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Bank of Nova Scotia grew its holdings in Deere and Company (NYSE: DE) by 128.2% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 115,265 shares of the industrial products company's stock after buying an additional 64,747 shares during the period. Bank of

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider Deere?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Deere (DE - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $4.99 a share, just 27 days from its upcoming earnings release on August 20, 2026.

By taking the percentage difference between the $4.99 Most Accurate Estimate and the $4.85 Zacks Consensus Estimate, Deere has an Earnings ESP of +2.97%. Investors should also know that DE is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

DE is just one of a large group of Industrial Products stocks with a positive ESP figure. Caterpillar (CAT - Free Report) is another qualifying stock you may want to consider.

Caterpillar, which is readying to report earnings on August 4, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $6.56 a share, and CAT is 11 days out from its next earnings report.

The Zacks Consensus Estimate for Caterpillar is $6.25, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +4.96%.

DE and CAT's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Posted by Defense World Staff on Jul 21st, 2026

AlTi Global Inc. lessened its holdings in Deere & Company (NYSE:DE – Free Report) by 70.8% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 816 shares of the industrial products company’s stock after selling 1,979 shares during the quarter. AlTi Global Inc.’s holdings in Deere & Company were worth $461,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Key Capital Management INC bought a new position in Deere & Company in the 4th quarter worth approximately $27,000. Timmons Wealth Management LLC acquired a new position in Deere & Company during the 4th quarter worth $29,000. McIlrath & Eck LLC bought a new position in shares of Deere & Company in the fourth quarter worth $30,000. Portus Wealth Advisors LLC acquired a new position in shares of Deere & Company during the first quarter valued at $32,000. Finally, Wealth Watch Advisors INC bought a new stake in shares of Deere & Company during the third quarter valued at about $32,000. Institutional investors own 68.58% of the company’s stock.

Wall Street Analysts Forecast Growth A number of analysts have recently weighed in on the stock. Raymond James Financial reduced their price target on shares of Deere & Company from $765.00 to $700.00 and set an “outperform” rating for the company in a research note on Friday, May 22nd. Bank of America cut their target price on Deere & Company from $672.00 to $607.50 and set a “neutral” rating for the company in a research report on Friday, May 22nd. Robert W. Baird cut their price objective on Deere & Company from $580.00 to $525.00 and set a “neutral” rating for the company in a report on Friday, May 22nd. Weiss Ratings upgraded shares of Deere & Company from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Finally, Wall Street Zen raised shares of Deere & Company from a “sell” rating to a “hold” rating in a research note on Sunday, July 5th. Fourteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $642.98.

Get Our Latest Stock Analysis on Deere & Company

Deere & Company Stock Performance Shares of DE stock opened at $586.13 on Tuesday. The company has a debt-to-equity ratio of 1.54, a current ratio of 2.18 and a quick ratio of 1.95. Deere & Company has a fifty-two week low of $433.00 and a fifty-two week high of $674.19. The stock’s 50-day moving average is $582.50 and its two-hundred day moving average is $572.84. The firm has a market cap of $158.22 billion, a P/E ratio of 33.21, a PEG ratio of 2.21 and a beta of 0.89.

Deere & Company (NYSE:DE – Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The industrial products company reported $6.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.70 by $0.85. Deere & Company had a net margin of 10.09% and a return on equity of 18.25%. The business had revenue of $13.37 billion during the quarter, compared to analyst estimates of $11.55 billion. During the same quarter in the previous year, the business earned $6.64 EPS. Deere & Company’s quarterly revenue was up 5.4% compared to the same quarter last year. Analysts predict that Deere & Company will post 18.13 earnings per share for the current fiscal year.

Deere & Company Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Tuesday, June 30th will be issued a $1.62 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $6.48 annualized dividend and a yield of 1.1%. Deere & Company’s dividend payout ratio is 36.71%.

Deere & Company Company Profile (Free Report)

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company’s principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

Read More Five stocks we like better than Deere & Company The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding DE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Deere & Company (NYSE:DE – Free Report).

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Posted by Defense World Staff on Jul 20th, 2026

Dimensional Fund Advisors LP trimmed its holdings in Deere & Company (NYSE:DE – Free Report) by 2.8% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 1,945,820 shares of the industrial products company’s stock after selling 56,908 shares during the quarter. Dimensional Fund Advisors LP owned about 0.72% of Deere & Company worth $1,095,992,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the business. Brighton Jones LLC boosted its holdings in Deere & Company by 39.1% in the fourth quarter. Brighton Jones LLC now owns 4,548 shares of the industrial products company’s stock worth $1,927,000 after purchasing an additional 1,278 shares during the last quarter. Schnieders Capital Management LLC. raised its stake in Deere & Company by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,076 shares of the industrial products company’s stock valued at $1,056,000 after buying an additional 150 shares during the last quarter. Jump Financial LLC bought a new position in shares of Deere & Company during the 2nd quarter valued at $2,153,000. NewEdge Advisors LLC grew its holdings in shares of Deere & Company by 6.0% in the second quarter. NewEdge Advisors LLC now owns 18,758 shares of the industrial products company’s stock worth $9,538,000 after acquiring an additional 1,067 shares during the period. Finally, Main Street Financial Solutions LLC increased its position in Deere & Company by 6.7% during the second quarter. Main Street Financial Solutions LLC now owns 1,551 shares of the industrial products company’s stock valued at $789,000 after acquiring an additional 97 shares during the last quarter. Hedge funds and other institutional investors own 68.58% of the company’s stock.

Analysts Set New Price Targets Several research analysts have issued reports on the company. Weiss Ratings raised Deere & Company from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. Oppenheimer reissued an “outperform” rating and issued a $680.00 price objective (down from $715.00) on shares of Deere & Company in a report on Wednesday, May 27th. Jefferies Financial Group upgraded shares of Deere & Company from an “underperform” rating to a “hold” rating and set a $550.00 target price for the company in a research report on Wednesday, April 8th. JPMorgan Chase & Co. increased their price target on shares of Deere & Company from $560.00 to $590.00 and gave the stock a “neutral” rating in a research report on Thursday, June 4th. Finally, Truist Financial upped their price objective on Deere & Company from $759.00 to $812.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. Fourteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $642.98.

Check Out Our Latest Analysis on Deere & Company

Deere & Company Price Performance Shares of NYSE:DE opened at $597.56 on Monday. The company has a market capitalization of $161.31 billion, a P/E ratio of 33.86, a P/E/G ratio of 2.21 and a beta of 0.89. Deere & Company has a 1-year low of $433.00 and a 1-year high of $674.19. The firm’s 50 day simple moving average is $582.55 and its two-hundred day simple moving average is $572.03. The company has a debt-to-equity ratio of 1.54, a current ratio of 2.18 and a quick ratio of 1.95.

Deere & Company (NYSE:DE – Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The industrial products company reported $6.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.70 by $0.85. The firm had revenue of $13.37 billion during the quarter, compared to analysts’ expectations of $11.55 billion. Deere & Company had a net margin of 10.09% and a return on equity of 18.25%. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the prior year, the company posted $6.64 earnings per share. Research analysts expect that Deere & Company will post 18.13 EPS for the current fiscal year.

Deere & Company Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Tuesday, June 30th will be paid a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Tuesday, June 30th. Deere & Company’s dividend payout ratio is presently 36.71%.

Key Headlines Impacting Deere & Company Here are the key news stories impacting Deere & Company this week:

Positive Sentiment: DA Davidson reiterated a buy rating on Deere & Company and lifted its price target to $685, signaling continued analyst confidence in upside potential. Benzinga Neutral Sentiment: Deere was highlighted in broader agriculture and industrial stock roundups, keeping investor attention on the company as a key name in the farm equipment sector. Best Agriculture Stocks To Watch Now – July 14th Neutral Sentiment: Erste Group Bank slightly lowered its FY2027 EPS forecast for Deere, which is a minor cautionary note but not a major change to longer-term earnings expectations. MarketBeat report on Deere EPS estimate cut Negative Sentiment: Deere also remains tied to a broader industrial-sector backdrop that has lagged the market recently, which can weigh on sentiment toward cyclical names. 1 Industrials Stock to Target This Week and 2 We Find Risky About Deere & Company (Free Report)

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company’s principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

Further Reading Five stocks we like better than Deere & Company Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding DE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Deere & Company (NYSE:DE – Free Report).

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In the latest trading session, Deere (DE - Free Report) closed at $598.97, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.

Shares of the agricultural equipment manufacturer witnessed a gain of 0.17% over the previous month, beating the performance of the Industrial Products sector with its loss of 0.95%, and underperforming the S&P 500's gain of 0.53%.

The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company is scheduled to release its earnings on August 20, 2026. It is anticipated that the company will report an EPS of $4.82, marking a 1.47% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.83 billion, showing a 4.55% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.13 per share and revenue of $41.41 billion, indicating changes of -2% and +6.42%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Deere currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Deere is at present trading with a Forward P/E ratio of 32.51. This expresses a premium compared to the average Forward P/E of 20.61 of its industry.

One should further note that DE currently holds a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Farm Equipment industry stood at 1.46 at the close of the market yesterday.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 14% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DE in the coming trading sessions, be sure to utilize Zacks.com.

Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this agricultural equipment manufacturer have returned +1.8% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has gained 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Deere is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

For the current fiscal year, the consensus earnings estimate of $18.13 points to a change of -2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $22.76 indicates a change of +25.5% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Deere, the consensus sales estimate for the current quarter of $10.83 billion indicates a year-over-year change of +4.6%. For the current and next fiscal years, $41.41 billion and $44.96 billion estimates indicate +6.4% and +8.6% changes, respectively.

Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.

Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.

Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Deere is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

, /PRNewswire/ -- An agreement announced today by John Deere, the Federal Trade Commission, and five states ensures farmers and ranchers will have access to the diagnostic and repair tools that help them and independent service technicians maintain and repair their current and future John Deere equipment.

"This is good news for our customers and for the future of how Deere equipment is supported," said Denver Caldwell, vice president of aftermarket and customer support. "Producers and equipment operators demand flexible and world class capabilities enabling the maintenance and repair of their machines; we are and will continue to deliver on that expectation."

This agreement reinforces Deere's continued innovation toward more flexible repair options, emphasizing increased access and transparency for customers. It formalizes Deere's ongoing commitment to expanding access to diagnostic and repair tools—helping customers and independent service providers maintain and repair equipment with greater choice and control—while providing the FTC and states with the ability to verify that Deere is meeting this commitment now and into the future.

"We've said from the beginning that our focus is on helping customers keep their machines running when and how they need them," said Caldwell. "This agreement bolsters that commitment, and we're confident it will make a real difference for the people who depend on our equipment every day. We share the Administration's and the states' desire to put farmers first while preserving Deere's ability to support American agricultural productivity, equipment safety and innovation."

The agreement brings to a close the matter filed by the FTC and states in early 2025 and allows the company to move forward with a continued focus on supporting its customers. Recent settlements and related agreements in this space have similarly emphasized increased access and transparency for customers, reinforcing Deere's continued innovation toward more flexible repair options.

John Deere will continue to invest in tools, technology, and services that give customers more ways to care for their equipment, whether they choose to do the work themselves or through a repair provider they trust. The company remains committed to delivering reliable equipment, strong dealer support, and practical solutions that help customers stay productive in the field.

About John Deere:

Deere & Company (www.JohnDeere.com) is a global leader in the delivery of agricultural, construction, and forestry equipment. We help our customers push the boundaries of what's possible in ways that are more productive and sustainable to help life leap forward. Our technology-enabled products including John Deere Autonomous 8R Tractor, See & Spray™, and E-Power Backhoe are just some of the ways we help meet the world's increasing need for food, shelter, and infrastructure. Deere & Company also provides financial services through John Deere Financial. For more information on Deere & Company, visit us at www.deere.com/en/news/.

SOURCE John Deere Company

7.7.2026 19:00

Index Dow Jones -0,34 % na 52874,68 b. S&P 500 -0,31 % na 7514,09 b. Nasdaq Composite -0,71 % na 25936,59 b.

US indexy se pohybují v červeném pásmu, část ztrát se jim ale již podařilo smazat. Nejméně klesá index S&P 500, kde je nejslabším sektorem průmysl. GE Vernova klesá o 8,8 %, Deere & Co ztrácí 6,1 % a Caterpillar, který je i nejslabší emisí indexu Dow Jones odepisuje 5,5 %.

Dalším klesajícím sektorem je sektor informačních technologií. Akcie společností zaměřených na umělou inteligenci se ocitly pod tlakem v důsledku poklesu akcií společnosti Samsung o 7 % na domácí korejské burze. Samsung ráno oznámil předběžné výsledky za druhé čtvrtletí, v nichž očekává tržby ve výši přibližně USD 112,7 mld. a provozní zisk USD 59 mld. Oba tyto údaje výrazně překonaly konsensus, což však nestačilo k pozitivní reakci trhu. Dobrou náladu nepřinesla ani zpráva o čínské společnosti DeepSeek, která začala vyvíjet vlastní čip pro umělou inteligenci. Intel odepisuje 9,5 %, Micron Technology a AMD odepisují přibližně 6 %.

Fiserv roste o 1,9 % po informacích o možném budoucím prodeji její platební sítě STAR konsorciu bank, jako je JPMorgan Chase, anebo Bank of America. Získání vlastní sítě na zpracování plateb by bankám snížilo náklady a podpořilo například věrnostní programy pro debetní karty.

SpaceX (- 4,9 %) se dnes stal součástí indexu Nasdaq 100. Po připojení do indexu se objevilo hned několik investičních doporučení. Např. JP Morgan má cílovou cenu USD 225, Goldman Sachs akcie doporučuje k nákupu s cílovou cenou USD 205 a UBS má cílovou cenu USD 210.

Hormuzský průliv byl dnes místem útoku Iránu na tanker na zkapalněný zemní plyn. V reakci mírně stoupá cena ropy. Futures kontrakty na WTI rostou o 2,8 % na úroveň pod USD 70,5 a po sérií poklesů stoupají i Exxon Mobil (2,2 %) a Chevron (1,5 %).

Index S&P 500 -0,31 % na 7514,09 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Reality +1,7 % Průmysl -2,3 % Zdravotní péče +1,5 % Informační technologie -1,1 % Energie +1,3 % Základní materiály -1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Cognizant Technology Solutions Corp (CTSH) +6,3 % Teradyne (TER) -10 % Gartner (IT) +5,8 % Generac Holdings (GNRC) -10 % Cboe Global Markets (CBOE) +5,4 % Intel Corp (INTC) -9,5 % GoDaddy (GDDY) +5,3 % GE Vernova (GEV) -9,1 % ServiceNow (NOW) +5,0 % Sandisk Corp (SNDK) -8,9 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

Deere (DE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this agricultural equipment manufacturer have returned +5% over the past month versus the Zacks S&P 500 composite's -1.7% change. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has gained 6.2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Deere is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

For the current fiscal year, the consensus earnings estimate of $18.13 points to a change of -2% from the prior year. Over the last 30 days, this estimate has changed +0.3%.

For the next fiscal year, the consensus earnings estimate of $22.76 indicates a change of +25.5% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Deere.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Deere, the consensus sales estimate for the current quarter of $10.83 billion indicates a year-over-year change of +4.6%. For the current and next fiscal years, $41.41 billion and $44.96 billion estimates indicate +6.4% and +8.6% changes, respectively.

Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.

Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.

Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Deere is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investors looking for stocks in the Manufacturing - Farm Equipment sector might want to consider either Alamo Group (ALG) or Deere (DE). But which of these two stocks offers value investors a better bang for their buck right now?

Put these high-quality stocks on your watchlist.

Deere (DE - Free Report) ended the recent trading session at $598.59, demonstrating a +1.59% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.37%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq lost 1.33%.

The agricultural equipment manufacturer's stock has climbed by 11.36% in the past month, exceeding the Industrial Products sector's gain of 10.23% and the S&P 500's gain of 2.02%.

The upcoming earnings release of Deere will be of great interest to investors. The company is predicted to post an EPS of $4.82, indicating a 1.47% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.83 billion, indicating a 4.55% growth compared to the corresponding quarter of the prior year.

DE's full-year Zacks Consensus Estimates are calling for earnings of $18.13 per share and revenue of $41.41 billion. These results would represent year-over-year changes of -2% and +6.42%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.67% increase. As of now, Deere holds a Zacks Rank of #3 (Hold).

Looking at valuation, Deere is presently trading at a Forward P/E ratio of 32.5. This valuation marks a premium compared to its industry average Forward P/E of 21.03.

Investors should also note that DE has a PEG ratio of 2.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 105, finds itself in the top 44% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Deere DE shares are experiencing a significant decline following its fiscal Q2 earnings report, despite exceeding expectations on both revenue and earnings. Investors are worried about ongoing weakness in demand for large agricultural equipment and declining profitability in the Production & Precision Ag segment.

Key highlights from the earnings report include:

Total net sales and revenues rose 5% year-over-year to $13.37 billion, with Equipment Operations net sales increasing 5.4% to $11.78 billion, surpassing the FactSet consensus estimate of $11.55 billion. Diluted earnings per share (EPS) reached $6.55, exceeding the consensus estimate of $5.70, although it was slightly lower than the $6.64 reported in the same period last year. Production & Precision Agriculture net sales fell 14% year-over-year to $4.50 billion, with operating profit dropping to $706 million from $1.15 billion due to reduced farm demand and challenging crop economics. Deere maintained its forecast for a 15-20% decline in U.S. and Canada large agricultural industry volumes for FY26, highlighting ongoing softness in the farm equipment cycle. Small Agriculture & Turf net sales increased 16% year-over-year to $3.49 billion, with operating profit at $574 million, driven by healthy demand despite rising production costs. The Construction & Forestry segment showed impressive growth, with net sales jumping 29% year-over-year to $3.79 billion and operating profit rising to $561 million from $379 million last year. Deere raised its FY26 Construction & Forestry sales growth outlook to approximately 20% from the previous 15%, reflecting strong trends in infrastructure and compact construction demand. Operating margin guidance for FY26 in Production & Precision Ag was maintained at 11-13%, below the FY25 level of 15.4%, while Construction & Forestry margins are projected at 10-12%. Dealer inventory levels remained stable, particularly for combines, indicating prudent management of channel inventories by Deere.Analysts note that DE's performance was better than expected, primarily driven by strong results in the Construction & Forestry segment and resilient demand in Small Ag. The reaffirmation of full-year earnings guidance amidst pressures in large agricultural markets suggests that the downturn may be stabilizing. Additionally, the raised growth outlook for Construction & Forestry is a positive sign, although challenges in Production & Precision Ag persist due to lower crop prices and weaker cash flows impacting large equipment purchases. Stable dealer inventories and improving retail trends in certain areas further support the notion that agricultural conditions are becoming more manageable. Overall, DE is demonstrating solid cost discipline and operational resilience while capitalizing on increasing infrastructure-related demand.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Deere posted Q2 EPS of $6.55, topping estimates as equipment sales rose 5.4% y/y.DE's Construction & Forestry sales jumped 29%, while Small Ag & Turf sales climbed 16%.Deere maintained fiscal 2026 net income guidance of $4.5-$5B despite weaker ag demand. Deere & Company (DE - Free Report) reported second-quarter fiscal 2026 (ended May 3, 2026) earnings of $6.55 per share, beating the Zacks Consensus Estimate of $5.81. However, the bottom line fell 1.4% from the prior-year quarter.

Net sales from Deere’s equipment operations were $11.78 billion in second-quarter fiscal 2026, up 5.4% from the year-ago quarter’s $11.17 billion, reflecting solid execution in Small Ag & Turf and Construction & Forestry. The top-line beat the Zacks Consensus Estimate of $11.44 billion.

Total net sales and revenues (including Financial Services and other income) rose 5% year over year to $13.37 billion. Top-line growth was driven by higher shipment volumes and favorable currency translation in key segments, partly offset by softer Production & Precision Ag volumes and higher production costs.

Deere’s Profits Decline in Q2On a consolidated basis, cost of sales increased 8.6% year over year to $8.27 billion, outpacing the 5% rise in net sales. Research and development expenses grew 6.2% to $583 million, while selling, administrative and general expenses inched up 1% to $1.21 billion.

Total operating profit decreased 3.1% year over year to $2.237 billion.

DE’s Segmental Performances in Q2The Production & Precision Agriculture segment’s net sales declined 14% year over year to $4.50 billion due to lower shipment volumes, partially offset by favorable foreign currency translation. Segment operating profit fell 39% from the year-ago quarter to $706 million, reflecting lower shipment volumes and higher production costs, partially offset by favorable foreign currency exchange.

Small Agriculture & Turf net sales increased 16% year over year to $3.49 billion on higher shipment volumes and favorable foreign currency translation. Operating profit rose 25% year over year to $719 million, driven mainly by higher shipment volumes and favorable price realization.

Construction & Forestry net sales were $3.79 billion, up 29% year over year, primarily on higher shipment volumes and favorable foreign currency translation. Operating profit improved 48% year over year to $561 million, aided by higher shipment volumes and favorable price realization, partially offset by higher production costs.

Revenues in Deere’s Financial Services division were $1.37 billion in the quarter, down 1% year over year. The segment’s operating profit increased 21% year over year to $251 million. Net income for Financial Services climbed 18% year over year to $190 million in the fiscal second quarter.

Deere’s Q2 Cash PositionBalance sheet and cash-flow metrics were supportive. Cash and cash equivalents were $7.905 billion as of May 3, 2026, and inventories were $8.188 billion. For the first six months of fiscal 2026, net cash provided by operating activities was $1.04 billion, up from $0.57 billion in the prior-year period, reinforcing Deere’s financial flexibility through a choppier demand environment.

DE Maintains 2026 Profit ViewDeere maintained its forecast for net income attributable to the company for fiscal 2026 at $4.5-$5 billion.

Net sales for Production & Precision Agriculture are expected to decrease 5-10% year over year. Sales of Small Agriculture & Turf are expected to rise 15%. Sales of Construction & Forestry are projected to increase 20%. The Financial Services segment’s net income is expected to be $860 million.

Deere’s Share Price PerformanceShares of the company have gained 10.3% in the past year compared with the industry’s 7.2% growth.

Image Source: Zacks Investment Research

DE’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Look at Deere’s Peer PerformancesLindsay Corporation (LNN - Free Report) delivered earnings per share of $1.15 in second-quarter fiscal 2026 (ended Feb. 28, 2026, missing the Zacks Consensus Estimate of $1.60. The bottom line decreased 53% year over year.

Lindsay generated revenues of $158 million, down from $187 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $165 million.

AGCO Corp. (AGCO - Free Report) reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.

AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.

CNH Industrial N.V. (CNH - Free Report) registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.

CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.

HIVE Weaponizes Power for an AI PivotDeere & Company NYSE: DE reported higher second-quarter sales and maintained its full-year profit outlook, as strength in construction equipment and Small Ag & Turf helped offset continued weakness in large agriculture markets.

On the company’s earnings call, Director of Investor Relations Chris Seibert said Deere delivered year-over-year net sales growth of 5% and an equipment operations margin of 16.9%, reflecting “solid execution and a strong, diversified portfolio of businesses spanning multiple industries and geographies.”

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Dollar at a 3-Year Low: 3 Exporters Quietly Printing MoneyFor the quarter, Deere reported net sales and revenues of $13.369 billion, up 5% from the prior year. Equipment operations net sales rose 5% to $11.778 billion. Net income attributable to Deere & Company was $1.773 billion, or $6.55 per diluted share.

The company maintained its fiscal 2026 net income forecast of $4.5 billion to $5 billion. Deere also continues to expect equipment operations cash flow of $4.5 billion to $5.5 billion. Its effective tax rate guidance is now 24% to 26%.

Tariff Refunds Boost Quarterly Margins 3 Agriculture Stocks to Buy as Food Inflation Stays Elevated in 2026A notable item in the quarter was a $272 million recovery tied to refund claims related to IEPA tariffs. Josh Beal, Deere’s director of investor relations, said the refund benefited production costs and lifted margins by nearly 2.5 percentage points in the quarter.

Beal said Deere’s direct tariff exposure remains approximately $1.2 billion on a full-year basis, or about a 3 percentage point margin headwind. Net of the refunds, the company’s forecast includes about $900 million of tariff costs for the year.

Chief Financial Officer Brent Norwood said Deere has not introduced tariff surcharges for customers and is instead focused on mitigation efforts including resourcing, reshoring, exemption submissions and USMCA compliance. Norwood said Deere’s implied net price realization for equipment operations is between 1.5% and 2% for the year, in line with general inflation excluding tariffs.

Norwood also highlighted Deere’s domestic manufacturing footprint, saying about 80% of John Deere’s U.S. complete goods sales are produced at U.S. facilities, and roughly 75% of components used at those facilities are sourced from U.S.-based suppliers.

Segment Results Show Diverging Cycles Deere’s Production and Precision Agriculture segment remained under pressure. Net sales fell 14% year over year to $4.503 billion, primarily due to lower shipment volumes, partially offset by favorable currency translation. Operating profit was $706 million, resulting in a 15.7% operating margin.

Small Ag & Turf posted stronger results, with net sales rising 16% to $3.485 billion, driven by higher shipment volumes and favorable currency translation. Operating profit rose to $719 million, and the segment delivered a 20.6% operating margin.

Construction & Forestry was the strongest growth segment in the quarter. Net sales increased 29% to $3.79 billion, supported by higher shipment volumes and favorable currency translation. Operating profit rose to $561 million, producing a 14.8% operating margin.

Norwood said Deere’s business segments are at different points in the cycle, with large agriculture operating below trough levels, Small Ag & Turf progressing toward mid-cycle and Construction & Forestry slightly above mid-cycle. Despite that, he said Deere is delivering double-digit margins across all segments and expects to grow its top line by more than 5% this year.

Market Outlook: Construction Strength Offsets Ag Weakness Deere continues to expect large agriculture equipment industry sales in the U.S. and Canada to decline 15% to 20%, citing elevated input costs and ongoing global market uncertainty. However, Seibert said robust commodity demand, potential tightening supply and U.S. government programs are providing some support for farmers.

The company lowered its South America outlook, now expecting tractor and combine industry sales to decline about 15%. Beal said the change reflects incremental softness in Brazil, where high interest rates, higher input costs and a stronger Brazilian real are pressuring grower profitability. He said the situation in Iran is affecting Brazilian growers at a sensitive point as they prepare to plant a new crop in September.

In the U.S. and Canada, Deere expects Small Ag & Turf industry demand to range from flat to up 5%. The company also expects European agricultural equipment demand to be flat to up 5%, while industry sales in Asia are projected to be roughly flat year over year.

Construction demand remains robust, Norwood said, supported by infrastructure spending, rental activity and accelerating data center investments. Deere now expects Construction & Forestry net sales to rise approximately 20% for the full year, and it increased the segment’s operating margin forecast to 10% to 12%.

Norwood said Deere’s U.S. and Canada construction order book has increased more than 60% since November and is at its highest level since April 2024, with more than 80% of production slots filled for the year.

Inventory Progress and Technology Investment Deere said it has continued to make progress managing inventories in large agriculture. Beal said new inventory levels for North American high-horsepower tractors and combines are down more than 50% from their mid-2024 peak, with inventory-to-sales ratios in line with historical averages.

Used inventories have also improved. Beal said North American used combine inventories are down by the mid-teens from their March 2024 peak, while used high-horsepower tractor inventories are also down by the mid-teens from the cycle peak. Used sprayer inventories are down approximately 30%, and planter inventories are down roughly 50% from recent peak levels.

Deere also emphasized ongoing investment in precision agriculture and new products. Beal highlighted new 8R and 8RX tractor models, ExactDepth and FurrowVision planting technologies, and expanded See & Spray capabilities for crops including wheat, barley and canola.

Beal said Deere has sold more than 12,500 JDLink Boost kits since launching its Starlink-supported satellite connectivity solution in the second half of 2024, with 25% growth in the latest quarter. He also said monthly active digital users have reached nearly 440,000.

Norwood said Deere returned $635 million to shareholders during the quarter through share repurchases and dividends. He said the company remains focused on disciplined capital allocation while continuing to invest through the cycle in products and technologies intended to help customers reduce inputs and improve productivity.

About Deere & Company NYSE: DEDeere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company's principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways DE topped Q2 estimates with $1.773B net income on $11.78B sales, but large ag stayed pressuredDE booked a $272M IEEPA tariff refund, yet still expects about $900M of tariff costs this yearDE says 2026 is the ag-cycle bottom; N.A. high-hp tractor/combine inventories down 50% from mid-2024 peaks Deere & Company (DE - Free Report) used its second-quarter call to argue that portfolio balance, not a turn in large agriculture, is carrying the year. Management kept full-year net income guidance intact even as Brazil weakened and tariffs remained a material drag.

That steadiness mattered because the call centered less on the quarter’s headline beat and more on what executives said about demand, pricing, inventories and the path into 2027.

DE Keeps Net Income Guide IntactDE reported second-quarter net income of $1.773 billion, or $6.55 a share, on net sales of $11.78 billion. That topped the Zacks Consensus Estimate of $5.81 for earnings and $11.44 billion for revenues, producing surprise percentages of 12.74% and 2.98%, respectively.

Management did not frame the quarter as a broad-based acceleration. Instead, executives emphasized that the company is operating through different cycle positions across its businesses, with large agriculture still under pressure, while Small Ag & Turf and Construction & Forestry supported the enterprise.

Director of Investor Relations Christopher Seibert said equipment operations margin reached 16.9%, while management kept fiscal 2026 net income guidance at $4.5 billion to $5.0 billion. That unchanged outlook was a central message throughout the call.

Deere Sees Different Cycles Across UnitsCFO Brent Norwood said large agriculture is running below trough levels, Small Ag & Turf is moving toward mid-cycle and Construction & Forestry is slightly above mid-cycle. That framing helped explain why Deere kept stressing resilience rather than recovery.

Production & Precision Agriculture remained the weak point. Segment sales fell 14% to $4.503 billion and operating margin compressed to 15.7% from 22.0% a year ago, reflecting lower shipment volumes and higher production costs.

The offset came from the other segments. Small Ag & Turf posted 16% sales growth and a 20.6% operating margin, while Construction & Forestry delivered 29% sales growth and a 14.8% operating margin. Management repeatedly pointed to diversification as the reason the company can absorb ongoing agricultural softness.

DE Faces Same Tariff Burden After RefundA major swing factor in the quarter was a $272 million recovery tied to IEEPA tariff refund claims accepted by U.S. Customs and Border Protection. Josh Beal, director of investor relations, said that lifted equipment margins by nearly 2.5 points in the quarter.

Even so, management said the full-year direct tariff exposure is effectively unchanged at about $1.2 billion, or roughly a 3% margin headwind. Net of the refund, the company now expects about $900 million of tariff costs for the year.

Norwood’s tone on pricing was disciplined rather than aggressive. He said DE is not using tariff surcharges and expects implied equipment price realization of 1.5% to 2% for the year, in line with general inflation excluding tariffs. The mitigation plan centers on sourcing changes, exemptions, compliance work and cost actions.

Deere Gets More Constructive on DemandDeere raised its Construction & Forestry sales outlook to about 20% growth for fiscal 2026 and lifted that segment’s operating margin range to 10% to 12%. Norwood said order books in the United States and Canada are up more than 60% since November, with more than 80% of production slots filled.

Management tied that strength to infrastructure spending, rental fleet replacement, data center projects and roadbuilding demand. The company also said nearly all production slots for its new Deere-designed excavator are already spoken for.

Agriculture was more mixed. Seibert said the South American tractor and combine market is now expected to decline about 15%, versus the prior down 5% view, because Brazil is facing higher input costs, high interest rates and a stronger real. Outside South America, agriculture guides were largely unchanged.

DE Q&A Focuses on Inventory and 2027Analyst questions repeatedly tested whether the company is truly at the bottom of the ag cycle. In response, management sounded measured but consistent, saying fiscal 2026 still represents the bottom and that some recovery is expected in 2027.

Beal backed that view with inventory data. North American new inventories for high-horsepower tractors and combines are down more than 50% from mid-2024 peaks, while used combine and used tractor inventories are down by the mid-teens from peak levels.

Questions from Jefferies, Morgan Stanley and Raymond James also pressed on pricing and farmer behavior. Management acknowledged pressure from fertilizer and other inputs, especially in Brazil, but said dealer feedback and improving used inventory conditions support the company’s baseline recovery view for next year.

Deere Leans on Tech and DisciplineAnother theme was through-cycle investment. Management highlighted new 8R and 8RX tractor models, ExactShot and FurrowVision planting tools, and broader crop coverage for See & Spray as evidence that Deere is still investing heavily despite the ag downturn.

Executives also pointed to digital adoption. DE said engaged acres in Operations Center rose about 10% year over year, monthly active digital users reached nearly 440,000 and more than 12,500 JDLink Boost kits have been sold since the Starlink-based connectivity launch.

Capital allocation remained active as well. Norwood said the company returned $635 million to shareholders in the quarter through buybacks and dividends, while maintaining a posture centered on execution, investment and balance-sheet flexibility.

Zacks Rank and Style SignalsDE carries a Zacks Rank #3 (Hold) with a Value Score of D, Growth Score of D, Momentum Score of B and VGM Score of D. A Zacks Rank #3 points to a more neutral near-term earnings revision profile than the stronger #1 or #2 ranks. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Style Scores add a mixed overlay. Momentum stands out as the strongest factor, while the weaker Value, Growth and VGM scores imply a less favorable setup on those measures. Under the Zacks framework, stronger combinations usually come from stocks with a Zacks Rank #1 or #2 and Style Scores of A or B. The rank can also change as estimate revisions adjust after the latest results.

Deere & Co. NYSE: DE delivered a Q2 2026 earnings report that didn’t hide the ball. That transparency makes it easy to understand why DE dropped nearly 5% after the report’s release. The industrial giant posted a double-beat, including a 15% beat on adjusted earnings per share (EPS). But the company’s report showed that the heavy lifting (no pun intended) is being done by its Construction and Forestry business.

Deere & Company Today

DE

Deere & Company

$577.05 +8.41 (+1.48%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$433.00▼

$674.19Dividend Yield1.12%

P/E Ratio32.69

Price Target$639.58

That dovetails nicely with the blockbuster report from NVIDIA Corp. NASDAQ: NVDA that showed data center demand continues to grow and is likely to continue for several years.

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But Deere's report also showed weakness in its Production and Precision Agriculture business. That’s been the golden goose for Deere, and for now it’s a little tarnished.

Plus, while the construction demand is likely to be in play for several quarters, that isn’t likely to do a heavy lift on earnings. In fact, Deere reiterated its full-year earnings guidance.

That suggests that any artificial intelligence (AI) tailwind will simply help earnings from deteriorating, rather than driving further growth.

Farmers Continue to Face HeadwindsIt’s not easy being a farmer under good conditions. But the last few years have been particularly cruel to the industry. Inflation for farmers is about more than fuel. It’s fertilizer, seeds, and the elevated costs for heavy equipment like tractors and combines. All of these are on the rise, mostly due to the conflict with Iran that has brought traffic in the Strait of Hormuz to a standstill.

That's why net sales in the Production and Precision Agriculture business were down 14% in the quarter, and Deere guided to a full-year loss between 5% and 10%. The company also forecasted a lower operating margin between 11% and 13%, down from 15.4% on a year-over-year basis.

For investors who are familiar with Deere’s revenue mix, one item in the report that stood out was the projected 15% net sales decline for the company’s Ag business in South America and softness in Asia and Europe as well.

The company generates about 40% of its revenue outside the United States. It has a particularly strong presence in Latin America, which accounts for over $5.5 billion in annual sales. That's helped it weather softness in the U.S. dollar. But that advantage won’t matter if revenue declines.

The industry got potentially good news from the U.S.-China summit, with the White House estimating that China will buy an additional $17 billion in American farm goods annually. That would extend beyond the country’s initial commitment to buy soybeans.

AI to the Rescue?As challenging as the situation in the company’s core business looks, a diversified business model has its advantages. Deere posted strong gains in its Construction and Forestry business, highlighted by strong data center demand. The company forecasted net sales growth of 20% for the year, with an operating margin between 10% and 12%, above today’s 9%.

Deere also forecasts growth in its Small Ag and Turf business. This includes the company’s specialty, utility, and compact tractors that are used for commercial mowing, golf course maintenance, and utility vehicles. It sometimes gets lumped in with the Precision Ag business, but it would be a mistake for investors not to break apart the two sectors right now.

DE Is Still a Stock to HoldAt 30x earnings, DE is still trading at a slight premium to the S&P 500 and its own historical average. But that valuation has come down from recent readings of about 32x earnings. The same is true of the company’s price-to-sales (P/S) and price-to-book (P/B) ratios.

The bottom line is that Deere has earned that premium because of its pivot into AI, which is likely to pay off in the long term. The company has become part of the larger connectivity story, as evidenced by its inclusion in the SpaceX S-1 filing, where Deere is listed as a Starlink customer.

That alone is enough reason to hold DE and to consider buying the stock on this dip, which is now about 20% in the last three months. But if the company is right about its profit outlook, there could be some choppiness before the payoff. The company’s safe dividend that yields 1.2% won’t be confused for a high-yield dividend, but it is well capitalized and does provide shareholder value while the company’s fortunes reverse.

That’s still the belief of analysts who had a consensus price target of $655.45 on DE heading into earnings. With the post-earnings dip, that would equal more than 20% upside, which would grow if the pullback continues.

For now, momentum is on the bearish side. However, DE is now approaching oversold territory, which could mean that sellers are getting exhausted. That's supported by the lighter-than-average volume following the earnings release.

Should You Invest $1,000 in Deere & Company Right Now?Before you consider Deere & Company, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Deere & Company wasn't on the list.

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The stock market simply isn't going to go up all the time. Even during the best of times, the broader market will have an off week or month; you just never know. Volatility isn't fun for anyone, but it's how long-term investors can get a leg up on the market.

You see, when the tide goes out and the broader market declines, blue chip stocks, the best companies on Earth, often go down, too. That's a huge opportunity for investors because there may not be anything wrong with the business itself -- it's just the market doing what the market does.

The recent pullback has created some solid buying opportunities. Here are two blue chip industrial stocks that currently look like two of the best buys you can make.

Image source: Getty Images.

1. Lockheed Martin The world's largest defense manufacturer, Lockheed Martin (LMT 1.52%), isn't a get-rich-quick stock, but it's a blue chip company in every sense of the term. History has shown that the world seldom remains peaceful for long. As unfortunate as that is, it creates a steady demand for the various weapons, vehicles, aircraft, and other technologies Lockheed Martin sells to the U.S. and its military allies.

The ongoing war in the Middle East has depleted arsenals, prompting the U.S. Department of Defense to sign a multi-year agreement to triple and quadruple production of various missiles. Lockheed Martin also produces the F-35 Lightning II fighter jet, the most expensive aircraft program in modern history, and a core revenue driver going forward as it continues to bring new aircraft into service and rack up maintenance and repair services.

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540.33

While Lockheed Martin's backlog did shrink slightly from the prior quarter, it remains very healthy at $186 billion after the first quarter of 2026. The Trump Administration has made it clear that the government aims to continue spending heavily on defense over the next few years, so it wouldn't be a surprise to see the backlog grow again in the near future.

Analysts estimate the company will grow its earnings by an average of 18% annually over the next three to five years, which should translate to capital gains and healthy dividend increases. Lockheed Martin stock currently trades well below its 52-week high, which, in this case, has priced shares at an attractive valuation at under 18 times 2026 earnings estimates. Plus, investors get a solid 2.6% dividend yield at the current share price.

2. Deere & Co Farming is the backbone of a growing global population. Deere & Co (DE +1.55%) is an industry titan known primarily for its famous John Deere machinery brand. Today, Deere designs and manufactures machines for farming, forestry, and construction. It also sells complementary products and services, such as software and aftermarket support. Its financial segment, which finances machinery purchases for customers, has also become a tremendous profit center.

Tractors and other machines are expensive purchases, so Deere's business fluctuates with farmers' financial health. Deere's business is in a somewhat in-between place right now. Forestry and construction have been relatively resilient, driven by commercial construction activity. However, the agricultural business has struggled as farmers grapple with lower commodity prices, higher input costs, and higher interest rates, which have reduced income and increased financing costs.

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Deere's top and bottom lines are lower than during the agriculture boom a few years ago. This weakness has weighed on the stock as well. Yet, Deere trades at a price-to-earnings ratio of 29 times 2026 earnings estimates. That might seem high, but this often happens with cyclical stocks, where depressed earnings, the denominator in the P/E ratio, drive the stock's valuation higher.

Often, it's smart to buy cyclical companies during industry downturns, because their stocks tend to recover when business picks up again. There are still many growth opportunities in the artificial intelligence age, including increasingly autonomous and intelligent machinery that can help increase farm output with fewer people. Analysts see Deere growing earnings by an average of more than 15% annually over the next three to five years, making Deere a blue chip stock to buy on its current weakness.

Momentum Dips Amid Changing TrendsThe stock’s short-term and medium-term price trends have shifted into downward trajectories, reflecting a nearly 8.77% decline over the past month.

Despite this immediate technical weakness, the company‘s Benzinga Edge Stock Rankings‘ trend for the long-term remains positive.

Analysts Point To Structural ResilienceWhile short-term momentum fades, institutional sentiment provides a stabilizing counterweight. Freedom Broker reiterated its “Hold” rating for the heavy machinery manufacturer and raised its price target from $570 to $590, projecting an 11.49% upside from the current level.

According to the analyst firm, 2026 marks the cyclical trough for large agricultural equipment. However, Freedom Broker noted that Deere is generating higher structural profitability at this cycle low compared to previous cycles.

This elevated profitability is largely driven by increased demand for construction equipment and ongoing technology monetization.

Macro Headwinds Cloud Agricultural OutlookThe divergence between Deere’s fading momentum and analyst optimism is unfolding against a backdrop of complex macroeconomic pressures. Although Deere reported strong second-quarter earnings—delivering $6.55 per share against estimates of $5.73—management warned of continued weakness.

The company expects the large agriculture markets in the U.S. and Canada to decline by 15% to 20% this year. High interest rates and soaring input costs are actively suppressing farmer sentiment.

Specifically, the conflict in Iran is driving up global fuel and fertilizer prices, placing heavy financial burdens on growers worldwide. Nevertheless, Deere's core fundamentals maintain stability, supported by a strong Benzinga edge growth ranking of 84.33.

DE Stock Gains In 2026DE shares have risen by 13.66% on a year-to-date basis, and it is higher by 8.60% in the six months. Meanwhile, the Nasdaq Composite index was up 13.38% YTD.

Over the last year, DE has advanced by 2.62%; however, it was lower by 8.77% over the month. It has traded in a 52-week range of $433.00 to $674.19, and it was higher by 0.57% in premarket on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this agricultural equipment manufacturer have returned -6.2%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has lost 5.3%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Deere is expected to post earnings of $5.01 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.

The consensus earnings estimate of $18.05 for the current fiscal year indicates a year-over-year change of -2.4%. This estimate has changed +0.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $22.99 indicates a change of +27.4% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Deere, the consensus sales estimate of $10.85 billion for the current quarter points to a year-over-year change of +4.7%. The $41.03 billion and $44.62 billion estimates for the current and next fiscal years indicate changes of +5.4% and +8.8%, respectively.

Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.

Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.

Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Deere is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

On June 02, 2026, we present a detailed DCF analysis for Deere & Co DE , a company that has shown a year-to-date price increase of 16.9% and a 1-year price increase of 8.6%. Despite recent fluctuations, the stock remains a topic of interest for investors.

DCF Earnings-based intrinsic value of $566.57 vs current price of $542.43 (margin of safety: 1.7%) DCF FCF-based intrinsic value of $160.30 vs current price (second opinion indicating significant overvaluation) GF Score™ of 91/100, indicating high reliability of the DCF inputs What Is DE Worth? DCF Earnings-Based Model The DCF earnings-based model for Deere & Co utilizes a two-stage approach to estimate its intrinsic value. The first stage considers a high growth phase lasting 10 years, where we expect earnings per share (EPS) to grow at a rate of 20.4% annually. The second stage reflects a terminal growth phase where growth slows to 4% for the subsequent 10 years. The discount rate applied to both stages is 11%, derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $17.65 10-Year Growth Rate 20.4% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 20.4%, discounted at 11% $283.59 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $282.98 Intrinsic Value Growth + Terminal $566.57 When comparing the current price of $542.43 to the intrinsic value of $551.56, we find that Deere & Co is fairly valued with a margin of safety of 1.7%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow.

For further details, visit the DE DCF Calculator.

What Does the Free Cash Flow DCF Say? In contrast to the earnings-based model, the free cash flow (FCF) DCF model yields an intrinsic value of $160.30. This significant disparity when compared to the earnings-based valuation suggests that the FCF model indicates that Deere & Co is significantly overvalued, with a margin of safety of -238.4%. This divergence highlights the importance of considering multiple valuation perspectives when assessing a stock's worth.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Deere & Co is calculated at $379.87, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. In this case, all three models present differing views on valuation, with the earnings-based model suggesting fair value, the FCF model indicating significant overvaluation, and the GF Value™ suggesting the stock is overvalued. For more information, visit the GF Value™ page.

What Does DE's GF Score™ Tell Us? The GF Score™ for Deere & Co is an impressive 91/100, indicating strong potential for long-term returns based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns, making this score a valuable indicator for investors.

Metric Rating GF Score™ 91/100 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 10/10 With a predictability rank of 3/5 stars, this indicates that the DCF model is reasonably reliable for Deere & Co. For more insights, visit the DE stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future conditions.

What This Means for Investors In synthesizing the findings from the DCF earnings-based model, the DCF FCF model, and the GF Value™, we conclude that Deere & Co is currently fairly valued according to the earnings-based model, significantly overvalued according to the FCF model, and overvalued based on the GF Value™. This mixed consensus suggests a cautious approach for investors considering this stock.

For the full DCF analysis, visit the DE DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is DE's intrinsic value based on DCF?

earnings-based $551.56, FCF-based $160.30

Is DE overvalued or undervalued?

Based on the DCF earnings model, DE is fairly valued; however, the FCF model indicates it is significantly overvalued, and GF Value™ suggests it is overvalued as well.

How reliable is the DCF model for DE?

With a predictability rank of 3/5 stars, the DCF model is reasonably reliable for DE.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Deere (DE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this agricultural equipment manufacturer have returned -2%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Manufacturing - Farm Equipment industry, which Deere falls in, has remained unchanged. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Deere is expected to post earnings of $4.82 per share, indicating a change of +1.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $18.1 points to a change of -2.2% from the prior year. Over the last 30 days, this estimate has changed +0.5%.

For the next fiscal year, the consensus earnings estimate of $22.83 indicates a change of +26.1% from what Deere is expected to report a year ago. Over the past month, the estimate has changed -0.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Deere is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Deere, the consensus sales estimate of $10.78 billion for the current quarter points to a year-over-year change of +4.1%. The $41.13 billion and $44.69 billion estimates for the current and next fiscal years indicate changes of +5.7% and +8.7%, respectively.

Last Reported Results and Surprise HistoryDeere reported revenues of $11.78 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $6.55 for the same period compares with $6.64 a year ago.

Compared to the Zacks Consensus Estimate of $11.44 billion, the reported revenues represent a surprise of +2.98%. The EPS surprise was +12.74%.

Over the last four quarters, Deere surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Deere is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.