Deere Stock Has Been Strong in 2017
Deere’s stock performance
So far, Deere’s (DE) shareholders have cherished the run that the company has seen in 2017. Deere’s stellar performance caused its stock to rise 22.30% and outperform the broad-based SPDR S&P 500 ETF (SPY), which has returned 8.7% during the same period. Deere’s peers Caterpillar (CAT) and AGCO (AGCO) have returned 15.40% and 15.70%, respectively. However, CNH Industrial (CNHI) outperformed Deere with a return of 32.90%.
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Deere’s strong performance is primarily driven by the strong performance of its fiscal 2Q17 earnings, which beat analysts’ estimates. Deere’s improving operating costs are expected to improve its earnings. Deere raised its earnings to $2 billion from its previous guidance of $1.5 billion for fiscal 2017. Positive developments in the business, including new product launches and the acquisition of Wirtgen Group, boosted the stock’s performance.
Moving averages and RSI
Deere’s increased stock price resulted in the stock price trading 11.60% above the 100-day moving average price of $112.98, which indicates an upward trend in the stock. Deere closed 64.30% above its 52-week low of $76.73, while it traded 1.8% below its 52-week high of $128.37.
Deere’s current RSI (relative strength index) of 68 indicates that the stock is close to temporarily moving into an oversold situation. An RSI above 70 indicates that the stock is overbought, while an RSI below 30 indicates that the stock is oversold.
In this series, we’ll discuss Deere’s latest dividend, dividend yield, analysts’ recommendations, and its valuation.