27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE:DE), according to Jefferies.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190.
The Thesis
Agricultural fundamentals and farmers buying power should improve in 2020 as increased global demand will support global crop and livestock markets, Volkmann wrote in a note. If correct, farmers will likely invest in their operations by replacing and upgrading equipment, both domestically and internationally.
Volkmann said North American large agricultural equipment should see a double-digit growth rate and Deere is well positioned as the "largest and highest quality" way of gaining exposure. The company should be able to deliver a growth rate north of the 5% consensus estimate in addition to recording incremental margins "well north" of its 20% to 25% historical range.
Even if large U.S. agricultural equipment sales increase by 30% to 35% next year, Volkmann said it will still be at a consistent growth rate with the 15-year average. If this plays out, Deere could realize over $14 in earnings per share power and warrant a higher stock multiple versus prior cycles.
Price Action
Shares of Deere were trading higher by 1.6% to $166.90 on Monday afternoon.
Related Links:
Tariffs, Trade Cloud Short-Term Future For Deere, But RBC Says Plow Ahead
Bank Of America Downgrades Deere After Big Run
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.