After Solid Earnings, Is Deere a Buy?

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The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics around the investing world.

In today's edition, Brendan discusses earnings from agricultural-equipment giant Deere. The company posted earnings of $2.61 per share, beating expectations of $2.53. Deere also raised its full-year earnings outlook because of higher improving global demand for farm equipment. It did, however, lower its forecast for corn, wheat, and soybean prices for this year. Lower crop prices lead to lower income for farmers, which can decrease demand for Deere products. That's certainly something to watch from Deere, but as of now, if you've been thinking about opening a position in Deere, now looks like a solid opportunity after a drop in the stock price over the past few months.

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At the time this article was published Brendan Byrnesowns shares of Caterpillar. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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