Deere & Co. (DE-N)

Outside tech, there is now catch-up in other sectors. Look at the price action in Deere and how they recovered from their post-earnings debacle.

200-day MA meandering higher. Likes industrials as early-cycle winners. Strong global brand. Global demand for corn and soybeans will stay robust. Uptrend is there, but possible resistance around $450. Decently valued at 14x forward earnings, 15-16% growth rate. Couple of names he likes better.

Trades less than 13x PE. A good construction business, but some are worried about their farm business, but if the latter drags down shares, then buy on that weakness.

Has owned this since 2021, based on agriculture seeing a positive cycle and a replacement cycle in farm equipment, which happened. Momentum is getting stretched though. Agriculture prices are declining.

Sold it already. Agriculture prices are declining and prices for new tractors are rising, so farmers are getting squeezed. Shares are not cheap, but long term it's good. He will rebuy it down the road.

Good for this point in cycle as economy recovers. 
Cyclical business.
Good time to buy.

Problem is economic slowdown to a recession. Industrial spending and capex will slow. Among the industrials, agriculture probably has better growth.

He didn't catch it last week, but just bought some below $400 to add to his position. Farming remains healthy. Deere fundamentals were fine last quarter and this should continue.

He took some profits today after buying it over $400. They execute better than CAT. Deere just reported a great, but imperfect quarter. Inventories were higher. Not expensive. 15x PE is good and likes their AI applications, but farmers will need to afford that. It's not the right stock in the economy moving forward.

She likes agriculture in general. As the US moves more into commercialization of farming, this could be a long-term play for investors.

They report soon and he doesn't know what the results will be. He likes their technology. He just bought a small position. Even if peers like Caterpillar miss, they come down only slightly.