/Deere%20%26%20Co_%20John%20Deere%20tractor-by%20Yackers1%20via%20iStock.jpg)
Deere & Company (DE) is a global manufacturer of agricultural, construction, and forestry machinery, plus turf care equipment and related financial services. The company designs, produces, and distributes tractors, combines, harvesters, sprayers, excavators, loaders, mowers, and precision-agriculture technologies through an extensive worldwide dealer network. Deere is headquartered in Moline, Illinois and has a market capitalization of $161.94 billion.
Although some near-term headwinds linger, investors are likely pricing a recovery in farm equipment demand, leading to a surge in Deere’s shares. Over the past 52 weeks, the stock has gained 22.7%, and it is up 28.9% year-to-date (YTD). The stock reached a 52-week high of $674.19 on Feb.19 but is down 11% from that level.
Meanwhile, the broader S&P 500 Index ($SPX) has gained 20.1% and 13.1% over the same periods, respectively, indicating the stock has outperformed the broader market. Next, we compare the stock with its own sector. The State Street Industrial Select Sector SPDR ETF (XLI) has gained 23.9% over the past 52 weeks and 20.1% YTD. Therefore, the stock has slightly underperformed its sector over the past year.
Geopolitical tensions have weighed down on new agricultural equipment sales. In June, the Trump administration lowered import tariffs on agricultural equipment to 15% from 25% previously. The president also reduced tariffs to 10% on agricultural products manufactured abroad that contain at least 85% U.S. steel, aluminum, or copper.
However, the North American agriculture equipment market is expected to decline 15% to 20% this year. Deere is also dealing with these broader market conditions, as its Q2 FY26 topline increased a modest 5% year-over-year (YOY) to $13.37 billion, while net income fell 2% annually.
For the third quarter (about to be reported on Aug. 20, before the market opens), Wall Street analysts expect Deere’s EPS to grow marginally YOY to $4.79 on a diluted basis. However, EPS is expected to decrease 1.6% annually to $18.21 in fiscal 2026, followed by a 25.2% improvement to $22.80 in fiscal 2027. The company has a solid history of surpassing consensus estimates, topping them in three of the four trailing quarters.
Among the 24 Wall Street analysts covering Deere’s stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and 11 “Holds.” The ratings configuration has remained the same over the past three months.
Citing negative sentiment ahead of its upcoming earnings, JPMorgan analysts maintained a “Neutral” rating on Deere’s stock and lowered the price target from $590 to $570.
Deere’s mean price target of $649.52 indicates an 8.3% upside from current market prices. Moreover, the Street-high price target of $812 implies a potential upside of 35.4%.
