10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

2) Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 41

Deere & Company (NYSE:DE) is a global leader in agricultural, construction, and forestry equipment manufacturing.

As per Fortune Business Insights, the global agriculture equipment market size was valued at US$180.81 billion in 2023. This market is expected to grow from US$193.46 billion in 2024 to US$344.77 billion by 2032. These growth prospects offer a substantial opportunity for Deere & Company (NYSE:DE), mainly in lower- and middle-income countries, where agricultural practices are evolving rapidly.

Moreover, Deere & Company (NYSE:DE)’s continued investment in precision agriculture technology places it well as an industry leader in innovation. With farming becoming increasingly data-driven and automated, the company’s advanced equipment and software solutions should become increasingly attractive to farmers looking to maximize efficiency and productivity. Moreover, the trend of farm consolidation continues to drive larger agricultural operations to invest significantly in advanced machinery. This should create a favorable environment for Deere & Company (NYSE:DE)’s offerings.

Deere & Company (NYSE:DE)’s focus on developing integrated technology platforms that provide seamless connectivity and data analysis capabilities is expected to create a significant competitive advantage. By providing farmers with tools to optimize their operations, Deere & Company (NYSE:DE) might be able to command premium pricing and increase customer loyalty. This will ultimately lead to market share gains even in a competitive environment.

Parnassus Investments, an investment management company, released the Q2 2024 investor letter. Here is what the fund said:

“Deere & Company (NYSE:DE) stock dropped after the company released underwhelming fiscal second-quarter earnings and lowered its 2024 guidance. Although the company is going through an equipment demand downturn, we believe it will demonstrate better-than-expected through-cycle performance.”