Top Stock to Buy #2 – Deere & Co. (DE)
Deere & Co. (NYSE:DE), the world’s biggest producer of farm equipment and maker of construction machinery and lawn and garden equipment, is in an ideal spot to benefit from an economic turnaround.
S&P analysts forecast that a strong gain in farm income and a likely improvement in global construction markets will boost equipment demand for Deere’s products. S&P recently increased its 12-month target from $99 to $111.
Technically DE has retreated to its 50-day moving average following a run from $79 in early January to $89 on Feb. 14. The pullback appears to have been the result of a 30-cent miss in its last quarterly earnings estimate, but it gives long-term quality stock buyers another opportunity to buy this blue-chip growth stock.
Prior to the correction there was high accumulation, a golden cross, and in November, a dramatic change in trend from a bear to a bull market. The short-term technical objective for DE is $95.