John Deere: More Than Tractors—A Technology Play

In this episode of InFocus, Mike Gassewitz, CEO of TriCert Financial Group, is joined by TriCert Investment Counsel Portfolio Manager Dave Gill, CFA®, MBA, to discuss the state of the industrials and technology sectors. They discuss how both sectors entered 2025 with high valuations, leading to underperformance relative to the broader market. While fundamentals remain strong, valuation concerns and cautious corporate guidance have tempered expectations.

A major theme in the discussion is the impact of tariffs on industrials and technology companies. Dave shares that nearly 90% of our core picks in these sectors who have reported on their earnings mention tariffs as a key concern. While uncertainty remains, the direct impact appears mixed rather than overtly negative.

John Deere serves as a case study in resilience and innovation. The company has embraced technology, developing a connected ecosystem of agricultural equipment that enhances efficiency and productivity. Despite near-term headwinds from lower commodity prices and potential tariff risks, Deere’s strong fundamentals and strategic adaptability make it a compelling long-term investment.

The conversation concludes with a broader discussion on macroeconomic conditions and the importance of investing in high-quality companies with strong management, diversified revenue streams, and financial stability to navigate market uncertainties.

Recorded on March 3, 2025

 

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