Deere investments appear ‘transformational’, says investor ahead of earnings
Deere, one of the most successful manufacturers, is about to publish results.
The company, whose stock is up more than 30% this year, will release its results before the bell on Friday.
Deere is a rare hybrid of industrialists and technology. Top-level investor Cathie Wood of ARK Invest sees it as a tech company, even adding it to the company’s ARKQ Autonomous Technology and Robotics ETF.
These investments are expected to continue to benefit the company and its stocks, says Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors.
“His investments in agrotech are very real and could be transformative for this company,” Sanchez told CNBC’s “Trading Nation” Thursday. “They allow farmers to do precision farming, not only to get the seeds into the ground as quickly as possible, but to place them in the right place where they have the best chance of growing.
Deere’s X series, for example, incorporates cameras and artificial intelligence to monitor crop quality. He has also developed equipment for drones.
“It’s something that you can pick up right now at 22 times the profits eventually,” Sanchez added. “So we believe that it not only responds to all market conditions, that is, it is not overvalued, but also has growth potential.”
Michael Binger, chairman of Binger Investments, however, says he is careful with Deere.
“I fall into the camp where Deere is still an industrial stock, which means it’s still a cyclical stock, and investors are looking to buy early in the cycle and sell somewhere in the middle, end or end. part of the cycle. Binger said. “So I think Deere is doing fine in the short term, but you have to be careful.
He warns that higher inflation prices, if found to be temporary, could give short-term action a boost before pulling back.
“By buying at this point, once the stock has gone from $ 100 to $ 400 a little bit back, I would be very careful to get myself into a news sell situation,” Binger said. “So if you don’t own Deere, you missed it. I’m sorry, but don’t step in at this point.”
Deere has grown 150% in the past 12 months alone. However, it pulled back from earlier month highs – stocks are down 11% from that high.