5 Value Stocks To Buy Today According To Mario Gabelli

2. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 66

P/E Ratio as of June 14: 17.04

Deere & Company (NYSE:DE), operating under the brand name John Deere, is an American corporation that manufactures agricultural machinery, heavy equipment, forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. At the end of Q1 2022, GAMCO Investors held shares worth over $93 million in Deere & Company (NYSE:DE), which represented 0.83% of its 13F portfolio.

Cowen analyst Matt Elkott initiated coverage of Deere & Company (NYSE:DE) with a Market Perform rating and $396 price target on June 9. The analyst believes the company’s precision agriculture exposure to be a “game-changing secular story,” and sees an incremental recurring revenue opportunity for the company from new precision technologies used in U.S. corn.

In its fiscal Q2 2022 report, Deere & Company (NYSE:DE) posted a GAAP EPS of $6.81, beating analysts’ expectations by $0.12. The company’s revenue for the quarter stood at $13.3 billion, showcasing an 11% year-over-year growth.

As per Insider Monkey’s data for Q1 2022, 66 hedge funds held shares in Deere & Company (NYSE:DE), up from 61 in the previous quarter. These stakes hold a collective value of over $2.12 billion. Of these, Jean-Marie Eveillard’s First Eagle Investment Management is a leading shareholder in the company, with stakes valued at $409 million.

ClearBridge Investments mentioned Deere & Company (NYSE:DE) in its Q1 2022 investor letter. Here is what the firm has to say:

“Industrials holding Deere (NYSE:DE) was also a strong contributor to performance during the quarter. Through its unmatched 5,000 dealer network across 160 countries, Deere is a major global player in agricultural, construction and forestry equipment, with a particularly dominant position in U.S. agriculture. Deere’s moat around its core equipment capabilities, coupled with years of substantial investments in technology and innovation, further extends its competitive advantage into precision agriculture, which allows for higher farm yields with lower use of fertilizers, pesticides and water, thereby improving farmers’ bottom lines while reducing their environmental footprint. In addition to drought conditions in Latin America, the war between Russia and Ukraine, two major exporters of corn and wheat, is further disrupting the global agricultural commodities market and pushing prices even higher. This should mean higher farmer revenues and greater demand for Deere’s equipment, which is further supported by some of the lowest levels of inventory of new and used equipment on record.”