Deere & Company (NYSE:DE) is a top stock in Bill Gates’ portfolio, with RBC Capital initiating coverage at $542 per share and an Outperform rating. The firm praises Deere as the leading OEM of agricultural equipment worldwide and highlights its investments in R&D and technology, particularly in the construction and forestry segment.

While Deere’s long-term outlook remains positive, RBC Capital warns of a potential earnings dip in 2025 due to factors like record U.S. harvests, declining crop prices, and trade issues. However, fiscal 2026 is expected to see revenue climb to $47.1 billion and adjusted EPS improve to $20.86, with a 17.5% increase in operating income.

Deere & Company manufactures a range of machinery and equipment, including agricultural, heavy, and forestry machinery, diesel engines, and lawn care equipment. The company also offers financial services and engages in other business operations. Despite its potential as an investment, some AI stocks may offer greater upside potential and less downside risk.

For investors seeking opportunities beyond Deere & Company, check out the 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds. This article was originally published by Insider Monkey.

Read more at Yahoo Finance: Deere & Company (DE) Earns Outperform Rating Amid Industry Headwinds