Deere stock: buy or sell?
September 20th, 2019
Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide.
Should I buy Deere stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Deere stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Deere stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we collected 15 ratings published for DE stock in the last 30 days. The general sentiment of these ratings is bullish for DE stock, with 9 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-12||Wells Fargo & Co||Outperform||Market Perform|
|2019-8-19||Wells Fargo & Co||n/a||Outperform|
|2019-8-19||Credit Suisse Group||n/a||Outperform|
|2019-8-19||Bank of America||n/a||Buy|
|2019-8-13||Robert W. Baird||Outperform||Positive|
|2019-7-15||Bank of America||Neutral||Buy|
|2019-7-1||Wells Fargo & Co||n/a||Outperform|
|2019-6-24||Jefferies Financial Group||Hold||Buy|
Deere stock analysis
Deere shares remained constant -0.23% to $164.07 today.
Deere shares remained steady -0.23% to $164.07 today. On September/5 DE price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily perspective, DE is in a short term uptrend after plotting its last bottom ($150.06, on September 3rd) higher than the previous bottom, and its last top ($166.59, on September 13th) also over the previous top. Now trading in between its last bottom and last top DE might consolidate in a plain range, waiting to break out over $166.59 or down under $150.06. On July, DE hit new all time highs, pushing higher previous ATH of $171.00 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
After boosting a wonderful 5.38% in a week last week, Deere closed this week at $164.07 and slightly fell a lame -0.82%. Late July DE plummed a hair-raising -7.37% in just one week.
Observing the weekly chart, price is in a simple uptrend, tested $141.25 level and now climbing back aiming its last top at $171.22. Not so far away is the last price record Deere marked late July. Since price and SMA40w lines crossed up last week, DE climbed $7.55 (4.82%).
Deere stock price history
Deere stock historical price chart
DE stock reached all-time highs on July with a price of $171.22.
Deere stock price target is $172.30Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 12 price predictions for DE stock released in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-12||Wells Fargo & Co||Downgrades||n/a||$170.00||-|
|2019-8-19||Wells Fargo & Co||Reiterates||$185.00||$170.00||-8.1%|
|2019-8-19||UBS Group||Lowers Target||$167.00||$160.00||-4.2%|
|2019-8-19||Morgan Stanley||Raises Target||$172.00||$177.00||2.9%|
|2019-8-19||Credit Suisse Group||Reiterates||$176.00||$197.00||11.9%|
|2019-8-19||Bank of America||Reiterates||$185.00||$175.00||-5.4%|
|2019-8-14||Deutsche Bank||Lowers Target||$163.00||$155.00||-4.9%|
|2019-8-13||Robert W. Baird||Reiterates||$170.00||$150.00||-11.8%|
|2019-7-1||Wells Fargo & Co||Reiterates||$160.00||$185.00||15.6%|
|2019-6-24||Jefferies Financial Group||Upgrades||$150.00||$190.00||26.7%|
|2019-6-21||Morgan Stanley||Raises Target||$158.00||$172.00||8.9%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Deere didn't meet the expectations of the experts and reported a fatal EPS of $1.54 per share when experts were expecting $1.80.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Deere annual revenues climbed an amazing 27.15% to $37,021.30 M USD from $29,115.60 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) slightly fell a -1.02% to 6.40%. Deere presents anual results in October, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Deere TTM sales up to January 2019 were $38,091.40 and earnings $3,401.90 M dollars. If we compare this TTM figures with the last reported annuality, we can review Deere business evolution since October 2018: Annual revenues up to January, compared to lastest yearly report, raised a slightly fine 2.89%. Regarding profit margin, Deere stepped up 2.53% to 6.40%
|2013||$37,800 M||-||$3,540 M9.4%||-|
|2014||$36,070 M||-4.58%||$3,160 M8.8%||-10.73%|
|2014||$35,816 M||-0.71%||$3,162 M8.8%||0.05%|
|2015||$28,810 M||-19.56%||$1,940 M6.7%||-38.64%|
|2015||$28,609 M||-0.70%||$1,940 M6.8%||0.00%|
|2016||$26,620 M||-6.95%||$1,520 M5.7%||-21.65%|
|2016||$26,364 M||-0.96%||$1,524 M5.8%||0.26%|
|2017||$29,450 M||11.71%||$2,160 M7.3%||41.74%|
|2017||$29,116 M||-1.14%||$2,159 M7.4%||-0.04%|
|2018||$37,021 M||27.15%||$2,368 M6.4%||9.69%|
|TTM||$38,091 M||2.89%||$3,402 M8.9%||43.64%|
Quarterly financial resultsDeere reported $7,983.60 M in sales for 2019-Q1, a -12.07% less compared to previous quarter. Reported quarter income marked $498.50 M with a profit margin of 6.24%. Profit margin decreased a -2.40% compared to previous quarter when profit margin was 8.64%. When comparing sales to same quarter last year, Deere sales marked a super good increase and skyrocketed a 15.48%. Looking back to recent quarterly results, Deere posted 3 negative quarters in a row.
|2017-Q2||$8,110 M||-||$802 M9.9%||-|
|2017-Q3||$7,710 M||-4.93%||$642 M8.3%||-20.02%|
|2017-Q4||$7,396 M||-4.08%||$510 M6.9%||-20.46%|
|2018-Q1||$6,914 M||-6.52%||$-535 M-7.7%||-204.86%|
|2018-Q2||$10,720 M||55.06%||$1,208 M11.3%||-325.81%|
|2018-Q3||$10,308 M||-3.84%||$910 M8.8%||-24.66%|
|2018-Q4||$9,080 M||-11.92%||$785 M8.6%||-13.79%|
|2019-Q1||$7,984 M||-12.07%||$499 M6.2%||-36.48%|
Deere ownershipWhen you are planning to invest in a company, it's worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Deere, 0.23% of all outstanding shares are owned by its staff.
In case of Deere stock, 79.80% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for DE stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Deere:
|Market cap||$51.7 B||$5.9 B||$9.0 M||$72.1 B||$47.0 B|
|Total shares||314.9 M||76.2 M||4.3 M||562.6 M||1,760.0 M|
|Float shares||282.6 M||62.8 M||1.9 M||561.4 M||1,760.0 M|
|- Institutional holdings (%)||79.8%||88.2%||4.5%||68.6%||2.1%|
|- Insider holdings (%)||0.2%||17.4%||54.6%||0.2%||0.0%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$162.88 - $166.70|
|Average true range||$3.34|
|50d mov avg||$158.59|
|100d mov avg||$155.71|
|200d mov avg||$156.31|
Deere performanceTo better understand Deere performance you must compare its gains with other related stocks in same sector or industry. We chose AGCO, Art's-Way Manufacturing, Caterpillar, Honda Motor, Lindsay and Toro as the bechmarking frame for Deere stock.
Deere competitorsWe picked a few stocks to conform a list of Deere competitors to examine if you are interested in investing in DE:
Latest Deere stock news
- InvestorPlaceDeere & Company News: Why DE Stock Is Climbing Higher TodayJune 24, 2019
- Seeking AlphaDeere And Caterpillar Are Not Dogs; Thanks Bears, I'm Buying MoreMay 22, 2019
- InvestorPlaceDeere & Company Earnings: DE Stock Dives on Q2 MissMay 17, 2019
- Investors.comStock Futures Down As China Trade War Deal Fades; Deere, Baidu Take Earnings DivesMay 17, 2019
- InvestorPlaceDeere Earnings: DE Stock Dips on Q1 MissFebruary 15, 2019