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Deere & Company (DE)

Deere stock forecast: buy or sell

Close on Oct 23rd, 2020
$239.53 +1.12%
3 months performance
37.40%
Published: October 23rd, 2020 - 4.41pm EDT

Deere stock outlook

  • Deere closed today at $239.53 after inching a 1.12%.
  • Deere & Company, together with its subsidiaries, manufactures and distributes various equipment worldwide.

Important note:
The opinions expressed in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual positions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for general educational purposes only

Deere stock charts

Should I buy Deere stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $DE stock a buy?

Currently, Deere stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $DE will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Deere stock?

When you own a stock with some profit, it's really hard to decide the best moment to sell and get your profits. Just as when we have to buy shares, determining when is appropiate to sell is not a whimsical decision, and we must adhere our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies should not be used for selling short $DE stock

A guiding principle is that you must never keep an open trade that shows a losses greater than those expected upon purchase. When to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Deere stock?

In the current situation of Deere there is not any eligible sell setup, so Deere stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Deere stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 5 analyst ratings were published for Deere

Deere ratings

Brokerage firmRating
Sep 23rd, 2020
Bank of America Strong buy
Oct 8th, 2020
JPMorgan Chase & Co. Sell
Oct 12th, 2020
Citigroup BuyNeutral
Oct 12th, 2020
Morgan Stanley Buy
Oct 13th, 2020
Deutsche Bank Aktiengesellschaft Neutral

Technical analysis

Deere shares started an uptrend last May, and grew a gorgeous 104.99%. The price action shows higher tops and bottoms, and along the way provided very few buy points for those who wanted to trade in. Latest low was in mid-June, when price bounced at $146.86. Deere broke out above $168.96 (its last top) in mid-July. That breakout was a good entry point that resulted in a 41.77% profit

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

DE SMAs chart

Supports and resistances

Market investors use support and resistance levels to spot price points on a chart that tend to behave as glass ceiling, containing the price of shares to move in certain direction. Supports are levels where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until approaching another support level. In contrast, a resistance level is where the price may find a curb as it moves up. In the same manner, this means that the price is more liable to "rebound" at this level, and if it finally ruptures this level, the price will rise easily until it finds the next resistance

Price is at highs and there are not upper resistances.

The current support levels are:

  • S1: $179.43 (-25.09% below)
  • S2: $177.17 (-26.03% below)
  • S3: $175.89 (-26.57% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread studio introduced by John Bollinger. It is composed of 3 bands that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is trading very close to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    DE RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates in a range between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    Relative Strength Indicator (RSI) crossed over the overbought line today, with a reading of 70.47. The fact that the relative strength (RSI) value is above the level of 70 does not in any way imply a sell point, as shares can rally during several weeks being above the level of 70

    DE RSI chart

    Earnings and financials

    Fiscal third-quarter shareholders event was hosted by Deere ($DE) in mid-August after releasing the earnings report. The company posted earnings of $2.57 per share, significantly improving the Market consensus estimate of $1.19 per share.

    Same quarter last year, reported EPS was $2.14, so current EPS means an increase of 20.09%.

    Deere ($DE) is posting Q4 financial report on late next November. Market expects an earnings per-share of $1.23, compared to Q3 that was $2.57.

    DE revenues and profits chart