Deere & Company (NYSE:DE) is one of the 11 stocks on Jim Cramer’s radar. Cramer was bullish on Deere & Company (NYSE:DE) during the episode as he commented:
“We’ve also got a very important analyst meeting on Tuesday with Deere. The storied agricultural equipment company can tell a tremendous story about farmer orders. You know what? I think it can go higher still. I saw an upgrade today.”
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Deere (NYSE:DE) produces and sells various types of equipment, including tractors, harvesters, mowers, and machines used in construction. Additionally, the company provides financial services tied to buying or leasing its equipment. 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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