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DE vs PCAR
Which Stock Would AI Choose? Deere & Company (DE) vs. PACCAR Inc. (PCAR) Stock Comparison
Key Takeaways
- Momentum: DE has shown a modest price rebound after a 15% pull‑back, while PCAR’s shares slipped about 2% on earnings disappointment.
- Earnings quality: DE posted a 19% earnings surprise on Q1 FY2026, whereas PCAR delivered earnings in line with expectations despite a 9% revenue decline.
- Growth drivers: DE’s construction‑and‑forestry segment is accelerating, while PCAR leans on pre‑buy demand ahead of stricter emissions standards.
- Valuation contrast: DE trades at a forward P/E of ~30 ×, reflecting premium pricing; PCAR trades near a forward P/E of 25 ×, indicating a modest discount to peers.
- Risk profile: DE faces tariff exposure and cyclical agriculture weakness; PCAR’s risk centers on low truck demand and potential cost‑pass‑through challenges.
Introduction
Deere & Company (DE) and PACCAR Inc. (PCAR) are the two largest publicly traded manufacturers of commercial trucks and agricultural equipment. Both operate global distribution networks, offer financing services, and serve overlapping customer bases in North America, Europe, and emerging markets. Comparing these peers is valuable for traders who focus on industrial cycles, infrastructure spending, and the impact of trade policies, as well as for investors seeking exposure to the broader transportation‑equipment sector.
DE Overview and Recent Performance
Deere & Company (DE) DE continues to navigate a cyclical trough in agriculture while benefiting from a resurgence in construction and forestry. In recent weeks the stock has rallied roughly 4% after falling 15% from its February all‑time high, driven by stronger‑than‑expected Q1 FY2026 results. The company reported equipment operations net sales of $8.0 billion, up 18% YoY, with construction‑and‑forestry sales surging 34% to $2.7 billion. Management highlighted an order‑bank increase of more than 50% in the construction segment, suggesting a better‑than‑expected demand backdrop.
Key financial highlights include:
- Q1 earnings per share (EPS) of $2.42 versus the consensus $2.06 – a 19% surprise.
- Operating margin of about 9% (up from ~7% a year ago) as higher volumes partially offset tariff‑related cost pressure.
- Tariff headwinds remain ≈ $1.2 billion pretax for the full year, but price‑realization actions aim for cost‑neutrality.
Deere’s balance sheet remains robust, with free cash flow of $5.2 billion over the last twelve months and a dividend yield near 1.1%. The company’s exposure to agricultural cycles is tempered by ongoing “right‑to‑repair” litigation settlement and a new CFO appointment, which together have steadied investor sentiment.
PCAR Overview and Recent Performance
PACCAR Inc. (PCAR) PCAR reported mixed results for Q1 CY2026. Revenue fell 8.9% YoY to $6.78 billion, missing consensus estimates by about 0.7%, while EPS of $1.15 matched expectations. Despite the revenue dip, operating margin improved to 16.3%, up six percentage points year‑over‑year, reflecting cost efficiencies and strong pricing in the parts and financial‑services businesses.
Highlights from the quarter include:
- Total truck deliveries of 33,100 units, essentially in line with analyst forecasts.
- Financial‑services revenue of $542 million, up 2.7% YoY.
- Free cash flow margin of 12.2%, up from 10% a year earlier.
Management emphasized pre‑buy demand ahead of 2027 emissions standards, which could accelerate fleet upgrades. However, the company remains vulnerable to tariff‑related input costs and slower-than‑expected truck demand in North America. PCAR’s dividend was raised to $0.35 per share, yielding about 1.3% annualized.
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Head-to-Head Comparison
| Aspect | Deere & Company (DE) | PACCAR (PCAR) |
|---|---|---|
| Core Business | Agriculture, construction & forestry equipment plus financial services. | Heavy‑duty truck manufacturing, parts, and financing. |
| Recent Momentum | Price rebound +4% after a 15% dip; strong construction orders. | Share price down ~2% on revenue miss; margin improvement. |
| Revenue Growth (YoY) | +18% in Q1 equipment sales. | -9% in Q1 total revenue. |
| Operating Margin | ~9% (improving). | 16.3% (significant uplift). |
| Valuation (Forward P/E) | ~30× (premium to sector). | ~25× (slight discount to peers). |
| Key Catalysts | Construction demand, tariff mitigation, new CFO. | Pre‑buy truck demand for 2027 emissions rules, parts‑business growth. |
| Risks | Tariff exposure, cyclical agriculture weakness. | Truck demand softness, cost‑pass‑through of tariffs. |
| Dividend Yield | ≈ 1.1%. | ≈ 1.3%. |
Tickeron AI Verdict
Based on observable factors—trend consistency, margin trajectory, and near‑term catalysts—Tickeron’s AI currently leans slightly toward DE. The stock shows a clearer upside potential from its rebuilding construction order book and a more favorable earnings surprise, while maintaining a solid cash‑flow position to weather tariff headwinds. PCAR’s margin strength is notable, but the revenue decline and reliance on future regulatory‑driven demand introduce additional uncertainty. The AI’s preference remains probabilistic, not a recommendation.
Disclaimer
“The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.” Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DE is a StrongBuy and PCAR is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DE’s FA Score shows that 3 FA rating(s) are green whilePCAR’s FA Score has 4 green FA rating(s).
- DE’s FA Score: 3 green, 2 red.
- PCAR’s FA Score: 4 green, 1 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DE’s TA Score shows that 7 TA indicator(s) are bullish while PCAR’s TA Score has 6 bullish TA indicator(s).
- DE’s TA Score: 7 bullish, 3 bearish.
- PCAR’s TA Score: 6 bullish, 4 bearish.
Price Growth
DE (@Trucks/Construction/Farm Machinery) experienced а +4.02% price change this week, while PCAR (@Trucks/Construction/Farm Machinery) price change was -0.47% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was +1.31%. For the same industry, the average monthly price growth was +9.85%, and the average quarterly price growth was +11.44%.
Reported Earning Dates
DE is expected to report earnings on Aug 20, 2026.
PCAR is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (+1.31% weekly)The industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
| DE | PCAR | DE / PCAR | |
| Capitalization | 162B | 63.2B | 256% |
| EBITDA | 11.5B | 3.57B | 322% |
| Gain YTD | 28.947 | 10.316 | 281% |
| P/E Ratio | 33.91 | 25.56 | 133% |
| Revenue | 46.3B | 27.8B | 167% |
| Total Cash | 9.34B | 8.86B | 105% |
| Total Debt | 64.2B | 14.9B | 431% |
DE | PCAR | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 30 | 35 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 40 Fair valued | 24 Undervalued | |
PROFIT vs RISK RATING 1..100 | 25 | 21 | |
SMR RATING 1..100 | 47 | 63 | |
PRICE GROWTH RATING 1..100 | 28 | 27 | |
P/E GROWTH RATING 1..100 | 25 | 12 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
PCAR's Valuation (24) in the Trucks Or Construction Or Farm Machinery industry is in the same range as DE (40). This means that PCAR’s stock grew similarly to DE’s over the last 12 months.
PCAR's Profit vs Risk Rating (21) in the Trucks Or Construction Or Farm Machinery industry is in the same range as DE (25). This means that PCAR’s stock grew similarly to DE’s over the last 12 months.
DE's SMR Rating (47) in the Trucks Or Construction Or Farm Machinery industry is in the same range as PCAR (63). This means that DE’s stock grew similarly to PCAR’s over the last 12 months.
PCAR's Price Growth Rating (27) in the Trucks Or Construction Or Farm Machinery industry is in the same range as DE (28). This means that PCAR’s stock grew similarly to DE’s over the last 12 months.
PCAR's P/E Growth Rating (12) in the Trucks Or Construction Or Farm Machinery industry is in the same range as DE (25). This means that PCAR’s stock grew similarly to DE’s over the last 12 months.
| DE | PCAR | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 67% | 6 days ago 50% |
| Stochastic ODDS (%) | 2 days ago 66% | 2 days ago 57% |
| Momentum ODDS (%) | 2 days ago 55% | 2 days ago 70% |
| MACD ODDS (%) | 2 days ago 67% | 2 days ago 57% |
| TrendWeek ODDS (%) | 2 days ago 59% | 2 days ago 60% |
| TrendMonth ODDS (%) | 2 days ago 58% | 2 days ago 57% |
| Advances ODDS (%) | 2 days ago 58% | 2 days ago 59% |
| Declines ODDS (%) | 16 days ago 60% | 23 days ago 48% |
| BollingerBands ODDS (%) | 2 days ago 60% | 2 days ago 52% |
| Aroon ODDS (%) | 2 days ago 56% | 2 days ago 53% |
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DE and
Correlation & Price change
A.I.dvisor indicates that over the last year, DE has been closely correlated with CNH. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if DE jumps, then CNH could also see price increases.
PCAR and
Correlation & Price change
A.I.dvisor indicates that over the last year, PCAR has been loosely correlated with OSK. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if PCAR jumps, then OSK could also see price increases.
| Ticker / NAME | Correlation To PCAR | 1D Price Change % | ||
|---|---|---|---|---|
| PCAR | 100% | +0.98% | ||
| OSK - PCAR | 59% Loosely correlated | +1.98% | ||
| TEX - PCAR | 59% Loosely correlated | +3.17% | ||
| AGCO - PCAR | 58% Loosely correlated | +0.23% | ||
| CNH - PCAR | 57% Loosely correlated | -0.76% | ||
| WNC - PCAR | 55% Loosely correlated | +6.16% | ||
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