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How Deere Stock Has Performed since 4Q17 Earnings

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Feb. 14 2018, Published 12:02 p.m. ET

Deere’s fiscal 1Q18 earnings

Deere (DE) will announce its fiscal 1Q18 earnings on February 16, 2018, before the market opens. The announcement will be followed by a conference call. Deere’s financial year is from November 1 to October 31.

In this series, we’ll analyze Deere’s stock performance since it announced its 4Q17 earnings on November 22, 2017. We’ll also discuss analysts’ earnings and revenue expectations for fiscal 1Q18 and analysts’ recommendations.

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Stock performance

After Deere’s 4Q17 earnings on November 22, 2017, DE has risen 9.6% as of February 12, 2018. The strong performance helped the stock to keep its momentum up. Caterpillar (CAT) outperformed DE with a gain of 10.4%, while CNH Industrial (CNHI) and AGCO (AGCO) underperformed DE. CNHI gained 5.0%, while AGCO declined by 3.4% during the same period.

Deere’s strong performance was mainly driven by the company’s positive outlook. Deere expects its equipment sales to rise 22% in fiscal 2018. The growth has primarily been driven by the completion of the acquisition of Wirtgen Group on December 1, 2017. Deere expects its net income to be at $2.6 billion for fiscal 2018.

Moving averages

DE recovered from the global sell-off and was trading 9.1% above its 100-day moving average price of $145.80, indicating an upward trend in the stock. DE’s 14-day relative strength index of 45 indicates that the stock is neither overbought nor oversold.

Investors can indirectly hold DE by investing in the iShares MSCI Global Agriculture Producers ETF (VEGI), which invests 11.4% of its portfolio in Deere as of February 12, 2018.

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