Deere & Co

Deere manufactures agricultural equipment (tractors, combines, planters), construction machinery (excavators, dozers, loaders), and turf care equipment, selling under the John Deere brand globally. The company also operates a financial services division providing equipment financing and leasing. Revenue comes from equipment sales, parts and service, technology subscriptions for precision agriculture, and financing income. The business is highly cyclical, dependent on farm income and construction activity.

Deere demonstrates pricing power through brand loyalty and dealer network strength, with farmers often preferring John Deere despite premium pricing. The stock trades with cyclical valuations reflecting agricultural commodity price sensitivity. Technology initiatives in precision agriculture and autonomy offer growth beyond traditional equipment cycles. Risks include farm income volatility, competitive pressure from CNH Industrial and AGCO, potential agricultural recession, and execution challenges in autonomous farming technology. Used equipment values impact new sales during downturns.

In agriculture, CNH Industrial (Case IH and New Holland brands) and AGCO (Massey Ferguson, Fendt) are primary competitors worldwide. Kubota competes in compact tractors and construction equipment. For large construction machinery, Caterpillar dominates while Komatsu and Volvo compete globally. Mahindra targets developing markets with lower-cost equipment. Technology companies like Trimble compete in precision agriculture systems and farm management software.

Deere has paid consecutive quarterly dividends since 1986 and maintains a track record of annual dividend increases spanning decades, though sometimes pausing during severe agricultural downturns. The company targets a payout ratio around 30% of earnings over the cycle, allowing flexibility to maintain dividends during weak years while increasing them as conditions improve. Even during the 2015-2016 agricultural recession, Deere sustained its dividend, demonstrating commitment to shareholder income despite cyclical pressures.

DE last closed at $583.02, up 2.46% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $404.42 and a high of $674.19. The current price represents 66% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 34 analysts covering DE, the consensus rating is Buy — 21 rate it a buy, 12 hold, and 1 sell. The average price target sits at $290.10, implying 50% downside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Deere & Co generated $45.95B in revenue during fiscal year 2026, with $5.06B reaching the bottom line as net income. The net profit margin of 11.0% is solid for its sector.

DE trades at a P/E ratio of 31.78 on trailing earnings of $17.74 per share. That's above the S&P 500 historical average, suggesting the market expects above-average earnings growth ahead. Comparing this multiple against Machinery sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +24.33% (3M), +25.65% (6M), +21.73% (1Y), +24.90% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether DE is outperforming or lagging the broader market.