere-stock-see-higher-levels-after-an-upbeat-q4
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nan
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nan
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[Updated: Nov 24, 2021] Deere Earnings Update
Deere & Company (NYSE:DE) recently reported its Q4 FY21 earnings, which were better than our estimates. The company reported sales (equipment operations) of around $10.3 billion (up 19% y-o-y), compared to our estimate of $10.4 billion. While construction and forestry equipment revenues were up 14%, agricultural and turf equipment revenue were up over 20%, driven by higher volume as well as better price realization. Our dashboard on Deere Revenues offers more details on the company’s segments.
Looking at the bottom-line, the company reported earnings of $4.12 per share, compared to $2.39 in the prior year quarter. The earnings were comfortably above our forecast of $3.98 per share and the $3.96 per share consensus estimate. Better price realization meant higher operating margins for the company. In fact, operating profit of $1.4 billion in Q4 was up 32% y-o-y.
Following a solid performance in Q4FY21, Deere provided a solid outlook for 2022, with agriculture and turf sales expected to be up around 20%, and construction and forestry sales to be up between 10% and 15%. The company also expects its net income to rise 13% at the mid-point of its guided range.
We have also updated our model following the Q4 release. We have revised the sales forecast (equipment operations) to be around $45.4 billion in fiscal 2022, considering continued uptick in both the segments. As such, we also expect EPS to be higher at $22.53, compared to $18.99 in fiscal 2021. Given these changes to our revenues and earnings forecast, we have revised our Deere Valuation to $447 per share, based on $22.53 expected adjusted EPS and a 20x P/E multiple for fiscal 2022, implying a 28% upside from its current levels of $349, implying that DE stock is currently undervalued and it will likely see higher levels in the near term, in our view.
[Updated: Nov 19, 2021] Deere Q4 Earnings Preview
Deere & Company (NYSE:DE) is scheduled to report its fiscal fourth-quarter results on Wednesday, November 24. We expect Deere to likely post revenues below, but earnings above, the consensus estimates. While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. That said, our forecast indicates that Deere’s valuation is $434 per share, which is around 22% above the current market price of $357. Our interactive dashboard analysis on Deere’s Pre-Earnings has additional details.
Note that a month long strike by workers at Deere has come to an end just yesterday, with Deere agreeing to an increase in base production pay, bonuses, and improvements in pension funding for the workers. The company may resort to an increased production overseas with rising wages in the U.S. to cater to a surge in demand for its equipment.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. The company saw a strong rebound in the demand for construction as well as agriculture equipment over the last few quarters. In Q3 fiscal 2021, revenue rose a solid 32% to $10.4 billion, as the company continued to see an increase in spending on agricultural equipment as well as a rebound in construction equipment demand. In fact, construction and forestry segment sales were up a solid 38% y-o-y, while small agriculture & turf sales were up 32%, and production & precision agriculture sales were up 29%. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be above the consensus estimates
Deere’s Q4 fiscal 2021 earnings per share (EPS) is expected to be $3.98 per Trefis analysis, slightly above the consensus estimate of $3.96. Deere’s net income of $1.7 billion in Q3, reflected a large 2x growth from its $811 million profit in the prior year quarter, led by higher sales and a decline in operating expenses. While Deere saw a higher price realization over the recent quarters, aiding the overall margins, Q4 may see some pressure on margins, primarily due to inflationary headwinds. Looking at the full fiscal 2022, we expect EPS to more than double to $18.86, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate 22% above the current market price
Going by our Deere Valuation, with an EPS estimate of around $18.86 and P/E multiple of 23x in 2021 (vs. 26x in 2020), this translates into a price of $434, which is 22% above the current market price of $357. Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment has seen a strong rebound so far this year, a trend expected to continue in the near term.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While DE stock looks like can gain more, it is helpful to see how its peers stack up. DE stock comparison with its peers summarizes how Deere compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.
Returns Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
DE Return 8% 37% 257%
S&P 500 Return 3% 25% 110%
Trefis MS Portfolio Return -2% 49% 303%
[1] Month-to-date and year-to-date as of 11/25/2021
[2] Cumulative total returns since 2017
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. The company may resort to an increased production overseas with rising wages in the U.S. to cater to a surge in demand for its equipment. Deere’s net income of $1.7 billion in Q3, reflected a large 2x growth from its $811 million profit in the prior year quarter, led by higher sales and a decline in operating expenses.
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[Updated: Nov 24, 2021] Deere Earnings Update Deere & Company (NYSE:DE) recently reported its Q4 FY21 earnings, which were better than our estimates. Given these changes to our revenues and earnings forecast, we have revised our Deere Valuation to $447 per share, based on $22.53 expected adjusted EPS and a 20x P/E multiple for fiscal 2022, implying a 28% upside from its current levels of $349, implying that DE stock is currently undervalued and it will likely see higher levels in the near term, in our view. Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks like can gain more, it is helpful to see how its peers stack up.
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[Updated: Nov 24, 2021] Deere Earnings Update Deere & Company (NYSE:DE) recently reported its Q4 FY21 earnings, which were better than our estimates. (1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. (3) Stock price estimate 22% above the current market price Going by our Deere Valuation, with an EPS estimate of around $18.86 and P/E multiple of 23x in 2021 (vs. 26x in 2020), this translates into a price of $434, which is 22% above the current market price of $357.
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[Updated: Nov 24, 2021] Deere Earnings Update Deere & Company (NYSE:DE) recently reported its Q4 FY21 earnings, which were better than our estimates. (1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. Our dashboard on Deere Revenues offers more details on the company’s segments.
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Deere Posts Stellar Q4 Results; Shares Up 5%
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https://www.nasdaq.com/articles/deere-posts-stellar-q4-results-shares-up-5
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Deere & Company (DE) posted stellar fourth-quarter results with both earnings and revenue exceeding estimates by huge margins.
Despite the almost two week long labor strike during the quarter, and the ongoing supply chain issues coupled with inflationary trends, the company managed to finish the year with a positive outlook.
Following the news, shares of the world’s largest agricultural equipment manufacturer soared 5.2%, closing at $367.86 on November 24.
Stellar Results
The company reported earnings of $4.12 per share, up 72.4% against the prior-year quarter and significantly higher than analysts' estimates of $3.90 per share.
Furthermore, net sales and revenues rose 16% year-over-year to $11.327 billion, outpacing analysts' estimates of $10.44 billion.
For the full year fiscal 2021, Deere’s net sales and revenues climbed 24% to $44.02 billion, while earnings jumped 118.5% to $18.99 per share.
See Analysts’ Top Stocks on TipRanks >>
Management Comments
Chairman and CEO of Deere, John C. May, said, “Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union.”
May added, “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure… At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.”
Analysts’ View
Responding to Deere’s performance, analyst Jefferies Stephen Volkmann reiterated a Buy rating on the stock with a price target of $450, which implies 22.3% upside potential to current levels.
Volkmann said, “Given broad-based industrial supplier constraints and the UAW strike for the last two weeks of the quarter, we believe there was more uncertainty than normal around DE's F4Q. Still, today's results showed reasonably good operating leverage of 22%, showing solid margin progression in our view despite a difficult in terms of strike, logistics and labor issues.”
Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Deere price target of $414.86 implies 12.78% upside potential to current levels. Shares have gained 43.4% over the past year.
Related News:
Best Buy Plummets 12.3% Despite Beating Q3 Estimates
Analog Devices Exceeds Q4 Expectations; Shares Fall
Dollar Tree Tops Q3 Results; Shares Up 9%
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) posted stellar fourth-quarter results with both earnings and revenue exceeding estimates by huge margins. Despite the almost two week long labor strike during the quarter, and the ongoing supply chain issues coupled with inflationary trends, the company managed to finish the year with a positive outlook. See Analysts’ Top Stocks on TipRanks >> Management Comments Chairman and CEO of Deere, John C. May, said, “Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union.” May added, “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure… At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries.
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Deere & Company (DE) posted stellar fourth-quarter results with both earnings and revenue exceeding estimates by huge margins. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.” Analysts’ View Responding to Deere’s performance, analyst Jefferies Stephen Volkmann reiterated a Buy rating on the stock with a price target of $450, which implies 22.3% upside potential to current levels. The average Deere price target of $414.86 implies 12.78% upside potential to current levels.
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See Analysts’ Top Stocks on TipRanks >> Management Comments Chairman and CEO of Deere, John C. May, said, “Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union.” May added, “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure… At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.” Analysts’ View Responding to Deere’s performance, analyst Jefferies Stephen Volkmann reiterated a Buy rating on the stock with a price target of $450, which implies 22.3% upside potential to current levels. Related News: Best Buy Plummets 12.3% Despite Beating Q3 Estimates Analog Devices Exceeds Q4 Expectations; Shares Fall Dollar Tree Tops Q3 Results; Shares Up 9% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite the almost two week long labor strike during the quarter, and the ongoing supply chain issues coupled with inflationary trends, the company managed to finish the year with a positive outlook. For the full year fiscal 2021, Deere’s net sales and revenues climbed 24% to $44.02 billion, while earnings jumped 118.5% to $18.99 per share. Deere & Company (DE) posted stellar fourth-quarter results with both earnings and revenue exceeding estimates by huge margins.
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2021-11-24 00:00:00 UTC
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Deere & Co (DE) Q4 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/deere-co-de-q4-2021-earnings-call-transcript
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Image source: The Motley Fool.
Deere & Co (NYSE: DE)
Q4 2021 Earnings Call
Nov 24, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the Deere & Company Fourth Quarter Earnings Conference Call. Your lines have been placed on listen-only until the question-and-answer session of today's conference. I would now like to turn the call over to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
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Josh Jepsen -- Director of Investor Relations
Good morning. Also on the call today are Ryan Campbell, our Chief Financial Officer; Cory Reed, President of Production and Precision Ag; and Brent Norwood, Manager of Investor Communications. Today, we'll take a closer look at Deere's fourth quarter earnings and spend some time talking about our markets and our current outlook for fiscal 2022. After that, we'll respond to your questions. Please note slides are available to complement the call this morning. They can be accessed on our website at johndeere.com/earnings.
First, a reminder, this call is being broadcast live on the Internet and recorded for future transmission and use by Deere and Company. Any other use, recording or transmission of any portion of this copyrighted broadcast without the expressed written consent of Deere is strictly prohibited. Participants in the call, including the Q&A session agree that their likeness and remarks in all media may be stored and used as part of theearnings call
This call includes forward-looking comments concerning the company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission.
This call may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America or GAAP. Additional information concerning these measures, including reconciliations to comparable GAAP measures is included in the release and posted on our website at johndeere.com/earnings under Quarterly Earnings and Events.
I'll now turn the call over to Brent Norwood.
Brent Norwood -- Manager of Investor Communications
John Deere finished the year with solid execution in the fourth quarter resulting in a 13.6% margin for the Equipment Operations. Ag fundamentals remained strong through the course of the year and our order books indicate another year of robust demand in 2022. Meanwhile, the construction and forestry markets also continue to benefit from strong demand and lean inventories leading to the divisions strongest financial results in over 15 years.
Now let's take a closer look at our year-end results for 2021 beginning on Slide 3. For the full year, net sales and revenues were up 24% to $44 billion, while net sales for equipment operations increased 27% to $39.7 billion. Net income attributable to Deere and Company was $5.96 billion or $18.99 per diluted share. Slide 4 shows the results for the fourth quarter. Net sales and revenue were up 16% to $11.3 billion, while net sales for the Equipment Operations, were up 19%, to nearly $10.3 billion. Net income attributable to Deere and Company was $1.283 billion or $4.12 per diluted share.
At this time, I'd like to welcome Cory Reed, President of Production and Precision Ag to the call to discuss the segment's results and provide an update on the global Ag environment. Cory?
Cory J. Reed -- President of Production and Precision Ag
Thanks, Brent. Before I cover our fourth quarter results, I'd like to recognize all of John Deere's 77,000 employees for their tremendous hard work and dedication throughout a year filled with unpredictability. I'd also like to recognize the ongoing efforts and unparalleled capabilities of the John Deere dealer network that's not only an integral part of our value proposition in the market, but also often called upon in the toughest of times to keep our customers up and running.
Let's start with fourth quarter results for Production and Precision Ag starting on Slide 5. Net sales of $4.66 billion were up 23% compared to the fourth quarter last year, primarily due to higher shipment volumes and price realization. Price realization in the quarter was positive by about 7 points. And currency translation was also positive by roughly 1 point.
Operating profit was $777 million resulting in a 16.7% operating margin for the segment, compared to 15.2% margin for the same period last year. The year-over-year increase was driven by positive price realization, higher shipment volumes and mix, partially offset by higher production costs. Also, it's worth noting that last year's results were negatively impacted by employee separation expenses resulting from restructuring activities.
Shifting focus to Small Ag and Turf on Slide 6. Net sales were up 17%, totaling $2.8 billion in the fourth quarter. The increase was primarily driven by higher shipment volumes and price realization. Price realization in the quarter was positive by just over 4 points, while currency translation was minimal. For the quarter, operating profit was $346 million, resulting in a 12.3% operating margin. The higher shipment volumes, sales mix and price realization were partially offset by higher production costs, R&D and SA&G. When comparing to the fourth quarter of 2020, keep in mind, the prior period included $77 million in separation costs and impairments.
Slide 7 shows our industry outlook for Ag and Turf markets globally. In the U.S. and Canada, we expect industry sales of large Ag equipment to be up approximately 15%, reflecting another year of strong demand. In fiscal year '21 customer demand driven by the combination of strong fundamentals and advanced fleet age and low inventory outpaced the industry's ability to supply. With all of these dynamics still present in '22, we expect demand to exceed the industry's ability to produce for a second consecutive year as supply base delays continue to constraint shipments.
Order books for the upcoming year or mostly full except for a few cases where we paused orders to manage supply challenges and allow us to reevaluate inflationary pressure later in the year. Currently, orders are complete for the years' production of crop care products, while our combine production slots are over 90% full with the early order program still ongoing.
Meanwhile, large tractor orders are sourced well into the third quarter and we expect the remainder of the book to fill out shortly. We're encouraged that take rates for our mainstay precision technologies like Combine Advisor, ExactApply an ExactEmerge continue to track higher year-over-year. More recent product introductions such as ExactRate planners and the X9 combine saw significant increases when compared to last year, while our premium and automation software activation take rates are over 85% for our 8 series and 9R Series Tractors.
Additionally, we saw significant increases in customer engagement with our digital tools in 2021. Engaged acres now stand at over 315 million acres, due in part to a sharp increase in Europe with a number of engaged acres has doubled over the past year. Likewise, use of our digital features such as expert alerts and service advisor remote has increased by about 30% compared to last year. In the small Ag and Turf segment, we expect industry sales in the U.S. and Canada to remain flat for the year as supply challenges continue to limit industry production. Following two years of very robust demand, field inventory levels are at multi-year lows and are unlikely to begin recovering until some time in 2023.
Moving on to Europe. The industry is forecast to be up roughly 5% as higher commodity prices strengthen business conditions in the arable segment and dairy prices remain resilient even as margins show some pressure from rising input costs. We expect the industry will continue to face supply base constraints resulting in demand outstripping production for the year. At this time, our order book extends into the third quarter for Mannheim tractors. In South America, we expect industry sales of tractors and combines to increase about 5%.
Farmer sentiment and profitability remain steady at all time highs as our customers benefit from robust commodity prices, record production and a favorable currency environment. Our order books reflect the strong sentiment and currently extends into the second quarter, which is as far as we've allowed it to grow. Despite limited government sponsored financing programs, private financing is supporting continued strength in equipment demand, while strong farmer balance sheets enable many customers to purchase using cash. Industry sales in Asia are forecasted to be flat as India, the world's largest tractor market by units, hold steady in 2022.
Moving onto our segment forecast beginning on Slide 8. For production and Precision Ag, net sales are forecast to be up between 20% and 25% in fiscal year '22. Forecast includes expectations of about 9 points of positive price realization for the full year. For the segment's operating margin, our full-year forecast is between 20% and 21%, reflecting consistently solid financial performance across the various geographical regions. Slide 9 shows our forecast for the Small Ag and Turf segment. We expect net sales in fiscal year '22 to be up 15% to 20%. This guidance includes nearly 7 points of positive price realization and roughly 1 point of currency headwind. The segment's operating margin is forecasted to range between 16% and 17%.
With that, I'll turn it back over to Brent Norwood.
Brent Norwood -- Manager of Investor Communications
Thanks, Corey. Now let's focus on Construction and Forestry on Slide 10. For the quarter, net sales of $2.8 billion were up 14%, primarily due to higher shipment volumes and 6 points of positive price realization. Operating profit moved higher year-over-year to $270 million resulting in a 9.6% operating margin due to positive price realization and higher shipment volumes, partially offset by higher production cost, SA&G and R&D. The quarter also benefited from the lack of one-time expenses included in the prior period.
Let's turn to our 2022 Construction and Forestry industry outlook on Slide 11. Both earthmoving and compact construction equipment industry sales in North America are expected to be up between 5% and 10%. End markets for earthmoving and compact equipment are expected to remain strong in our fiscal year '22 forecast, benefiting from continued strength in the housing market, increased activity in the oil and gas sector, as well as strong capex programs from the independent rental companies.
Demand for earthmoving and compact construction equipment is expected to exceed our production for the year, resulting in continued low inventory levels, especially for compact construction equipment. In forestry, we now expect the industry to be up about 10% to 15% as lumber production looks to remain at elevated levels throughout the year even though lumber prices have come down from peaks in mid-summer.
Moving to the C and F segment outlook on Slide 12. Deere's construction and forestry 2022 net sales are forecasted to be up between 10% to 15%. Our net sales guidance for the year includes about 8 points of positive price realization. We expect this segment's operating margin to be between 13.5% and 14.5% for the year, benefiting from price, volume and lack of one-time items from the prior year.
Now, let's move now to our financial services operation on Slide 13. Worldwide financial services net income attributable to Deere and Company in the fourth quarter was $227 million, benefiting from income earned on higher average portfolio and favorable financing spreads, as well as improvements on the operating lease portfolio, partially offset by a higher provision for credit losses. Results for the prior period were also affected by employee separation costs.
For fiscal year 2022, the net income forecast is $870 million as the segment is expected to continue to benefit from a higher average portfolio. Slide 14 outlined our guidance for net income, our effective tax rate, and operating cash flow. For fiscal year 2022, our full-year outlook for net income is forecasted to be between $6.5 billion and $7 billion.
The full-year forecast is inclusive of the impact from higher raw material prices and logistics costs, which we estimate will add an additional $2 billion in expenses relative to 2021. At this time, we expect two-thirds of that increase to manifest itself in the first half of the year as the comparisons get easier in the back half of fiscal year '22. At this time, our forecasted price realization is expected to outpace both material cost and freight for the entire year, though we will likely be price cost negative in the first quarter.
Moving on to tax. Our guidance incorporates an effective tax rate projected to be between 25% and 27%. Lastly, cash flow from the equipment operations is expected to be in the range of $6 billion to $6.5 billion and includes a $1 billion voluntary contribution to our pension and OPEB plans. Before we open up the line for Q&A, we like to first address a few of the likely questions around the current market dynamics, our financial results and the details around our new labor agreement, as well as provide some thoughts on capital allocation for the next year. To cover the range of topics, I'll engage today's call participants to provide some additional color, and then we'll open up the line for additional questions. First, I'd like to start with the current demand environment for large Ag equipment. Cory, can you provide some additional color on demand for large Ag products and which new technologies are resonating with customers.
Cory J. Reed -- President of Production and Precision Ag
Yes, thanks, Brent. We're really encouraged by both the velocity of our order books and the take rates for some of our latest technology. Demand has been strong since the beginning of 2021 and overall that doesn't look like it's going to let up in 2022. I touched on this earlier, our order books are either full or near full for most of our North American large ag product lines.
Starting with the combine and EOP. Our EOP for 2022 production will finish in January, where we'll grow the levels of S-series production and we've already sold out of our planned production for X9 combines. This is the first year in a multi-year ramp up of production for X9 and we'll ship a 1,000 plus units of X9 9 into North America alone. We'll further solidify our market leadership in the power class 9 plus combine categories, while also establishing a clear new global benchmark in both productivity and efficiency.
We're also seeing strong demand for some of our newer products, products like ExactRate planter applied fertilizer systems and AutoPath. ExactRate represents an important first step in the precision application of fertilizer. Future iterations of this product will be critical in helping us improve nitrogen use efficiency for our customers. In just its second year we're seeing take rates of that product close to 20%, which is really encouraging.
Similarly, in the first full season, we've seen tremendous feedback from the launch of John Deere AutoPath. AutoPath leverages John Deere's onboard technology like our Gen-4 displays, SF6000 receivers including the SF3 correction signal and embedded software linked to the John Deere operation center throughout a customer's entire production cycle.
The technology leverages data from planting to know exactly where the row unit traveled to plant seeds and then creates a guidance line for each subsequent path, making in-season fertilizer applications, manual cultivation for weeding or crop protection passes easier and more accurate. At harvest, it makes it easier to find your guess row and makes that easy for harvest to be even more efficient.
In 2021, we saw take rates of the automation package activation or subscription, which includes AutoPath double, leading to more customers enabled with John Deere's highest value Precision Ag software. In 2022 and beyond, we'll continue to add value to AutoPath for new features and new technologies as a part of our Precision Ag software package strategies and AutoPath will be foundational for even more automated farming in the future, making every step of our customers' production system even better.
Lastly, See and Spray. See and Spray Ultimate is going to hit the market this year on a limited basis and we're excited to get it in the more customers' hands. We view See and Spray as just the first step in a long series of sense and act. In that journey, we're encouraged by to see early demand for both See and Spray itself and multiple products related to plant-level management in future. Let's dive a little bit deeper on the fluctuations in North American large ag market share for fiscal year '21 and then let's provide some expectations for this next year in fiscal year '22. Can you first walk us through the progression of market share that we saw in '21, Corey? Sure. Yes, 2021 was a unique year. Demand inflected sharply from October of '20 to January '21 timeframe. And as a result, we experienced pressure on market share early in the year due to our asset-light model. If you recall, we talked about this dynamic in our fourth quarterearnings calllast year and noted that we expected to recover that share quickly and that's exactly what happened. In fact, we gained 2 points of market share in North America for our large Ag products by year-end and you can see an example of that in the last three quarters of retail sales data for the 100 plus horsepower tractor categories.
Brent Norwood -- Manager of Investor Communications
So how might market share play out this next year, given that our most recent labor agreement didn't ratify until November 17th?
Josh Jepsen -- Director of Investor Relations
Yes, it's a great question and while it's too early to forecast with a lot of precision, we see the potential for 2022 to play out very similarly. We're very likely to see similar pressure in the first quarter as we recover from record low inventories, but also expect a production ramp that helps us maintain and even grow our position as we execute throughout the year.
Brent Norwood -- Manager of Investor Communications
Let's get into some of the details on our latest labor agreement. One of the most frequent questions out there is on the incremental cost of the new contract relative to the previous one. So how should investors think about the impact to our cost structure?
Josh Jepsen -- Director of Investor Relations
First, it's important to note, we're really glad to have our UAW employees back in our factories and proud of the groundbreaking contract that we put in place. With respect to its impact on our cost [Technical Issues] side of the contracts period. Over the six-year contract, the incremental costs will be between $250 million and $300 million pre-tax per year with 80% of impacting operating margins.
Brent Norwood -- Manager of Investor Communications
So, we experienced a gap between the last contract and the current one resulting in a few weeks of lost production. How does that impact the quarterly cadence of our financial results?
Josh Jepsen -- Director of Investor Relations
Yes. There are a number of unique items impacting the first quarter. At first we would -- if you think about first quarter '22, we expect the topline for the equip ops to be pretty similar to the first quarter of '21, missing a few weeks plus of production will neutralize some of the benefits that Corey mentioned in terms of ramping up to higher line rates in December and January. With respect to margins, there are few things to consider. In the first quarter, we'll have our toughest price cost comp for the year. We expect that to be negative in the first quarter, but positive for the full year.
We also expect to experience poor overhead absorption due to the lower volumes as mentioned and there are few other one-time items that will provide some additional drag including ratification bonus and some favorable tax credits that we saw in the first quarter of '21 that don't repeat in '22.
All in, we expect first quarter margins to be mid-to high-single digits for the Equipment Operations with those businesses that have been most affected by the delayed ratification to be below that average looking beyond the first quarter, though we do expect margins for the rest of the year to be more favorable and incrementals more in line with historical averages. And maybe stepping back and just thinking about the full-year impact on [Technical Issues]
Brent Norwood -- Manager of Investor Communications
Switching topics. Let's conclude with some discussion around capital allocation. Ryan, how would you characterize our capital allocation strategy in fiscal year '21 and what might we expect this upcoming year?
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Yes. Thanks, Brent. With respect to 2021, our strong liquidity position and our cash flow generation really allowed us to execute against all of our cash priorities. We continue to focus on maintaining our solid A credit rating, but beyond that we invested in our strategic growth priorities, both organically and inorganically.
In addition, we returned over $3.5 billion in capital to shareholders through dividends and share repurchases. Our two dividend increases are evidence of the confidence we have in the structural improvements we've made in the earnings power of our business. Overall, our actions in 2021 serve as a good blueprint for how to think about 2022 as we expect to again execute against all of our priorities.
Brent Norwood -- Manager of Investor Communications
It sounds like we'll continue to see discipline with respect to returning capital, but can you elaborate any further on investing back into our businesses?
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Yes, sure. Brent. The smart industrial strategy that we put in place during 2020 is the foundation for us to focus our resources on the areas that are most differentiated from a customer value perspective. It's through that lens that we are positioned to increase the level of investment back into our business both organically and inorganically through M&A.
As you can see in our guidance, the R&D investment is up 17% in 2022. The focus of the increase is on further developing our tech stack, which accelerates our capabilities related to sense and act, autonomy, digital solutions, connectivity and electrification. We're planning to demonstrate many of our new technologies at our Investor Tech Day in mid 2022. So stay tuned for that exciting event. Finally, as it relates to M&A, expect us to continue to be active, aligned with the themes that we've discussed over the last year.
Brent Norwood -- Manager of Investor Communications
Lastly, is there anything else that you'd like to highlight for investors to expect in 2022?
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Yes, 2022 is shaping up to be a very important year for us. We put in place the new strategy and are well positioned to accomplish our goals. On that note, we do have a set of goals both related to business and sustainability that will sunset this year. Accordingly, we'll be rolling out our next suite of goals that will highlight the opportunity we have and what we think we can accomplish over the rest of the decade. Importantly, we are uniquely positioned and that there is direct alignment between our creation of customer value, improving our own earnings and delivering more sustainable outcomes for the environment. So, Brent expect us to see -- expect to see a comprehensive suite of goals that really brings all of those elements together.
Josh Jepsen -- Director of Investor Relations
Now, we're ready to begin the Q&A portion of the call. The operator will instruct you on the polling procedure. In consideration of others and our hope to allow more of you to participate in the call, please limit yourself to one question. If you have additional questions, we ask that you rejoin the queue. Tasha?
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from Rob Wertheimer with Melius Research. Your line is open.
Rob Wertheimer -- Melius Research -- Analyst
Hi, good morning everybody and thanks for all the color. My question is on See and Spray Ultimate. I wonder in whatever way you could, if you could expand on what limited launch means? How the technology is progressing? I don't know if you could talk about the pipeline for fertilizer versus herbicide and/or the geographic scope of the launch? Thank you.
Josh Jepsen -- Director of Investor Relations
Yes. I'll start there and Corey please add in. We haven't put out exact numbers, but we'll have that out in -- again in customers' hands with production units and again through multiple products: soybeans, cotton and corn. So, continuing to evolve there. And I think I feel really, really good about how we're performing and the customer response as we get it into their hands.
Cory J. Reed -- President of Production and Precision Ag
Yes, I would say, our See and Spray journey started with ExactApply and the ability to use individual nozzle control. We've gone through and put the select product into the market this year in full supply. So that's the green-on-brown solution. We're now taking many units into a commercial application with select customers in '23 -- or in 2022 of See and Spray Ultimate that's to both improve out our business model and show the value and then we'll ramp from there. So, it's really exciting journey. We're seeing a lot of demand for it and we're excited about it going forward.
Josh Jepsen -- Director of Investor Relations
Yes. Thanks, Rob. We'll, go ahead and go to our next question.
Operator
Jerry Revich with Goldman Sachs. Your line is open.
Jerry Revich -- Goldman Sachs -- Analyst
Yes, hi, good morning and happy Thanksgiving everyone. I'm wondering if you folks can talk about what you're seeing in the installed base of equipment. I know you track used equipment inventories closely based on industry data that we see. It looks like that's cut in half from 2015 levels, but maybe you can comment on where it's been for your equipment specifically and what does that tell you about what the potential for new equipment that may brought your supplies beyond '22?
Josh Jepsen -- Director of Investor Relations
So, I think when we look at used, I mean, we're at tremendously low levels of used inventory and particularly in large Ag, levels we haven't been out for well over a decade. We've seen that pull down and what that's driving is increasing used prices, which has been really positive for our farmers that are trading in product. So, impacting their trade differentials, making those differentials as they trade up more -- make that differential less, excuse me. So, I think that's our big piece. I think it's also important as we think about, just overall, the replacement cycle and recovery that we're seeing there and the lower those inventory levels are, I think that extends some of that cycle. Corey, anything you would add?
Cory J. Reed -- President of Production and Precision Ag
No, as Josh said, we're well below the bands that we would normally see and the lowest we've been in 10 years. You have a combination factors going on. Obviously, you have solid financial income on the part of farmers, albeit with some headwinds and inputs. You have an aging fleet, you have new technologies, you have the opportunity to trade their equipment at the highest values they've ever traded and it's driving tremendous demand. So, right now, the limitation is used is creating significant demand going forward. We chose figuring out the supply side and making sure that we can deliver every product into the market, but used right now is at all-time low.
Josh Jepsen -- Director of Investor Relations
Thanks, Jerry, we'll go ahead and go to our next question.
Operator
Jamie Cook with Credit Suisse. Your line is open.
Jamie Cook -- Credit Suisse -- Analyst
Hi, good morning. I guess, question, the R&D, up 17%. That's a big jump. I'm just wondering if given where we're going with technology, should R&D structural the up in sort of the high teens range going forward? And then just sort of on the M&A side, can you just talk about the pipeline there? And what that implies for -- if you just focus on technology, precision Ag tech solutions? Thanks.
Josh Jepsen -- Director of Investor Relations
The R&D maybe -- looking at the increase in '22, some of that is compared to '21 where we were down a bit and some of that was really the effects of pulling together the organization, creating the Chief Technology Officer org,which did allow us to pool and centralize component of the tech stack. So, we saw some elimination of redundancies. So, that's really the jumping off point then for this increase in '22, which is focused on the areas that Ryan mentioned in terms of where we really feel like we can accelerate and differentiate sense and act, autonomy, electrification, connectivity. So those are the areas where we see the biggest opportunities to deliver value for customers and our spending there accordingly. Relative to M&A.
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Yes. This is Ryan. So as it relates to M&A, as we've talked over the last year, we've got these thematic trends with respect to the sense and act platform that we're building, autonomy, digital solutions, connectivity and also electrification. On example of digital solutions, we acquired Harvest Profit and that's right along with our expectations of delivering value and overall management of the customers' P&L and making it super seamless and easy for them to use. With respect to autonomy, which we see accelerating Bear Flag is an example of a transaction like that and so we've got a relatively full pipeline over the next several months. You'll see us do -- continue to be active and source deals and close deals that allow us to accelerate our journey along those thematic trends. So stay tuned, more to come and you'll see us be active in this area over the next several years.
Josh Jepsen -- Director of Investor Relations
And maybe one thing, Jamie, I'm sorry, I missed part of your question was just the level. This does represent a bit of a step-up compared to where we were. We think broadly this level. It is reasonable for where we operate. Again, always reserve the right in the future as we see new technologies or new opportunities to invest, to create value, but I think that's a fair view of where we are today.
Jamie Cook -- Credit Suisse -- Analyst
Okay, thank you.
Josh Jepsen -- Director of Investor Relations
Thanks.
Operator
Stephen Volkmann with Jefferies. Your line is open.
Stephen Volkmann -- Jefferies -- Analyst
And good morning everybody. I'm wondering if could go back to inventory, but touch on the news side. Does your plan for '22 anticipate rebuilding any new inventories or does that sort of get pushed out into '23?
Josh Jepsen -- Director of Investor Relations
Good morning, Steve. It really does imply very little to no inventory build given what we're seeing broadly demand above the industry's ability to produce. We would expect most everything we ship gets retailed, but no replenishment of those inventories. As a result of that, whether it's large Ag equipment, small Ag and construction, we could probably take multiple years to rebuild some of the field inventory levels, coming off of historic lows.
For example, if we look at small tractors or compact construction equipment, they are in the teens, inventory to sales, as we entered the year and the targets there are probably closer to 40% plus inventory to sales. So, there's a lot of room to go there and even large Ag, which traditionally comes down where we're at levels we've really not seen before, row crop tractors, 10% inventory to sales; combines low single digit. So very, very low and I think as we consider how this continued replacement drives forward, we do see that as positive in that we see the need to recover inventory over a few years, not just one. Thanks, Steve.
Stephen Volkmann -- Jefferies -- Analyst
Thank you.
Operator
Chad Dillard with Bernstein. Your line is open.
Chad Dillard -- Bernstein -- Analyst
Hi, good morning, guys. So my question is how much room is there to impose higher equipment crisis on farmers? I'm just trying to get sense of whether there is any security in the near term given what we're seeing on the fertilizer price side? And could you actually pass some of the cost on from the labor cost increase?
Cory J. Reed -- President of Production and Precision Ag
Yes. Thanks for the question. I think certainly farmers have seen some headwinds relative to their overall input cost. I think the first part is to -- for us to focus on being able to deliver technologies that help them improve their profitability. So, a lot of our pricing comes from our ability to deliver technologies in the machines that make them or give them the ability to create more yield or manage their cost differently. So that's a big part of it out.
Now, obviously, in the last 18 months with a lot of the commodity increases, there's also been the opportunity to recover for some of those commodities and that's allowed us to do that, but by and large, I would tell you that our pricing model is based upon delivering value for them and being able to make sure that each time they can go to the field, we can make them more profitable by using the equipment that we put out there.
And each of the examples relative to See and Spray or X9 or AutoPath that's what they do, is allowing to either create more yield or manage their cost and be more efficient in the field and that's the focus.
Josh Jepsen -- Director of Investor Relations
The other thing we've seen too that's impacted price has been very strong overseas pricing. So as we've reacted to both FX movements as well as inflationary environments, we've taken more price. So really throughout '21 and into '22 we're seeing and if we look at Production and Precision Ag, low double digit pricing in the overseas market that has driven that. So as we think -- looking forward, we continue to see that occurring. The one piece that we don't see as much repeating or tailwind is on lower discounts. As we pulled down discounts throughout the back half of '20 and through '21, there's not much there. So that is another thing to consider when we think about price. Thanks, Chad. I appreciate the question. We'll go ahead and go to our next caller.
Operator
Tim Thein with Citigroup. Your line is open.
Tim Thein -- Citigroup -- Analyst
Thanks, good morning, Josh, maybe dig into the Production and Precision Ag margin guidance of, call it under 100 basis points of improvement on 20% plus sales growth. So with a $1.5 or so of positive price, just maybe walk us through, obviously, that I would assume as you talked about for the full -- for the total company, call it 100 basis points from the work stoppages? I assume that -- a disproportionate amount of that is impacting that segment, maybe you can correct me on that, but maybe just walk us through how you get to headwinds and tailwinds as we think about margin for that segment? Thank you.
Josh Jepsen -- Director of Investor Relations
Sure. And you're right. There's an outsized proportion of that impact is in Production and Precision Ag, most largely affected. If we think about the puts and takes, particularly in the first quarter, as I mentioned, you've got some amount of lower production impacting that, which drives lower overhead absorption, material and freight cost higher and we would expect to be priced cost negative in 1Q in Production and Precision Ag.
And then there again you have the larger portion of some one-time items like ratification bonus and you may recall, last year in the fourth quarter -- excuse me, last year in the first quarter, we had about a $50 million benefit from taxes overseas related. So that goes against us in the first quarter. So that pulls down the absolute margin pretty significantly. Stepping forward from that and then thinking about the full year, which you mentioned, about 100 bps higher from a absolute margin point of view, we returned to the incrementals that we've run historically where we expect to see them. So around 35% incremental rest of the year. So Q2 through 4Q for PPA.
Tim Thein -- Citigroup -- Analyst
Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks, Tim. We'll go ahead and jump to our next question.
Operator
Kristen Owen with Oppenheimer. Your line is open.
Kristen Owen -- Oppenheimer -- Analyst
Thank you. You talked about the incremental functionality that you're looking at rolling out for AutoPath over the coming years. Can you just speak to how you're thinking about sort of current customers ability to participate in that incremental functionality? The question is really one about business model and what types of model be it subscription service etc., that you're exploring for that solution? Thank you.
Cory J. Reed -- President of Production and Precision Ag
Sure. And you'll see more on this from us in the coming quarters as we roll out some objectives for how we're thinking about this. One of the things we're talking about and making sure is that, just like we did with guidance solutions in the past where we started years ahead putting base functionality into machines that would allow us to both put the functionality for, in this case, AutoPath or further automation features into every machine. We'll start working through a series of making sure that the base functionality of the vehicle will allow us to either ship the vehicle with the functionality or upgrade it in the future and we're looking at new ways and new business models to make that easier for customers to adopt.
So that journey, we're on that path right now. We're rolling out ways that we're doing that with our Precision Ag hardware. You'll see us do it more with our subscriptions and software going forward. So, we're out cooperating and working with customers. And how we can make that work on their operations today and how they like to consume it and you'll see that revenue stream continue to grow from us in the future.
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Kristen. It's Ryan. As we talk about and rollout our next generation of goals, you'll see us think through an evolution of our business model over the next decade with respect to what Corey talked about and the value we're delivering every time. Our customers go across the field and how can we think through a business model that's more of an ongoing basis. So more to come on that. You'll see us have some relatively specific targets and goals on what we think we can deliver from that evolution.
Kristen Owen -- Oppenheimer -- Analyst
Thank you.
Operator
Adam Uhlman with Cleveland Research. Your line is open.
Adam Uhlman -- Cleveland Research -- Analyst
Hey, everybody. Happy Thanksgiving. I guess one of the turn back to the supply chain issues that you mentioned. Could you share some more insights on what exactly you're seeing and more so maybe what is included in the forecast? I'm curious how much visibility you have into supply chain getting better? What could be tough still with chips that maybe should serve to improve and maybe what could be held back by capacity limitations that your suppliers that may be won't free up for another year or so?
Josh Jepsen -- Director of Investor Relations
Good morning, Adam. The -- if you go back a quarter ago in the third quarter, we expected the supply challenges to be more impactful in 4Q. And that's what we saw. We did see it deteriorate. There was a more challenging environment in the fourth quarter between the supply challenges and some of the work stoppage. That probably impacted the fourth quarter by call it 0.5 point of margin or so for the Equipment Operations. So, it was more challenging. And as we think about the '22 plan, we went in assuming that similar level of disruption in activity and supply chain.
So we have embedded a significant amount of improvement there. We expect to continue to be challenged and choppy. One of the things we did do during the last couple of months as we continue to bring parts in -- parts and components into our facilities. So, we were able to continue that. We didn't slow that down. So that's positive as we ramp up. as Corey mentioned, start to ramp up production coming back. That's important, but we think that continues to be a challenge and it's broad based.
So chips you mentioned, very tight. We expect that continue through '22. Other things, there's material challenges, there's labor availability in the supply base and this extends across to many geographies. So, logistics become a challenge as well. So we're continuing to work through those. Supply management teams working really closely with our suppliers. We're giving them more visibility than we ever had before to try to work through this and we've tried to plan accordingly.
Cory J. Reed -- President of Production and Precision Ag
Yes, I would echo that. This is Corey. If you look at 2021, we knew we're going to have some challenges coming forward and what we said was, we have to execute and make sure that we can manage that better than anyone in the industry and I think what you saw us do through the back half of the year was manage it well. We're positioned well as we kick off and have the workforce back. And they're going to be a whole lot of pop-ups that come: electronic components, labor, logistics. We have to manage through them and that's where our folks have been up to the task on to this point and we're confident they can be up to that task going forward.
Josh Jepsen -- Director of Investor Relations
Yes. We have seen some regional disparities. I think Europe for us has probably operated a little more smoothly than say the Americas and Asia. So, there are some deltas and differences there that have impacted our businesses differently, but continue to execute and we'll update as we go through the year. Thanks Adam.
Operator
Ralph Gilardi with Bank of America. Your line is open.
Ralph Gilardi -- Bank of America -- Analyst
Yes. Good morning, guys. Can you just address your ability to deliver in time for planting season, which isn't that far away in the aftermath of the strike and given all the supply chain constraints? And then just also there seems to be a lot of investor chatter that's soaring in that costs for the farmer are going to lead to a big slowdown in equipment demand or premature end of the cycle? I mean, it seems like the opposite might be true if lower fertilizer application rates lead to greater demand for Precision Ag, as well as lower yields? And then I'm just wondering if you could address that too? Thanks.
Cory J. Reed -- President of Production and Precision Ag
Yes. Thanks, Ralph. This is Corey. You're right. I mean one of the things we're focused on is, even as we were in the middle of the interruption, was making sure that we could deliver products on time seasonally for our customers. Planting is the top end of that. We continued and made sure we could surge components into our planning lines as people are coming back. We've got a production plan that's commensurate with what our early order program is. We do have some risks.
We've gone out and talked to our customers about where we are and our dealers about where we are with that. But we feel really confident in our ability to deliver even more planters into the market this year. And where we have the opportunity, if customers want to accept planters later in the season, we'll do that as well.
So from that standpoint, we operate with transparency, talk to our dealers and customers and then put a good production plan together that allows us to meet market demand. That demand hasn't slowed. In fact, it's continued and much like all of our other large Ag products, planters were one of those things that even post the optimum planning window, people are taking product.
Josh Jepsen -- Director of Investor Relations
And then, Ralph. When we -- when you -- your question related to input costs and how does that impact the cycle. Maybe stepping back more broadly and then I'll address that a part of this, but as -- where we are right now and how we're seeing this play out, we feel like there is continued runway of replacement recovery out here to continue to be had. And that's for a few reasons: one underlying fundamentals continue to be very strong whether it's cash receipts, income, what we're seeing, land values, for example, those are positive. We see demand for replacement, the age of the fleet.
You've talked -- you've heard us talk about this a lot, '21, we got older and even as we've looked at '22, we'd expect the fleet overall in North America to age out. And then you have this dynamic that we've seen in '21 and repeat in '22 where demand is above the industry's ability to deliver. Further and our mind stretches or elongates a little bit of that recovery cycle. And as mentioned earlier, inventory levels for both new and used are quite low. So, again when you think about comparing back, when you compare this back to 2012 and '13 and some of the dynamics, one of the big differences is we are significantly lower levels of inventory, which makes some of the replacement demand push out a bit further.
And then lastly, as it relates to input costs, as input costs rise, the impact that our precision tools can have in terms of leveraging technology to drive more accuracy, more precision with inputs whether that's seed, fertilizer, chemical and make that value proposition even more attractive. And if you -- Corey talked a bit about this in his prepared remarks, but the take rates that we're seeing on technology took a significant step-up, where ExactApply on sprayers is 55%, which is up quite a bit. ExactEmerge on planters is 55%. And then we're seeing that really across these technologies, a pretty significant step function change in terms of the use of the technology that drives again back to better yields and lower cost through increased precision.
So we will continue to execute there, but we feel like there's -- there are legs to this recovery that we're in. It really began about one year ago right now. Thanks, Ralph. We'll go ahead and jump to our next question.
Operator
Mig Dobre with Baird. Your line is open.
Mig Dobre -- Baird -- Analyst
Yes. Thanks for taking the question. Just looking to maybe get a little more color on the commentary of raw material headwinds, the $2 billion that you called out. So kind of two questions in that. First, where are you in terms of the assumptions that you made relative to current spot prices for things like steel? Like what's kind of baked into this number? And then given the higher than normal visibility that you have in terms of where the early order programs shaping up, I'm kind of curious as to what you're doing in terms of either forward buying materials or the various components that you're going to -- you know you're going to need? Thanks.
Josh Jepsen -- Director of Investor Relations
The material and freight costs. So Brent mentioned this. We expect $2 billion of headwinds compared to '21 and that's split roughly 80% material and about 20% freight. The freight is driven by essentially all different modes whether it's air, ocean, truck, all those things are impactful there. On the material side, it's things like the raw that you mentioned steel, for example, you know traditionally we buy roughly a quarter ahead. We have seen from a pure spot price, we've seen steel moderate some from where it was peaking probably a bit -- quarter or so ago. So we haven't adjusted significantly. We do work our supply base to ensure that we've got availability.
So, given the demand we have and the customer desire to get product, we will try to balance that, in terms of having product and making sure we've got the availability of raw. So, I mean from a price perspective, yes, we haven't got into the detail of where we're at or where we're locking in, but definitely, we do expect to see more of that come through the first half of the year and our comps get a little bit easier in the back half. So that's a few billion, we expect about two-thirds to come through in the first half of '22.
And maybe lastly similar splits in terms of the businesses. About half of that is Production and Precision Ag, about 30% Small Ag and Turf and roughly 20% C&F and a lot of that just varies based on the products and the makeup overall of their material. With that, we'll go ahead and jump to our next question.
Operator
Joel Tiss with BMO. Your line is open.
Joel Tiss -- BMO -- Analyst
Hey guys, just switching gears a little bit. Can you talk a little bit about the focus of future restructuring and any guidelines that you can give us about you think 50 basis points a year of margin improvement or 100 basis points or just sort of some of the targeted areas and what it's going to mean?
Josh Jepsen -- Director of Investor Relations
Good morning, Joel. Going through the smart industrial operating model and the shift and changes we made in 2020, we feel like we're seeing the benefits of that play out in '21 as we refocus the organization and then really started to put the capital allocation model to work in terms of how do we guide and invest in the parts of the business where we feel like we can differentiate and create the most value. So, I think as we've worked through that and you see now, maybe some of that impact, as you see R&D increasing this next year and that's in the areas that we focused on. So we made adjustments to how we're organized and to how we're allocating resources and we work through some things like divestitures in 2020. So I think that's the continued model.
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Yes. It's Ryan, I think you'll see us pivot particularly as we announce our next set of goals to focus on the growth opportunities that we have. There'll be financial components of the goals that come out, but also be kind of additional infrastructure related investments that we can make with our technology stack that will really unlock the next generation of customer value. So, that's where we're focused. We spent the last couple of years doing some restructuring activities, having a more dynamic capital allocation process, but now as we move forward that's going to be more about growth and taking advantage of the unique opportunities that we have to create customer value, both profitability and sustainability wise.
Joel Tiss -- BMO -- Analyst
Great. Thanks.
Josh Jepsen -- Director of Investor Relations
Thanks, Joel. We'll go ahead and go to our next question.
Operator
Stanley Elliott with Stifel. Your line is open.
Stanley Elliott -- Stifel -- Analyst
Hey, good morning everyone. Thank you all for taking the question. Can you talk a little bit about the -- with the news on the infrastructure build the other week, when would you expect to see that through the portfolio and then also maybe any sort of nuances between the road construction business versus the legacy core?
Josh Jepsen -- Director of Investor Relations
Good morning, Stanley. On the infrastructure, the interesting thing here is as we start to see that, we think jobs probably really start to move more toward the end of '22. But given this dynamic of demand above the industry's ability to produce, due to supply, probably not as much impact as one might expect or hope in '22. So, we'll continue to watch that. We think those -- that type of program, it's very, very positive for the industry, tend to have a long run of impact, but probably start to see more of that in '23.
When we step back and look at that, there's a significant amount of funding that is roads, bridges, waterways, broadband, all of which really are very attractive and applicable to our earthmoving and road building businesses. So, that's -- I think that's particularly positive. If you look at our industry outlooks, we're -- and again this is muted somewhat by just the supply constraints, but up 5% to 10% North America for both construction and compact construction.
Globally, we'd say roadbuilding is probably in that same vein of 5% to 10%. So, we'll keep our eyes out there. Dealers are obviously working very closely with customers, I think we'll watch the independent rental companies. We've seen some of their capex start to move upward in '21 and into '22 and that's probably a good leading indicator of some of the work on the infrastructure coming.
Stanley Elliott -- Stifel -- Analyst
Thank you, everyone and happy Thanksgiving.
Josh Jepsen -- Director of Investor Relations
Thanks Stanley. Take care.
Operator
Courtney Yakavonis with Morgan Stanley. Your line is open.
Courtney Yakavonis -- Morgan Stanley -- Analyst
Hi, good morning, guys. Thanks for the question. Can you just pair for us a little bit the gap between your small Ag industry guidance and your sales guidance, obviously, pricing is the part of it, but I don't think you could be really expecting inventory levels to -- mostly to the mix or just help us understand the difference between those two?
Josh Jepsen -- Director of Investor Relations
The Small Ag and Turf, North America, we expect to be up -- excuse me, expect to be flat. Our overall sales for that that business unit are up 15% to 20%. So a big part of it's price, so about 7 points of price embedded in there. That is also a more global operation. So that had some impact when we think about where and how we operate around the world. So, there's a peak there. So there's a little bit of market share, I think it'd be fair to assume some gains there. And then on the very little margins maybe on some segments of tractors. We expect to build a little bit of inventory, but relatively muted. So, I think those are components that are driving the difference between those outlooks.
Stanley Elliott -- Stifel -- Analyst
And maybe just as a follow-up, can you also just comment on the margins being down year-over-year in that segment? Is that anything that disproportionately weighing on this line?
Josh Jepsen -- Director of Investor Relations
Yes, good question. It's -- the price cost for Small Ag and Turf is positive for '22, but it's the most challenged. So it's -- we're price cost positive, but that's -- we're seeing a bigger impact there as it relates to margin and particularly incremental margins are more challenged in that regard. And I would say that's a part of the business where we are seeing constraints on the supply side that are impacting some parts of that business, maybe a little bit more than others. So with that, I think we've got time for one more question.
Operator
Larry De Maria with William Blair. Your line is open.
Larry De Maria -- William Blair -- Analyst
Hey, thanks, good morning. Slightly off topic here, but now that delivering negotiation with Stryker concluded, congratulations. Do we have potential OSHA rules on the horizon around mandatory vaccines? Just curious if there's anything in the contract that talks to that? What your policy is? And just trying to understand the expectation around further issues in production, both here and potentially even in Mannheim? Thank you.
Josh Jepsen -- Director of Investor Relations
Sure. Thanks, Larry. Yes, I mean, I would say the focus here over the last couple of months has really been around the negotiations on the contract and getting our employees back in our facilities and operating. We'll continue to work through all the important guidelines and everything that's then you see put in place. I'd say, if we go back to the early days of the pandemic, we were taking measures ahead of guidelines, ahead of CDC requirements and as well as in other parts of the world to take care of our workforce to keep them safe. We shifted to multi-shift operations in order to create distance.
We put a number of those things in place early on. So, I think we feel pretty good about the track record we have of taking care and keeping our employees safe and our work environment safe. And we'll continue to do that. With that, we'll go ahead and wrap up the call. I appreciate everyone's time. Hope everyone has a good Thanksgiving and we'll talk soon. Take care.
Operator
[Operator Closing Remarks]
Duration: 59 minutes
Call participants:
Josh Jepsen -- Director of Investor Relations
Brent Norwood -- Manager of Investor Communications
Cory J. Reed -- President of Production and Precision Ag
Ryan D. Campbell -- Senior Vice President and Chief Financial Officer
Rob Wertheimer -- Melius Research -- Analyst
Jerry Revich -- Goldman Sachs -- Analyst
Jamie Cook -- Credit Suisse -- Analyst
Stephen Volkmann -- Jefferies -- Analyst
Chad Dillard -- Bernstein -- Analyst
Tim Thein -- Citigroup -- Analyst
Kristen Owen -- Oppenheimer -- Analyst
Adam Uhlman -- Cleveland Research -- Analyst
Ralph Gilardi -- Bank of America -- Analyst
Mig Dobre -- Baird -- Analyst
Joel Tiss -- BMO -- Analyst
Stanley Elliott -- Stifel -- Analyst
Courtney Yakavonis -- Morgan Stanley -- Analyst
Larry De Maria -- William Blair -- Analyst
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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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Ryan D. Campbell -- Senior Vice President and Chief Financial Officer Yes. We also expect to experience poor overhead absorption due to the lower volumes as mentioned and there are few other one-time items that will provide some additional drag including ratification bonus and some favorable tax credits that we saw in the first quarter of '21 that don't repeat in '22. Cory J. Reed -- President of Production and Precision Ag Yes.
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Ryan D. Campbell -- Senior Vice President and Chief Financial Officer Yes. In 2021, we saw take rates of the automation package activation or subscription, which includes AutoPath double, leading to more customers enabled with John Deere's highest value Precision Ag software. Cory J. Reed -- President of Production and Precision Ag Yes.
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Ryan D. Campbell -- Senior Vice President and Chief Financial Officer Yes. All in, we expect first quarter margins to be mid-to high-single digits for the Equipment Operations with those businesses that have been most affected by the delayed ratification to be below that average looking beyond the first quarter, though we do expect margins for the rest of the year to be more favorable and incrementals more in line with historical averages. Cory J. Reed -- President of Production and Precision Ag Yes.
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Ryan D. Campbell -- Senior Vice President and Chief Financial Officer Yes. Cory J. Reed -- President of Production and Precision Ag Yes. Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Josh Jepsen -- Director of Investor Relations Brent Norwood -- Manager of Investor Communications Cory J. Reed -- President of Production and Precision Ag Ryan D. Campbell -- Senior Vice President and Chief Financial Officer Rob Wertheimer -- Melius Research -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Jamie Cook -- Credit Suisse -- Analyst Stephen Volkmann -- Jefferies -- Analyst Chad Dillard -- Bernstein -- Analyst Tim Thein -- Citigroup -- Analyst Kristen Owen -- Oppenheimer -- Analyst Adam Uhlman -- Cleveland Research -- Analyst Ralph Gilardi -- Bank of America -- Analyst Mig Dobre -- Baird -- Analyst Joel Tiss -- BMO -- Analyst Stanley Elliott -- Stifel -- Analyst Courtney Yakavonis -- Morgan Stanley -- Analyst Larry De Maria -- William Blair -- Analyst More DE analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool.
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df312c9f-8178-4808-8489-7aaed99d5c8b
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721370.0
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2021-11-24 00:00:00 UTC
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Deere & Co Initiates FY22 Net Income Outlook- Quick Facts
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DE
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https://www.nasdaq.com/articles/deere-co-initiates-fy22-net-income-outlook-quick-facts
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nan
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nan
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(RTTNews) - While reporting financial results for the fourth quarter on Wednesday, Deere & Co. (DE) initiated is guidance for net income attributable to the company for the full-year 2022 in a range of $6.5 billion to $7.0 billion, reflecting healthy demand.
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 fourth quarter on Wednesday, Deere & Co. (DE) initiated is guidance for net income attributable to the company for the full-year 2022 in a range of $6.5 billion to $7.0 billion, reflecting healthy demand. 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 fourth quarter on Wednesday, Deere & Co. (DE) initiated is guidance for net income attributable to the company for the full-year 2022 in a range of $6.5 billion to $7.0 billion, reflecting healthy demand. 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 fourth quarter on Wednesday, Deere & Co. (DE) initiated is guidance for net income attributable to the company for the full-year 2022 in a range of $6.5 billion to $7.0 billion, reflecting healthy demand. 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 fourth quarter on Wednesday, Deere & Co. (DE) initiated is guidance for net income attributable to the company for the full-year 2022 in a range of $6.5 billion to $7.0 billion, reflecting healthy demand. 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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1b8a33c1-4d23-4566-a205-0f5db2f40723
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721371.0
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2021-11-24 00:00:00 UTC
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Deere profit soars on farm equipment demand
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DE
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https://www.nasdaq.com/articles/deere-profit-soars-on-farm-equipment-demand
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nan
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nan
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Adds background, details from statement
Nov 24 (Reuters) - Deere & Co DE.N reported a 69% rise in fourth-quarter profit on Wednesday as solid demand for its tractors and combines from farmers cushioned the impact of a worker strike.
Farmers' income has surged this year on the back of soaring crop and livestock prices, encouraging them to replace older equipment despite price hikes by manufacturers.
Deere said sales of its large and some medium equipment jumped 23% in the quarter, while sales of smaller farm and turf equipment rose 17%.
The jump came even as its operations took a hit for about three weeks from a strike by workers demanding better pay.
Net income rose to $1.28 billion from $757 million a year earlier.
Total net sales and revenue rose to $11.33 billion from $9.73 billion.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Aditya Soni)
((Abhijith.G@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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Adds background, details from statement Nov 24 (Reuters) - Deere & Co DE.N reported a 69% rise in fourth-quarter profit on Wednesday as solid demand for its tractors and combines from farmers cushioned the impact of a worker strike. The jump came even as its operations took a hit for about three weeks from a strike by workers demanding better pay. Farmers' income has surged this year on the back of soaring crop and livestock prices, encouraging them to replace older equipment despite price hikes by manufacturers.
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The jump came even as its operations took a hit for about three weeks from a strike by workers demanding better pay. Adds background, details from statement Nov 24 (Reuters) - Deere & Co DE.N reported a 69% rise in fourth-quarter profit on Wednesday as solid demand for its tractors and combines from farmers cushioned the impact of a worker strike. Farmers' income has surged this year on the back of soaring crop and livestock prices, encouraging them to replace older equipment despite price hikes by manufacturers.
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Adds background, details from statement Nov 24 (Reuters) - Deere & Co DE.N reported a 69% rise in fourth-quarter profit on Wednesday as solid demand for its tractors and combines from farmers cushioned the impact of a worker strike. Farmers' income has surged this year on the back of soaring crop and livestock prices, encouraging them to replace older equipment despite price hikes by manufacturers. Deere said sales of its large and some medium equipment jumped 23% in the quarter, while sales of smaller farm and turf equipment rose 17%.
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Adds background, details from statement Nov 24 (Reuters) - Deere & Co DE.N reported a 69% rise in fourth-quarter profit on Wednesday as solid demand for its tractors and combines from farmers cushioned the impact of a worker strike. Farmers' income has surged this year on the back of soaring crop and livestock prices, encouraging them to replace older equipment despite price hikes by manufacturers. Deere said sales of its large and some medium equipment jumped 23% in the quarter, while sales of smaller farm and turf equipment rose 17%.
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5e049946-dc8b-4f20-8e81-b60b6ea55aff
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721372.0
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2021-11-24 00:00:00 UTC
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Deere And Co Q4 Profit Rises, Beats estimates
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DE
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https://www.nasdaq.com/articles/deere-and-co-q4-profit-rises-beats-estimates
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nan
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nan
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(RTTNews) - Deere And Co (DE) reported earnings for its fourth quarter that rose from last year.
The company's earnings came in at $1.28 billion, or $4.12 per share. This compares with $0.76 billion, or $2.39 per share, in last year's fourth quarter.
Analysts had expected the company to earn $3.90 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 16.4% to $11.33 billion from $9.73 billion last year.
Deere And Co earnings at a glance:
-Earnings (Q4): $1.28 Bln. vs. $0.76 Bln. last year. -EPS (Q4): $4.12 vs. $2.39 last year. -Analysts Estimate: $3.90 -Revenue (Q4): $11.33 Bln vs. $9.73 Bln last year.
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) reported earnings for its fourth quarter that rose from last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q4): $1.28 Bln.
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(RTTNews) - Deere And Co (DE) reported earnings for its fourth quarter that rose from last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q4): $1.28 Bln.
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(RTTNews) - Deere And Co (DE) reported earnings for its fourth quarter that rose from last year. Analysts' estimates typically exclude special items. Deere And Co earnings at a glance: -Earnings (Q4): $1.28 Bln.
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Deere And Co earnings at a glance: -Earnings (Q4): $1.28 Bln. (RTTNews) - Deere And Co (DE) reported earnings for its fourth quarter that rose from last year. Analysts' estimates typically exclude special items.
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77060948-de67-459d-900a-106f3a7cebe8
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721373.0
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2021-11-24 00:00:00 UTC
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How Will Deere Stock Trend Following Q4 Earnings?
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DE
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https://www.nasdaq.com/articles/how-will-deere-stock-trend-following-q4-earnings
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nan
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Deere & Company (NYSE:DE) is scheduled to report its fiscal fourth-quarter results on Wednesday, November 24. We expect Deere to likely post revenues below, but earnings above, the consensus estimates. While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. That said, our forecast indicates that Deere’s valuation is $434 per share, which is around 22% above the current market price of $357. Our interactive dashboard analysis on Deere’s Pre-Earnings has additional details.
Note that a month long strike by workers at Deere has come to an end just yesterday, with Deere agreeing to an increase in base production pay, bonuses, and improvements in pension funding for the workers. The company may resort to an increased production overseas with rising wages in the U.S. to cater to a surge in demand for its equipment.
(1) Revenues expected to be below the consensus estimate
Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. The company saw a strong rebound in the demand for construction as well as agriculture equipment over the last few quarters. In Q3 fiscal 2021, revenue rose a solid 32% to $10.4 billion, as the company continued to see an increase in spending on agricultural equipment as well as a rebound in construction equipment demand. In fact, construction and forestry segment sales were up a solid 38% y-o-y, while small agriculture & turf sales were up 32%, and production & precision agriculture sales were up 29%. Our dashboard on Deere Revenues provides more details on segment-wise revenue breakup.
2) EPS likely to be above the consensus estimates
Deere’s Q4 fiscal 2021 earnings per share (EPS) is expected to be $3.98 per Trefis analysis, slightly above the consensus estimate of $3.96. Deere’s net income of $1.7 billion in Q3, reflected a large 2x growth from its $811 million profit in the prior year quarter, led by higher sales and a decline in operating expenses. While Deere saw a higher price realization over the recent quarters, aiding the overall margins, Q4 may see some pressure on margins, primarily due to inflationary headwinds. Looking at the full fiscal 2022, we expect EPS to more than double to $18.86, aided by both revenue growth as well as margin expansion.
(3) Stock price estimate 22% above the current market price
Going by our Deere Valuation, with an EPS estimate of around $18.86 and P/E multiple of 23x in 2021 (vs. 26x in 2020), this translates into a price of $434, which is 22% above the current market price of $357. Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment has seen a strong rebound so far this year, a trend expected to continue in the near term.
Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year
While DE stock looks like can gain more, it is helpful to see how its peers stack up. DE stock comparison with its peers summarizes how Deere compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 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 fourth-quarter results on Wednesday, November 24. While a gradual opening up of the economies with a rise in vaccination rates has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Deere’s net income of $1.7 billion in Q3, reflected a large 2x growth from its $811 million profit in the prior year quarter, led by higher sales and a decline in operating expenses.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. 2) EPS likely to be above the consensus estimates Deere’s Q4 fiscal 2021 earnings per share (EPS) is expected to be $3.98 per Trefis analysis, slightly above the consensus estimate of $3.96. Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks like can gain more, it is helpful to see how its peers stack up.
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(1) Revenues expected to be below the consensus estimate Trefis estimates Deere’s Q4 fiscal 2021 total revenues to be around $10.4 billion, 2% below the consensus estimate of $10.6 billion. (3) Stock price estimate 22% above the current market price Going by our Deere Valuation, with an EPS estimate of around $18.86 and P/E multiple of 23x in 2021 (vs. 26x in 2020), this translates into a price of $434, which is 22% above the current market price of $357. Although the coronavirus outbreak has had a sizable impact on Deere’s business in fiscal 2020 due to lower demand for its equipment, the demand for both agriculture as well as construction equipment has seen a strong rebound so far this year, a trend expected to continue in the near term.
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In Q3 fiscal 2021, revenue rose a solid 32% to $10.4 billion, as the company continued to see an increase in spending on agricultural equipment as well as a rebound in construction equipment demand. (3) Stock price estimate 22% above the current market price Going by our Deere Valuation, with an EPS estimate of around $18.86 and P/E multiple of 23x in 2021 (vs. 26x in 2020), this translates into a price of $434, which is 22% above the current market price of $357. Note: P/E Multiples are based on Share Price at the end of the year, and reported (or expected) Adjusted Earnings for the full year While DE stock looks like can gain more, it is helpful to see how its peers stack up.
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19d0d88d-17a6-4a70-9371-e79d0aacad19
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721374.0
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2021-11-24 00:00:00 UTC
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3 Cyclical Stocks To Watch Right Now
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DE
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https://www.nasdaq.com/articles/3-cyclical-stocks-to-watch-right-now
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nan
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nan
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Are These The Best Cyclical Stocks To Invest In Today?
Cyclical stocks are taking center stage in thestock market todayas numerous economic data points come rolling in. To begin with, the latest weekly initial jobless claims figures are in at 190,000. Notably, this is leaps and bounds below the estimated 260,000, marking a 52-year low. On top of that, we also have the latest personal consumption expenditure index numbers to consider as well. Seeing as this is considered the Federal Reserve’s preferred inflation measure, investors would be watching it closely. Not to mention, revised data shows U.S. third-quarter GDP rose at an annual 2.1% pace instead of 2.0%.
Now, what might all this have to do with cyclical stocks might you ask? Well, simply put, cyclical stocks generally flow with economic cycles. Hence, when the economy is doing good, the industry tends to follow suit; and vice versa. With the overwhelming focus on the economy today, cyclical stocks are likely in focus. If anything, cyclicals are not sitting idly by amidst all this as well. Take Deere & Company (NYSE: DE) for instance. The company posted an earnings per share of $4.12 earlier today, topping Wall Street’s projections of $3.90. At the same time, travel firm Booking (NASDAQ: BKNG) is acquiring Swedish travel agency Etraveli for $1.83 billion. By and large, things appear to be heating up in the cyclical sector ahead of Thanksgiving. With that said, here are three top cyclical stocks to know in the stock market now.
Top Cyclical Stocks To Buy [Or Sell] This Week
Apple Inc. (NASDAQ: AAPL)
Plug Power Inc. (NASDAQ: PLUG)
Chevron Corporation (NYSE: CVX)
Apple Inc.
To begin, we have Apple, a multinational technology company that focuses on its line of premium products and tech services. In detail, it is one of the largest tech companies in the world and also one of the world’s most valuable companies. Its tech services like Apple Music and Apple TV are used by millions around the globe. AAPL stock has risen by over 35% in the past year alone.
Last week, it was reported by Bloomberg that the company is accelerating work on its EV car and is refocusing the project around full self-driving capabilities. This builds upon efforts from the past several years, where Apple’s car team has explored two simultaneous paths. Namely, they would be creating a model with limited self-driving capabilities focused on steering and acceleration or a version with full-self-driving capabilities that do not require human intervention. Engineers are now concentrating on the latter. If successful, this could be a game-changer for the company, given how tech and auto giants have spent years on autonomous vehicles, but the capabilities have remained elusive.
On October 28, 2021, the company also reported its fourth-quarter financials. Diving in, Apple reported a record revenue of $83.4 billion, increasing by 29% year-over-year. Net income for the quarter was $20.5 billion or a quarterly earnings per diluted share of $1.24. During this quarter, the company also launched its most powerful products ever, like its iPhone 13 lineup and M1-powered Macs. All things considered, is AAPL stock worth looking out for right now?
Source: TD Ameritrade TOS
Read More
4 Artificial Intelligence Stocks To Watch Right Now
Best Lithium Battery Stocks To Buy Now? 4 To Know
Plug Power
Next, we have Plug Power, a cyclical company that develops hydrogen fuel cell systems to replace conventional batteries in equipment and vehicles powered by electricity. At the heart of the company is its comprehensive hydrogen fuel cell (HFC) turnkey solutions. In fact, the company created the first commercially viable market for its HFC technology. Its solutions are used by customers like Amazon (NASDAQ: AMZN), BMW, The Southern Company (NYSE: SO).
Today, the company announced that it has been selected by Fertiglobe as the technology provider for a 100 megawatts electrolyzer to produce green hydrogen as feedstock for up to 90,000 tons of green ammonia production at EBIC in Ain Sokhna, Egypt. Egypt will be an ideal location to produce green hydrogen given its unique renewables profile and close to markets with a hydrogen deficit. This will also be one of the largest green hydrogen and ammonia applications globally. The company also expects to follow an accelerated schedule to showcase the green hydrogen facility by November 2022 during COP27 in Egypt.
On Tuesday, the company also announced that it has completed the acquisition of Applied Cryo Technologies, a leading provider of technology for the transportation, storage, and distribution of liquefied hydrogen and other cryogenic gases. The acquisition will add significant capabilities, expertise, and technologies to Plug Power. This includes a liquid hydrogen delivery network and fleet, which will allow the company to expand its green hydrogen ecosystem. With this exciting piece of news, is PLUG stock a top cyclical stock to invest in?
Source: TD Ameritrade TOS
[Read More] 5 Metaverse Stocks To Watch In November 2021
Chevron Corporation
Following that, we will be taking a look at Chevron. It is one of the largest oil companies in the U.S. Through its energy-based offerings, Chevron would, arguably, be in a prime position to benefit from a booming economy. After all, the company’s petroleum-based offerings remain a vital component in supply chains globally. As CVX stock continues to trade towards its pre-pandemic levels, could it be worth looking out for now?
Well, for one thing, analysts over at RBC Capital Markets seem to think so. Namely, the firm upgraded its rating of CVX stock from Sector Perform to Outperform, raising its price target to $145. RBC says that Chevron’s “relatively stable portfolio” is a plus point. Moreover, Chevron alongside its energy industry peers could also stand to gain in the current inflationary environment. This would be, as mentioned earlier, due to the consistent need for its fuel-based services amidst the ongoing supply chain pressures.
If all that wasn’t enough, the company also boasts an annual dividend yield of about 4.8%. This would help it appeal to investors looking to make more defensive plays amidst all the activity in the market. Overall, some would argue that CVX stock makes for an appealing play given its industry-leading position and attractive dividend payout. Would you agree?
Source: TD Ameritrade TOS
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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On top of that, we also have the latest personal consumption expenditure index numbers to consider as well. Seeing as this is considered the Federal Reserve’s preferred inflation measure, investors would be watching it closely. Take Deere & Company (NYSE: DE) for instance.
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4 To Know Plug Power Next, we have Plug Power, a cyclical company that develops hydrogen fuel cell systems to replace conventional batteries in equipment and vehicles powered by electricity. Source: TD Ameritrade TOS [Read More] 5 Metaverse Stocks To Watch In November 2021 Chevron Corporation Following that, we will be taking a look at Chevron. On top of that, we also have the latest personal consumption expenditure index numbers to consider as well.
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4 To Know Plug Power Next, we have Plug Power, a cyclical company that develops hydrogen fuel cell systems to replace conventional batteries in equipment and vehicles powered by electricity. On top of that, we also have the latest personal consumption expenditure index numbers to consider as well. Seeing as this is considered the Federal Reserve’s preferred inflation measure, investors would be watching it closely.
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On top of that, we also have the latest personal consumption expenditure index numbers to consider as well. Seeing as this is considered the Federal Reserve’s preferred inflation measure, investors would be watching it closely. Take Deere & Company (NYSE: DE) for instance.
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7b1c37c7-f182-4eed-b992-15ad5e08a290
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721375.0
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2021-11-24 00:00:00 UTC
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S&P 500 Movers: GPS, HPQ
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DE
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https://www.nasdaq.com/articles/sp-500-movers%3A-gps-hpq
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nan
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nan
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In early trading on Wednesday, shares of HPQ topped the list of the day's best performing components of the S&P 500 index, trading up 11.2%. Year to date, HP Inc registers a 45.5% gain.
And the worst performing S&P 500 component thus far on the day is The Gap, trading down 23.1%. The Gap is lower by about 10.5% looking at the year to date performance.
Two other components making moves today are Autodesk, trading down 16.7%, and Deere, trading up 4.9% on the day.
VIDEO: S&P 500 Movers: GPS, HPQ
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: GPS, HPQ 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 Wednesday, shares of HPQ topped the list of the day's best performing components of the S&P 500 index, trading up 11.2%. Two other components making moves today are Autodesk, trading down 16.7%, and Deere, trading up 4.9% on the day.
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In early trading on Wednesday, shares of HPQ topped the list of the day's best performing components of the S&P 500 index, trading up 11.2%. Two other components making moves today are Autodesk, trading down 16.7%, and Deere, trading up 4.9% on the day. VIDEO: S&P 500 Movers: GPS, HPQ 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 Wednesday, shares of HPQ topped the list of the day's best performing components of the S&P 500 index, trading up 11.2%. Two other components making moves today are Autodesk, trading down 16.7%, and Deere, trading up 4.9% on the day. VIDEO: S&P 500 Movers: GPS, HPQ 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: GPS, HPQ 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 Wednesday, shares of HPQ topped the list of the day's best performing components of the S&P 500 index, trading up 11.2%. Two other components making moves today are Autodesk, trading down 16.7%, and Deere, trading up 4.9% on the day.
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e66bd783-2fd5-40be-b27e-779633a08398
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721376.0
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2021-11-23 00:00:00 UTC
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Pre-Market Earnings Report for November 24, 2021 : DE, KC, CD, GOGL, HTHT, CNTG, VIOT, JFIN
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DE
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-november-24-2021-%3A-de-kc-cd-gogl-htht-cntg-viot-jfin
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nan
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The following companies are expected to report earnings prior to market open on 11/24/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Deere & Company (DE)is reporting for the quarter ending October 31, 2021. The farm machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.82. This value represents a 59.83% 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 3rd calendar quarter where they beat the consensus by 18.49%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 18.64 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Kingsoft Cloud Holdings Limited (KC)is reporting for the quarter ending September 30, 2021. The internet software company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.26. This value represents a 271.43% decrease compared to the same quarter last year. KC missed the consensus earnings per share in the 1st calendar quarter of 2021 by -30%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for KC is -22.86 vs. an industry ratio of -42.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Chindata Group Holdings Limited (CD)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.03. This value represents a 62.50% increase compared to the same quarter last year. In the past year CD and beat the expectations the other two quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CD is 244.75 vs. an industry ratio of -198.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Golden Ocean Group Limited (GOGL)is reporting for the quarter ending September 30, 2021. The shipping company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.55. This value represents a 103.70% increase compared to the same quarter last year. In the past year GOGL Zacks Investment Research reports that the 2021 Price to Earnings ratio for GOGL is 4.39 vs. an industry ratio of -8.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Huazhu Group Limited (HTHT)is reporting for the quarter ending September 30, 2021. The hotel company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.07. This value represents a 163.64% increase compared to the same quarter last year. The "days to cover" for this stock exceeds 21 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for HTHT is 134.83 vs. an industry ratio of -10.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Centogene N.V. (CNTG)is reporting for the quarter ending September 30, 2021. The medical information systems company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.59. This value represents a 84.38% decrease compared to the same quarter last year. The last two quarters CNTG had negative earnings surprises; the latest report they missed by -73.08%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CNTG is -4.72 vs. an industry ratio of -13.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Viomi Technology Co., Ltd (VIOT)is reporting for the quarter ending September 30, 2021. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.16. This value represents a 33.33% increase compared to the same quarter last year. In the past year VIOT has met analyst expectations once and beat the expectations the other two quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for VIOT is 6.63 vs. an industry ratio of 11.60.
Jiayin Group Inc. (JFIN)is reporting for the quarter ending September 30, 2021. The internet software company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.33. This value represents a 43.48% increase compared to the same quarter last year. In the past year JFIN and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JFIN is 2.81 vs. an industry ratio of -42.00, implying that they will have a higher earnings growth than their competitors in the same industry.
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 October 31, 2021. In the past year DE has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 18.64 vs. an industry ratio of 17.70, 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 2021 Price to Earnings ratio for DE is 18.64 vs. an industry ratio of 17.70, 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 October 31, 2021. In the past year DE has beat the expectations every quarter.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 18.64 vs. an industry ratio of 17.70, 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 October 31, 2021. 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 October 31, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DE is 18.64 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
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ab02ecfe-0a06-4296-8705-6bb7ab52cec6
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721377.0
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2021-11-18 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, EA, OLED
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-de-ea-oled
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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 13,335 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 91.4% of DE's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $360 strike call option expiring November 19, 2021, with 709 contracts trading so far today, representing approximately 70,900 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $360 strike highlighted in orange:
Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 21,202 contracts, representing approximately 2.1 million underlying shares or approximately 88.9% of EA's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $135 strike put option expiring November 19, 2021, with 3,340 contracts trading so far today, representing approximately 334,000 underlying shares of EA. Below is a chart showing EA's trailing twelve month trading history, with the $135 strike highlighted in orange:
And Universal Display Corp (Symbol: OLED) saw options trading volume of 3,090 contracts, representing approximately 309,000 underlying shares or approximately 81.9% of OLED's average daily trading volume over the past month, of 377,135 shares. Particularly high volume was seen for the $167.50 strike call option expiring November 26, 2021, with 203 contracts trading so far today, representing approximately 20,300 underlying shares of OLED. Below is a chart showing OLED's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
For the various different available expirations for DE options, EA options, or OLED 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 $360 strike call option expiring November 19, 2021, with 709 contracts trading so far today, representing approximately 70,900 underlying shares of DE. Particularly high volume was seen for the $135 strike put option expiring November 19, 2021, with 3,340 contracts trading so far today, representing approximately 334,000 underlying shares of EA. Particularly high volume was seen for the $167.50 strike call option expiring November 26, 2021, with 203 contracts trading so far today, representing approximately 20,300 underlying shares of OLED.
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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 13,335 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 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: Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 21,202 contracts, representing approximately 2.1 million underlying shares or approximately 88.9% of EA's average daily trading volume over the past month, of 2.4 million shares. Below is a chart showing EA's trailing twelve month trading history, with the $135 strike highlighted in orange: And Universal Display Corp (Symbol: OLED) saw options trading volume of 3,090 contracts, representing approximately 309,000 underlying shares or approximately 81.9% of OLED's average daily trading volume over the past month, of 377,135 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 13,335 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 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: Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 21,202 contracts, representing approximately 2.1 million underlying shares or approximately 88.9% of EA's average daily trading volume over the past month, of 2.4 million shares. Below is a chart showing EA's trailing twelve month trading history, with the $135 strike highlighted in orange: And Universal Display Corp (Symbol: OLED) saw options trading volume of 3,090 contracts, representing approximately 309,000 underlying shares or approximately 81.9% of OLED's average daily trading volume over the past month, of 377,135 shares.
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Below is a chart showing DE's trailing twelve month trading history, with the $360 strike highlighted in orange: Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 21,202 contracts, representing approximately 2.1 million underlying shares or approximately 88.9% of EA's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $135 strike put option expiring November 19, 2021, with 3,340 contracts trading so far today, representing approximately 334,000 underlying shares of EA. Particularly high volume was seen for the $167.50 strike call option expiring November 26, 2021, with 203 contracts trading so far today, representing approximately 20,300 underlying shares of OLED.
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6e7c3cb5-aa48-4ba4-b831-2d55ecb3fa0a
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721378.0
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2021-11-18 00:00:00 UTC
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John Deere Strike Ends As UAW Workers Approve New Contract
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DE
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https://www.nasdaq.com/articles/john-deere-strike-ends-as-uaw-workers-approve-new-contract
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nan
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nan
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(RTTNews) - Manufacturer Deere & Co.'s employees have ended a month-long strike after the United Auto Workers or UAW union approved the company's latest contract offer.
UAW, which represents more than 10,000 Deere workers, announced Wednesday that 61 percent of its members had voted in favor of the deal, compared to 39 percent against. The employees are expected to return to work starting Thursday.
The latest contract offer includes an $8,500 signing bonus, a 10 percent immediate raise, additional 5 percent raises in the third and fifth year of the proposed six-year deal, and other benefits including retirement boosts.
Deere union workers had been on strike for the past nearly five weeks fighting for greater pay and benefits.
On October 1, the union had reached an initial tentative agreement with the company, but most of the rank-and-file members voted against the deal in a voting that concluded on October 10. Following this, the employees started the strike demanding better terms.
The second contract offer was also rejected in a November 2 voting, though it gained more support with 45 percent voting in favor a deal.
According to the union, the latest offer had modest modifications from the previous one they rejected earlier this month.
Commenting on the agreement, UAW Vice President Chuck Browning, head of the unit of the union that deals with Deere, said, "Our members courageous willingness to strike in order to attain a better standard of living and a more secure retirement resulted in a groundbreaking contract and sets a new standard for workers not only within the UAW but throughout the country."
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) - Manufacturer Deere & Co.'s employees have ended a month-long strike after the United Auto Workers or UAW union approved the company's latest contract offer. Deere union workers had been on strike for the past nearly five weeks fighting for greater pay and benefits. Commenting on the agreement, UAW Vice President Chuck Browning, head of the unit of the union that deals with Deere, said, "Our members courageous willingness to strike in order to attain a better standard of living and a more secure retirement resulted in a groundbreaking contract and sets a new standard for workers not only within the UAW but throughout the country."
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(RTTNews) - Manufacturer Deere & Co.'s employees have ended a month-long strike after the United Auto Workers or UAW union approved the company's latest contract offer. UAW, which represents more than 10,000 Deere workers, announced Wednesday that 61 percent of its members had voted in favor of the deal, compared to 39 percent against. The latest contract offer includes an $8,500 signing bonus, a 10 percent immediate raise, additional 5 percent raises in the third and fifth year of the proposed six-year deal, and other benefits including retirement boosts.
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(RTTNews) - Manufacturer Deere & Co.'s employees have ended a month-long strike after the United Auto Workers or UAW union approved the company's latest contract offer. The latest contract offer includes an $8,500 signing bonus, a 10 percent immediate raise, additional 5 percent raises in the third and fifth year of the proposed six-year deal, and other benefits including retirement boosts. Commenting on the agreement, UAW Vice President Chuck Browning, head of the unit of the union that deals with Deere, said, "Our members courageous willingness to strike in order to attain a better standard of living and a more secure retirement resulted in a groundbreaking contract and sets a new standard for workers not only within the UAW but throughout the country."
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UAW, which represents more than 10,000 Deere workers, announced Wednesday that 61 percent of its members had voted in favor of the deal, compared to 39 percent against. Following this, the employees started the strike demanding better terms. The second contract offer was also rejected in a November 2 voting, though it gained more support with 45 percent voting in favor a deal.
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ada9d922-64fa-4b25-b7a3-af007d1e128d
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721379.0
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2021-11-17 00:00:00 UTC
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Never Mind the Strikes, Deere Is Worth Considering
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DE
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https://www.nasdaq.com/articles/never-mind-the-strikes-deere-is-worth-considering
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nan
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nan
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Industrial equipment and component manufacturer Deere (DE) has mainly been hamstrung for the last month. On October 14, production workers stepped off the line and went on strike. Two attempts to produce a new contract for striking workers failed.
Now, a third attempt has taken the stage and is bringing fresh hope that Deere will get back to production directly. Though the labor troubles are disconcerting, I'm bullish on Deere overall. (See Analysts' Top Stocks on TipRanks)
Looking at Deere's stock charts for the year, one almost wouldn't know the company has been having labor troubles. The company spent most of the first quarter of 2021 on an upward cant. That surge leveled off when many farmers in the U.S. were looking to begin the year's planting. Another small surge hit in May.
That was followed by a slight dip for June that was quickly wiped out with a new leg up. Price spikes hit in both August and September. Then, the share price dipped down just a bit when Deere's labor troubles first hit. A recovery then kicked in, and now, we're around the prices seen in late September. (See Deere stock charts on TipRanks)
Meanwhile, the company is now on its third round of contract negotiations. There's no word yet on just what's contained in the agreement. Also unclear is when the workers will vote on the new contract. With workers off the job since October 14, however, any movement on this front is likely welcome.
However, reports suggest that the two sides have reached at least a tentative agreement. Additionally, the latest contract represents "modest modifications" to the previous contract, and it's also Deere's "last, best, and final offer." Though it's easy to wonder if Deere will come up with another "final" offer should this offer prove rejected by workers. The alternative, after all, would be to shut down altogether.
Powering Agriculture Gives Deere a Secure Position
The company's labor troubles are a severe issue. It's impacting the company's ability to make and sell products. However, here's the point that catches my attention most when talking about Deere; there is a bidding war going on right now over used Deere products.
With the production of new Deere hobbled, the secondary market for used tractors is exploding. Commodity prices have been spiraling upward for the last several months, even going back to last year, as various pandemic-related issues have hit the field. Production demand is only increasing. That's putting upward pressure on everything used to produce commodities as well, and that means people want Deere hardware.
According to the Machinery Pete Quarterly Used Values Index—a measure of the value of used tractors and the like—the used market is seeing record high prices. These records are almost a decade old. That was during a major commodities boom.
Naturally, that's having a range of knock-on effects in the agriculture market. The most significant effect for Deere watchers is that this proves unequivocally that Deere is a big brand. Thanks to the production impact, getting new Deere tractors right now is difficult.
Therefore, rather than proceeding to a competitor who isn't having labor troubles, people are slogging through the used market to get what they want instead. That's a very good sign of belief in the brand name. It's also a great positive for investors.
Wall Street's Take
Turning to Wall Street, Deere has a Moderate Buy consensus rating, based on four Buys and three Holds assigned in the past three months. The average Deere price target of $405.57 implies 14.9% upside potential.
Analyst price targets range from a low of $354 per share to a high of $440 per share.
Concluding Views
Deere has a very strong brand name, and the fact that the used market for Deere hardware is so hot right now makes that absolutely clear. Rather than buy new from some other brand name, customers are focusing on getting their name of choice in used hardware instead.
With that kind of brand loyalty in play, it's easy to see why I'm bullish on the stock. This strike too shall pass, as it generally does. When it does, new Deere hardware will be back in play. That, coupled with an explosive commodities environment, should make Deere very attractive.
Disclosure: At the time of publication, Steve Anderson did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.
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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Now, a third attempt has taken the stage and is bringing fresh hope that Deere will get back to production directly. Powering Agriculture Gives Deere a Secure Position The company's labor troubles are a severe issue. Commodity prices have been spiraling upward for the last several months, even going back to last year, as various pandemic-related issues have hit the field.
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(See Analysts' Top Stocks on TipRanks) Looking at Deere's stock charts for the year, one almost wouldn't know the company has been having labor troubles. Powering Agriculture Gives Deere a Secure Position The company's labor troubles are a severe issue. Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only.
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(See Analysts' Top Stocks on TipRanks) Looking at Deere's stock charts for the year, one almost wouldn't know the company has been having labor troubles. Then, the share price dipped down just a bit when Deere's labor troubles first hit. Concluding Views Deere has a very strong brand name, and the fact that the used market for Deere hardware is so hot right now makes that absolutely clear.
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Then, the share price dipped down just a bit when Deere's labor troubles first hit. Powering Agriculture Gives Deere a Secure Position The company's labor troubles are a severe issue. Industrial equipment and component manufacturer Deere (DE) has mainly been hamstrung for the last month.
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3b0c1141-6c84-4aa5-9f3e-3e4f6f1eb587
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721380.0
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2021-11-17 00:00:00 UTC
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Deere strike to end as workers vote to approve contract
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DE
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https://www.nasdaq.com/articles/deere-strike-to-end-as-workers-vote-to-approve-contract
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nan
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nan
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Nov 17 (Reuters) - A majority of Deere & Co's DE.N striking workers on Wednesday voted to approve a modified contract proposed by the farm equipment maker, ending a near six-week strike, the United Auto Workers union said in a statement.
(Reporting by Abhijith Ganapavaram and Bhargav Acharya in Bengaluru; Editing by Shounak Dasgupta)
((Abhijith.G@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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Nov 17 (Reuters) - A majority of Deere & Co's DE.N striking workers on Wednesday voted to approve a modified contract proposed by the farm equipment maker, ending a near six-week strike, the United Auto Workers union said in a statement. (Reporting by Abhijith Ganapavaram and Bhargav Acharya in Bengaluru; Editing by Shounak Dasgupta) ((Abhijith.G@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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Nov 17 (Reuters) - A majority of Deere & Co's DE.N striking workers on Wednesday voted to approve a modified contract proposed by the farm equipment maker, ending a near six-week strike, the United Auto Workers union said in a statement. (Reporting by Abhijith Ganapavaram and Bhargav Acharya in Bengaluru; Editing by Shounak Dasgupta) ((Abhijith.G@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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Nov 17 (Reuters) - A majority of Deere & Co's DE.N striking workers on Wednesday voted to approve a modified contract proposed by the farm equipment maker, ending a near six-week strike, the United Auto Workers union said in a statement. (Reporting by Abhijith Ganapavaram and Bhargav Acharya in Bengaluru; Editing by Shounak Dasgupta) ((Abhijith.G@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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Nov 17 (Reuters) - A majority of Deere & Co's DE.N striking workers on Wednesday voted to approve a modified contract proposed by the farm equipment maker, ending a near six-week strike, the United Auto Workers union said in a statement. (Reporting by Abhijith Ganapavaram and Bhargav Acharya in Bengaluru; Editing by Shounak Dasgupta) ((Abhijith.G@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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9a3b0ef1-6851-4a4c-b152-b2a4e6dbb0e1
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721381.0
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2021-11-17 00:00:00 UTC
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Striking workers set for crucial vote as Deere mulls options
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DE
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https://www.nasdaq.com/articles/striking-workers-set-for-crucial-vote-as-deere-mulls-options
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nan
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nan
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Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options.
Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating.
Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table".
The workers are demanding better pay from Deere, which has forecast a record net income of $5.7 billion to $5.9 billion this year, to claw back concessions they made on some benefits in the past.
The striking workers are getting a good amount of community support, which further reinforces their push, UBS analyst Steven Fisher, citing a professor of labor relations, wrote in a research note.
Deere has so far refused to comment on the impact of the strike on production, but Bernstein analyst Chad Dillard estimates the company will forecast fiscal 2022 net income below Wall Street expectations, in part due to the strike impact, when it reports results next Wednesday.
The Illinois-based company has attempted to make up for the loss of production by training salaried employees, but Bloomberg reported earlier this month that Deere's customers were facing weeks-long delays for parts orders.
The last strike against Deere by the UAW was in 1986 when workers sat out for 163 days.
FOCUS-'Desperate for tires.' Components shortage roils U.S. harvest
'Enough's enough': tight U.S. job market triggers strikes for more pay
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shailesh Kuber)
((Abhijith.G@thomsonreuters.com; +91-8050746507;))
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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Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table". The Illinois-based company has attempted to make up for the loss of production by training salaried employees, but Bloomberg reported earlier this month that Deere's customers were facing weeks-long delays for parts orders. Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options.
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Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating. The workers are demanding better pay from Deere, which has forecast a record net income of $5.7 billion to $5.9 billion this year, to claw back concessions they made on some benefits in the past. Deere has so far refused to comment on the impact of the strike on production, but Bernstein analyst Chad Dillard estimates the company will forecast fiscal 2022 net income below Wall Street expectations, in part due to the strike impact, when it reports results next Wednesday.
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Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating. Deere has so far refused to comment on the impact of the strike on production, but Bernstein analyst Chad Dillard estimates the company will forecast fiscal 2022 net income below Wall Street expectations, in part due to the strike impact, when it reports results next Wednesday.
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Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating. Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table".
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cade28ef-d862-4f09-a2bc-c0185a3ae024
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721382.0
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2021-11-17 00:00:00 UTC
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Striking workers set for crucial vote as Deere mulls options
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DE
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https://www.nasdaq.com/articles/striking-workers-set-for-crucial-vote-as-deere-mulls-options-0
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nan
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nan
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By Abhijith Ganapavaram
Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options.
Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating.
Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table".
The workers are demanding better pay from Deere, which has forecast a record net income of $5.7 billion to $5.9 billion this year, to claw back concessions they made on some benefits in the past.
The striking workers are getting a good amount of community support, which further reinforces their push, UBS analyst Steven Fisher, citing a professor of labor relations, wrote in a research note.
Deere has so far refused to comment on the impact of the strike on production, but Bernstein analyst Chad Dillard estimates the company will forecast fiscal 2022 net income below Wall Street expectations, in part due to the strike impact, when it reports results next Wednesday.
The strike at the Illinois-based company comes at a time when farmers are struggling to find parts for tractors and combines during the U.S. corn and soybean harvest season.
Deere shares fell 2.5% in afternoon trade. They have risen about 10% since the strike began in October.
TIMELINE-Key events leading up to third vote by striking Deere workers
'Enough's enough': tight U.S. job market triggers strikes for more pay
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shailesh Kuber and Amy Caren Daniel)
((Abhijith.G@thomsonreuters.com; +91-8050746507;))
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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Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table". By Abhijith Ganapavaram Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating.
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By Abhijith Ganapavaram Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. The workers are demanding better pay from Deere, which has forecast a record net income of $5.7 billion to $5.9 billion this year, to claw back concessions they made on some benefits in the past. TIMELINE-Key events leading up to third vote by striking Deere workers 'Enough's enough': tight U.S. job market triggers strikes for more pay (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shailesh Kuber and Amy Caren Daniel) ((Abhijith.G@thomsonreuters.com; +91-8050746507;)) 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 Abhijith Ganapavaram Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. Deere has so far refused to comment on the impact of the strike on production, but Bernstein analyst Chad Dillard estimates the company will forecast fiscal 2022 net income below Wall Street expectations, in part due to the strike impact, when it reports results next Wednesday. TIMELINE-Key events leading up to third vote by striking Deere workers 'Enough's enough': tight U.S. job market triggers strikes for more pay (Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Shailesh Kuber and Amy Caren Daniel) ((Abhijith.G@thomsonreuters.com; +91-8050746507;)) 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 Abhijith Ganapavaram Nov 17 (Reuters) - About 10,000 striking workers at Deere & Co DE.N will vote again on Wednesday to approve or reject a modified contract proposed by the company, as the longest strike in more than three decades forces the world's largest farm equipment maker to consider other options. Deere has not publicly commented on changes to its second contract offer, which was rejected earlier this month, but the United Auto Workers (UAW) union, which represents the striking workers, said on Friday the company had made a "last, best and final offer" that included "modest modifications", without elaborating. Workers at facilities in Illinois, Iowa and Kansas have been on strike since the middle of October after having turned down Deere's attempts to tie them down to a new deal, prompting the company to say "all options are on the table".
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da89e81d-d0c6-4696-ae0e-2e5ef0d89acc
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721383.0
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2021-11-16 00:00:00 UTC
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Notable ETF Outflow Detected - MTUM, MS, DE, MRNA
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DE
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-mtum-ms-de-mrna
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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 MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $227.0 million dollar outflow -- that's a 1.3% decrease week over week (from 90,600,000 to 89,400,000). Among the largest underlying components of MTUM, in trading today Morgan Stanley (Symbol: MS) is down about 0.1%, Deere & Co. (Symbol: DE) is trading flat, and Moderna Inc (Symbol: MRNA) is higher by about 0.3%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $147.68 per share, with $194.25 as the 52 week high point — that compares with a last trade of $189.27. 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 ».
Free Report: Top 7%+ Dividends (paid monthly)
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 MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $147.68 per share, with $194.25 as the 52 week high point — that compares with a last trade of $189.27. 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 MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $147.68 per share, with $194.25 as the 52 week high point — that compares with a last trade of $189.27. 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 MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $227.0 million dollar outflow -- that's a 1.3% decrease week over week (from 90,600,000 to 89,400,000).
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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 MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $227.0 million dollar outflow -- that's a 1.3% decrease week over week (from 90,600,000 to 89,400,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $147.68 per share, with $194.25 as the 52 week high point — that compares with a last trade of $189.27. 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 MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $227.0 million dollar outflow -- that's a 1.3% decrease week over week (from 90,600,000 to 89,400,000). For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average: Looking at the chart above, MTUM's low point in its 52 week range is $147.68 per share, with $194.25 as the 52 week high point — that compares with a last trade of $189.27. 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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58a5a341-6838-41a6-81c1-051c7e9d0b2c
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721384.0
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2021-11-13 00:00:00 UTC
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Here's What Deere & Company's (NYSE:DE) Shareholder Ownership Structure Looks Like
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DE
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https://www.nasdaq.com/articles/heres-what-deere-companys-nyse%3Ade-shareholder-ownership-structure-looks-like-2021-11-13
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nan
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nan
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The big shareholder groups in Deere & Company (NYSE:DE) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Deere is a pretty big company. It has a market capitalization of US$111b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Deere.
NYSE:DE Ownership Breakdown November 13th 2021
What Does The Institutional Ownership Tell Us About Deere?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Deere does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Deere's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:DE Earnings and Revenue Growth November 13th 2021
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Deere. Cascade Investment, L.L.C. is currently the largest shareholder, with 8.5% of shares outstanding. For context, the second largest shareholder holds about 7.2% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder.
After doing some more digging, we found that the top 23 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Deere
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Deere & Company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$114m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
With a 22% ownership, the general public have some degree of sway over Deere. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 8.5%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Deere you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. NYSE:DE Earnings and Revenue Growth November 13th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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The big shareholder groups in Deere & Company (NYSE:DE) have power over the company. We can see that Deere does have institutional investors; and they hold a good portion of the company's stock. NYSE:DE Earnings and Revenue Growth November 13th 2021 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.
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The big shareholder groups in Deere & Company (NYSE:DE) have power over the company. Insider Ownership Of Deere The definition of company insiders can be subjective and does vary between jurisdictions. Conversely, insiders often decrease their ownership over time.
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We can see that Deere does have institutional investors; and they hold a good portion of the company's stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. The big shareholder groups in Deere & Company (NYSE:DE) have power over the company.
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6d6c7452-ebe1-48f8-a4d1-aa958ae6df45
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721385.0
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2021-11-11 00:00:00 UTC
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Noteworthy Thursday Option Activity: DE, XLNX, CZR
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-de-xlnx-czr
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 7,823 contracts has been traded thus far today, a contract volume which is representative of approximately 782,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 50.4% of DE's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $420 strike call option expiring November 12, 2021, with 524 contracts trading so far today, representing approximately 52,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $420 strike highlighted in orange:
Xilinx, Inc. (Symbol: XLNX) saw options trading volume of 11,799 contracts, representing approximately 1.2 million underlying shares or approximately 47% of XLNX's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $160 strike put option expiring December 17, 2021, with 3,064 contracts trading so far today, representing approximately 306,400 underlying shares of XLNX. Below is a chart showing XLNX's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Caesars Entertainment Inc (Symbol: CZR) options are showing a volume of 8,621 contracts thus far today. That number of contracts represents approximately 862,100 underlying shares, working out to a sizeable 42.7% of CZR's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $112 strike call option expiring November 19, 2021, with 944 contracts trading so far today, representing approximately 94,400 underlying shares of CZR. Below is a chart showing CZR's trailing twelve month trading history, with the $112 strike highlighted in orange:
For the various different available expirations for DE options, XLNX options, or CZR 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 $420 strike call option expiring November 12, 2021, with 524 contracts trading so far today, representing approximately 52,400 underlying shares of DE. Especially high volume was seen for the $160 strike put option expiring December 17, 2021, with 3,064 contracts trading so far today, representing approximately 306,400 underlying shares of XLNX. Particularly high volume was seen for the $112 strike call option expiring November 19, 2021, with 944 contracts trading so far today, representing approximately 94,400 underlying shares of CZR.
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Particularly high volume was seen for the $420 strike call option expiring November 12, 2021, with 524 contracts trading so far today, representing approximately 52,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $420 strike highlighted in orange: Xilinx, Inc. (Symbol: XLNX) saw options trading volume of 11,799 contracts, representing approximately 1.2 million underlying shares or approximately 47% of XLNX's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $112 strike call option expiring November 19, 2021, with 944 contracts trading so far today, representing approximately 94,400 underlying shares of CZR.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 7,823 contracts has been traded thus far today, a contract volume which is representative of approximately 782,300 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 $420 strike highlighted in orange: Xilinx, Inc. (Symbol: XLNX) saw options trading volume of 11,799 contracts, representing approximately 1.2 million underlying shares or approximately 47% of XLNX's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $112 strike call option expiring November 19, 2021, with 944 contracts trading so far today, representing approximately 94,400 underlying shares of CZR.
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Below is a chart showing DE's trailing twelve month trading history, with the $420 strike highlighted in orange: Xilinx, Inc. (Symbol: XLNX) saw options trading volume of 11,799 contracts, representing approximately 1.2 million underlying shares or approximately 47% of XLNX's average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $160 strike put option expiring December 17, 2021, with 3,064 contracts trading so far today, representing approximately 306,400 underlying shares of XLNX. Below is a chart showing CZR's trailing twelve month trading history, with the $112 strike highlighted in orange: For the various different available expirations for DE options, XLNX options, or CZR options, visit StockOptionsChannel.com.
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df0cc863-f92a-4e26-89c2-07dd216ca9c1
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721386.0
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2021-11-11 00:00:00 UTC
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December 31st Options Now Available For Deere
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DE
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https://www.nasdaq.com/articles/december-31st-options-now-available-for-deere
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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 December 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new December 31st contracts and identified one put and one call contract of particular interest.
The put contract at the $355.00 strike price has a current bid of $13.40. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $355.00, but will also collect the premium, putting the cost basis of the shares at $341.60 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $357.79/share today.
Because the $355.00 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 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.77% return on the cash commitment, or 27.55% 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 $355.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $360.00 strike price has a current bid of $11.30. If an investor was to purchase shares of DE stock at the current price level of $357.79/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $360.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.78% if the stock gets called away at the December 31st 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 $360.00 strike highlighted in red:
Considering the fact that the $360.00 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 3.16% boost of extra return to the investor, or 23.06% 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 $357.79) to be 29%. 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 $360.00 strike highlighted in red: Considering the fact that the $360.00 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 become available today, for the December 31st expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $360.00 strike highlighted in red: Considering the fact that the $360.00 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 become available today, for the December 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new December 31st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $355.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $360.00 strike price has a current bid of $11.30. Below is a chart showing DE's trailing twelve month trading history, with the $360.00 strike highlighted in red: Considering the fact that the $360.00 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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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new December 31st 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 $360.00 strike highlighted in red: Considering the fact that the $360.00 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 become available today, for the December 31st expiration.
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8bdbcf64-58f3-4a49-9b40-f298d13f770b
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721387.0
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2021-11-09 00:00:00 UTC
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Deere Is Likely To Outperform This Stock Amid A Rebound In Construction Demand
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DE
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https://www.nasdaq.com/articles/deere-is-likely-to-outperform-this-stock-amid-a-rebound-in-construction-demand
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nan
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nan
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We think that Deere stock (NYSE: DE) is currently is a better pick compared to Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Deere being the more expensive of the two. DE trades at about 2.5x trailing revenues, compared to just 0.9x for Terex. Although both the companies have benefited from the rise in construction activities post-pandemic, Deere’s financial performance has been better over the recent years. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth. Our dashboard Deere vs Terex: Industry Peers; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below.
1. Deere Revenue Growth Has Been Stronger
Now, Deere’s revenue growth over the last twelve month period was slightly better than Terex (19% vs. 16%), given a sharp rebound in equipment demand for the construction industry, along with continued growth in agricultural equipment demand. Even if we were to look at a longer duration, Deere’s last three fiscal year CAGR of 6% is much better than that of -7% CAGR for Terex, primarily due to the impact of Covid-19 on demand for aerial work platforms (elevating work platforms). Note that the revenue base for Deere is much larger with $42 billion sales in the last twelve months compared to just $4 billion for Terex.
Looking forward, Deere is expected to see strong revenue growth with economies opening up, and aging of agricultural equipment in the U.S. In fact, we forecast Deere’s revenue to grow a strong 25% to around $40 billion in 2021. Our Deere Revenues dashboard provides more insight on the company’s revenues. For Terex, a rebound in demand for aerial work platforms and materials processing equipment, will drive the revenue growth. Terex’s revenues are also expected to grow 25% to $3.8 billion in 2021, as per the consensus estimates.
2. Deere Has Better Profitability
Similar to the pattern seen in revenue growth, Deere’s last three years average operating margin of 14.2% is much better than just 6.3% for Terex. Deere’s operating margins have surged over the recent quarters, and it stood at 19.2% over the last twelve month period, compared to 14.2% in 2019, before the pandemic. The current operating margin of 7.1% for Terex is lower compared to Deere, and it compares with the 7.7% figure in 2019. Overall, Deere’s margins are much better than Terex and that has been the case even if we were to look at historical years. Looking forward, the margins for both companies are likely to be adversely impacted in the near term due to inflationary pressure, and supply chain headwinds, but rise in the long run.
The Net of It All
Now that over half of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for construction equipment is likely to rise going forward, boding well for both the companies. Deere in particular, will also benefit from agricultural equipment demand over the next few years, given that the age of farming equipment in the U.S. is now above average, and the company expects to see a strong demand as farmers look at replacing the existing equipment.
Now, both the companies have seen a strong rebound in demand since the pandemic. While Terex’s current valuation is surely more attractive than that of Deere, with TEX stock trading at about 0.9x trailing revenues, versus 2.5x for Deere, the latter has demonstrated better revenue growth and better profitability over the last few years. Even if we look at another valuation metric – price to operating income ratio (P/EBIT) – both the companies are similarly priced around 13x.
That said, if we were to look at financial risk, Terex is better placed among the two with lower debt as percentage of equity and higher cash as percentage of assets. Overall, barring the financial risk, Deere trumps Terex in most of the metrics that matter for investors and we think this gap in valuation between the two companies is largely justified. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Deere may continue to outperform with its better growth prospects, albeit at a higher risk.
While DE stock may see higher levels, 2020 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 Terex vs. Louisiana.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 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 Net of It All Now that over half of the U.S. population is fully vaccinated against Covid-19, with overall economic activity picking up, the demand for construction equipment is likely to rise going forward, boding well for both the companies. In fact, looking forward, it is likely that the gap in valuation of these two companies will remain in the foreseeable future and Deere may continue to outperform with its better growth prospects, albeit at a higher risk. We think that Deere stock (NYSE: DE) is currently is a better pick compared to Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Deere being the more expensive of the two.
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We think that Deere stock (NYSE: DE) is currently is a better pick compared to Terex stock (NYSE: TEX), a global manufacturer of lifting and material processing products, despite Deere being the more expensive of the two. Deere Revenue Growth Has Been Stronger Now, Deere’s revenue growth over the last twelve month period was slightly better than Terex (19% vs. 16%), given a sharp rebound in equipment demand for the construction industry, along with continued growth in agricultural equipment demand. For Terex, a rebound in demand for aerial work platforms and materials processing equipment, will drive the revenue growth.
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Deere Revenue Growth Has Been Stronger Now, Deere’s revenue growth over the last twelve month period was slightly better than Terex (19% vs. 16%), given a sharp rebound in equipment demand for the construction industry, along with continued growth in agricultural equipment demand. Deere Has Better Profitability Similar to the pattern seen in revenue growth, Deere’s last three years average operating margin of 14.2% is much better than just 6.3% for Terex. While Terex’s current valuation is surely more attractive than that of Deere, with TEX stock trading at about 0.9x trailing revenues, versus 2.5x for Deere, the latter has demonstrated better revenue growth and better profitability over the last few years.
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Deere Revenue Growth Has Been Stronger Now, Deere’s revenue growth over the last twelve month period was slightly better than Terex (19% vs. 16%), given a sharp rebound in equipment demand for the construction industry, along with continued growth in agricultural equipment demand. The current operating margin of 7.1% for Terex is lower compared to Deere, and it compares with the 7.7% figure in 2019. While Terex’s current valuation is surely more attractive than that of Deere, with TEX stock trading at about 0.9x trailing revenues, versus 2.5x for Deere, the latter has demonstrated better revenue growth and better profitability over the last few years.
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9cd35979-f754-4785-875d-f802fed1b606
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721388.0
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2021-11-05 00:00:00 UTC
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U.S. job growth picks up in October; unemployment rate falls to 4.6%
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DE
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https://www.nasdaq.com/articles/u.s.-job-growth-picks-up-in-october-unemployment-rate-falls-to-4.6-2021-11-05
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nan
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nan
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By Lucia Mutikani
WASHINGTON, Nov 5 (Reuters) - U.S. employment increased more than expected in October as the headwind from the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
Nonfarm payrolls increased by 531,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Data for September was revised higher to show 312,000 created instead of the previously reported 194,000.
Economists polled by Reuters had forecast payrolls rising by 450,000 jobs. Estimates ranged from as low as 125,000 jobs to as high as 755,000. Worker shortages persisted, even as federal government-funded unemployment benefits wound down in early September and schools reopened for in-person learning.
Still, the report joined rising consumer confidence and services sector activity in painting a more favorable picture of the economy, after the Delta variant of the coronavirus and economy-wide shortages of goods restrained growth in the third quarter to its slowest pace in more than a year.
The unemployment rate fell to 4.6% from 4.8% in September. While companies desperately want to hire, millions remain unemployed and outside the labor force.
This labor market disconnect has been blamed on caregiving needs during the pandemic, fears of contracting the coronavirus, early retirements, massive savings and career changes as well as an aging population and the recently ended expanded unemployment benefits. With many people who moved out of cities during the pandemic yet to return, there could also be a mismatch between the open jobs and location.
There were 10.4 million unfilled jobs as of the end of August. About five million people have left the labor force since the pandemic started.
Federal Reserve Chair Jerome Powell told reporters on Wednesday that "these impediments to labor supply should diminish with further progress on containing the virus, supporting gains in employment and economic activity."
The Fed announced it would this month start scaling back the amount of money it is pumping into the economy through monthly bond purchases.
There are concerns that the White House's vaccine mandate, which comes into effect on Jan. 4 and applies to federal government contractors and businesses with 100 or more employees, could compound the worker shortages.
There has also been a rise in strikes as workers take advantage of the tight labor market to demand more pay and better conditions. The walk out by about 10,000 Deere & Co DE.N workers had no impact on October's payrolls as it started in the middle of the period during which the government surveyed households and businesses for the employment report.
The scramble for workers continued to boost wage growth, which together with record savings should help to underpin consumer spending over the holiday session, though salaries are lagging inflation and shortages of goods are abound.
(Reporting by Lucia Mutikani Editing by Chizu Nomiyama)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters Messaging: lucia.mutikani.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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By Lucia Mutikani WASHINGTON, Nov 5 (Reuters) - U.S. employment increased more than expected in October as the headwind from the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter. Still, the report joined rising consumer confidence and services sector activity in painting a more favorable picture of the economy, after the Delta variant of the coronavirus and economy-wide shortages of goods restrained growth in the third quarter to its slowest pace in more than a year. This labor market disconnect has been blamed on caregiving needs during the pandemic, fears of contracting the coronavirus, early retirements, massive savings and career changes as well as an aging population and the recently ended expanded unemployment benefits.
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By Lucia Mutikani WASHINGTON, Nov 5 (Reuters) - U.S. employment increased more than expected in October as the headwind from the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter. Worker shortages persisted, even as federal government-funded unemployment benefits wound down in early September and schools reopened for in-person learning. About five million people have left the labor force since the pandemic started.
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Nonfarm payrolls increased by 531,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Still, the report joined rising consumer confidence and services sector activity in painting a more favorable picture of the economy, after the Delta variant of the coronavirus and economy-wide shortages of goods restrained growth in the third quarter to its slowest pace in more than a year. This labor market disconnect has been blamed on caregiving needs during the pandemic, fears of contracting the coronavirus, early retirements, massive savings and career changes as well as an aging population and the recently ended expanded unemployment benefits.
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Nonfarm payrolls increased by 531,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Worker shortages persisted, even as federal government-funded unemployment benefits wound down in early September and schools reopened for in-person learning. About five million people have left the labor force since the pandemic started.
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91756f8b-16b5-4f46-b642-664dcd95f485
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721389.0
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2021-11-04 00:00:00 UTC
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DE December 23rd Options Begin Trading
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DE
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https://www.nasdaq.com/articles/de-december-23rd-options-begin-trading-2021-11-04
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the December 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new December 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $345.00 strike price has a current bid of $11.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $345.00, but will also collect the premium, putting the cost basis of the shares at $333.05 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $347.20/share today.
Because the $345.00 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 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.46% return on the cash commitment, or 25.78% 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 $345.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $355.00 strike price has a current bid of $9.60. If an investor was to purchase shares of DE stock at the current price level of $347.20/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $355.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.01% if the stock gets called away at the December 23rd 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 $355.00 strike highlighted in red:
Considering the fact that the $355.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.76% boost of extra return to the investor, or 20.58% 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 $347.20) to be 29%. 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 $355.00 strike highlighted in red: Considering the fact that the $355.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the December 23rd expiration.
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Below is a chart showing DE's trailing twelve month trading history, with the $355.00 strike highlighted in red: Considering the fact that the $355.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the December 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new December 23rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $345.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $355.00 strike price has a current bid of $9.60. Below is a chart showing DE's trailing twelve month trading history, with the $355.00 strike highlighted in red: Considering the fact that the $355.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted).
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Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $345.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $355.00 strike price has a current bid of $9.60. Below is a chart showing DE's trailing twelve month trading history, with the $355.00 strike highlighted in red: Considering the fact that the $355.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Deere & Co. (Symbol: DE) saw new options begin trading today, for the December 23rd expiration.
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80e6faad-58c7-4c9b-8014-320b52b1545c
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721390.0
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2021-11-03 00:00:00 UTC
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Is Deere Stock Ready for Another Leg Higher?
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DE
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https://www.nasdaq.com/articles/is-deere-stock-ready-for-another-leg-higher-2021-11-03
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nan
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nan
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Deere & Company (DE) manufactures and distributes various industrial equipment worldwide. The stock seems ready to move on higher after a double-dip correction that sent shares tumbling by over 10% from their peak on two separate occasions. Broader market forces are major contributors to the latest bounce.
However, the real question on investors' minds is whether this is the beginning of the next leg up, or if Deere will end up in the headlights of yet another correction. Indeed, a pullback from the $380-390 level of resistance could paint an ugly technical picture for DE going into the year's end.
While the valuation may seem suspect to some after more than doubling off its 2020 pre-pandemic highs, many intriguing long-term catalysts point to shares of DE not being nearly as expensive as they could be.
In any case, I remain bullish on Deere and think the fundamentals could support another leg higher, where shares break through the $400 mark. (See Analysts’ Top Stocks on TipRanks)
Deere's Acquisitions Are Getting Very Exciting
Undoubtedly, many view Deere as more of a cyclical play on farming. A lot of durable manufacturing firms tend to boom when times are good, only to fall further than the broader indices when the economic cycle contracts.
Deere's incredibly generous 18% dividend hike points to positive trends, which may extend beyond just a favorable cyclical upswing. Indeed, Deere has a front-row seat to agricultural technology, as demonstrated by compelling acquisitions it had made over the years.
With deep pockets and a healthy balance sheet, the firm has the ability to grow via accretive M&A. Lately, Deere's deals have become more exciting. The company recently inked an agreement to acquire AI-powered agrotech firm Bear Flag Robotics in a deal worth $250 million.
Is the deal just science fiction? Or could autonomous tractor fleets be closer than we think?
I think the latter. These days, we hear about autonomous vehicle technology as being one of the next significant technological trends. Still, there are many challenges facing tomorrow's fully-autonomous vehicles, not to mention regulatory hurdles across numerous localities.
Bullish on Bear Flag
Indeed, autonomous farming seems more within grasp, given fewer variables to worry about on farmland. Safety is still of utmost importance, regardless of setting. Still, the probability of surprises that AI technologies can't effectively react to is far lower on a farmer's private property.
Now, autonomous farming may not be nearly as exciting as an autonomous vehicle, but it's a magnificent first step. Furthermore, AI-driven agricultural equipment can make the tricky business of farming that much more lucrative, given the labor and cost savings, not to mention improved efficiencies.
The real game-changer for Bear Flag Robotics may very well be that it can be retrofitted in today's machines. A fascinating frontier for those in the agricultural space.
Can Deere Keep Up Its Earnings Beats?
Deere has been firing on all cylinders of late, handsomely beating quarterly estimates regularly. On November 24, Deere's fourth-quarter earnings will be on tap, and the stage could be set for another beat. That may give DE stock the boost it needs to sustain a rally to much higher levels after consolidating for nearly a year.
Deere has delivered great bottom-line beats for seven consecutive quarters, thanks in part to a magnificent management team that deserves respect for how it effectively navigated through 2020.
The company can't keep crushing quarterly earnings. Still, the company has a lot going for it beyond the continued economic expansion. Tech-driven acquisitions make Deere worthy of a premium multiple versus the industry average.
Right now, Deere trades in line with industry averages at around 2.6 times sales and 14.1 times cash flow. On a price-to-earnings front, though, the stock is skewed towards the cheaper end of the industry range.
Wall Street's Take
Turning to Wall Street, Deere has a Moderate Buy consensus rating, based on four Buys and two Holds assigned in the past three months. The average Deere price target of $403.67 implies 19.3% upside potential.
Analyst price targets range from a low of $354.00 per share to a high of $440.00 per share.
The Bottom Line on Deere
While conditions will become somewhat less favorable as economic growth winds down, I find it'll be tough to stop Deere in its tracks with all the innovation going on behind the scenes.
Such innovation makes Deere more than just any cyclical company. For that reason, I am Bullish on DE stock, even if economic growth for 2022 ends up being more muted than expected.
Disclosure: Joey Frenette doesn't own shares of any mentioned companies at the time of publication.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.
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 lot of durable manufacturing firms tend to boom when times are good, only to fall further than the broader indices when the economic cycle contracts. Deere has delivered great bottom-line beats for seven consecutive quarters, thanks in part to a magnificent management team that deserves respect for how it effectively navigated through 2020. Deere & Company (DE) manufactures and distributes various industrial equipment worldwide.
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Deere & Company (DE) manufactures and distributes various industrial equipment worldwide. (See Analysts’ Top Stocks on TipRanks) Deere's Acquisitions Are Getting Very Exciting Undoubtedly, many view Deere as more of a cyclical play on farming. Broader market forces are major contributors to the latest bounce.
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(See Analysts’ Top Stocks on TipRanks) Deere's Acquisitions Are Getting Very Exciting Undoubtedly, many view Deere as more of a cyclical play on farming. The Bottom Line on Deere While conditions will become somewhat less favorable as economic growth winds down, I find it'll be tough to stop Deere in its tracks with all the innovation going on behind the scenes. Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only.
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Such innovation makes Deere more than just any cyclical company. For that reason, I am Bullish on DE stock, even if economic growth for 2022 ends up being more muted than expected. Deere & Company (DE) manufactures and distributes various industrial equipment worldwide.
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e010900b-b9f9-49b0-8367-75879639da33
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721391.0
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2021-11-03 00:00:00 UTC
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Wall St mixed as focus shifts to Fed's taper decision
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DE
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https://www.nasdaq.com/articles/wall-st-mixed-as-focus-shifts-to-feds-taper-decision-2021-11-03
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nan
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nan
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By Devik Jain and Shashank Nayar
Nov 3 (Reuters) - U.S. stocks indexes traded mixed in a narrow range on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a leadership change.
Six of the 11 major S&P sectors fell, with energy .SPNY and industrials .SPLRCI declining the most. The banking sub-index .SPXBK was down 0.4%.
The U.S. central bank will likely announce the tapering of its $120 billion-a-month asset purchase program in its policy statement due at 2 p.m. ET (1800 GMT).
"The taper is largely priced into markets right now, as the Fed has been telegraphing its intentions to taper for several months," said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence in Dallas, Texas.
The Fed's statement will be followed by Chair Jerome Powell's news conference, which market participants will be closely watching for views on inflation and path of interest rate hikes.
"If the Fed indicates that it will raise interest rates before the end of the year, this may be a sign that inflation is not as transitory as the Fed has said. This could shock investors and spark a selloff in the market," said Anthony Denier, chief executive officer of trading platform Webull.
Wall Street has largely shrugged off concerns around rising price pressures and mixed economic growth, boosted by a stellar third-quarter earnings season and an upbeat commentary about growth going forward that drove U.S. stocks to record highs this week.
Capri Holdings Ltd CPRI.N surged 14.8% after the Michael Kors owner raised its annual profit forecast above Wall Street estimates. The outlook also boosted shares of Tapestry Inc TPR.N by 4.8%.
T-Mobile US TMUS.O gained 5.5% to provide the biggest boost to the Nasdaq after the U.S. wireless carrier beat third-quarter estimates for adding monthly bill paying phone subscribers.
Lyft Inc LYFT.O surged 7.9% after the ride-hailing firm reported an adjusted profit for the third quarter, while CVS Health Corp CVS.N added 4.6% after it expects 2022 adjusted profit to be in line with expectations.
At 12:21 p.m. ET, the Dow Jones Industrial Average .DJI was down 101.45 points, or 0.28%, at 35,951.18, the S&P 500 .SPX was down 4.63 points, or 0.10%, at 4,626.02, and the Nasdaq Composite .IXIC was up 21.72 points, or 0.14%, at 15,671.33, hitting a record high.
Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high likely as declining COVID-19 cases boosted demand.
Activision Blizzard Inc ATVI.O tumbled 15.0% to weigh the most on the S&P 500 and the Nasdaq after the videogame publisher delayed the launch of two much-awaited titles, as its co-leader Jen Oneal decided to step down from her role.
Deere & Co DE.N slipped 4.9% as the tractor maker's workers were set to continue their three-week-old strike after they voted to reject a second contract.
Advancing issues outnumbered decliners by a 1.48-to-1 ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded 45 new 52-week highs and three new lows, while the Nasdaq recorded 172 new highs and 38 new lows.
(Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
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 Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes traded mixed in a narrow range on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a leadership change. Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high likely as declining COVID-19 cases boosted demand. Activision Blizzard Inc ATVI.O tumbled 15.0% to weigh the most on the S&P 500 and the Nasdaq after the videogame publisher delayed the launch of two much-awaited titles, as its co-leader Jen Oneal decided to step down from her role.
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By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes traded mixed in a narrow range on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a leadership change. The S&P index recorded 45 new 52-week highs and three new lows, while the Nasdaq recorded 172 new highs and 38 new lows. (Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel) ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;)) 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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Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high likely as declining COVID-19 cases boosted demand. The S&P index recorded 45 new 52-week highs and three new lows, while the Nasdaq recorded 172 new highs and 38 new lows. By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes traded mixed in a narrow range on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a leadership change.
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Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high likely as declining COVID-19 cases boosted demand. The S&P index recorded 45 new 52-week highs and three new lows, while the Nasdaq recorded 172 new highs and 38 new lows. By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes traded mixed in a narrow range on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a leadership change.
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fb762d77-869a-4b5b-afbe-4cfccc7562f9
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721392.0
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2021-11-03 00:00:00 UTC
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US STOCKS-Wall St inches lower as focus shifts to Fed's taper decision
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DE
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https://www.nasdaq.com/articles/us-stocks-wall-st-inches-lower-as-focus-shifts-to-feds-taper-decision-2021-11-03
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nan
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nan
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By Devik Jain and Shashank Nayar
Nov 3 (Reuters) - U.S. stocks indexes edged lower on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a gloomy outlook and a leadership change.
Five of the 11 major S&P sectors fell in early trading, with energy <.SPNY> and industrials .SPLRCI declining the most. Consumer discretionary shares .SPLRCD outperformed. The banking sub-index .SPXBK was down 0.5%.
The U.S. central bank will likely announce the tapering of its $120 billion-a-month asset purchase program in its policy statement due at 2 p.m. ET (1800 GMT).
"The taper is largely priced into markets right now, as the Fed has been telegraphing its intentions to taper for several months," said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence in Dallas, Texas.
The statement will be followed by Chair Jerome Powell's news conference, which market participants will be closely watching for views on inflation and path of interest rate hikes.
"We don't expect they will touch up on their rate hike plans for now ... but, if the Fed is to cut bond buying at faster levels than what the market anticipates, it could send some jitters because it says that the Fed worries more about inflation," said Sam Stovall, chief investment strategist at CFRA Research in New York.
Wall Street has largely shrugged off concerns around rising price pressures and mixed economic growth, boosted by a stellar third-quarter earnings season and an upbeat commentary about growth going forward that drove U.S. stocks to record highs this week.
Capri Holdings Ltd CPRI.Nsurged 13.0% after the Michael Kors owner raised its annual profit forecast above Wall Street estimates. The outlook also boosted shares of Tapestry Inc TPR.N by 5.6%.
T-Mobile US TMUS.O gained 5.9% after the U.S. wireless carrier beat third-quarter estimates for adding monthly bill paying phone subscribers.
Lyft Inc LYFT.O surged 9.0% after the ride-hailing firm reported an adjusted profit for the third quarter.
At 10:22 a.m. ET, the Dow Jones Industrial Average .DJI was down 114.93 points, or 0.32%, at 35,937.70, the S&P 500 .SPX was down 7.10 points, or 0.15%, at 4,623.55, and the Nasdaq Composite .IXIC was up 7.36 points, or 0.05%, at 15,656.96.
Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high in October likely as declining COVID-19 cases boosted demand.
Activision Blizzard Inc ATVI.O tumbled 14.5% to weigh the most on the S&P 500 and Nasdaq after the videogame publisher delayed the launch of two much-awaited titles, as its co-leader Jen Oneal decided to step down from her role.
Deere & Co DE.N slipped 4.9% as the tractor maker's workers were set to continue their three-week-old strike after they voted to reject a second contract.
Advancing issues outnumbered decliners by a 1.22-to-1 ratio on the NYSE and a 1.33-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and three new lows, while the Nasdaq recorded 110 new highs and 30 new lows.
(Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes edged lower on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a gloomy outlook and a leadership change. Activision Blizzard Inc ATVI.O tumbled 14.5% to weigh the most on the S&P 500 and Nasdaq after the videogame publisher delayed the launch of two much-awaited titles, as its co-leader Jen Oneal decided to step down from her role. Five of the 11 major S&P sectors fell in early trading, with energy <.SPNY> and industrials .SPLRCI declining the most.
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By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes edged lower on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a gloomy outlook and a leadership change. The S&P index recorded 34 new 52-week highs and three new lows, while the Nasdaq recorded 110 new highs and 30 new lows. (Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel) ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;)) 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 Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes edged lower on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a gloomy outlook and a leadership change. Meanwhile, data showed U.S. private employers maintained a solid pace of hiring in October, while a measure of U.S. services industry activity surged to a record high in October likely as declining COVID-19 cases boosted demand. Five of the 11 major S&P sectors fell in early trading, with energy <.SPNY> and industrials .SPLRCI declining the most.
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The S&P index recorded 34 new 52-week highs and three new lows, while the Nasdaq recorded 110 new highs and 30 new lows. By Devik Jain and Shashank Nayar Nov 3 (Reuters) - U.S. stocks indexes edged lower on Wednesday as investors looked ahead to the Federal Reserve's widely expected move to signal the withdrawal of its pandemic-era support, while Activision Blizzard slid on a gloomy outlook and a leadership change. Five of the 11 major S&P sectors fell in early trading, with energy <.SPNY> and industrials .SPLRCI declining the most.
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92d1a11e-c3aa-4eb1-a679-9632b85a5879
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721393.0
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2021-11-02 00:00:00 UTC
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Deere strike set to continue as workers reject second contract
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DE
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https://www.nasdaq.com/articles/deere-strike-set-to-continue-as-workers-reject-second-contract-2021-11-03
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nan
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nan
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Adds Deere statement, background
Nov 2 (Reuters) - Deere & Co DE.N workers were set to continue their three-week-old strike after they voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) union that bumped up wages and bonuses, UAW said on Tuesday.
The strike will continue and 55% of the workers voted down the agreement, UAW added.
Workers at 12 facilities in Illinois, Iowa and Kansas rejected the second tentative agreement, Deere said.
The company would have invested an additional $3.5 billion in its employees through agreements reached with UAW, Deere Chief Administrative Officer Marc Howze said.
The latest agreement provided for a 10% rise in wages this year, 5% in 2023 and 2025, as well as lump sum bonuses amounting to 3% of their pay for 2022, 2024 and 2026, according to UAW.
This was an improvement to last month's agreement, which was rejected overwhelmingly by the workers. It provided for 5% to 6% wage rise this year and 3% raises in 2023 and 2025 along with a 2% lump sum bonus.
The workers then went on strike, demanding better terms from Illinois-based Deere.
The company in August forecast fiscal 2021 net income between $5.7 billion and $5.9 billion, up from its previous outlook of $5.3 billion to $5.7 billion.
(Reporting by Juby Babu and Abhijith Ganapavaram in Bengaluru; Additional reporting by Radhika Anilkumar; Editing by Shounak Dasgupta)
((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397))
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 Deere statement, background Nov 2 (Reuters) - Deere & Co DE.N workers were set to continue their three-week-old strike after they voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) union that bumped up wages and bonuses, UAW said on Tuesday. The company would have invested an additional $3.5 billion in its employees through agreements reached with UAW, Deere Chief Administrative Officer Marc Howze said. The latest agreement provided for a 10% rise in wages this year, 5% in 2023 and 2025, as well as lump sum bonuses amounting to 3% of their pay for 2022, 2024 and 2026, according to UAW.
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The strike will continue and 55% of the workers voted down the agreement, UAW added. The company would have invested an additional $3.5 billion in its employees through agreements reached with UAW, Deere Chief Administrative Officer Marc Howze said. The latest agreement provided for a 10% rise in wages this year, 5% in 2023 and 2025, as well as lump sum bonuses amounting to 3% of their pay for 2022, 2024 and 2026, according to UAW.
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Adds Deere statement, background Nov 2 (Reuters) - Deere & Co DE.N workers were set to continue their three-week-old strike after they voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) union that bumped up wages and bonuses, UAW said on Tuesday. The company would have invested an additional $3.5 billion in its employees through agreements reached with UAW, Deere Chief Administrative Officer Marc Howze said. The latest agreement provided for a 10% rise in wages this year, 5% in 2023 and 2025, as well as lump sum bonuses amounting to 3% of their pay for 2022, 2024 and 2026, according to UAW.
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Adds Deere statement, background Nov 2 (Reuters) - Deere & Co DE.N workers were set to continue their three-week-old strike after they voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) union that bumped up wages and bonuses, UAW said on Tuesday. The strike will continue and 55% of the workers voted down the agreement, UAW added. Workers at 12 facilities in Illinois, Iowa and Kansas rejected the second tentative agreement, Deere said.
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109b783b-bf11-471b-bfb0-cc5c7ad0309e
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721394.0
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2021-11-02 00:00:00 UTC
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Deere strike set to continue as workers reject second, improved contract
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DE
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https://www.nasdaq.com/articles/deere-strike-set-to-continue-as-workers-reject-second-improved-contract-2021-11-03
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nan
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nan
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Nov 2 (Reuters) - A majority of Deere & Co's DE.N striking workers have voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) Union that bumped up wages and bonus, UAW said on Tuesday.
Deere and UAW agreed on a new six-year tentative contract on Saturday that covered about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas.
(Reporting by Juby Babu in Bengaluru)
((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397))
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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Nov 2 (Reuters) - A majority of Deere & Co's DE.N striking workers have voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) Union that bumped up wages and bonus, UAW said on Tuesday. Deere and UAW agreed on a new six-year tentative contract on Saturday that covered about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas. (Reporting by Juby Babu in Bengaluru) ((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397)) 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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Nov 2 (Reuters) - A majority of Deere & Co's DE.N striking workers have voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) Union that bumped up wages and bonus, UAW said on Tuesday. Deere and UAW agreed on a new six-year tentative contract on Saturday that covered about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas. (Reporting by Juby Babu in Bengaluru) ((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397)) 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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Nov 2 (Reuters) - A majority of Deere & Co's DE.N striking workers have voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) Union that bumped up wages and bonus, UAW said on Tuesday. Deere and UAW agreed on a new six-year tentative contract on Saturday that covered about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas. (Reporting by Juby Babu in Bengaluru) ((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397)) 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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Nov 2 (Reuters) - A majority of Deere & Co's DE.N striking workers have voted to reject a second contract reached between the U.S. tractor maker and the United Auto Workers (UAW) Union that bumped up wages and bonus, UAW said on Tuesday. Deere and UAW agreed on a new six-year tentative contract on Saturday that covered about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas. (Reporting by Juby Babu in Bengaluru) ((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182 3397)) 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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41711d5e-2e44-4d83-a81a-ce09b6bd2ef0
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721395.0
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2021-10-30 00:00:00 UTC
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Deere, UAW agree on new 6-year contract subject to union vote
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DE
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https://www.nasdaq.com/articles/deere-uaw-agree-on-new-6-year-contract-subject-to-union-vote-2021-10-30
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nan
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nan
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Corrects in paragraph two number of employees, facilities
Oct 30 (Reuters) - U.S. tractor maker Deere & Co DE.Nagreed on a new six-year contract with the United Auto Workers (UAW) union that would be subject to a vote by the company's striking workers, the company said in a statement on Saturday.
The new deal on wages and employee benefits covers about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas.
"The negotiators focused on improving the areas of concern identified by our members during our last ratification process," said Chuck Browning, UAW Vice President and Director of the Agricultural Implement Department.
UAW said it will not release details of the tentative agreement until members at Deere locations meet and review terms of their proposed contract.
"Out of respect for the process and our employees, we’re unable to speak to the details of the agreement," the company said.
About 90% of the union's members in early October rejected a previous tentative deal agreed between Deere and the UAW, and subsequently decided to go on strike.
The strike is the first against Deere by the UAW in more than three decades and comes in the middle of the U.S. corn and soybean harvest season, at a time when farmers are struggling to find parts for tractors and combines.
The last strike against Deere by the UAW was in 1986 when workers sat out for 163 days.
(Reporting by Kannaki Deka and Sneha Bhowmik in Bengaluru; editing by Diane Craft)
((Kannaki.Deka@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"The negotiators focused on improving the areas of concern identified by our members during our last ratification process," said Chuck Browning, UAW Vice President and Director of the Agricultural Implement Department. About 90% of the union's members in early October rejected a previous tentative deal agreed between Deere and the UAW, and subsequently decided to go on strike. The strike is the first against Deere by the UAW in more than three decades and comes in the middle of the U.S. corn and soybean harvest season, at a time when farmers are struggling to find parts for tractors and combines.
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Corrects in paragraph two number of employees, facilities Oct 30 (Reuters) - U.S. tractor maker Deere & Co DE.Nagreed on a new six-year contract with the United Auto Workers (UAW) union that would be subject to a vote by the company's striking workers, the company said in a statement on Saturday. UAW said it will not release details of the tentative agreement until members at Deere locations meet and review terms of their proposed contract. About 90% of the union's members in early October rejected a previous tentative deal agreed between Deere and the UAW, and subsequently decided to go on strike.
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Corrects in paragraph two number of employees, facilities Oct 30 (Reuters) - U.S. tractor maker Deere & Co DE.Nagreed on a new six-year contract with the United Auto Workers (UAW) union that would be subject to a vote by the company's striking workers, the company said in a statement on Saturday. UAW said it will not release details of the tentative agreement until members at Deere locations meet and review terms of their proposed contract. About 90% of the union's members in early October rejected a previous tentative deal agreed between Deere and the UAW, and subsequently decided to go on strike.
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Corrects in paragraph two number of employees, facilities Oct 30 (Reuters) - U.S. tractor maker Deere & Co DE.Nagreed on a new six-year contract with the United Auto Workers (UAW) union that would be subject to a vote by the company's striking workers, the company said in a statement on Saturday. The new deal on wages and employee benefits covers about 10,100 employees across 12 facilities in Iowa, Illinois and Kansas. UAW said it will not release details of the tentative agreement until members at Deere locations meet and review terms of their proposed contract.
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94c523c0-c3f4-45e0-a4c5-93df2ed04c38
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721396.0
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2021-10-29 00:00:00 UTC
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3 Cathie Wood Stocks That Pay Regular Dividends
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DE
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https://www.nasdaq.com/articles/3-cathie-wood-stocks-that-pay-regular-dividends-2021-10-29
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nan
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nan
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ARK Invest founder Cathie Wood is known for her partiality to young-ish companies with vast growth potential. That partiality can be seen in the names of some of her investment firm's suite of exchange-traded funds, including ARK Fintech Innovation ETF and ARK Next Genomic Revolution ETF. For income investors, the downside of following Wood's lead is that these funds invest in often-unprofitable businesses that are still years away from paying dividends.
But with a sprawling portfolio across six large and popular ETFs, there are several significant ARK Invest holdings that habitually remunerate their shareholders. Sorting through the pile of stocks, I've found some good ones worth considering: Pfizer (NYSE: PFE), Deere & Co. (NYSE: DE), and Intercontinental Exchange (NYSE: ICE). Let's find out a bit more about these three dividend-paying stocks.
Image source: Getty Images.
1. Pfizer
Although pharmaceutical giant Pfizer is a 172-year-old business, it's enjoying some accelerated name recognition and popularity right now. That's mostly thanks to Comirnaty, the COVID-19 vaccine that it developed along with BioNTech. So far, Comirnaty is the only COVID-19 vaccine fully approved by the Food and Drug Administration among the three currently authorized for emergency use in the U.S.
Comirnaty is powering a Pfizer resurgence these days. The company has smashed analyst estimates in its past few earnings reports. In its latest, the sales of vaccines (mainly Comirnaty, of course) rocketed 641% on a year-over-year basis to $9.2 billion.
Yet in its recent earnings reports, Pfizer has gone out of its way to note that the rest of its business is generally strong, healthy, and growing as well. For example, in the second quarter, revenue not including Comirnaty jumped by 10% year over year, which is a high number for such a veteran operator. Pfizer's No. 2 segment in terms of sales, oncology drugs, saw a 16% improvement, and the hospital drugs segment grew by 17%.
With all of these tailwinds, it's little wonder that Pfizer raised its full-year 2021 guidance considerably, by at least 8% for revenue, and 11% for per-share adjusted net profit.
Meanwhile, quarterly cash flow continues to land in the 11-digit range, providing more than enough for the modest but welcome annual raises to its quarterly dividend. At the moment, Pfizer (which is held by ARK Next Genomic Revolution ETF) pays $0.39 per share, which yields a relatively chunky 3.6%.
2. Deere & Co.
The most recent dividend raise among this pack belongs to agricultural machine and technology king Deere & Co. Reinforcing the idea that its business is robust and growing like a well-tended crop, the company declared a sturdy 17% hike to its quarterly payout in August.
Leveraging its position as a top name in agricultural equipment, Deere has lately been leaning on technological innovation to drive its growth. After all, farmers are always looking for a faster and/or higher-yielding way to grow their products. This dynamic played a big part in the company's impressive third quarter, in which its net sales shot almost 30% higher year over year, with headline net income doubling and then some.
That likely won't be the last Deere double on the bottom line. It's forecasting the same for net income across the entirety of 2021, with that all-important line item landing at $5.7 billion at a minimum, against 2020's $2.75 billion.
With growth like that, especially with a well-known company, bulls like Wood have piled into the stock, and it's currently teasing all-time highs. But the company's tech-powered future continues to look very bright, and the agriculture sector will always be hungry for efficiency-boosting solutions and reliable equipment.
At the moment, Deere, a double-dip held by both ARK Space Exploration and Innovation ETF and ARK Autonomous Technology and Robotics ETF, has a dividend yield of 1.2%.
3. Intercontinental Exchange
It's probably safe to say that most people have never heard of the rather blandly named Intercontinental Exchange. But they're almost surely familiar with its star subsidiary, the New York Stock Exchange. Those more attuned to the financial sector might be acquainted with its collection of niche securities marketplaces such as Creditex.
In short, as the name implies, Intercontinental Exchange runs securities exchanges like the NYSE and affiliated products and services. Being an intermediary that makes much of its revenue by facilitating (although not directly participating in) transactions can be quite lucrative.
Combine that with volatile securities markets that keep investors engaged, and you have a good recipe for high profitability, if not necessarily stunning organic growth. From 2016 to 2020, on the back of such growth (plus semi-frequent acquisitions), the company managed to increase its annual top-line steadily. It advanced from just under $5.6 billion in revenue in 2016 to a shade above $7.6 billion last year.
Profitability is a bit more up-and-down, but recently Intercontinental Exchange has consistently managed to land well in the black. Across the same stretch of time, the company's net margin has ranged from 26% to 45%. At the upper part of their range, those numbers would be the envy of even the most efficient middleman businesses.
Increasingly, more of that profit is coming back to shareholders. Intercontinental Exchange, of which ARK is an investor through ARK Fintech Innovation ETF, has a habit of raising its payout once every year. These days, the $0.33 per share quarterly disbursement has a dividend yield of 1%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Intercontinental Exchange. 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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But with a sprawling portfolio across six large and popular ETFs, there are several significant ARK Invest holdings that habitually remunerate their shareholders. Reinforcing the idea that its business is robust and growing like a well-tended crop, the company declared a sturdy 17% hike to its quarterly payout in August. ARK Invest founder Cathie Wood is known for her partiality to young-ish companies with vast growth potential.
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That partiality can be seen in the names of some of her investment firm's suite of exchange-traded funds, including ARK Fintech Innovation ETF and ARK Next Genomic Revolution ETF. At the moment, Deere, a double-dip held by both ARK Space Exploration and Innovation ETF and ARK Autonomous Technology and Robotics ETF, has a dividend yield of 1.2%. ARK Invest founder Cathie Wood is known for her partiality to young-ish companies with vast growth potential.
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Sorting through the pile of stocks, I've found some good ones worth considering: Pfizer (NYSE: PFE), Deere & Co. (NYSE: DE), and Intercontinental Exchange (NYSE: ICE). At the moment, Deere, a double-dip held by both ARK Space Exploration and Innovation ETF and ARK Autonomous Technology and Robotics ETF, has a dividend yield of 1.2%. ARK Invest founder Cathie Wood is known for her partiality to young-ish companies with vast growth potential.
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ARK Invest founder Cathie Wood is known for her partiality to young-ish companies with vast growth potential. That partiality can be seen in the names of some of her investment firm's suite of exchange-traded funds, including ARK Fintech Innovation ETF and ARK Next Genomic Revolution ETF. For income investors, the downside of following Wood's lead is that these funds invest in often-unprofitable businesses that are still years away from paying dividends.
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d7a5b4d4-28e8-4a61-8f79-78a7eca71f17
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721397.0
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2021-10-29 00:00:00 UTC
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How Will Caterpillar Stock Trend Following Q3 Earnings?
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DE
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https://www.nasdaq.com/articles/how-will-caterpillar-stock-trend-following-q3-earnings-2021-10-29
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nan
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nan
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Caterpillar (NYSE:CAT) is scheduled to report its Q3 2021 results on Thursday, October 28. We expect Caterpillar to likely post revenue and earnings slightly below the consensus estimates. While a gradual opening up of the economies with a rise in vaccination rate has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. That said, our forecast indicates that Caterpillar’s valuation is $237 per share, which is 17% above the current market price of $202, implying that the stock has more room for growth, in our view. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Caterpillar’s Q3 2021 revenues to be around $12.4 billion, up 25% y-o-y, but slightly below the $12.6 billion consensus estimate. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, the gradual opening up of economies and resumption of construction activities is likely to have aided Caterpillar’s sales in Q3. Aside from construction, the company’s other segments – resource industries, and energy & transportation – will likely see a rebound in sales, as well. In fact, even in Q2 2021, Caterpillar’s overall sales were up 29%, led by a sharp 40% jump in construction industries as well as resource industries. Our dashboard on Caterpillar’s Revenues offers more details on the company’s segments.
2) EPS likely to be below the consensus estimates
Caterpillar Q3 2021 adjusted earnings per share (EPS) is expected to be $2.15 per Trefis analysis, compared to $2.20 as per the consensus estimate. Caterpillar’s adjusted net income of around $1.4 billion in Q2 2021 reflected over 2x rise from its $0.7 billion figure in the prior-year quarter. This can be attributed to higher revenues and expansion of margins. However, as we look forward, a pressure on the company’s margins is anticipated, given inflated raw materials costs, and continued supply chain challenges. For the full-year 2021, we expect the adjusted EPS to be higher at $9.90 compared to $6.56 in 2020.
(3) Stock price estimate above the current market price
Going by our Caterpillar Valuation, with an EPS estimate of around $9.90 and a P/E multiple of around 24x in 2021, this translates into a price of $237, which is 17% above the current market price of around $202. We know that CAT is poised to benefit from an economic recovery, with strong growth in construction industries, and this should bode well for its top-line expansion. And, if the company reports upbeat results, with growth in sales higher than our estimates, and the guidance for the full-year is revised upward, it will result in CAT stock seeing higher levels.
While CAT stock has more room for growth, 2020 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 3M vs. Ingevity.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While a gradual opening up of the economies with a rise in vaccination rate has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, the gradual opening up of economies and resumption of construction activities is likely to have aided Caterpillar’s sales in Q3.
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While a gradual opening up of the economies with a rise in vaccination rate has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, the gradual opening up of economies and resumption of construction activities is likely to have aided Caterpillar’s sales in Q3.
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While a gradual opening up of the economies with a rise in vaccination rate has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, the gradual opening up of economies and resumption of construction activities is likely to have aided Caterpillar’s sales in Q3.
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While a gradual opening up of the economies with a rise in vaccination rate has resulted in a sharp rebound in overall equipment demand over the recent quarters, a trend likely continued in Q3 as well, the company’s overall performance may be weighed down by higher raw material costs and supply chain headwinds. Our interactive dashboard analysis on Caterpillar’s Pre-Earnings has additional details. While the project timelines and cash flows for real estate developers were affected due to the halt in certain construction activities in 2020, the gradual opening up of economies and resumption of construction activities is likely to have aided Caterpillar’s sales in Q3.
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f0fa1f1e-1663-4f1e-a169-d4b8000e0e40
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721398.0
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2021-10-26 00:00:00 UTC
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Analysts Anticipate USMF Will Reach $45
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DE
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https://www.nasdaq.com/articles/analysts-anticipate-usmf-will-reach-%2445-2021-10-26
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nan
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nan
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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 WisdomTree U.S. Multifactor Fund ETF (Symbol: USMF), we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.86 per unit.
With USMF trading at a recent price near $40.96 per unit, that means that analysts see 9.52% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USMF's underlying holdings with notable upside to their analyst target prices are Assurant Inc (Symbol: AIZ), Deere & Co. (Symbol: DE), and CMS Energy Corp (Symbol: CMS). Although AIZ has traded at a recent price of $164.58/share, the average analyst target is 17.57% higher at $193.50/share. Similarly, DE has 12.25% upside from the recent share price of $352.72 if the average analyst target price of $395.93/share is reached, and analysts on average are expecting CMS to reach a target price of $66.43/share, which is 10.25% above the recent price of $60.25. Below is a twelve month price history chart comparing the stock performance of AIZ, DE, and CMS:
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
WisdomTree U.S. Multifactor Fund ETF USMF $40.96 $44.86 9.52%
Assurant Inc AIZ $164.58 $193.50 17.57%
Deere & Co. DE $352.72 $395.93 12.25%
CMS Energy Corp CMS $60.25 $66.43 10.25%
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 AIZ has traded at a recent price of $164.58/share, the average analyst target is 17.57% higher at $193.50/share. WisdomTree U.S. Multifactor Fund ETF USMF $40.96 $44.86 9.52% Assurant Inc AIZ $164.58 $193.50 17.57% Deere & Co. DE $352.72 $395.93 12.25% CMS Energy Corp CMS $60.25 $66.43 10.25% 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 USMF's underlying holdings with notable upside to their analyst target prices are Assurant Inc (Symbol: AIZ), Deere & Co. (Symbol: DE), and CMS Energy Corp (Symbol: CMS). Similarly, DE has 12.25% upside from the recent share price of $352.72 if the average analyst target price of $395.93/share is reached, and analysts on average are expecting CMS to reach a target price of $66.43/share, which is 10.25% above the recent price of $60.25. WisdomTree U.S. Multifactor Fund ETF USMF $40.96 $44.86 9.52% Assurant Inc AIZ $164.58 $193.50 17.57% Deere & Co. DE $352.72 $395.93 12.25% CMS Energy Corp CMS $60.25 $66.43 10.25% 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, DE has 12.25% upside from the recent share price of $352.72 if the average analyst target price of $395.93/share is reached, and analysts on average are expecting CMS to reach a target price of $66.43/share, which is 10.25% above the recent price of $60.25. 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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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. With USMF trading at a recent price near $40.96 per unit, that means that analysts see 9.52% upside for this ETF looking through to the average analyst targets of the underlying holdings. WisdomTree U.S. Multifactor Fund ETF USMF $40.96 $44.86 9.52% Assurant Inc AIZ $164.58 $193.50 17.57% Deere & Co. DE $352.72 $395.93 12.25% CMS Energy Corp CMS $60.25 $66.43 10.25% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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8fde25f5-b4ed-455b-8564-d6d96622bdd0
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721399.0
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2021-10-26 00:00:00 UTC
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Is Deere & Company (NYSE:DE) Potentially Undervalued?
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DE
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https://www.nasdaq.com/articles/is-deere-company-nyse%3Ade-potentially-undervalued-2021-10-26
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nan
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nan
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Deere & Company (NYSE:DE) saw significant share price movement during recent months on the NYSE, rising to highs of US$389 and falling to the lows of US$329. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Deere's current trading price of US$353 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Deere’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Deere still cheap?
According to my valuation model, Deere seems to be fairly priced at around 9.57% above my intrinsic value, which means if you buy Deere today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $321.90, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Deere’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Deere look like?
NYSE:DE Earnings and Revenue Growth October 26th 2021
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Deere's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on DE, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Deere, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Deere, and understanding it should be part of your investment process.
If you are no longer interested in Deere, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Deere's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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Deere & Company (NYSE:DE) saw significant share price movement during recent months on the NYSE, rising to highs of US$389 and falling to the lows of US$329. Given that Deere’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value.
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According to my valuation model, Deere seems to be fairly priced at around 9.57% above my intrinsic value, which means if you buy Deere today, you’d be paying a relatively reasonable price for it. Given that Deere’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. Deere & Company (NYSE:DE) saw significant share price movement during recent months on the NYSE, rising to highs of US$389 and falling to the lows of US$329.
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It seems like the market has already priced in DE’s positive outlook, with shares trading around its fair value. Deere & Company (NYSE:DE) saw significant share price movement during recent months on the NYSE, rising to highs of US$389 and falling to the lows of US$329. A question to answer is whether Deere's current trading price of US$353 reflective of the actual value of the large-cap?
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7e3e128d-dc52-4f98-8758-54372f876fc4
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