Cramer Bullish on Deere (DE) Amid Robust Long-Term Outlook
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Price: $591.94 --0%
Rating Summary:
18 Buy, 20 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 20
Rating Summary:
18 Buy, 20 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 3 | Down: 6 | New: 20
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Shares of Deere & Co. (NYSE: DE) are catching a bid Tuesday afternoon following a positive call from stock sage Jim Cramer.
On last night's Mad Money, Cramer called Deere a cheap stock -- and one with good short- and long-term potential.
Deere has beat earnings and raised guidance over the last several quarters, but shares are still down about 16 percent in 2011. Additionally, the stock's current valuation places it at a 30 percent discount to its historical multiple.
Looking to next week, Cramer thinks the U.S. Department of Agriculture report will be a positive catalyst for Deere. Over the longer-term -- the real longer-term -- Cramer is bullish amid a prediction for a 70 percent increase in food production and 33 percent rise in global population by 2050.
The world's population, Cramer said, will be eating more grains overall, through direct consumption and animals, which eat grains as food. Only an increase in output per acre of land will meet the demand, and that is going to take the expertise of Deere and its products.
Deere's internals are also appealing to Cramer. The company is expanding market share, has a stock buyback program in place, it's dividend yields 2.3 percent, and international sales continue to expand.
Cramer recommends to get a small position now, and add on with any pullback.
Deere shares are up 3.5 percent Tuesday.
On last night's Mad Money, Cramer called Deere a cheap stock -- and one with good short- and long-term potential.
Deere has beat earnings and raised guidance over the last several quarters, but shares are still down about 16 percent in 2011. Additionally, the stock's current valuation places it at a 30 percent discount to its historical multiple.
Looking to next week, Cramer thinks the U.S. Department of Agriculture report will be a positive catalyst for Deere. Over the longer-term -- the real longer-term -- Cramer is bullish amid a prediction for a 70 percent increase in food production and 33 percent rise in global population by 2050.
The world's population, Cramer said, will be eating more grains overall, through direct consumption and animals, which eat grains as food. Only an increase in output per acre of land will meet the demand, and that is going to take the expertise of Deere and its products.
Deere's internals are also appealing to Cramer. The company is expanding market share, has a stock buyback program in place, it's dividend yields 2.3 percent, and international sales continue to expand.
Cramer recommends to get a small position now, and add on with any pullback.
Deere shares are up 3.5 percent Tuesday.
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