If Corn Is Any Indication, Deere Will Outperform

Oct. 11, 2021 4:13 AM ETDeere & Company (DE) StockDE5 Comments

Summary

  • Deere could outperform the market in 2022 and beyond if corn finds a bottom, backed by high demand and production issues.
  • Investors are in a good place as Deere is set to report accelerating free cash flow.
  • The valuation is not cheap, but it has come down to very acceptable levels.

John Deere S670 Sojabohnen Sonnenuntergang

Nicholas Smith/iStock Editorial via Getty Images

Introduction

I've frequently covered Deere & Company (NYSE:DE) over the past 2 years. Mainly because it's a top position in my long-term dividend growth portfolio and because it's the world's largest producer of agriculture

This article was written by

43.18K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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