Jim Cramer recommends buying Deere stock for a ‘absurd’ price

•  Jim Cramer recommended investors to buy Deere stock before the start of the next trading session on Thursday.
• Stock plunged because investors expected a blowout quarter owing to the present agricultural bull market

Jim Cramer recommended investors to buy Deere stock before the start of the next trading session on Thursday.

“I’ve told you to buy Deere all year. Liked it even more when Russia invaded Ukraine, because … it’s created a powerful bull market in all things agriculture,” the “Mad Money” host said. “This is a textbook real company that makes real stuff and sells it at a profit, with a reasonable valuation,” he added.

“You can now get its stock for just 15.5 times earnings, which I just think is absurd. So, you’ve got my blessing to buy it tomorrow morning,” he said.

READ MORE: Jim Cramer urges investors to be ready to buy homebuilding stocks when they fall

Deere shares fell 14% after the machinery giant failed revenue projections but beat profit in the most recent quarter. The stock, however, bounced during last week’s market-wide rise.

Cramer says the stock plunged because investors expected a blowout quarter owing to the present agricultural bull market and dumped the stock when Deere disclosed quarterly results that left much to be desired.

Investors were also unimpressed with the company’s projection, according to Cramer, who added that the stock recovered after Deere held its analyst day and investors reassessed the company’s most recent quarter.

“This one is an important bellwether, and not just for farm equipment. The crazy action in Deere stock … can tell you a lot about the temperament of this market and how it’s changed,” Cramer said.

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