DE Should I Buy
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Deere & Co. is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. While the company has positive long-term growth potential driven by AI and autonomous technologies, the recent price pullback, insider selling, and mixed financial performance suggest waiting for a better entry point. The stock's valuation appears stretched, and the technical indicators do not signal an immediate buying opportunity.
The stock's MACD is negative and expanding downward, indicating bearish momentum. RSI is at 29.018, which is approaching oversold territory but not yet signaling a reversal. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below key support levels (S1: 596.186, S2: 576.48), suggesting further downside risk.
Deere's advancements in AI and autonomous tractors position it well for long-term growth. Analysts have raised price targets significantly, with many maintaining Buy or Outperform ratings. Congress trading data shows balanced activity, with notable purchase transactions indicating some confidence in the stock.
Insider selling has increased by 384.66% over the last month, signaling potential concerns from insiders. Financial performance in Q1 2026 showed declining net income (-24.51% YoY) and EPS (-24.14% YoY), along with a drop in gross margin (-15.05% YoY). The stock has pulled back 5% recently due to tariff concerns, and Jefferies downgraded the stock to Underperform, citing overvaluation.
In Q1 2026, revenue increased by 12.96% YoY to $9.61 billion, but net income dropped by 24.51% YoY to $656 million. EPS also declined by 24.14% YoY to $2.42, and gross margin fell to 34.66%, down 15.05% YoY. While revenue growth is promising, profitability metrics are under pressure.
Analysts have raised price targets significantly, with targets ranging from $550 to $775. Most analysts maintain Buy or Outperform ratings, citing strong construction momentum and stabilizing agricultural fundamentals. However, Jefferies downgraded the stock to Underperform, citing overvaluation and concerns about the agriculture cycle recovery.
