Deere (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.
Momentum Indicator for DE turns positive, indicating new upward trend
DE saw its Momentum Indicator move above the 0 level on June 06, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in of 341 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 258 cases where DE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DE moved out of overbought territory on May 21, 2025. 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 41 similar instances where the indicator moved out of overbought territory. In of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for DE turned negative on May 28, 2025. 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 May 15, 2025. 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.
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 66, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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.
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 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 Valuation Rating of (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 (5.097) is slightly higher than the industry average of (2.046). P/E Ratio (11.779) is within average values for comparable stocks, (21.903). Projected Growth (PEG Ratio) (2.316) is also within normal values, averaging (2.737). Dividend Yield (0.014) settles around the average of (0.055) among similar stocks. P/S Ratio (1.957) is also within normal values, averaging (127.366).
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General Information
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
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