We recently published a list of 12 Best Automation Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Deere & Company (NYSE:DE) stands against other best automation stocks to buy according to hedge funds.
The rise of generative AI has skyrocketed automation, while robotics are disrupting industrial automation. On the other hand, supply chain automation has reshaped traditional operations from removing warehousing bottlenecks to inventory management, and demand forecasting. In inventory tracking, advanced warehouse management networks, powered by AI and ML algorithms, assist in optimizing inventory placement, resource allocation, route planning, and more.
Robotics a Key Segment to Automation
Professional service robot sales soared by 30% in 2023, according to the International Federation of Robotics (IFR). IFR’s statistics department data shows that over 205,000 robotics units were sold in 2023, with Asia-Pacific accounting for 80% of global robotics sales. Transportation and logistics service robots sales accounted for 113,000 units in 2023, a rise of 35% from 2022. In addition to that, Medical robots are in huge demand, and medical robot sales soared by 36% to nearly 6,100 units in 2023.
Apart from robotics, quantum computing is revolutionizing various industries. Other technologies including virtual reality (VR), augmented reality (AR), big data, data analytics, and 5G technology are key to driving automation across various segments.
Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and Robo Global Robotics and Automation Index ETF (NYSE:ROBO) have surged more than 11% and 8.50% over the last year, respectively. Considering the growing demand for automation systems and robotics, automation stocks hold much promise.
Our Methodology
We used automation and robotics ETFs along with online rankings to shortlist an initial list of automation stocks. We then selected the 12 automation stocks that were the most widely held by hedge funds. The list is sorted in ascending order of the number of hedge fund holders, as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A combine harvesting crops, showing the capabilities of the company’s agriculture equipment.
Deere & Company (NYSE:DE)
No. of Hedge Fund Holders: 41
Deere & Company (NYSE:DE) is heavily investing in agriculture automation process systems. The company’s autonomous 8R tractors are widely used by farmers across the U.S. and globally. Due to a shortage of skilled workers and high labour costs, Deere & Company is making strides towards automating manual work, offering automation products, and transforming agriculture workflow.
Deere & Company (NYSE:DE) is using computer vision and ML to accelerate automation farming and has a goal of fully automated farming by 2030. The company is also working on AI to minimize the amount of herbicide needed to keep crops healthy. The company is focusing on allowing farmers the opportunity to be more productive and efficient by leveraging automation and AI. During the recent CES trade show in Las Vegas, the company unveiled its new tractors and industrial equipment, which can operate without humans driving the cab.
The company is expected to report earnings of $3.26 per share in Q1 2025. Deere & Company (NYSE:DE) has delivered an earnings surprise in the last seven quarters over the past two years. This shows that DE is making notable progress and the company’s goal of automating the farming industry is turning out to be profitable.
Overall, DE ranks 6th on our list of best automation stocks to buy according to hedge funds. While we acknowledge the potential of DE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
