8 Most Profitable Industrial Stocks to Invest In

3) Deere & Company (NYSE:DE)

Net Income on TTM Basis: $8.224 billion

5-Year Net Income CAGR: 19.92%

Number of Hedge Fund Holders: 50

Deere & Company (NYSE:DE) is engaged in the manufacture and distribution of various equipment worldwide.

Deere & Company (NYSE:DE) remains proactive when it comes to cost management and operational efficiency. The company implemented strategic headcount reductions as part of the operational adjustments. Furthermore, the company’s commitment to innovation and technological advancements are the key focus areas. Its product changeovers and technological ambitions continue to influence workforce changes and operational strategies. This push towards advanced technologies should help the company maintain a competitive edge amidst an evolving landscape.

Deere & Company (NYSE:DE)’s strong brand equity, together with its leading technology stack, offers significant competitive advantages. Wall Street is quite optimistic about the company’s continued investment in technological innovations, mainly in precision agriculture and autonomous equipment.

Moreover, the integration of AI, machine learning, and IoT in the products is expected to result in improved efficiency for customers. This could potentially justify the premium pricing and drive higher margins.  Overall, strong market position in key product segments, effective and disciplined cost management, and operational efficiency are expected to aid its growth momentum.

Citigroup upped its price objective on shares of Deere & Company (NYSE:DE) from $395.00 to $420.00, giving a “Neutral” rating on 9^th October. Parnassus Investments, an investment management company, released the second quarter 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.”