Deere & Company (NYSE:DE) is one of the 15 stocks that Jim Cramer recently talked about. A caller asked if Cramer thinks that Deere & Company (NYSE:DE) is done and asked if it is a good time to buy the shares. Cramer replied:
“Deere’s good. Deere’s good. Now Deere’s in a great, the farmers are in great shape here, and I know that Deere looks like it should be peaking because it’s had such a big run. Believe me, this stock has multi-year moves. I really still like Deere here.”
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Deere (NYSE:DE) designs and sells a wide range of agricultural, construction, and forestry equipment, and the company also offers financing and support services. Nightview Capital stated the following regarding Deere & Company (NYSE:DE) in its Q4 2024 investor letter:
“In January, we purchased shares of Deere & Company (NYSE:DE) based on a simple thesis: the 185-year-old company is evolving from a machinery manufacturer into a technology leader in an industry that urgently needs innovation.
Deere’s vision of autonomous tractors, dump trucks, and mowers address critical labor shortages, enabling farmers, builders, and landscapers to maintain productivity with fewer workers.”
Deere’s potential to transform the multi-trillion-dollar agriculture market is significant. Technologies like its See & Spray system, which reduced herbicide use by nearly 60% across over one million acres in 2024, demonstrate its ability to drive efficiency and environmental benefits. Its connected ecosystems, such as the John Deere Operations Center, are integrating machinery and data to improve decision-making and outcomes for customers.
The company has also implemented structural improvements to weather challenging market conditions. In 2024, Deere generated $6.9 billion in operating cash flow from equipment operations, achieving 18.2% operating margins despite lower shipment volumes. These measures support reinvestment in technology and steady shareholder returns, while maintaining operational discipline.
Deere’s continued pivot toward technology-driven solutions and recurring revenue models, such as pay-per-use and software licensing, enhances its ability to serve modern farmers and contractors effectively. We are optimistic about the company’s ability to lead innovation in its markets and will share further updates as we continue to evaluate its long-term prospects.”
While we acknowledge the potential of DE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
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