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DEERE & CO Rates High in Guru Fundamental Report

In a recent report, DEERE & CO (DE) has been recognized as a strong performer under the P/B Growth Investor model, achieving a 77% rating. This indicates favorable market potential, though certain weaknesses in cash flow and sales variance were highlighted.

Date: 
AI Rating:   6

DEERE & CO (DE) has received a competitive edge through its high rating of 77% based on the P/B Growth Investor strategy, which emphasizes strong growth potential in low book-to-market stocks. A rating above 80% signals interest in the stock, while above 90% suggests strong interest; thus, DE is poised for attention from potential investors.

Analyzing the key metrics of the strategy reveals a mix of strong operations with some areas of concern:

  • Book/Market Ratio: The company passes this metric, indicating a favorable valuation in the market.
  • Return on Assets: This metric is also positive, demonstrating effective asset utilization to generate earnings.
  • Cash Flow from Operations to Assets: DE fails this test, which may raise concerns regarding operational efficiency and cash management.
  • Cash Flow from Operations to Assets vs. Return on Assets: A pass here suggests that when operational cash flow is considered against asset returns, DE is in a reasonable position.
  • Sales Variance: The failure to meet this criterion indicates inconsistencies in sales performance, which could lead to volatility in earnings.
  • Advertising to Assets: This is a pass, showing that advertising efforts are adequately supported by the company’s assets.
  • Capital Expenditures to Assets: This metric also passes, suggesting a commitment to investing in infrastructure and growth initiatives.
  • Research and Development to Assets: The passage of this test indicates a focus on innovation and maintaining competitive advantage.

Overall, while DEERE & CO demonstrates strong fundamentals and growth potential highlighted by its high guru rating, investors should pay attention to the areas of cash flow and sales variance. Any negative trends here could affect the company's stock price moving forward and must be monitored.

Stocks:  DE