U.S. farmers harvested some of the largest corn and soybean crops in history this year. The timing couldn’t be much worse for farm incomes and commodity prices. And for shares of farm stocks.
Today I added CNH Industrial (CNH) as Pick #7 for my Special Report “10 new stock ideas for an old rally.” I also added the stock to my Jubak Picks Portfolio. Here’s what I wrote:
I like farm equipment maker CNH Industrial for the same reason I own Deere (DE) in my long-term 50 Stocks Portfolio. In the long term the world’s farmers are facing a huge challenge: produce more food as an increasingly chaotic climate makes growing stuff harder and harder. One important piece of the solution is a new generation of intelligent farm equipment that uses artificial intelligence to guide everything from when to plant to when to fertilize. At the moment, though, I like CNH more on price. CNH, the #2 farm equipment maker, is invitingly attractive because it is so cheap, absolutely and in comparison to Deere.
