Top 5 Agriculture Stocks to Buy According to Billionaire Mario Gabelli

2. Deere & Company (NYSE:DE)

GAMCO Investors’ Stake Value: $66,356,000 

Percentage of GAMCO Investors’ 13F Portfolio: 0.72%

Number of Hedge Fund Holders: 54

Deere & Company (NYSE:DE) is a leading American manufacturer of agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains that are used in heavy equipment. On August 19, Deere & Company (NYSE:DE) released earnings for the third quarter of fiscal 2022. The company reported a revenue of $13 billion, up 24.8% year over year, and ahead of estimates by $157.8 million.

Wall Street sees upside to Deere & Company (NYSE:DE). On August 24, Argus analyst John Eade raised his price target on Deere & Company (NYSE:DE) to $420 from $390 and maintained a Buy rating on the shares. On September 13, DA Davidson analyst Michael Shlisky reiterated his $455 price target and Buy rating on Deere & Company (NYSE:DE).

At the end of Q2 2022, 54 hedge funds disclosed ownership of stakes in Deere & Company (NYSE:DE). The total value of these stakes amounted to $1.58 billion. Of those, GAMCO Investors’ stakes amounted to $66.35 million. Deere & Company (NYSE:DE) is one of the top agriculture stocks that billionaire investor, Mario Gabelli is bullish on.

Here is what ClearBridge Investments had to say about Deere & Company (NYSE:DE) in its second-quarter 2022 investor letter:

“In our engagements with farm equipment maker Deere (NYSE:DE), we have followed new technology as it has developed from early promise of environmental and social benefits to market reality. In March 2022, Deere’s Chairman & CEO and CFO met with ClearBridge’s investment team in our New York offices. While prior to the pandemic we had regularly hosted the company, this meeting was among the most interesting as the relatively new CEO outlined a bold plan that placed improved environmental stewardship squarely at the center of the company’s future.

Industrial farming, at its core, is not an especially environmentally friendly enterprise. Agronomic practices have improved over time, but fertilizer, herbicide and pesticide applications and water usage remain problematic. Deere believes its precision farming technology can drive down chemical and fertilizer volumes materially —possibly by as much as 70% — as sensors and cameras attached to tractors, sprayers and combines help determine the exact level of chemicals that might be required…” (Click here to see the full text)