How Is Deere & Company's Stock Performance Compared to Other Industrial Stocks

Moline, Illinois-based Deere & Company (DE) engages in the manufacture and distribution of various equipment worldwide. The company has a market cap of $182.3 billion and operates through Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services segments.

Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” DE fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the farm and heavy construction machinery industry.  

Deere stock currently trades marginally below its 52-week high of $677.89,  recorded in the last trading session. DE has grown 24.6% over the past three months, outperforming the State Street Industrial Sector SPDR ETF’s (XLI) marginal rise during the same time frame.    

In the longer term, DE has delivered a similar performance. The stock has surged 41.3% over the past 52 weeks, outpacing the 13.6% rise of XLI over the same period. DE has traded above its 200-day moving average since last year, showing bullish momentum, and above its 50-day moving average since last month.  

On Aug. 31, DE stock rose 3.9% after Baird analyst Mircea Dobre upgraded the stock from a “Neutral” rating to “Outperform.” The analyst also raised his price target to $800, indicating a potential upside of 23% from current prices. With stabilizing grain and oilseed prices, growers’ cash flows are expected to improve significantly in the coming days, leading to a more favorable scenario for equipment spending. Additionally, according to Dobre, capital expenditures on heavy machinery are projected to rebound over the next two years, putting DE in a prime position to capitalize on the industry’s growth potential. 

When stacked against its rival, Caterpillar Inc. (CAT) has surged 85.9% over the past year, rallying DE.    

Wall Street has a moderately optimistic view of the stock currently. Among the 24 analysts tracking DE, the overall consensus stands at a “Moderate Buy.” Its mean price target of $674.04 is below the current price level. However, its Street-high price of $804 suggests 18.9% upside potential from current price levels.