Deere stock: buy or sell?

DE stock price: $164.07 -0.23% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Deere remained constant an ugly -0.23% and closed at $164.07.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is DE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-12Wells Fargo & CoOutperformMarket Perform
2019-8-19Wells Fargo & Con/aOutperform
2019-8-19UBS Groupn/aNeutral
2019-8-19Morgan Stanleyn/aOverweight
2019-8-19Credit Suisse Groupn/aOutperform
2019-8-19Bank of American/aBuy
2019-8-14Stephensn/aEqual Weight
2019-8-14Deutsche Bankn/aHold
2019-8-13Robert W. BairdOutperformPositive
2019-7-15Barclaysn/aBuy
2019-7-15Bank of AmericaNeutralBuy
2019-7-10UBS GroupBuyNeutral
2019-7-1Wells Fargo & Con/aOutperform
2019-6-24Jefferies Financial GroupHoldBuy
2019-6-21Morgan Stanleyn/aOverweight

Deere stock analysis

Daily outlook

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.

DE stock chart (daily)

Weekly outlook

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%).

DE stock chart (weekly)

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 $172.30

Predicting 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:
DE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-12Wells Fargo & CoDowngradesn/a$170.00-
2019-8-19Wells Fargo & CoReiterates$185.00$170.00-8.1%
2019-8-19UBS GroupLowers Target$167.00$160.00-4.2%
2019-8-19Morgan StanleyRaises Target$172.00$177.002.9%
2019-8-19Credit Suisse GroupReiterates$176.00$197.0011.9%
2019-8-19Bank of AmericaReiterates$185.00$175.00-5.4%
2019-8-14Deutsche BankLowers Target$163.00$155.00-4.9%
2019-8-13Robert W. BairdReiterates$170.00$150.00-11.8%
2019-7-15BarclaysReiteratesn/a$167.00-
2019-7-1Wells Fargo & CoReiterates$160.00$185.0015.6%
2019-6-24Jefferies Financial GroupUpgrades$150.00$190.0026.7%
2019-6-21Morgan StanleyRaises Target$158.00$172.008.9%
(in average)$168.60$172.302.0%
The price prediction for Deere stock is $172.30, moving in a range between $197.00 and $150.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
DE earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a3.11n/a
2017-Q3-n/a1.97n/a
2017-Q42018-02-161.21.319.2%
2018-Q12018-05-183.313.14-5.1%
2018-Q22018-05-183.333.14-5.7%
2018-Q32018-08-172.772.59-6.5%
2018-Q42018-11-212.442.3-5.7%
2019-Q12019-02-151.81.54-14.4%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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%

DE annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
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 M11.71%$2,160 M7.3%41.74%
2017$29,116 M-1.14%$2,159 M7.4%-0.04%
2018$37,021 M27.15%$2,368 M6.4%9.69%
TTM $38,091 M2.89%$3,402 M8.9%43.64%

Quarterly financial results

Deere 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.
DE quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
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 M55.06%$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 ownership

When 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:

DEAGCOARTWCATHMC
Market cap$51.7 B$5.9 B$9.0 M$72.1 B$47.0 B
Total shares314.9 M76.2 M4.3 M562.6 M1,760.0 M
Float shares282.6 M62.8 M1.9 M561.4 M1,760.0 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 selling0.0%0.0%0.0%0.0%0.0%

Deere summary

Friday, September 20th, 2019
Open$164.83
Close$164.07
Day range$162.88 - $166.70
Previous close$164.44
Session gain-0.23%
Average true range$3.34
50d mov avg$158.59
100d mov avg$155.71
200d mov avg$156.31
Daily patternlt06a
Weekly pattern lb01a

Deere performance

To 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.
Stock3m6m12m
DEDeere0.33%6.21%9.45%
AGCO 3.35%14.86%29.14%
ARTWArt's-Way Man...2.44%3.45%-22.22%
CATCaterpillar-3.51%0.16%-15.82%
HMCHonda Motor4.34%-0.22%-10.26%
LNNLindsay17.76%0.07%-4.05%
TTCToro4.33%7.53%17.89%

Deere competitors

We 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