GET DAILY SIGNALSDeere (DE) Slumps as Earnings and Sales Miss Estimates
Shares of the Illinois-based agricultural, construction and forestry machinery manufacturer, Deere & Company (DE), fell by ~5% even before the opening on Wednesday.
The stock dropped below its 50-day trend-line once again this week, after the company reported weaker-than-expected earnings and sales for its fiscal fourth quarter.
DE reported a net income of $748 million, or $2.30 per share, excluding adjustments, for the fourth-quarter while revenue stood at $8.34 billion (+18%). However, analysts estimated an earnings per share of $2.43 and revenue of $8.594 billion (+21%), meaning Deere widely missed the mark.
Hit by the ongoing U.S. - China trade war, Deere's earnings got dented by higher transportation and material costs. Prudent cost management and effective price actions have somewhat helped the company to stage a recovery, but not to the extent the street was hoping for.
Unfortunately for Deers, tariffs have affected the manufacture of tractors, harvesters and other farm equipment, as well as equipment for forestry and construction. Tariffs have raised the cost of steel which is a key raw material in DE’s machines, thus worsening the situation for the company. Additionally, the company also had to contend with rising freight and logistics costs owing to truck driver shortage, which again took a toll on profitability.
DE sees its Stochastic Oscillator ascending out of oversold territory
On October 22, 2026, the Stochastic Oscillator for DE moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 64 instances where the indicator left the oversold zone. In 41 of the 64 cases the stock moved higher in the following days. This puts the odds of a move higher at over 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DE's RSI Oscillator exited the oversold zone, 15 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
Following a +1.51% 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in 200 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
DE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DE as a result. In 50 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 60%.
The Moving Average Convergence Divergence Histogram (MACD) for DE turned negative on September 25, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 24 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
DE moved below its 50-day moving average on October 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DE crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 44%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for DE entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 11 (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 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 46 (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 49 (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 Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued 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: DE's P/B Ratio (6.161) is slightly higher than the industry average of (2.482). P/E Ratio (35.453) is within average values for comparable stocks, (3.027). Projected Growth (PEG Ratio) (1.600) is also within normal values, averaging (1.745). Dividend Yield (0.010) settles around the average of (0.017) among similar stocks. DE's P/S Ratio (3.868) is very high in comparison to the industry average of (1.128).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued 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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