Why Deere Stock Is Down Today

Shares of Deere & Co. (NYSE: DE) fell as much as 3.9% this morning as investor sentiment took a double blow. An analyst downgraded the agricultural machinery stock, citing valuation concerns, even as President Donald Trump announced tariffs on "external" agricultural products effective April 2. China has already announced retaliatory tariffs in response.

Trump's tariffs are a new threat to Deere

Analysts at R. W. Baird downgraded their rating on Deere stock from outperform to neutral while keeping the price target at $501 per share. That means only an 8% upside from the stock's Monday closing price.

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 »

Baird's analyst is optimistic about Deere's inventory management and expects its earnings to grow in 2026, but still sees limited upside potential in the stock given its recent rebound. The firm also downgraded peer stocks amid a looming uncertainty in the agricultural sector, given the weak commodity prices, geopolitical concerns, and potential challenges from tariffs.

Meanwhile, President Trump announced that the U.S. would impose tariffs on external agricultural products on April 2 to boost the domestic agriculture industry. With Trump already imposing sweeping tariffs on imports from Mexico, Canada, and China, Beijing quickly retaliated and announced tariffs on several imported goods from the U.S. on March 3, including a wide basket of food and agricultural products. China was the largest importer of agricultural products from the U.S. in fiscal 2023, followed by Mexico and Canada, according to data from the U.S. Department of Agriculture.

Deere stock could feel pressure in the short term

Deere is the world's largest agricultural equipment company, and 34% of its total sales and revenue originated outside the U.S. and Canada in 2024. Although Deere tried to dispel fears during its latest earnings call by saying it's a "net exporter" of agricultural and turf equipment from the U.S., tariffs could further slow down the company's growth.

Deere recently reported a 30% year-over-year drop in sales and a 50% drop in net income for the first quarter amid a challenging business environment. The agricultural giant reiterated its outlook of $5 billion to $5.5 billion for net income in 2025, but that would still be a drop of almost 22% over 2024 even at the highest end of its guidance range. With more tariffs and retaliatory moves in the air, it remains to be seen whether Deere will be able to meet its guidance this year.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $295,759!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,128!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $525,108!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 3, 2025

Neha Chamaria 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.