Investment Analysis of Deere & Company (NYSE: DE) - October 2025

Company Overview

Deere & Company, headquartered in Moline, Illinois, stands as a titan within the Farm & Heavy Construction Machinery industry, making significant strides within the broader Industrials sector. Founded in 1837, Deere has solidified its status as a global leader, manufacturing and distributing a wide range of equipment tailored to meet diverse agricultural and construction needs. The company operates through four distinct segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. With a robust total revenue of approximately $44.25 billion, Deere not only showcases substantial market presence but also reflects its commitment to innovation and customer service. Its diversified offerings--from large tractors to turf equipment--position Deere favorably in both domestic and international markets.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Deere's stock has experienced a rollercoaster ride over the past year, characterized by both upward trends and volatility. The current trading price of $463.37 showcases a decline from its 52-week high of $533.78, representing a decrease of approximately 15.32%. Meanwhile, the stock remains well above its 52-week low of $387.03, indicating resilience within the stock.

Technical Chart Insights

The 52-week stock price chart exemplifies a generally upward trajectory marked by higher highs and higher lows, a hallmark of a bullish trend. Recent movements, particularly from July onward, have seen the stock retreat closer to the critical $400 support level (illustrated by the red dashed line), which has previously provided a firm foundation against declines.

Key technical levels are evident here:

• Support Level: $400
• Resistance Level: $525

Deere's price has recently fallen below its fifty-day moving average of $473.89, which typically suggests impending bearish momentum. This moving average, once on an upward trend, has recently begun to flatten, indicating the potential for further short-term weakness. Moreover, investors should note the trend of rebounding prices off the $400 support. A breakout above the moving average would indicate a renewed bullish sentiment, while a drop below the $400 threshold would suggest increased downside risks.

Financial Performance and Metrics

Analyzing Deere's recent financials reveals comprehensive insights into its profitability and operational strengths:

• Total Revenue (Q3 FY2025): $12.018 billion (down 9% year-over-year)
• Net Income: $1.289 billion or $4.75 per share
• EBITDA: Approximately $8.45 billion
• Fiscal 2025 Net Income Guidance: $4.75 to $5.25 billion

Despite a noteworthy pullback in net income of 26%--down from $1.734 billion ($6.29 per share) last year--all major segments reported declines, with Production & Precision Agriculture experiencing a 16% decrease. However, the Financial Services segment showcased resilience with a 34% increase in net income. Deere's financial health remains strong overall, underpinned by its substantial revenue base, and continued focus on operational efficiency.

Valuation Metrics

The valuation remains attractive, suggesting possible growth opportunities:

• Current Price: $463.37
• Target High Price: $724.00 (potential upside of 56%)
• Mean Price Target: $524.14
• Median Price: $512.00

Recent News and Developments

The trajectory of Deere's stock has been influenced significantly by recent corporate developments. On October 16, 2025, JPMorgan Chase & Co. lowered its price target from $495.00 to $480.00, while maintaining a "neutral" rating. In a similar vein, Jefferies Financial Group adjusted its price target to $440.00 on October 11, reflecting caution regarding Deere's outlook.

This mix of analyst sentiment mirrors concerns about Deere's declining revenues and net incomes, with the company narrowing its fiscal guidance amidst a challenging economic backdrop. Such news could weigh on investor sentiment but also present opportunities for value-seeking investors.

Market Sentiment and Analyst Recommendations

Despite recent underperformance, the analyst consensus appears cautiously optimistic. With a buy recommendation indicated by an analyst mean score of 2.17 on a scale that likely reflects bullish sentiment, investors are encouraged to consider positioning themselves in anticipation of recovery potential.

Summary of Analyst Insights:

• Current Price: $464.12
• Target Price Range:
• High: $724.00
• Low: $440.00
• Mean: $524.14

As highlighted above, while short interest remains low at approximately 0.0159% of the float, indicating a positive outlook among investors, the stock's recent performance leads to cautiousness surrounding its immediate future.

Conclusion

In conclusion, Deere & Company's robust operational legacy continues to face challenges due to recent financial declines and a turbulent market backdrop. However, the strategic positioning within the agricultural and construction industries, paired with analyst optimism, suggests potential for significant upside. Retail investors may find Deere attractive if they are willing to navigate the current volatility and remain focused on the company's long-term growth potential.

Investors should remain vigilant, watching for potential price movements along key support levels and analyst recommendations as they consider their positions in Deere & Company (NYSE: DE). The upcoming months will be critical in determining the direction of both the stock price and overall market sentiment surrounding this iconic company.