Cramer and others touting this stock, but then I read:
Deere & Co. (NYSE: DE) is the only stock on the UBS Key Call list with a Sell rating. The analysts feel that slowing overseas sales may dampen the profit picture for the company. While the recent earnings were better than lowered Wall Street estimates, the company posted lower revenue and sales than the previous year. Investors are paid a 2.4% dividend. The UBS price target for the stock is $72. The consensus is at $87. Deere closed Friday at $84.24.
If your bullish, I;d like to hear the reasons why, especially when consensus is $87, just $2 higher than current.
geeksonpatrol- DE is trading at single digit P/E, has an ultra-low dividend-to earnings payout ratio, and has payed and INCREASED it's div for decades. What more do you want?
If you are listening to analysts, who raise or lower their price targets when theyre wrong, or Kramer, or Mr. Market's latest whim, you're of course going to get whipsawed by noise and chatter. Every time.
Look at DE long term earnings and div payments. If you're a short term trader, then it's anybodies guess.
I like DE too and own it. The buy back is 25% of the company. This is a cheap stock on earnings. The stock price itself has been extraordinary volatile over the past 10 years. If the US dollar trades higher against a variety of foreign currencies, as it might when the taper is in effect, that is a negative on DE earnings. However that seems fully accounted for in the price. It's a good investment.
DE is an extremely well-managed company that continues to return value to shareholders in a steady manner. The confidence of the share buyback in my opinion is huge, and it has not gotten much press. DE is concluding a $5 billion buyback at present ($1 billion left) and has just approved another $8 billion buyback. This most recent buyback is massive in comparison to the market capitalization of $32.4 billion. I'm not sure what UBS is looking at in their $72 target price, b ut I expect this will be modified soon. DE is an anchor stock in any portfolio.