NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as George Soros and Carl Icahn.
Today we're taking a closer look at five stocks that Buffett sold part or all of his position in in the most recently reported quarter, based on Berkshire Hathaway's most recent quarterly 13F filing with the SEC, which reflects holdings as of Sept. 30, 2014.
Must Read: Warren Buffett's Top 10 Dividend Stocks
TheStreet Ratings team rates Deere as a buy with a ratings score of A-. TheStreet Ratings team has this to say about its recommendation:
"We rate Deere (DE) a buy. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, Deere's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $2,843.80 million or 6.64% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -15.86%.
- DE, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, DE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- Deere's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, Deere reported lower earnings of $8.62 versus $9.08 in the prior year. For the next year, the market is expecting a contraction of 35.8% in earnings ($5.53 versus $8.62).
You can view the full analysis from the report here: DE Ratings Report