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Headquartered in Moline, Illinois, Deere & Company (DE) is a leader in manufacturing agricultural, construction, and forestry machinery. With a market cap of $104.14 billion, Deere is known for its innovative and sustainable solutions that drive productivity and efficiency in the agriculture and construction sectors. The company’s advanced equipment and technology solutions support a wide range of industries, helping address critical challenges in food production, infrastructure, and resource management.
Shares of DE have significantly underperformed the broader market over the past year. The stock has declined 10.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024 alone, the stock is down 5.5%, while the SPX has gained 16.5% on a YTD basis.
Narrowing the focus, DE's underperformance looks more pronounced when measured against the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained 11.4% on a YTD basis.
On Aug. 15, Deere & Company gained over 6% after reporting Q3 net sales of $11.39 billion, surpassing the $10.84 billion consensus. The company’s earnings came in at $6.29, surpassing the Wall Street estimates of $5.80.
For the current fiscal year, ending in October, analysts expect DE’s EPS to decline 27.6% to $25.07 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering DE stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and nine “Holds.”
On Aug. 16, Jamie Cook from Truist Financial assigned a “Buy” rating to Deere & Company with a price target of $443, implying a potential upside of 17.2% from current levels.
The mean price target of $421.55 represents an 11.5% premium compared to DE’s current price levels. The Street-high price target of $495 suggests an upside potential of 31%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
