5 Best Farmland and Agriculture Stocks To Buy According to Hedge Funds

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 48

Caterpillar Inc. (NYSE:CAT) is a Texas-based company that manufactures and sells a variety of agriculture equipment, including skid steer loaders, mini excavators, telehandlers, and more. The company has a market cap of $182.053 billion and a PE ratio of 18.14 as of March 21.

Caterpillar Inc. (NYSE:CAT) was part of 48 hedge funds’ portfolios in Q4 2023, and their stakes amounted to $5.467 billion. Billionaire Ken Fisher’s Fisher Asset Management has a position worth $2.406 billion in the company and is the largest shareholder, as of Q4 of 2023.

Caterpillar Inc. (NYSE:CAT) is one of the top farmland and agriculture stocks to buy as Wall Street is positive on the stock. On March 13, Truist initiated coverage of the stock with a Buy rating and a $390 price target.

Diamond Hill Capital made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q3 2023 investor letter:

“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”