NEW YORK (TheStreet) --Shares of Deere (DE) were climbing by 10.61% to a new all-time high of $101.77 in Wednesday afternoon trading, after the company reported stronger than expected fourth quarter results.
Before the market open today the Moline, IL-based American agricultural company posted earnings of 90 cents per share, beating estimates of 40 cents. Revenue came in at $6.52 billion, topping projections of $5.37 billion.
"It's up 40% over the last year and I think the takeaway is that the fundamentals have not improved, however, expectations had gotten so low that it almost didn't matter," Ritholtz Wealth Management CEO Josh Brown said on CNBC's "Halftime Report" today.
Brown called Deere stock a "classical cyclical" and warned investors waiting on the sidelines for the turn in fundamentals of missing a significant run.
"I think if we are going to re-build America and tax breaks you are going to see a fundamental turn," Brown said. "The question is when is all of that benefit taken out of the stock; I would say we are halfway there."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Deere as a Hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and notable return on equity. However, as a counter to these strengths, the team also finds weaknesses including generally higher debt management risk, feeble growth in the company's earnings per share and deteriorating net income.