Why Deere & Co. Shares Traded Down Today

Source The Motley Fool

Agriculture equipment maker Deere & Co. (NYSE: DE) fell short of expectations in the most recent quarter and issued a subdued forecast for the quarter ahead.

Investors were disappointed, sending Deere shares down more than 5% at the open on Thursday and down 3% as of 11:45 a.m. ET.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

A tough operating environment

Deere is one of the world's largest manufacturers of agriculture and outdoor equipment. Its machines are second to none, but this is a business tied to a notoriously cyclical industry.

The company earned $3.19 per share in its fiscal first quarter, ending Jan. 26, on revenue of $8.51 billion, missing the consensus earnings estimate by $0.06 per share but beating on revenue by $620 million. That sales number was down 30% year over year, a reflection of tepid demand among farmers.

CEO John C. May said: "Deere's performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amid the uncertain market conditions our customers are facing. We're seeing compelling evidence that our efforts are positioning the company to successfully navigate the current environment."

Is Deere stock a buy?

The company is a best-in-class manufacturer, but it is hard to see things improving overnight. Management forecast full-year precision agriculture sales to be down another 15% to 20% in fiscal 2025, forestry sales down 10% to 15%, and small equipment and turf sales down by 10%.

Deere's heavy equipment is expensive, and farmers tend to buy primarily when crop prices are high and they feel good that conditions will remain favorable. With all the talk of tariffs and uncertain global demand, it is a difficult market to be selling into. For long-term holders, Deere can be a winner. But patience will be required for now.

Should you invest $1,000 in Deere & Company right now?

Before you buy stock in Deere & Company , consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Deere & Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $803,695!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of February 7, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deere & Company. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Avalanche Price Forecast: AVAX eyes $30 as FIFA, VanEck back blockchain ecosystemAvalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments.
Author  FXStreet
May 23, Fri
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments.
placeholder
Gold edges higher after Trump’s bill boosts bond market uncertaintyGold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
Author  FXStreet
May 23, Fri
Gold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
goTop
quote