Deere & Company (DE)

Deere stock forecast: buy or sell

Deere stock outlook

  • Deere stock exploded 3.5% to close at $169.56 on the stock market today, after 3 consecutive sessions in positive.
  • Looking at the chart, price is drawing an scaled downtrend since last February with lower tops and lower bottoms. this downtrend marked a -5.82% loss.
  • The price is currently above the upper Bollinger band, which is usually an indicator of a short-term correction
  • Deere & Company, together with its subsidiaries, manufactures and distributes various equipment worldwide.
No ad for you

Important:
The opinions contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the particular conditions of the reader, his or her own 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 Comments are provided for education reasons only

Deere stock chart overview

Should I buy Deere stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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

No ad for you

Should I sell Deere stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our personal moods or the noise that surrounds the market. We like very simple strategies to guide us on when is the best moment to sell a stock. Be aware that these strategies should not be used for selling short DE stock

A guiding principle is that you should not mantain an investment that generates higher than expected losses by the time of purchase. When to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Deere stock?

Currently, Deere stock doesn't match any of our preferred sell setups, so if you hold Deere stock and your operation is in profit probably is not time to sell now

No ad for you

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 30 days, 2 brokerage ratings were published for Deere

No ad for you

Deere ratings

Brokerage firmRating
Jun 18th, 2020
Citigroup Neutral
Jun 30th, 2020
Deutsche Bank Strong buy

Technical analysis

Downtrend breakout

SMAs overview

Moving averages are indicators for investors to detect market 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

Supports and resistances

Market investors use support and resistance levels as a way to spot price points on a chart that may behave as obstacles, containing the price of an asset to move in certain direction. A support level is a level where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until finding another support level. In contrast, resistance levels are where the price may find resistance as it rises. Likewise, this means that the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will climb easily until it approaches the next resistance

The current resistances are:

  • R1: $176.49 (4.09% above)
  • R2: $177.78 (4.85% above)
  • R3: $180.04 (6.18% above)
  • The current support levels are:

  • S1: $167.89 (-0.98% below)
  • S2: $167.66 (-1.12% below)
  • S3: $167.09 (-1.46% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It is made up of three bands that are outlined 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

    When the price moves out of the band (above the upper line or below the lower line) it tells that the price is maintaining a very strong trend and therefore can reverse the trend to the average. At this point, the price is over the upper band, which should mean a possible short-term corrective movement (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for just one day (weak signal). The RSI value today was 68.34. Deere stock scarcely changed a 0.96% since that level was lost

    No ad for you

    Earnings and financials

    Deere & Company (DE) reported adjusted EPS for the fiscal Q2 that matched analysts' expectations. Quarterly EPS was $2.11 per share versus $2.11. Sales was $8.2 billion compared to $7.9 billion forecasted by market consensus.

    By comparison, the EPS for the same quarter last year was $3.52, so reported EPS is a decrease of -40.06%. Looking at sales, figures sank a -19.96% compared to $10.3B same quarter a year ago.

    Deere is hosting the Q3 earnings call on mid next August. Market expects earnings of %s a share of $1.04, compared to previous quarter that made $2.11. Earnings reporting day has an additional risk for investors as the information disclosed can gap up or down the stock price with very low volume and not honouring your buy/stop-loss orders. You can probably find more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.deere.com.

    No ad for you