DE Should I Buy
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Deere & Co is not a strong buy right now for a Beginner long-term investor with $50,000-$100,000 to deploy. The stock is near fair value around its pivot, technical momentum is only neutral-to-slightly positive, and the latest quarter showed revenue growth but weaker profitability. The analyst mix is mixed-to-positive, but insider selling and elevated options activity suggest caution. If the investor is impatient and wants immediate deployment, this is a hold rather than an aggressive buy.
DE closed at 581.18, just above the pivot level of 575.65 and below resistance at 589.65 and 598.30. MACD histogram is positive and expanding, which supports short-term upside bias, but RSI at 50.54 is neutral and moving averages are converging, indicating a non-committal trend rather than a strong breakout. The price action suggests the stock is stabilizing after recent weakness, but it has not yet confirmed a decisive bullish trend.
Revenue in Q1 2026 rose 12.96% YoY to $9.611B, showing solid top-line expansion. The MACD is positive and expanding, suggesting improving momentum. Analysts remain broadly constructive overall, with several firms holding Overweight/Outperform or raising targets. Deere also has a positive long-term reputation due to product strength, market penetration, and its data capabilities. The upcoming May 21 Q2 2026 earnings call is a near-term event catalyst.
Net income fell 24.51% YoY, EPS dropped 24.14%, and gross margin declined 15.05% YoY, showing weaker profitability despite revenue growth. Insider selling has increased sharply by 384.66% over the last month, which is a negative signal. Analyst opinion is mixed, with Baird recently calling it a bearish Fresh Pick and Jefferies maintaining a cautious stance. Agriculture end markets are still described as choppy, with Brazil weak and North America retail sales deteriorating modestly. No recent congress trading data was available.
Latest quarter: 2026/Q1. Deere posted revenue growth of 12.96% YoY to $9.611B, but earnings quality softened materially: net income declined 24.51% YoY to $656M, EPS fell 24.14% to $2.42, and gross margin dropped to 34.66%. This is a mixed quarter: strong sales growth, but profitability and margin pressure indicate the business is not currently firing on all cylinders.
Analyst sentiment is mixed but slightly constructive overall. Recent moves include Baird maintaining Neutral with a bearish Fresh Pick call and a $580 target, JPMorgan raising its target to $550 while staying Neutral, Jefferies upgrading to Hold from Underperform with a $550 target, and bullish firms like Barclays, Morgan Stanley, Raymond James, and DA Davidson carrying higher targets and positive ratings. Wall Street pros see Deere as a high-quality company with solid long-term franchise value, but the bears point to valuation concerns, choppy agriculture fundamentals, and limited near-term upside.
