Farming machinery equities present a range of investment profiles heading into 2026, with leaders distinguished by technology and recurring‑revenue initiatives and other names standing out for valuation or cyclical upside potential. WarrenAI rankings that incorporate Fair Value estimates, Pro scores, technical indicators and analyst price targets separate the sector into premium growth, value, and speculative/cyclical categories.
Deere & Company (NYSE: DE)
Deere & Company continues to command the top position in the agricultural equipment complex. Over the past year the stock has returned 35.3% even as the company recorded an 11.5% decline in revenue. Deere is trading at $645.30 and recently traded as high as $674.19, its all‑time high. Analysts carry a mean price target of $665.33 and assign a Buy consensus (2.28), implying roughly 11.2% upside from the current price.
Profitability metrics for Deere are notable: return on equity (ROE) stands at 20.6% and the company posts an 18.9% EBITDA margin. Strategically, Deere is emphasizing precision agriculture technologies and expanding subscription or software-as-a-service offerings, with a stated objective of growing recurring revenues to represent 10% of total sales by 2030. The stock yields 1.4% in dividends.
At the same time, the valuation picture is stretched by one common measure: the stock trades about 56% above the Fair Value estimate of $411.36 indicated in the WarrenAI analysis, a factor InvestorsPro flags as overvaluation.
AGCO Corporation (NYSE: AGCO)
AGCO is highlighted as the top value opportunity within the group. The shares are priced at $135.95 and are trading roughly 14% beneath the Fair Value of $158.04 assigned in the same ranking framework. Over the last 12 months the stock has risen 41.5% and WarrenAI's inputs suggest about 16.2% upside from the current level.
Analysts retain a Buy rating on AGCO (2.75) even though the consensus price target sits slightly lower at $128.57. From a cash‑flow perspective AGCO leads peers with a 7.5% free cash flow yield and has set operating margin targets in the 14-15% range. The company is supported by a robust parts business and is described as maintaining profitability leadership in the Europe, Africa and Middle East (EAME) region. AGCO pays a 1.1% dividend yield.
CNH Industrial (NYSE: CNH)
CNH Industrial offers a more speculative profile in the rankings. Shares trade at $12.77 and carry a Strong Buy analyst consensus (1.95) with a mean price target of $13.99. That said, the Fair Value calculation used in the analysis places the company at $9.89, implying a potential downside of about 22.6% from current levels.
CNH provides the highest dividend yield among the three names at 2.7% and posts an 8.4% free cash flow yield. Profitability metrics are more modest, with ROE at 6.6%. The company faces pressure on margins from tariffs and softer equipment demand, and the analysis identifies 2026 as likely to be a trough year within the cyclical recovery for the firm.
Bottom line
The WarrenAI-driven review shows a sector split between a premium, highly profitable leader; an attractively valued peer with strong cash generation; and a cyclical, higher‑risk company where Fair Value suggests potential downside. Investors evaluating agricultural machinery stocks for portfolio inclusion should weigh profit margins, free cash flow yields, dividend income and Fair Value discrepancies alongside analysts' price targets and consensus ratings.