Here’s What Makes Deere & Company (DE) a Strong Investment Option - InvestingChannel

Here’s What Makes Deere & Company (DE) a Strong Investment Option

Harding Loevner, an asset management company, released its “Global Equity Strategy” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy declined 5.6% gross of fees compared to a 6.7% decline for the MSCI All Country World Index. Strategy’s outperformance in the quarter was attributed to positive stock selection. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Harding Loevner highlighted stocks like Deere & Company (NYSE:DE) in the Q3 2022 investor letter. Headquartered in Moline, Illinois, Deere & Company (NYSE:DE) is a global manufacturer and distributor of various equipment. On November 23, 2022, Deere & Company (NYSE:DE) stock closed at $437.52 per share. One-month return of Deere & Company (NYSE:DE) was 10.88%, and its shares gained 18.94% of their value over the last 52 weeks. Deere & Company (NYSE:DE) has a market capitalization of $132.052 billion.

Harding Loevner made the following comment about Deere & Company (NYSE:DE) in its Q3 2022 investor letter:

Deere & Company (NYSE:DE), the world’s largest manufacturer of agricultural equipment, reported fiscal third-quarter growth in revenues and earnings of 22% and 16%, respectively. These results reaffirmed Deere’s pricing power, which enabled the company to overcome rising raw material costs and a host of supply chain challenges.

John Deere also suffered supply chain challenges. It could not complete some machines as it waited for parts, and higher shipping costs cut into its margins. In the third quarter, production recovered. Revenue for its connected services Precision Ag unit increased 43% year over year, thanks to rising unit sales and a 15% price bump. Deere is the world’s largest agricultural machinery manufacturer, with the largest customer base, the largest dealer network, and arguably the industry’s most advanced technology stack. Deere has also amassed the industry’s biggest agricultural data base. These powerful competitive advantages should help Deere to raise its margins as it targets a 40% share of revenues by the end of the decade from less cyclical, recurring sources such as software and maintenance services.”

Pixabay/Public Domain

Deere & Company (NYSE:DE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Deere & Company (NYSE:DE) at the end of the third quarter which was 54 in the previous quarter.

We discussed Deere & Company (NYSE:DE) in another article and shared the list of best agriculture stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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