This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Deere: Undervalued Sleeper for 2014

Stocks in this article: DE BRK.B

NEW YORK ( TheStreet) -- What mental image comes to your mind when you see the words Deere & Company (DE - Get Report)? Maybe it's the green and yellow emblem of a stag deer jumping, or perhaps it's a green tractor working the fields on a large, commercial farm. What probably doesn't come to your mind are the words, "solid, reasonably priced, long-term investment."

Well, Deere should conjure up those words, even though many look at it as a stodgy stock now and for 2014. In fact, the company wants the investor community to know that it sees itself as opportunistic.

The company's investor relations website also wakes us up about this "sleeper" by stating, "Technology advances and continued agricultural mechanization will open and expand markets. John Deere is uniquely positioned to capitalize on these economic tailwinds. And, just as important, we're in a position to make a difference in the world by supporting a higher quality of life."

Why would an investor want to invest in Deere now? Is it just the 2.37% dividend you'll receive if you don't pay more than $86.16 per share for the company's stock? Or is it that it's trading at a current price-to-earnings ratio below 10 and a forward (one-year) PE of less than 12? The answer is both and more.

Managing a Strong Portfolio of Interrelated Businesses.

Did you know that Deere owns a bushel of interconnected businesses? Each business has it own vital and specific role. The company explains them as follows:

Growth businesses (Agricultural and Construction equipment solutions) are in the best position to capitalize on global growth and development created by these economic trends. Management expects this segment to success as it addresses the challenges of increased agricultural output and infrastructure.

Complementary businesses (Turf and Forestry equipment solutions) - support and enhance worldwide channel development. They defend and grow market share in specific, targeted markets, while seeking to enhancing Deere's financial performance.

Supporting businesses (Financial Services, Power Systems, Parts Services, and the Intelligent Solutions Group) strengthen and differentiate Deere's other equipment solutions.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs