3 Agriculture Stocks You Must Buy For the Long Haul: Deere & Company (DE), CNH Global NV (ADR) (CNH)

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All these points reflect that Allis-Gleaner is a strong stock to invest in. The company has an estimated EPS of $5.75 in 2013 and targets a strong operating margin of 10%.

CNH Global NV (ADR)

Though Case reported a decline in its construction segment in 3Q12, a remarkable performance by agricultural equipments allowed Case to offset it, as well as the negative effects of the currency translation and drought in North America. Additionally, the recent merger with Fiat Industrial will provide strong appetite for Fiat Industrials and its shareholders. This merger has already formed the third largest global capital goods company and will bring CNH Global NV (ADR) (NYSE:CNH) the benefits of operational efficiencies. Under this deal a new company, “NewCo,” will be formed, with each shareholder of CNH receiving 3.28 NewCo shares for one share of CNH.

One more advantage which CNH has over Deere is their cheaper products. I expect this company to rise in the upcoming years as a solid brand, seeing the preference it gets from hard-time farmers. While Deere offers the best expensive product line, CNH offers the best bargain product. And this will definitely give CNH an advantage, seeing the demand of lower cost alternatives for farming on the rise as we progress through the year.

Conclusion:

Seeing the strong industry demand from farmers for agriculture machines, there is a huge potential and opportunities left for Deere, Case & Holland, and Allis-Gleaner in the emerging as well as mature markets to expand their global competitive positions. Though there may be momentary fluctuations in the stock prices of these stocks in the short run, in my opinion these are top agriculture machinery stocks for the long term.

The article 3 Agriculture Stocks You Must Buy For the Long Haul originally appeared on Fool.com and is written by Ranu D.

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