From Nasdaq: 2025-06-04 10:43:00

The Manufacturing – Farm Equipment industry is facing challenges from weak commodity prices and high costs. However, sustained demand for agricultural equipment driven by a growing population will benefit industry players like Deere & Company, CNH Industrial, AGCO Corporation, and Lindsay Corporation. Emphasis on revolutionizing agriculture with technology is a major catalyst.

Low commodity prices are impacting the industry, with a forecasted increase in net farm income for 2025 driven by government payments. Despite price volatility, demand for agricultural equipment remains strong due to global food needs. Companies are focusing on technology and cost-cutting to boost margins. Precision agriculture technology is gaining popularity among customers.

The Zacks Industry Rank for the Manufacturing – Farm Equipment industry is currently at #204, indicating dim prospects in the near term. Despite this, industry stocks have outperformed the broader market over the past year. The industry is currently trading at a forward EV/EBITDA ratio of 53.56X. Three key stocks to watch are Deere, AGCO, and Lindsay, which are focusing on innovation, technology, and strategic transformations to drive growth.

Deere is focusing on advanced technologies and precision agriculture to drive growth, while AGCO is investing in product development and digital capabilities. Lindsay’s acquisition of Pessl Instruments GmbH is expected to accelerate innovations in water management. These companies are well-positioned to benefit from increasing demand for agricultural equipment and infrastructure projects.



Read more at Nasdaq: 3 Farm Equipment Stocks to Watch Amid Industry Challenges