Key agriculture stocks to watch heading into election, how to play them

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Key agriculture stocks to watch heading into election, how to play them

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for some of the agriculture players is still bright, even if the

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for the farming sector isn’t. Stocks to watch Though Owen doesn’t expect a sweep for either political party in November, the analyst is eyeing industrial giant Caterpillar as a direct beneficiary of a *********** victory. “Caterpillar is sort of the bellwether for industrial activities,” she said. “It also benefits from some of the tax policies that have been supported by the Trump administration [in] the past, including things like accelerated depreciation [and] lower corporate tax rates.” And while reshoring is likely to work under the administration of either presidential candidate this election, Owen sees that trend and the support for domestic industrial policy under a potential Trump administration as other catalysts for share growth as well. CAT YTD mountain CAT, year-to-date Deere could also respond favorably in the short term to a *********** sweep, Owen said. However, she emphasized that any gains will likely fade pretty quickly due to the aforementioned uncertainty stemming from the Trump administration’s trade policies in particular, especially with respect to China. “The 2019-2020 [trade] war with China actually delayed the equipment purchasing cycle by probably two years,” Owen said. “Farmers got Trump bucks in return, but that wasn’t sufficient for overcoming the uncertainty created by having just a lack of market access.” Cerity Partners’ Jim Lebenthal is sticking with Deere regardless of the outcome of the election. He thinks its current share price suggests that agricultural prices may have hit a trough. “Management gets a high mark for how they’re handling a tough macro situation by limiting production,” the firm’s partner and chief equity strategist said in an interview. “If the bottom is in, they do have some gains ahead of them.” DE YTD mountain DE, year-to-date Both Caterpillar and Deere have hit fresh 52-week highs in October. Year to date, Caterpillar has popped more than 30%, while Deere has risen around 2%. Owen said under a Democratic win, shares of Green Plains could do well — that among the names she covers it has the highest exposure to IRA tax benefits, which she said primarily come through renewable fuels. “More of those policies that tend to be aligned with clean energy sources would benefit from a lack of that pressure from the Republicans,” she added. The stock has struggled in 2024, losing more than 54%.

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