5 Construction Stocks to Buy Now

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1. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 54

Deere & Company (NYSE:DE) offers equipment used in construction, roadbuilding, agriculture, forestry and turf care. Although agriculture equipment remains its biggest segment with $22.8 billion worth of sales in 2020, Deere & Company (NYSE:DE) boasts a strong sales history in its construction and forestry equipment segment, which garnered $9.2 billion in sales in 2020 and continues to grow as demand for construction equipment grows.

On February 10, DA Davidson analyst Michael Shlisky maintained a ‘Buy’ rating on Deere & Company (NYSE:DE) and upped the firm’s price target to $455 from $400. The analyst sees record agriculture produce profits in 2022, which will help growth for the company in this year and FY2023 as well. As of late, Deere & Company (NYSE:DE) has been growing its margins, and enhancing its footprint in automated and digital solutions. In January, Deere & Company (NYSE:DE) unveiled a fully autonomous tractor at CES 2022 consumer electronics show held in Las Vegas. The tractor will be ready for farmers to buy later this year, and will only need one-time configuration to operate autonomously on the field. Owing to this and other tailwinds for the construction sector in general, Deere & Company (NYSE:DE) has gained 24.87% in the last 12 months, and 14.52% year to date, according to figures as of February 13.

Investment management firm Harding Loevner talked about Deere & Company (NYSE:DE) in its Q2 2021 investor letter. Here’s what the fund said:

“In the US, where we increased our weight as part of our recent portfolio manager transition, two of our industrial holdings stood out (one is) John Deere. John Deere delivered stronger-than-expected quarterly earnings and raised its guidance for the full-year. Sales of Deere’s tractors and combine harvesters are underpinned by Chinese demand for agriculture products and the bioethanol market rebounding with oil prices.”

You can also take a peek at 15 Longest Pipelines in the US and Billionaire David Tepper’s Top 10 Stocks.

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