Deere & Co. (DE, $168.06) beats fiscal Q4 estimates; predicts decline in 2020 agricultural equipment sales
Deere & Co. beat fourth quarter earnings expectations, but warned about a potential slide in construction and agricultural equipment sales in the coming financial year amid trade uncertainty.
The agricultural, construction, and forestry equipment maker’s adjusted earnings for the three months ending in October came in at $2.14 per share, one penny ahead of analysts’ expectations. The figure, however, was -11.6% lower from the year-ago quarter.
Net revenues increased +5% to $9.896 billion, surpassing analysts' forecast of $8.43 billion.
Looking ahead, Deere projects fiscal 2020 full-year agricultural equipment sales to fall between -5% and -10%, and construction equipment sales to decline by as much as -15%.
CEO John May indicated that trade tensions along with a year of challenging growing and harvesting conditions have led to many farmers becoming cautious about making major investments in new equipment. May also added that financial services results have come under pressure due to operating-lease losses.
According to May, general economic conditions have nonetheless remained favorable, thereby supporting demand for smaller equipment. It has helped Deere's construction and forestry business, which had a record year for sales and operating profit.
DE sees MACD Histogram just turned negative
DE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 08, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for DE moved out of overbought territory on July 01, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on July 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DE as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DE broke above its upper Bollinger Band on June 25, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
DE moved above its 50-day moving average on June 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for DE crossed bullishly above the 50-day moving average on June 12, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 200 cases where DE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.900) is normal, around the industry mean (3.143). P/E Ratio (33.936) is within average values for comparable stocks, (42.058). Projected Growth (PEG Ratio) (1.376) is also within normal values, averaging (1.847). Dividend Yield (0.011) settles around the average of (0.013) among similar stocks. DE's P/S Ratio (3.506) is slightly higher than the industry average of (1.227).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
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