DE – Deere & Company

Investment Analysis of Deere & Company (NYSE: DE) – December 2025

Company Overview

Deere & Company, headquartered in Moline, Illinois, is a preeminent manufacturer and distributor of farm and heavy construction machinery within the Industrials sector. Founded in 1837, Deere has carved out a significant presence in the agricultural and construction industries, operating through four main segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The company’s extensive product range includes large tractors, combines, and various outdoor power products, alongside financing solutions tailored for equipment sales and leases. Such a diversified business model enables Deere to weather fluctuations in both agricultural and construction markets effectively.

52-Week Price Performance Analysis

The stock of Deere & Company has demonstrated notable volatility over the past year, achieving a 52-week high of $533.78 and a low of $403.01. Currently trading at $480.47, the stock exhibits a promising upward trajectory. An analysis of the 52-week stock price chart reveals a bullish trend characterized by increased price levels from December to August, followed by a correction period and resurgence as the year closes.

The price action is illustrative of a resilient market sentiment, as the stock has recently bounced off a pivotal support level around $440, confirming this price point as a significant barrier against downward movements. Close to current trading levels, the resistance threshold is situated at around $483.03, a previously encountered peak, representing a critical point for potential breakouts.

The trend lines indicate a rising momentum, further bolstered by the stock’s current position above the 50-day moving average of approximately $467.53. Importantly, the emergence of a cup and handle pattern on the chart suggests further upside potential; if the price effectively breaches the resistance level, opportunities for gains could extend beyond the current highs.

Financial Performance and Metrics

Deere & Company showcases a robust financial profile, highlighted by a revenue figure of approximately $45.68 billion in the latest fiscal year, reinforcing its strong market position. The company reported an EBITDA of around $8.73 billion, underscoring its efficiency in converting sales into profit.

Key Financial Metrics:

• Total Revenue: $45.68 billion
• EBITDA: $8.73 billion
• Earnings Per Share (EPS): $3.93, exceeding expectations of $3.83
• Current Stock Price: $480.47
• Target Price: High of $724.00, with a mean target price of $523.82

The financial metrics indicate a favorable valuation, as the stock currently trades at approximately 18.6 times EBITDA, which is competitive within the Industrials sector. The short interest is minimal, with approximately 0.0159% of the shares shorted, indicating limited bearish sentiment and a stable outlook among investors.

Recent News and Developments

In its recent fourth-quarter fiscal 2025 earnings report, Deere exceeded revenue forecasts by reporting $12.39 billion, surpassing predictions of $9.8 billion. Despite these positive results, the company provided cautious guidance for fiscal 2026, projecting net income in the range of $4.00 billion to $4.75 billion, falling short of the analyst estimate of $5.19 billion. CEO John May acknowledged ongoing challenges in the large agriculture sector due to margin pressures from tariffs, advocating that 2026 may signify the bottom of the current agricultural cycle.

Investors reacted to this conservative outlook with some apprehension, as evidenced by a 4% drop in the stock price post-announcement. Analysts have adjusted their ratings, with Wolfe Research lowering its price target from $550 to $520 while maintaining an “outperform” rating. Meanwhile, JPMorgan reduced its target from $495 to $480, giving it a “neutral” assessment.

In a strategic response to fluctuating market dynamics, Deere has been optimizing its inventory levels to align better with retail demand. The company declared a quarterly dividend of $1.62 per share, a testament to its commitment to returning value to shareholders, scheduled for payment on February 9, 2026.

Market Sentiment and Analyst Recommendations

Currently, the consensus among a panel of 22 analysts stands at a “buy” rating for Deere, bolstered by a mean recommendation score of 2.12. With a 12-month price target averaging $526.06, this suggests a projected upside of approximately 9.18% from the current trading price.

Analyst Rating Summary:

• Analyst Consensus: Buy
• Mean Price Target: $523.82
• High Price Target: $724.00
• Median Price Target: $520.50

The low target sits at $440.00, indicating a substantial potential range for price fluctuations around these expected values. The current market sentiment reflects cautious optimism, tempered by external factors yet underpinned by fundamentals indicating solid operational health.

Conclusion

Deere & Company presents an intriguing investment opportunity within the Farm & Heavy Construction Machinery industry, characterized by strong financials, a promising stock performance trend, and a consensus buy rating from analysts. While challenges such as evolving market conditions and margin pressures exist, the prospects for growth, especially with a favorable technical setup and supportive market sentiment, highlight both the potential rewards and risks involved in investing in DE. Retail investors should consider their risk appetite and market conditions before initiating or adjusting their positions in Deere & Company as the market continues to unfold in 2026.

Metric	Value
Market Cap	$129.9b
Total Debt	$63.9b
Total Cash	$6.6b
Shares Outstanding	270.3m
Float Shares	269.8m