DE Should I Buy
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Deere & Co is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the stock has positive long-term analyst ratings and some congressional interest, the recent financial performance shows declining net income, EPS, and gross margin. Additionally, insider selling and the lack of strong proprietary trading signals suggest caution. For a long-term investor, it may be better to wait for a more favorable entry point or further clarity on financial recovery.
The stock's technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 49.678, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock closed below the pivot level of 630.173, with key support at 598.364 and resistance at 661.982. The overall trend is not strongly bullish.
Analysts have significantly raised price targets, with many maintaining Buy or Outperform ratings.
Congress trading data shows balanced activity, with $1.5M-$5.0M in purchase transactions.
The company declared a quarterly dividend of $1.62 per share, reflecting commitment to shareholder value.
Insiders are selling, with a 384.66% increase in selling activity over the last month.
Financial performance in Q1 2026 shows declining net income (-24.51% YoY), EPS (-24.14% YoY), and gross margin (-15.05% YoY).
Trump's new 10% universal tariff could disrupt global markets, potentially impacting Deere's overseas manufacturing.
In Q1 2026, revenue increased by 12.96% YoY to $9.61B, but net income dropped by 24.51% YoY to $656M. EPS also declined by 24.14% YoY to $2.42, and gross margin fell by 15.05% YoY to 34.66%. While revenue growth is positive, profitability metrics are under pressure.
Analysts have raised price targets significantly, with targets ranging from $550 (Jefferies, Underperform) to $775 (UBS, Buy). Most analysts maintain Buy or Outperform ratings, citing recovery in small ag and construction, as well as long-term growth potential. However, Jefferies downgraded the stock due to valuation concerns and potential challenges in the agriculture cycle.
