The Zacks Manufacturing – Farm Equipment industry is expected to benefit from increased agricultural equipment demand due to a growing population. Companies like CNH Industrial N.V., AGCO Corp., and Lindsay Corp. are well-poised to benefit from this demand. The industry is investing heavily in technology, including precision agriculture and automation, to improve farming efficiency. Despite current weaknesses in commodity prices, agricultural equipment demand will be supported by global food demand and government subsidies for machinery purchases.
The industry has outperformed the broader market over the past 12 months, with a 29.8% growth rate. Companies like AGCO, Lindsay, and CNH Industrial have implemented pricing and cost-reduction actions to sustain margins. AGCO has gained 25.9% in the past year, while Lindsay has gained 13.6%. CNH Industrial has developed state-of-the-art agricultural products and is advancing in automation and digital technology. The industry’s forward EV/EBITDA ratio is 50.53X, indicating bright prospects for the near term. The Zacks Industry Rank #104 suggests that the industry will outperform the broader market.