Deere & Company (DE): Are You Prepared This Time?

But it’s not just about impressive numbers. In the previous quarter, CNH Global NV (NYSE:CNH) spent over $240 million on capacity expansions in India, China, Brazil, Russia and Argentina. Additionally, the company spent $194 million on Tier 4 product expansions that are expected to be completed by 2015 and would play a vital role in refreshing its product lineup. Furthermore, its upcoming manufacturing facilities in Argentina and China are expected to be operational in FY14 and FY13, and allow the company to meet up with the rising demand.

Conclusion

Although Deere & Company (NYSE:DE) is a major company and can comfortably withstand a year of weak sales, investing in its smaller peers makes more sense. As mentioned, CNH Global and AGCO have benefited from the droughts last year, and if the weather cycle repeats, they’d again have a blockbuster year. In my opinion, both CNH Global and AGCO are great stocks to hold, but if I had to pick one, I’d go with CNH Global.

The article Are You Prepared This Time? originally appeared on Fool.com and is written by Piyush Arora.

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