CNBC’s Jim Cramer on Thursday urged investors to purchase shares of Deere at the start of the next trading session.
“I’ve told you to buy Deere all year. Liked it even more when Russia invaded Ukraine, because … it’s created a powerful bull market in all things agriculture,” the “Mad Money” host said. “This is a textbook real company that makes real stuff and sells it at a profit, with a reasonable valuation,” he added.
“You can now get its stock for just 15.5 times earnings, which I just think is absurd. So, you’ve got my blessing to buy it tomorrow morning,” he said.
Shares of Deere tanked 14% after the equipment maker missed Wall Street expectations on revenue but beat on profit in its latest quarter. However, the stock bounced during last week’s marketwide rally.
Cramer said that he believes the stock fell because investors were expecting a blowout quarter due to the current bull market in agriculture, and dumped the stock after Deere reported quarterly results that left more to be desired.
The company’s guidance also left investors unenthusiastic, Cramer said, adding that the stock rallied after Deere had its analyst day and investors reassessed the company’s latest quarter.
“This one is an important bellwether, and not just for farm equipment. The crazy action in Deere stock … can tell you a lot about the temperament of this market and how it’s changed,” Cramer said.
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Source: https://www.cnbc.com/2022/06/02/jim-cramer-says-to-pick-up-shares-of-deere-for-an-absurd-bargain.html