5-Star Stocks Ready to Pop: Deere & Co.

Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, farm equipment maker Deere & Co. (NYSE: DE) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Deere & Co.'s business, and see what CAPS investors are saying about the stock right now.

Deere & Co. facts

Headquarters (Founded)

Moline, Ill. (1837)

Market Cap

$28.86 billion

Industry

Farm & Construction Machinery

TTM Revenue

$26.07 billion

Management

CEO Robert Lane (since 2000)

CFO Michael Mack (since 2004)

Return on Equity (avg. last three years)

22.1%

CAPS players bullish on DE also bullish on

Potash Corp. of Saskatchewan (NYSE: POT)

Caterpillar (NYSE: CAT)

Google (Nasdaq: GOOG)

CAPS players bearish on DE also bearish on

General Motors (NYSE: GM)

Ford Motor (NYSE: F)

Amazon.com (Nasdaq: AMZN)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 647 of the 665 All-Star players who have rated Deere & Co. -- some 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include leohaas and ww2004, both of whom are ranked in the top 1% of our community.

In May, leohaas noted that Deere is "the leader in machines needed in any agricultural business. And with demand for crops (needed for feeding people, cows, pigs, chickens, and to support demand from the growing ethanol/bio-diesel industries) only going up, so does demand for [Deere's] products."

An earlier pitch from ww2004 followed that "ag play" line of thinking, touching on the possible value opportunity that the shares were offering. Since ww2004 made the argument in March, Deere has even fallen 16%:

One word: agriculture. The next year, agriculture will be one of the few bright spots in the U.S. economy. Farmers will have money and confidence in the continued profitability of farming. The increasing need for ever greater quantities of food for a growing world population and feed stock for biofuels will continue to drive the ag sector. Deere is well positioned to profit from the boom.

What do you think about Deere & Co., or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Get the best of the Fool delivered to your inbox every Friday

Google is a Motley Fool Rule Breakers recommendation. Amazon is a Stock Advisor pick.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comment (1)
Recommended (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 681017, ~/articles/articlehandler.aspx, 9/7/2008 4:50:17 AM,

Sign up for FREE Motley Fool site access!

Already registered? Login Here

It’s FREE! Enter your email address, and we’ll rush you to the article you're looking for right now.

Privacy / Legal Information

We will use your email address only to keep you informed about updates to our web site and about other products and services that we think might interest you. The Motley Fool respects your privacy. Please read our Privacy Statement

.

Related Tickers

Deere & Company

DE Down! $63.23 -0.27 (-0.43%) 4:01 PM
CAPS Rating:
2027 Outperforms
86 Underperforms
Rate This Stock

Major Indices

S&P 5001,242.31+0.44%
DJIA11,220.96+0.29%
RSL 2K718.85+0.03%
NASD2,255.88 -0.14%
Updated: 4:03:09 PM
Sponsored by:

The Motley Poll

Where will the U.S. dollar go from here?

Sponsored by: