We recently published a list of Was Jim Cramer Right About These 11 Stocks? In this article, we are going to take a look at where Deere & Company (NYSE:DE) stands against other stocks that Jim Cramer discusses.
In that older episode, Jim Cramer brought up Deere & Company (NYSE:DE) in response to its ongoing struggle with market perception despite consistently beating earnings and revenue estimates. He analyzed the stock’s performance and gave his long-term outlook for the stock, saying:
“What do we do with the stock of Deere, America’s number one maker of farm equipment? It keeps reporting great results and then what does it do? It slashes its full-year forecast.
The funny thing about Deere is that it keeps beating the estimates — eight revenue beats in a row, seven earnings beats in a row — but the stock’s basically been going sideways for the past 3 years. Some of that’s purely because we’ve been in an agricultural down cycle since the industry peak in 2022. […]
Now, as investors we sometimes have to take a leap of faith and buy a stock before the actual business bottoms. I do that a lot for the charitable trust. I don’t think we’re necessarily there yet with Deere. With that caveat out of the way, I got to tell you I am not as negative on Deere as you might think.
Why is that? Three primary reasons. First, I like how the stock’s actually acted since the market bottom last October. While Deere sold off with each of the last three quarters, and deservedly so, given its consistently ugly guidance, the stock keeps trying to go higher between those quarters. That tells me investors actually really want to own the stock of Deere, and the second we start getting incrementally more encouraging updates, this thing could make an impressive run higher. So then it’ll be too late to get into if we wait.
Second, we know this company’s been squeezed by the downturn in agricultural commodities and the Fed’s higher-for-longer interest rate environment, but both of these things might be improving.
Finally, when you look at Deere’s slowly eroding full-year forecast, you need to know that much of the big downturn they’re projecting is actually intentional. […] In short, Deere’s trying to become less of a cyclical boom-bust business. […]
“Let me give you the bottom line here on a company that has been maligned by the Street and by me. If you’re willing to take a long-term view, I don’t think you should give up on Deere here. Some of the worst headwinds — that are beyond the company’s control — may soon reverse. In the meantime, management’s been doing a terrific job of taking control of their own destiny.
So yes, Deere stock has been stuck in a ditch — but I don’t think you should give up on the company just yet. When things get better — and they always do for Deere — this stock could soar!”
Cramer nailed this call with Deere rallying 33.08% since then. Deere & Company (NYSE:DE) continues to redefine precision agriculture with innovative smart machinery and a strategic push into automation and sustainability.
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Addressing the company in February this year, Cramer highlighted the impact of Trump’s tariffs on the stock and how he thinks the stock will keep climbing. Here’s what he said on two occasions:
“By the way farm equipment. . . the tariff on Deere is way too high. Because I tried to buy Deere. It’s like ridiculous how expensive it is in Europe.”
“Then there’s the Ag cycle. Deere stock can’t stop.”
Overall, DE ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of DE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DE and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.