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Moline, Illinois-based Deere & Company (DE) manufactures and distributes agricultural and forestry machinery, diesel engines, and more. With a market cap of $106.3 billion, Deere operates through Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Deere fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the farm & heavy construction machinery industry. Deere offers a portfolio of more than 25 brands to provide its customers with a full line of innovative solutions.
Despite its strengths, Deere has slipped 8.9% from its 52-week high of $423.35, which it achieved on Sep. 5, 2023. Nevertheless, DE gained 4.8% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 1.8% gains during the same time frame.
In the longer term, DE has underperformed NASX. DE dipped 7.9% over the past 52 weeks and 3.6% in 2024, trailing behind NASX’s 22.1% gains over the past year and 14.2% returns on a YTD basis.
To confirm the bearish trend, DE has mostly traded below its 50-day and 200-day moving average over the past year, with some fluctuations.
Despite underperforming the broader market over the past year, DE stock has shown impressive resilience recently, gaining 9% over the past month. Shares of Deere surged 6.3% after the release of its better-than-expected Q3 earnings on Aug. 15. Although the company saw a 16.8% year-over-year decline in its revenues to $13.2 billion, its EPS of $6.29 surpassed the consensus estimate by 8.5%.
Deere’s competitor, Caterpillar Inc. (CAT), delivered a better performance. CAT has gained 18.9% over the past year and 15.1% in 2024.Among the 22 analysts covering the DE stock, the consensus rating is a “Moderate Buy.” The mean price target of $416.05 represents a potential upside of 7.9% from current price levels.
On the date of publication, Aditya Sarawgi 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.
