4-Star Stocks Poised to Pop: Deere

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, farm equipment maker Deere & Co. (NYSE: DE) has earned a valued four-star ranking.

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

Deere facts

Headquarters (founded)

Moline, Illinois (1837)

Market Cap

$15.84 billion

Industry

Construction and Farm Machinery and Heavy Trucks

TTM Revenue

$28.38 billion

Management

CEO Robert Lane (since 2000)
CFO Michael Mack, Jr. (since 2006)

Return on Equity (average, last three years)

24.9%

Dividend Yield

3%

Competitors

Caterpillar (NYSE: CAT)
Toro (NYSE: TTC)

CAPS members bullish on DE also bullish on

General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

CAPS members bearish on DE also bearish on

General Motors (NYSE: GM)
Ford Motor (NYSE: F)

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

Over on CAPS, fully 2,337 of the 2,441 members who have rated Deere -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include Wifeb123, who is ranked in the top 7% of our community, and pablogrimes.

In late February, Wifeb123 summed up the bull case nicely for our community: "Low PE, amazing products, loyal customer base, plus a bright outlook. Nothing runs like a Deere!"

In a pitch from late last month, pablogrimes shares three reasons why Deere is a good bet to "buck" its downtrend:

1) Deere is a key component of the worldwide (human) food chain. Their dominating presence across the US in local dealerships that service all makes lend stability.

2) Not just green, but yellow. Construction will be a key recipient of stimulus funds, and yellow machines from [Caterpillar], [Deere], and others will be purchased and maintained.

3) Quality. Deere has never been cheap, but they have a reputation for quality that is as tough as their equipment. A key provider of US jobs, the US has a vested interest in keeping green going.

What do you think about Deere, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Toro is a Motley Fool Hidden Gems recommendation. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.

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Deere & Company CAPS Rating: ****

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