Company Overview - Deere & Company, headquartered in Moline, Illinois, manufactures and distributes agricultural, construction, forestry, and commercial and consumer equipment, with a market cap of $160.9 billion [1]. Stock Performance - Shares of Deere have outperformed the broader market over the past year, gaining 29.2% compared to the S&P 500 Index's 14.4% increase [2]. - Year-to-date, DE stock is up 31.6%, significantly surpassing the S&P 500's 1.4% rise [2]. - Compared to the First Trust Indxx Global Agriculture ETF, which gained 26.6% over the past year, DE's returns also outshine the ETF's 17.3% gains year-to-date [3]. Financial Results - On November 26, 2025, DE shares closed down by 5.7% after reporting Q4 results, with an EPS of $3.93, which fell short of Wall Street expectations of $3.96 [5]. - The company's net sales were reported at $10.6 billion, exceeding Wall Street forecasts of $10 billion [5]. Earnings Expectations - For the current fiscal year ending in October, analysts expect DE's EPS to decline by 9.1% to $16.82 on a diluted basis [6]. - The earnings surprise history for the company is mixed, having beaten consensus estimates in three of the last four quarters while missing on one occasion [6]. Analyst Ratings - Among the 24 analysts covering DE stock, the consensus rating is a "Moderate Buy," consisting of 11 "Strong Buy" ratings, two "Moderate Buys," and 11 "Holds" [6]. - The analyst configuration has become more bullish compared to three months ago, with 12 analysts now recommending a "Strong Buy" [7]. - Adam Seiden from Barclays PLC maintained a "Buy" rating on DE with a price target of $530, while the Street-high price target of $724 suggests an upside potential of 18.2% [7].

Group 1 - The fourth quarter earnings season is nearing completion, with 74% of S&P 500 companies having reported results, showing a blended earnings growth of 13.2%, which would mark the 10th consecutive quarter of annual earnings growth and the fifth consecutive quarter of double-digit growth [1] - Analysts had initially expected an 8.3% increase in earnings per share, a decrease from the previous quarter's 13.6% growth rate, but Wall Street has raised expectations, particularly for tech companies, which have been significant contributors to earnings growth [2] - Companies that missed earnings estimates have experienced an average stock decline of 2% during this earnings period, which is an improvement compared to the 2.8% decline seen over the past five years for similar misses [3] Group 2 - Major capital expenditures by Big Tech companies are influencing the AI trade, with ongoing themes such as artificial intelligence, economic policies from the Trump administration, and a K-shaped consumer economy continuing to provide investment opportunities [4] - Upcoming earnings reports from notable companies such as Walmart, Deere & Co., Analog Devices, Booking Holdings, DoorDash, and eBay are anticipated, which will further inform market trends and investor sentiment [4]

Core Insights - India's infrastructure boom is creating significant opportunities for U.S. industrial companies, particularly in sectors like agriculture, power, aviation, and renewable energy [1][2] - Six companies are highlighted as key beneficiaries of this growth: Caterpillar, Eaton, GE Aerospace, GE Vernova, Honeywell, and Deere [1][2] Company Summaries - **Caterpillar**: Achieved record Q4 2025 revenue of $19.13 billion, up 18% year-over-year, with a backlog of $51 billion. The stock has increased 29.9% year-to-date and 107.24% over the past year, benefiting from India's infrastructure spending [1] - **Eaton**: Reported record segment margins of 24.9% in Q4 2025, with Electrical Americas sales rising 21% to $3.5 billion. The stock has gained 18.51% year-to-date, driven by demand for data centers and renewable energy [1] - **GE Aerospace**: Generated Q4 2025 revenue of $12.72 billion, with orders surging 74% to $27 billion. The stock has increased 54.14% over the past year, capitalizing on India's aviation expansion [1] - **GE Vernova**: Recorded Q4 2025 revenue of $11.00 billion, a 4% year-over-year increase. The Electrification segment surged 28% to $9.6 billion, with a stock gain of 21.08% year-to-date, supported by grid modernization efforts [1] - **Honeywell**: Q4 2025 revenue was $9.76 billion, with orders up 23% and a backlog exceeding $37 billion. The stock has surged 24.73% year-to-date, driven by India's smart city initiatives [1] - **Deere**: Reported Q4 2025 revenue of $12.39 billion, up 14% year-over-year, with a 27% increase in its Construction & Forestry segment. The stock has gained 27.46% year-to-date, benefiting from agricultural mechanization trends in India [1]

分组1 - Analysts are generally cautious or bearish on Deere (DE), with recent ratings showing only 2 buys, 4 holds, and 4 sells [1] - Despite the negative sentiment from analysts, Deere's stock continues to perform well, defying expectations [1] 分组2 - The article emphasizes the importance of sustained profitability, including strong margins, stable and expanding free cash flow, and high returns on invested capital, as key drivers of investment returns [1] - The author manages a portfolio on eToro, focusing on undervalued growth stocks and high-quality dividend growers, indicating a strategic investment approach [1]

Core Insights - Deere (DE) shares increased by 4.1% to $567.26, with a notable trading volume, and have gained 12.2% over the past four weeks [1] - The company showcased new equipment at the 2026 GCSAA Conference, focusing on precision, performance, and operator experience [1][2] Financial Performance - Deere is projected to report quarterly earnings of $1.92 per share, reflecting a year-over-year decline of 39.8%, while revenues are expected to reach $7.6 billion, an increase of 11.7% from the previous year [3] - The consensus EPS estimate for Deere has been slightly revised upward in the last 30 days, indicating a potential for price appreciation [4] Industry Context - Deere holds a Zacks Rank of 3 (Hold) and is part of the Zacks Manufacturing - Farm Equipment industry, where CNH Industrial (CNH) also operates, having closed 6.6% higher at $11.96 [5] - CNH's EPS estimate remains unchanged at $0.11, representing a year-over-year decline of 26.7%, and it currently has a Zacks Rank of 4 (Sell) [6]

Core Viewpoint - Deere & Company will hold its first quarter 2026 earnings call on February 19, 2026, at 9:00 a.m. central time, discussing financial and operational performance with analysts and investors [1]. Group 1 - The earnings call can be accessed online at www.JohnDeere.com/earnings, and a recorded version will be available afterward [2]. - The earnings release, along with other financial information and the earnings call presentation, can also be found at the same link [2]. Group 2 - Deere & Company has a long history of nearly 200 years, starting with the invention of a steel plow, and continues to drive innovation across various sectors including agriculture, construction, forestry, and power systems [3].

Core Viewpoint - Deere's stock performance has outpaced major indices, with a notable increase in the past month, while upcoming earnings are expected to show a significant year-over-year decline in earnings per share [1][2]. Financial Performance - In the latest trading session, Deere's stock rose by 2.4% to $545.00, contrasting with the S&P 500's decline of 0.84% [1]. - Analysts project Deere will report earnings of $1.92 per share, reflecting a year-over-year decline of 39.81%, while revenue is expected to reach $7.6 billion, an increase of 11.68% from the previous year [2]. - For the entire year, earnings are forecasted at $16.82 per share, down 9.08%, and revenue at $40 billion, up 2.78% compared to the prior year [3]. Analyst Sentiment - Recent changes in analyst estimates for Deere are crucial, as they often indicate shifts in short-term business dynamics, with positive revisions suggesting optimism about the company's profitability [3][4]. - The Zacks Consensus EPS estimate has increased by 0.29% in the past month, and Deere currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Deere's Forward P/E ratio stands at 31.64, significantly higher than the industry average of 20.03, indicating that Deere is trading at a premium [6]. - The PEG ratio for Deere is 2.12, aligning with the industry average, which also reflects the expected earnings growth rate [6]. Industry Context - The Manufacturing - Farm Equipment industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 96, placing it in the top 40% of over 250 industries [7]. - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7].

Core Viewpoint - John Deere is recalling 99 laid-off employees in eastern Iowa due to increased demand in its construction and forestry operations, alongside plans for new facilities that will create hundreds of jobs [1][2][3]. Group 1: Employee Recall and Job Creation - John Deere will recall 99 employees to its Davenport and Dubuque Works sites starting in mid-February [1]. - The recall follows President Trump's announcement of a new parts distribution center in Indiana and an excavator factory in North Carolina, expected to create hundreds of jobs [2]. - The Davenport Works will add 75 employees for various production roles, while Dubuque Works will add 24 employees for dozer assembly and related tasks [3]. Group 2: Facility Operations and Historical Layoffs - The Dubuque facility spans 3.9 million square feet and produces machinery such as backhoes and compact track loaders, while the Davenport site has six production lines for various machines [4]. - John Deere laid off 211 workers in Davenport in August 2024 and 80 more in January 2025, along with 133 employees from Dubuque in mid-2024 [4]. - Since 2015, John Deere has cut more than 4,500 jobs, indicating a significant reduction in workforce over the years [5].

Core Insights - John Deere plans to open two new facilities in the US, including a distribution center in Indiana and an excavator factory in North Carolina, aimed at enhancing supply chain operations and manufacturing capabilities [1][3] Group 1: New Facilities - The Indiana distribution center will improve national supply chain operations and is expected to create approximately 150 jobs [1] - The $70 million excavator factory in Kernersville will focus on advanced manufacturing technologies and will employ over 150 people, taking over production of future generation excavators previously made in Japan [3][4] Group 2: Strategic Importance - The Indiana facility is seen as an investment in customer expectations for world-class product support, leveraging Indiana's strong workforce and central location [2] - The developments are expected to result in several hundred new jobs across both locations, providing additional support to local communities [4] Group 3: Long-term Commitment - John Deere's chairman announced a commitment to invest $20 billion in US manufacturing over the next 10 years, reflecting confidence in the future of US manufacturing and a focus on innovation and economic growth [5]

Group 1 - President Trump announced a $70 million excavator manufacturing facility by John Deere in Kernersville, North Carolina, which will be the only excavator entirely made in the United States [1] - John Deere confirmed the new facility and also announced a new distribution center near Hebron, Indiana, aimed at strengthening its manufacturing operations with advanced technologies [2] - Both facilities are expected to begin operations within the next year, with the Indiana site benefiting from a skilled workforce and central location [3] Group 2 - Deere & Company faces a $1.2 billion tariff impact in fiscal 2026, which is a $600 million increase over 2025 levels, affecting its fiscal outlook [4] - CEO John May indicated that tariffs would lead to ongoing margin pressures, while President Trump announced $12 billion in farm aid to assist farmers facing higher costs [5] - Deere & Co. is ranked in the 58th percentile for quality and 57th percentile for value, with its stock increasing by 8.17% over the past year, closing at $519.19 [6]