Industry Overview - The Zacks Manufacturing - Farm Equipment industry includes companies that manufacture agricultural equipment such as tractors, combines, and harvesting equipment [3][4] - The industry is currently facing challenges due to weak commodity prices and low farm income, which are impacting farmers' purchasing decisions [1][5] Current Trends - Low farm income is a significant concern, with a projected net farm income of $140 billion for 2024, a decline of 4.4% from 2023 [6][7] - Total crop receipts are expected to decline by 10% to $249 billion, primarily due to lower prices for corn and soybeans [8] - High costs and supply-chain issues are affecting the industry, leading to increased lead times for deliveries [9] Future Demand Drivers - Despite current challenges, demand for agricultural equipment is expected to rise due to the need for food driven by population growth [10] - The U.S. agricultural machinery market is forecast to reach $39.56 billion in 2024, with a projected growth to $53.7 billion by 2027, reflecting a CAGR of 6.3% [10][11] - Technological advancements in farming, such as precision agriculture, are anticipated to be key growth drivers [12] Company Insights Deere (DE) - Deere is experiencing solid growth in order levels, supported by replacement demand and a focus on advanced technology [19][20] - The company has a trailing four-quarter earnings surprise of 11.8% and an estimated long-term earnings growth rate of 12% [21] Kubota (KUBTY) - Kubota is advancing its long-term vision "GMB2030" aimed at smart agriculture and has made strategic investments in AgTech companies [22][23] - The company has seen a 15.7% increase in its fiscal 2024 earnings estimate over the past 60 days [25] CNH Industrial (CNH) - CNH Industrial is well-positioned for growth with a strong agricultural product portfolio and strategic acquisitions enhancing its precision agriculture technology [26][27] - The company has a trailing four-quarter earnings surprise of 7.3% [28] Lindsay (LNN) - Lindsay is benefiting from demand for its Road Zipper System and has secured a multi-year supply agreement valued at over $100 million [29][30] - The company has a trailing four-quarter earnings surprise of 20% [31] Industry Performance - The Zacks Manufacturing - Farm Equipment industry has underperformed compared to the broader market, with a decline of 0.1% over the past 12 months [17] - The industry's current valuation is at a forward 12-month EV/EBITDA ratio of 32.08X, significantly higher than the S&P 500's 14.28X [18]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2]. Group 1: Company Overview - Kubota (KUBTY) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4]. - The stock has a P/E ratio of 12.20, which is lower than the industry average of 12.57, suggesting it may be undervalued [4]. - KUBTY's Forward P/E has fluctuated between 10.79 and 14.72 over the past 12 months, with a median of 13.30 [4]. Group 2: Valuation Metrics - KUBTY has a PEG ratio of 0.71, significantly lower than the industry average of 1.20, indicating strong earnings growth potential relative to its price [5]. - The PEG ratio for KUBTY has ranged from 0.71 to 1.38 in the past year, with a median of 1.21 [5]. - The company also has a P/CF ratio of 5.71, compared to the industry average of 17.95, further supporting the notion of being undervalued [6]. - Over the past 52 weeks, KUBTY's P/CF has varied between 5.67 and 9.44, with a median of 6.23 [6]. Group 3: Investment Outlook - The combination of KUBTY's favorable valuation metrics and strong earnings outlook positions it as an impressive value stock at present [7].

Core Viewpoint - Kubota Corp. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often react to changes in earnings estimates, leading to significant price movements based on their buying or selling actions [4]. Recent Performance and Outlook - For the fiscal year ending December 2024, Kubota is expected to earn $5.89 per share, reflecting a decrease of 18.1% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Kubota has increased by 6%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Kubota to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of ...

Investors might want to bet on Kubota Corp. (KUBTY) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. ...

Investors interested in Manufacturing - Farm Equipment stocks are likely familiar with Kubota Corp. (KUBTY) and Lindsay (LNN) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stock ...

WASHINGTON — The Federal Trade Commission on Friday announced that it fined Kubota, one of the world's largest tractor manufacturing companies, $2 million for mislabeling some of its replacement parts as "Made in the USA.""Today's settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule," said Samuel Levine, director of the FTC's Bureau of Consumer Protection. "The FTC will continue cracking down on deceptive Made in USA claims that cheat consumers and honest busine ...

yasindmrblk“Our products should not only be technically excellent, but also useful for the good of society.” -Gonshiro Kubota Although not as well-known among Western investors, Kubota (OTCPK:KUBTF)(OTCPK:KUBTY) is a legendary company in Japan, being part of the TOPIX 100 and the Nikkei 225 indices. The company was founded in 1890 and has thus survived for over a century. While it has some cyclicality in its revenues and earnings and is exposed indirectly to commodity prices, at the right price we think ...