Deere & Company ( DEE Quick Quote DEE - Free Report) unveiled a fully-automatic tractor for large-scale production. The new advanced machine features Deere's 8R tractor, GPS guidance system, TruSet-enabled chisel plow and latest innovative technologies. Later this year, the automotive tractor will be available to farmers. This latest tractor will aid farmers to meet increasing food demand from the growing world population. Farmers face various challenges like adverse weather conditions and climate, presence of weeds and pests and variations in soil quality. These factors hamper farmers’ ability to farm during the most critical times of the year. Deere’s autonomous tractor is expected to eradicate these threats as it has cameras that detect obstacles with a 360-degree view and calculate distance. Images captured by the cameras passed through a deep neural network determine if the machine continues to move or stops, depending on the detection of any complication. The tractor also helps to monitor its position, ensuring it is operating in the right place and is within less than an inch of accuracy. The tractor is also very easy to use as farmers only need to transmit the machine to the ground and configure it for autonomous operation. To start the machine, framers can swipe from left to right with the help of Deere Operations Center Mobile. While the machine is working, farmers can not only leave the field for other tasks but also check the machine's status from their mobile phone. Apart from this, if any machine-related issues occur or in case of irregularities in job quality, farmers will be informed remotely and can make adjustments accordingly to enhance the performance of the machine. The autonomous tractor will be showcased at Deere’s CES booth near Central Plaza at the Las Vegas Convention Center from Jan 5-8. The booth will also display innovative technologies that are being used by farmers, for instance, AI, GPS, automation and other. Positive farm fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022, will continue to drive Deere’s farm and construction equipment demand. These factors will encourage farmers to boost spending on new agricultural equipment and replace their aging fleets. Deere is well poised for growth in the long term, backed by steady investments in new products and geographies. Focus on launching innovative products equipped with advanced technologies and features as well as making investments in precision agriculture provides a competitive edge. The company recently launched ExactRate planter-applied fertilizer systems and AutoPath. Deere envisions to revolutionizing agriculture with technology and make farming automated, easy to use and more precise across the production process. Farmers’ growing reliance on advanced technology to run their complex operations smoothly will continue to fuel Deere’s revenues. Deere projects fiscal 2022 net income in the band of $6.5-$7 billion, suggesting an increase from $5.96 billion in fiscal 2021. Price Performance
Deere’s shares have gained 25.5% in the past year compared with the
industry’s growth of 20.5%. Image Source: Zacks Investment Research Zacks Rank and Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Berry Global Group, Inc. ( BERY Quick Quote BERY - Free Report) , ScanSource, Inc. ( SCSC Quick Quote SCSC - Free Report) and MSC Industrial Direct Co., Inc. ( MSM Quick Quote MSM - Free Report) . While BERY flaunts a Zacks Rank #1 (Strong Buy), SCSC and MSM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Berry Global Group has an estimated earnings growth rate of around 2.8% for fiscal 2022. In the past 60 days, the Zacks Consensus Estimate for fiscal 2022 earnings has been revised upward by 18%. In a year, the company’s shares have increased 30.5%. Berry Global Group has a trailing four-quarter earnings surprise of 16.5%, on average. ScanSource has an expected earnings growth rate of 18.9% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised upward by 0.9% in the past 60 days. ScanSource’s shares have rallied 31.4% in the past year. SCSC has a trailing four-quarter earnings surprise of 34.7%, on average. MSC Industrial has a projected earnings growth rate of 19.9% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has been revised upward by 2.9% in the past 60 days. MSM’s shares have gained 5.5% in a year. MSC Industrial has a trailing four-quarter earnings surprise of 2.9%, on average.