Is Deere Stock a Good Investment?

Deere Investment Advice

To provide specific investment advice or recommendations on Deere Company stock, we recommend investors consider the following general factors when evaluating Deere Company. This will help you to make an informed decision on whether to include Deere in one of your diversified portfolios:

Examine Deere's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Deere's leadership team and their track record. Good management can help Deere navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Agricultural & Farm Machinery space and any emerging trends that could impact Deere's business and its evolving consumer preferences.
Compare Deere's performance and market position to its competitors. Analyze how Deere is positioned in terms of product offerings, innovation, and market share.
Check if Deere pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Deere's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Deere Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Deere Company is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides advice on Deere Company to complement and cross-verify current analyst consensus on Deere Company. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Deere is not overpriced, please confirm all Deere Company fundamentals, including its shares owned by institutions, price to sales, and the relationship between the shares outstanding and price to earning . Given that Deere Company has a price to earning of 22.06 X, we urge you to verify Deere Company market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Solid	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Deere Stock

Researching Deere's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 80.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.24. Deere Company recorded earning per share (EPS) of 25.63. The entity last dividend was issued on the 30th of September 2024. The firm had 2:1 split on the 4th of December 2007.

To determine if Deere is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Deere's research are outlined below:

	Over 80.0% of the company shares are held by institutions such as insurance companies
	On 8th of November 2024 Deere paid $ 1.47 per share dividend to its current shareholders
	Latest headline from gurufocus.com: Deere Stock Surges 5 percent Amid Strong Financial Performance

Deere Quarterly Cost Of Revenue

7.85 Billion

Deere uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Deere Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Deere's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	15th of February 2024 Upcoming Quarterly Report	View
	17th of May 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	27th of November 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of October 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Deere's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Deere's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2001-08-14	2001-07-31	0.13	0.15	0.02	15
2001-02-13	2001-01-31	0.14	0.12	-0.02	14
1999-08-17	1999-07-31	0.12	0.14	0.02	16
1999-02-16	1999-01-31	0.09	0.11	0.02	22
2002-02-12	2002-01-31	-0.12	-0.08	0.04	33
2006-02-14	2006-01-31	0.42	0.47	0.05	11
2003-11-25	2003-10-31	0.09	0.14	0.05	55
2000-11-21	2000-10-31	0.2	0.15	-0.05	25

Know Deere's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Deere is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Deere Company backward and forwards among themselves. Deere's institutional investor refers to the entity that pools money to purchase Deere's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Hhg Plc	2024-06-30	3.6 M
Gates Bill & Melinda Foundation	2024-09-30	3.6 M
Bank Of America Corp	2024-06-30	3.2 M
Norges Bank	2024-06-30	3 M
State Farm Mutual Automobile Ins Co	2024-09-30	3 M
T. Rowe Price Associates, Inc.	2024-06-30	2.8 M
Northern Trust Corp	2024-09-30	2.6 M
Dimensional Fund Advisors, Inc.	2024-09-30	2.4 M
Legal & General Group Plc	2024-06-30	2.3 M
Vanguard Group Inc	2024-09-30	21.9 M
Blackrock Inc	2024-06-30	16.4 M

Note, although Deere's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Deere's market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 126.14 B.

Market Cap

29.34 Billion

Deere's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.07	0.08
Return On Capital Employed	0.15	0.16
Return On Assets	0.07	0.07
Return On Equity	0.32	0.34

The company has Net Profit Margin (PM) of 0.15 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.19 %, which signifies that for every $100 of sales, it has a net operating income of $0.19.

Determining Deere's profitability involves analyzing its financial statements and using various financial metrics to determine if Deere is a good buy. For example, gross profit margin measures Deere's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Deere's profitability and make more informed investment decisions.

Deere's Earnings Breakdown by Geography

Please note, the presentation of Deere's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Deere's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Deere's management manipulating its earnings.

Evaluate Deere's management efficiency

Deere Company has Return on Asset (ROA) of 0.0786 % which means that for every $100 of assets, it generated a profit of $0.0786. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.3548 %, which means that it produced $0.3548 on every 100 dollars invested by current stockholders. Deere's management efficiency ratios could be used to measure how well Deere manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.08. The current year's Return On Capital Employed is expected to grow to 0.16. At present, Deere's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 5.1 B, whereas Other Current Assets are forecasted to decline to about 1.1 B.

	Last Reported	Projected for Next Year
Book Value Per Share	59.16	62.12
Tangible Book Value Per Share	44.51	46.73
Enterprise Value Over EBITDA	14.62	7.98
Price Book Value Ratio	6.07	6.37
Enterprise Value Multiple	14.62	7.98
Price Fair Value	6.07	6.37
Enterprise Value	22.4 B	23.5 B

Deere Company benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.

Dividend Yield

0.0145

Forward Dividend Yield

0.0145

Forward Dividend Rate

5.88

Beta

0.935

Basic technical analysis of Deere Stock

As of the 28th of November, Deere shows the Semi Deviation of 1.08, downside deviation of 1.34, and Mean Deviation of 1.14. Deere Company technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Deere Company variance, maximum drawdown, and the relationship between the coefficient of variation and jensen alpha to decide if Deere Company is priced favorably, providing market reflects its regular price of 466.0 per share. Given that Deere has jensen alpha of 0.1878, we urge you to verify Deere Company's prevailing market performance to make sure the company can sustain itself at a future point.

Deere's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Deere insiders, such as employees or executives, is commonly permitted as long as it does not rely on Deere's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Deere insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Sheila Talton over three months ago Acquisition by Sheila Talton of 450 shares of Deere subject to Rule 16b-3
		Cory Reed over three months ago Disposition of 4680 shares by Cory Reed of Deere at 151.95 subject to Rule 16b-3
		Joshua Jepsen over three months ago Disposition of 107 shares by Joshua Jepsen of Deere at 374.76 subject to Rule 16b-3
		Von Pentz Markwart over a year ago Exercise or conversion by Von Pentz Markwart of 20942 shares of Deere subject to Rule 16b-3

Deere's Outstanding Corporate Bonds

Deere issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Deere Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Deere bonds can be classified according to their maturity, which is the date when Deere Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	DEERE 655 percent Corp Bond US244199AW56	View
	DEERE 81 percent Corp Bond US244199AZ87	View
	DEERE 7125 percent Corp Bond US244199BA28	View
	DEERE 5375 percent Corp Bond US244199BD66	View
	US244199BG97 Corp Bond US244199BG97	View
	DEERE 39 percent Corp Bond US244199BF15	View

View All Deere Corporate Bonds

Understand Deere's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Deere's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1463
	Market Risk Adjusted Performance	0.3537
	Mean Deviation	1.14
	Semi Deviation	1.08
	Downside Deviation	1.34
	Coefficient Of Variation	542.04
	Standard Deviation	1.62
	Variance	2.63
	Information Ratio	0.1041
	Jensen Alpha	0.1878
	Total Risk Alpha	0.0337
	Sortino Ratio	0.1255
	Treynor Ratio	0.3437
	Maximum Drawdown	6.32
	Value At Risk	(1.86)
	Potential Upside	2.16
	Downside Variance	1.81
	Semi Variance	1.17
	Expected Short fall	(1.32)
	Skewness	1.38
	Kurtosis	7.47

	Risk Adjusted Performance	0.1463
	Market Risk Adjusted Performance	0.3537
	Mean Deviation	1.14
	Semi Deviation	1.08
	Downside Deviation	1.34
	Coefficient Of Variation	542.04
	Standard Deviation	1.62
	Variance	2.63
	Information Ratio	0.1041
	Jensen Alpha	0.1878
	Total Risk Alpha	0.0337
	Sortino Ratio	0.1255
	Treynor Ratio	0.3437
	Maximum Drawdown	6.32
	Value At Risk	(1.86)
	Potential Upside	2.16
	Downside Variance	1.81
	Semi Variance	1.17
	Expected Short fall	(1.32)
	Skewness	1.38
	Kurtosis	7.47

Consider Deere's intraday indicators

Deere intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Deere stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0249
	Daily Balance Of Power	0.4272
	Rate Of Daily Change	1.01
	Day Median Price	460.2
	Day Typical Price	462.13
	Market Facilitation Index	11.61
	Price Action Indicator	8.28
	Period Momentum Indicator	4.96
	Relative Strength Index	39.69

Deere Corporate Filings

8K	21st of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F3	4th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify
	23rd of October 2024 Other Reports	View Verify
10Q	29th of August 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify

Deere time-series forecasting models is one of many Deere's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Deere's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Deere Stock media impact

Far too much social signal, news, headlines, and media speculation about Deere that are available to investors today. That information is available publicly through Deere media outlets and privately through word of mouth or via Deere internal channels. However, regardless of the origin, that massive amount of Deere data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Deere news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Deere relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Deere's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Deere alpha.

Deere Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Deere can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Deere Company Historical Investor Sentiment

Investor biases related to Deere's public news can be used to forecast risks associated with an investment in Deere. The trend in average sentiment can be used to explain how an investor holding Deere can time the market purely based on public headlines and social activities around Deere Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Deere's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Deere and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Deere news discussions. The higher the estimate score, the more favorable the investor's outlook on Deere.