Should You Buy the Post-Earnings Dip in Deere Stock?

Deere (DE) reported $4.75 a share of earnings on $10.4 billion in sales, both ahead of expectations, for its fiscal third quarter on Wednesday. Shares of the industrial giant are still down over 6% at writing.

Investors are bailing on DE shares primarily because management trimmed its full-year outlook, citing lower pricing in the agricultural and construction equipment business.

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Despite the post-earnings decline, Deere stock is still up roughly 19% versus its year-to-date low.www.barchart.com

Is It Worth Buying Deere Stock on the Post-Earnings Weakness?

According to Oppenheimer analyst Kristen Owen, it makes sense for Deere to take a “cautiously optimistic” stance on the future guidance especially given the current trade uncertainties.

However, there were ample positives in the company’s earnings report to warrant buying DE stock on the post-earnings dip.

For example, “they’re seeing a little bit of incremental demand in Europe. They’re seeing South America – a challenged market for the last two years – start to percolate,” Owen told CNBC in an interview on Thursday.

She maintained her “Outperform” rating on Deere shares today. Her $560 price objective indicates potential upside of some 18% from here.

Innovation Could Drive DE Shares Up in the Back Half of 2025

On “Money Movers,” Owen said innovation in agricultural technology – like DE’s “see and spray” systems – is helping farmers reduce costs while maintaining high yields, which makes them willing to pay a premium.

This lifts pricing power for Deere, meaning it can charge more for its advanced equipment. That’s a positive for DE shares because it supports strong margins and revenue growth, even in a down-cycle for farm equipment.

USDA’s recent bullish forecasts for yield reflect not just good weather, but the impact of this tech, reinforcing Deere’s role as a leader in precision agriculture, she concluded.

Note that Deere stock currently pays a dividend yield of 1.35% as well, which makes it even more attractive as a long-term holding.

Deere Remains a ‘Buy’-Rated Stock Among Wall Street Analysts

Deere stock may be worth buying on post-earnings weakness also because other Wall Street firms remain bullish on it as well.

Story Continues

The consensus rating on DE shares currently sits at “Moderate Buy” with the mean target of roughly $548 indicating potential upside of some 15% from current levels.www.barchart.com

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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