Deere & Company (DE) Is a Trending Stock: Facts to Know Before Betting on It

Deere has underperformed the S&P 500 over the past month (-5.7% vs +4.3%) while the farm-equipment group fell 6.4%; Zacks flags downward earnings and revenue revisions as the primary near‑term drivers. Consensus estimates show sharp declines—current-quarter EPS $6.09 (‑40.3% YoY, consensus down 12.3% in 30 days), fiscal‑year EPS $25.80 (‑25.5%) and revenue pressure (current‑quarter sales est. $11.25bn, ‑21.3% YoY; FY sales est. $45.75bn, ‑17.7%)—even though Deere beat revenue and EPS estimates in the last reported quarter. Zacks assigns a Hold (Rank #3) with a Value Style Score of B (trading at a discount to peers), signaling the stock is likely to track the broader market near term while further earnings‑estimate revisions will determine any directional change.

Analysis

Deere’s shares have underperformed over the last month, returning -5.7% versus the Zacks S&P 500 composite’s +4.3% and the Zacks Manufacturing - Farm Equipment industry’s -6.4%, and the stock has been a high-volume search topic on Zacks. Zacks’ sentiment metrics are mildly negative (sentiment_score -0.25) with a modest market impact score (0.33), indicating caution but not systemic market disruption.

Analyst estimate revisions are the primary near-term driver: the current-quarter consensus EPS is $6.09 (‑40.3% YoY) with the Zacks consensus down 12.3% in the past 30 days, full-year EPS at $25.80 (‑25.5%) down 5.7% in 30 days, and next fiscal year EPS $25.27 (‑2.1%) down 5.4% last month. Revenue pressure is material: current-quarter sales est. $11.25bn (‑21.3% YoY), current FY $45.75bn (‑17.7%), and next FY $44.54bn (‑2.6%).

Most-recent reported quarter showed revenue of $13.61bn (‑15.4% YoY) and EPS $8.53 versus $9.65 a year ago, with revenue and EPS beats (+2.66% and +8.52%) and four straight quarters of beating consensus. Zacks assigns Deere a Rank #3 (Hold) and a Value Style Score of B (trading at a discount to peers), implying the stock is likely to track the broader market near term and that further direction hinges on whether analyst revisions stabilize or reverse.

Key Decisions for Investors

• Maintain a neutral/hold stance until the trend in analyst revisions stabilizes or reverses, given the sizable recent downward EPS revisions and modest market impact
• Monitor next-quarter EPS and revenue versus current consensus (current-quarter EPS est. $6.09; sales est. $11.25bn) and the 30-day revision trend—meaningful positive revisions would justify adding exposure
• Consider opportunistic accumulation only if Deere posts another beat that drives sustained upward estimate revisions, since the Value Style Score B indicates the stock trades at a relative discount
• If already long, limit position size or hedge earnings exposure ahead of upcoming reports because downward revisions have materially lowered near-term earnings expectations