Why this analyst says buy John Deere stock and avoid Caterpillar

In the latest edition of Good Buy or Goodbye, Barron's Senior Writer Al Root joins Yahoo Finance Live to analyze cyclical stocks Deere & Co. (DE) and Caterpillar (CAT).
Root names Deere a buy though "farmers are not doing as well as they were," with total income down $70 billion from it's peak. Despite "less spending on farm equipment," Root stresses being near a trough favors cyclicals. Root acknowledges Deere plans to invest in precision farming, including "self-driving tractors" and "computers planting seeds" for cost savings, and that the company hopes to eventually reach 10% it's of sales from software sales, up from 1% currently. With an attractive valuation, Root sees positives in this stock for investors.
However, he says avoid Caterpillar amid "new equipment erosion," nothing that the "slowing of orders" at one dealer "indicates that maybe the cycle is turning for them." Already "operating right at the peak" for non-residential construction, Root expects a downturn to a come.
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[@thinkforyourself2109]

Bad idea to invest. JD pushing woke ideology/DEI on employees is backfiring big time, leading to a boycott. Their sales will continue to go down.

[@LXBalla4414]

Im way up on CAT so not looking to add to that.

[@MrMountain707]

Just own and hold both.

[@jeffmilligan7030]

Is Al Root Canadian? I hear a Canadian accent.

[@clintelliston9687]

Im not buying a company that engineers their products to be Un-Repairable by the farmsrs who use their product

[@platoscavealum902]

👍

[@platoscavealum902]

👨‍🌾

[@barbiemcgowan7529]

As an operator I don't want a deer at all

[@richwhiteman2755]

What's your peference? My father was a operator Local 649.

[@leehong6917]

@@barbiemcgowan7529 Just CAT or JCB?

[@eco-enjoyer]

Great stuff from someone who obviously knows the industry. Deere was at $170 in 2019. I'm hoping for a bigger fall before I enter into this company with all the competition out there.

[@toledojeeper2932]

Really not much competition in farm tractors . Deere is the leader . They hold their value compared to other brands . The tractors we purchased 20 years ago can sell for more than we paid .

[@funrecent]

Hello my dear friend! thank you for the cool video! keep filming! I'll wait for new videos

[@toledojeeper2932]

I have been buying DE since 1994 in my 401K . I was buying 2 shares a week when it was cheap . I now have close to 600 shares and I’m retired and just sitting on it .

[@Wanwan-mq3jw]

600 .. i currently own 20. But Just starting with this position

[@thinkforyourself2109]

JD went woke so now there's a boycott. Good luck!

[@toledojeeper2932]

@@thinkforyourself2109 ..I guess you don’t watch the news coming from JD . They have reversed their policy on DEI . I don’t need any luck . DE is a solid stock with a good dividend payout . I’m way ahead since 1994 when I was buying it at $30 a share . You really aren’t thinking for yourself.

[@toledojeeper2932]

@@thinkforyourself2109 ..JD has reversed that decision. Their stock is solid and they pay a nice dividend.