Why Deere Stock Isn't as Cheap as It Looks
The stock of Deere Company (NYSE: DE) has been a market darling, beating the S 500 and the Nasdaq Composite over the past three years, five years, seven years, and the past decade. That outperformance is arguably well deserved, as Deere is on track to produce a staggering $9.75 billion to $10 billion in net income in fiscal 2023, a fourfold increase in the last five years.
However, a big reason for Deere's impressive bottom-line increase is a growth cycle for agriculture (and, to a lesser extent, construction), which has boosted demand for its machinery and supported price increases that have more than offset inflation.
Deere stock has just an 11.5 price-to-earnings (P/E) ratio compared to a 23.5 P/E for the S 500. But the blue chip stock isn't as cheap as it looks. Here's why.
Source Fool.com
