Latest news with #Deere
Yahoo
22 minutes ago
- Business
- Yahoo
Zacks Industry Outlook Highlights Deere, CNH Industrial, AGCO, Lindsay and Kubota
Chicago, IL – June 5, 2025 – Today, Zacks Equity Research discusses Deere & Co. DE, CNH Industrial N.V. CNH, AGCO Corp. AGCO, Lindsay Corp. LNN and Kubota Corp. KUBTY. Industry: Farm Equipment Link: The Zacks Manufacturing - Farm Equipment industry is facing near-term challenges from weak commodity prices and high costs. However, it will eventually benefit from sustained demand for agricultural equipment, driven by a growing population. Industry players like Deere & Co., CNH Industrial N.V., AGCO Corp. and Lindsay Corp. are well-poised to benefit from this demand by expanding their product offerings. The industry's emphasis on revolutionizing agriculture with technology to automate farming is expected to be a major catalyst. Deere, CNH Industrial, AGCO, Lindsay and Kubota Corp. are thus investing heavily in upping their technology game. The Zacks Manufacturing - Farm Equipment industry comprises companies that manufacture agricultural equipment. These include tractors, combines, cotton pickers and harvesting equipment; tillage, seeding and application equipment, consisting of sprayers, nutrient management and soil preparation machinery; and hay and forage equipment, comprising self-propelled forage harvesters and attachments, balers and mowers. Some companies in the industry produce turf and utility equipment, consisting of riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers. Some participants manufacture irrigation equipment. Deere, CNH Industrial and Kubota are presently the top three global manufacturers of agricultural equipment (in that order). Trends Shaping the Future of the Manufacturing - Farm Equipment Industry : The U.S. Department of Agriculture forecasts a 29.5% year-over-year increase in net farm income to $180.1 billion for 2025, indicating a rise of 29.5% from that reported in 2024. This projects an improved scenario, considering the 19% and 6% declines in net farm income in 2023 and 2024, respectively. However, the increase in net farm income this year will be mainly due to the $33.1-billion year-over-year increase in direct government farm payments to $42.4 billion. Meanwhile total crop receipts are forecast to decrease 2.3% from the 2024 level due to lower soybeans and corn prices. Soybean prices have dipped lately due to escalating U.S. and China trade tensions, which added to downward pressure from favorable crop conditions in the U.S. Midwest and lingering uncertainty over U.S. biofuel policy. Corn prices have declined 3.9% year to date. : Despite the ongoing volatility in commodity prices and lower crop receipts, agricultural equipment demand will continue to be supported by increased global demand for food, stemming from population growth and an increasing proportion of the population aspiring for better living standards. In the United States, the agricultural machinery market is forecast to reach $42.05 billion in 2025 and grow to $57.08 billion in 2030, seeing a compound annual growth rate (CAGR) of 6.3%. With farm sizes increasing, there is a greater need for labor, but escalating labor costs are prompting farmers to turn to mechanization. Moreover, subsidies on agricultural machinery purchases are enabling even small-scale farmers to invest in equipment. : The industry has not been immune to the rampant cost inflation prevailing in the sector. Constraints on the availability of raw materials, labor and trucking resources have led to higher lead times for deliveries. However, the industry players have recently been reporting improvements in the supply chain. The companies have been implementing pricing and cost-reduction actions, which are likely to help sustain margins. : Customers are increasingly relying on advanced technology, smart farming solutions and mechanization to run their operations. Thus, the industry participants are enhancing investments in launching products equipped with advanced technologies and features to keep up with customers' evolving demands. Precision agriculture technology is expected to be a key catalyst, as it enables farmers to increase yield with reduced input costs and sustainability benefits. DE, CNH and AGCO are currently the forerunners in this. The Zacks Manufacturing - Farm Equipment industry is part of the broader Zacks Industrial Products sector. The industry currently carries a Zacks Industry Rank #204, which places it at the bottom 16% of 244 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dim prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Despite the bleak near-term prospects of the industry, we will present a few Manufacturing - Farm Equipment stocks that can be retained in one's portfolio. It is worth taking a look at the industry's stock-market performance and valuation picture before that. The Zacks Manufacturing - Farm Equipment industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. Stocks in this industry have grown 33.7% in the past 12 months compared with the S&P 500's growth of 13.7%. The Industrial Products sector has risen 1.9% in the said time frame. On the basis of the forward EV/EBITDA ratio, which is a commonly used multiple for valuing farm equipment stocks, we see that the industry is currently trading at 53.56X compared with the S&P 500's 13.48X. The Industrial Products sector's forward 12-month EV/EBITDA is 19.74X. Over the last five years, the industry traded as high as 56.44X and as low as 21.11X, the median being 27.59X. Deere: The company is witnessing solid growth in order levels, which is expected to aid its top-line performance. DE will continue to benefit from its focus on launching products equipped with advanced technologies and features that provide it with a competitive edge. Efforts to expand precision agriculture will be a significant growth driver. Replacement demand, triggered by the need to upgrade old equipment, will continue to support its revenues. Considering that Deere also makes construction equipment, it will benefit from strong demand in the residential and non-residential construction markets. DE's cost-control actions have been supporting margins despite the persistent inflationary pressures. The company recently acquired a provider of remote imagery solutions for agriculture, Sentera, to advance its technology offerings and support more farmers. Deere plans on integrating Sentera's innovative imagery capabilities with its Operations Center portfolio offerings. This will help farmers generate data-driven decisions that boost farm profitability, efficiency and sustainability. Shares of the company have gained 15.3% in the past 6 months. The Zacks Consensus Estimate for the Moline, IL-based company has a trailing four-quarter earnings surprise of around 11%, on average. Deere currently has an estimated long-term earnings growth rate of 8.4% and a Zacks Rank of 3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. AGCO: The company has been gaining from improved farm dynamics and increasing replacement demand for old equipment. It has been investing in products, precision farming technology, and smart farming solutions to improve distribution and enhance digital capabilities to strengthen product offerings. These efforts and the company's cost-control measures have driven margin expansion over the past few quarters. AGCO is focusing on strategic transformation. It intends to streamline and focus its portfolio of agricultural machinery and precision agriculture technology solutions. In line with this, it has formed PTx, which integrates the precision agriculture technology from AGCO's tech stack's pillars, Precision Planting and its most recent joint venture, PTx Trimble. This move will facilitate AGCO's rapid growth in technology transformation and provide seamlessly compatible, powerfully simple precision ag solutions. Shares of the company have gained 2.7% in the past 6 months. AGCO has an estimated long-term earnings growth rate of 13.1%. This Duluth, GA-based company currently carries a Zacks Rank #3. The consensus estimate for AGCO's 2025 earnings has moved up 1% in the past 60 days. Lindsay: The company acquired a 49.9% minority interest in Pessl Instruments GmbH in January 2025. This will help accelerate innovations in water management and increase LNN's global reach. Project opportunities in developing international irrigation markets continue to be robust, driven by food security and water scarcity concerns. The $110-billion funding under the Infrastructure Investment and Jobs Act for roads, bridges and other transportation projects is expected to translate into higher demand for Lindsay. LNN is also well-poised to gain from demand for its Road Zipper System. The system is a highly differentiated product that addresses key infrastructure needs, such as reducing congestion, lowering carbon emission, improving commuter travel time and increasing driver safety. Road Zipper Systems are gaining popularity globally for their faster implementation and lower costs than constructing lanes. Shares of the company have gained 8.2% in the past 6 months. The Omaha, NE-based company has a trailing four-quarter earnings surprise of 17.9%, on average. It currently carries a Zacks Rank #3. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ 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 for information about the performance numbers displayed in this press release. 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 Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report CNH Industrial N.V. (CNH) : Free Stock Analysis Report Kubota Corp. (KUBTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Kizik taps Nike vet as CEO
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Hands-free footwear brand Kizik has named Gareth Hosford its new chief executive officer, effective Monday. Hosford succeeds Monte Deere, who led the brand since 2019 and plans to spend more time with his family, the company said. Deere will remain on the board of parent company HandsFree Lab and advise on the business's licensing arm, according to an announcement. Hosford most recently was chief operating officer and CFO of performance apparel startup Omorpho, and before that, he held leadership positions with Converse and Nike. At Kizik, Hosford will be active in scaling innovation, expanding its global presence and growing its licensing business, per the release. Kizik has tapped a seasoned apparel and footwear executive to lead it into its next chapter of growth. At Nike, Hosford spent over 10 years in senior leadership positions, including as global strategic planning director and general manager of Nike football in the U.K. and Ireland. The CEO change follows other executive appointments at Kizik. Former Sperry executive Elizabeth Drori was named chief marketing officer last July, while Andreas Harlow, a 20-year Nike veteran who was global footwear creative director for the Jordan Brand, was brought on as Kizik's first senior vice president of design in November. As it looks to future growth, Kizik continues to seek ways to expand its product offerings and selling platforms. The brand has opened new stores in the U.S. and established partnerships to sell its products in the U.K., Japan, Canada, South Korea, France, Spain and more. The footwear company also launched its first pop-up location in New York City in 2024. Company executives feel that launching and licensing the brand's hands-free technologies may offer the biggest growth opportunity for the business. 'As we officially launch our HandsFree Labs technology brand, we expect it will become an ingredient across an even wider variety of the shoes you love from your favorite brands on the market,' Deere said in an email. 'We believe HandsFree has the potential to ultimately eclipse our Kizik footwear brand in enterprise value.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
Here's How Deere (DE) Plans to Absorb $500M Tariff Hit
Farm equipment giant Deere (DE) expects a $500 million hit from new tariffs imposed by the Trump administration in 2025, affecting its construction and forestry divisions. To mitigate this, the company is looking for a global reshuffle of its production across existing factories and evaluate potential price increases to offset these expenses. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Also, Deere is adjusting supply chains to reduce reliance on tariff-heavy imports. Moreover, the company is certifying more goods under the U.S.-Mexico-Canada Agreement (USMCA) to qualify for trade exemptions. At the same time, Deere plans to invest $20 billion in U.S. manufacturing over the next decade, reducing exposure to foreign tariffs. While most of its 2025 order books are full, Deere is evaluating price increases for 2026 equipment to offset rising costs. Further, the company is cutting production costs and adjusting inventory levels to align with demand. Deere Faces Pricing Headwinds Adding to the challenge, Deere and other makers of farm equipment are facing weak demand as farmers are dealing with lower crop prices and rising costs. Deere's CFO Josh Jepsen said these extra costs come at a bad time, making things tough for Deere and uncertain for its customers. Simultaneously, the company remains cautious about raising prices due to low demand and impact of past price hikes from inflation. But Jepsen said Deere expects some price increases, partly due to inflation and possibly tariffs. The company has already raised prices by 2% to 4% for 2026 sprayers and planters, but has not added extra tariff costs yet. Importantly, Deere can change prices before orders are placed. The company will keep reviewing prices as it launches new products later in the summer and fall. Is DE a Strong Buy? Turning to Wall Street, DE stock has a Moderate Buy consensus rating based on eight Buys and seven Holds assigned in the last three months. At $537.08, the average Deere stock price target implies a 6.68% upside potential. See more DE analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
5 days ago
- Business
- Yahoo
Deere Second Quarter 2025 Earnings: Beats Expectations
Revenue: US$12.8b (down 16% from 2Q 2024). Net income: US$1.80b (down 24% from 2Q 2024). Profit margin: 14% (down from 16% in 2Q 2024). The decrease in margin was driven by lower revenue. EPS: US$6.65 (down from US$8.56 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) also surpassed analyst estimates by 18%. Looking ahead, revenue is forecast to stay flat during the next 3 years compared to a 4.0% growth forecast for the Machinery industry in the US. Performance of the American Machinery industry. The company's share price is broadly unchanged from a week ago. What about risks? Every company has them, and we've spotted 1 warning sign for Deere you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Deere & Company (DE): A Bull Case Theory
We came across a bullish thesis on Deere & Company (DE) on Best Anchor Stocks' Substack. In this article, we will summarize the bulls' thesis on DE. Deere & Company (DE)'s share was trading at $507.99 as of 28th May. DE's trailing and forward P/E were 24.54 and 27.62 respectively according to Yahoo Finance. Pixabay/Public Domain Deere & Company recently posted impressive quarterly results, beating both revenue and EPS expectations by double digits, with EPS surprises averaging 16% across nine of the last ten quarters. Despite being a cyclical business, Deere continues to outperform due to structurally higher profitability that the market may still be underestimating. The standout this quarter was an 18% operating margin—only 200 bps below levels seen when revenues were 19% higher—highlighting robust cost controls and favorable mix, even as the company remains near a cycle trough. Management maintained full-year margin guidance at 14.5%, despite strong results, citing cautious expectations around tariff impacts in H2. Deere is forecasting a return to sales growth in Q4 for the first time in nine quarters, hinting that the bottom of the ag cycle may already be behind us. Potential catalysts include a new Farm Bill and trade deals that could further support demand. Meanwhile, Deere continues aggressive buybacks—$2.4 billion over the past year—reducing share count by 4%, setting the company up for strong EPS growth driven by higher margins, revenue recovery, and fewer outstanding shares. On the call, management highlighted growing tariff headwinds, mostly affecting its construction division, but also emphasized long-term U.S. investment and a competitive edge via Deere's captive financing arm. Technologically, Deere is expanding its ag tech stack into construction and growing its SaaS footprint, with adoption and renewal rates supporting a long-term shift to recurring revenue. Despite trading near all-time highs, Deere's strong fundamentals, margin resilience, and tech leadership suggest continued upside, with Brazil as a growing tailwind. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their bullish thesis on Danaher Corporation (DNH). Deere & Company (DE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held DE at the end of the first quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of DE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
