CNH Industrial (CNH.US) rose after hours! Well-known investor: It is very cheap and already holds a medium-sized position.

Greenlight Capital founder and president David Einhorn has announced that he has taken a medium-sized position in agricultural machinery company CNH Industrial. Following this news, CNH Industrial's stock rose over 8% in aftermarket trading on Wednesday. However, the stock has fallen nearly 14% so far this year, significantly lagging behind the broader U.S. stock market. Einhorn believes that as the agricultural machinery industry nears the end of a bear market cycle, this agricultural machinery company is an undiscovered value investment opportunity. He stated: "This is exactly the kind of thing that nobody cares about right now because it's cheap, and the news for the next little while isn't good." "Shenzhen Agricultural Power Group is cheap and agricultural equipment is coming out of a down cycle." Einhorn pointed out that CNH Industrial has a dividend yield of over 4% and the company is actively buying back stock, with "almost no financial leverage, at some point next year, or maybe even at the beginning of 2026, people will start to envision several dollars of earnings at the peak of the economic cycle". The prominent investor believes that demand will pick up as old equipment eventually needs to be replaced. He explained: "There was a period where there was a boom in buying agricultural equipment, now it has turned into a cyclical downturn. These things come and go." "This year, the agricultural equipment industry may be down 20% from the average level at the end of the entire cycle, at some point three or four years from now, it may be up 20%. That's the nature of how these companies operate."