uploads/2018/05/tractor-john-deere-dust-wagon-862923.jpg

Deere’s Stock Performance since Its Q1 2018 Earnings

By

Updated

Deere’s fiscal second-quarter earnings

Deere (DE) is scheduled to announce its fiscal second-quarter earnings on May 18 before the market opens. The announcement will be followed by a conference call. In this series, we’ll analyze Deere’s stock performance since it announced its first-quarter earnings on February 16. We’ll also discuss analysts’ earnings and revenue expectations for the second quarter.

 

Article continues below advertisement

Deere’s stock performance

Since Deere announced its first-quarter earnings on February 16, the stock has declined 12%. Deere posted strong earnings in the first quarter and beat analysts’ estimates. However, the decline in the stock price was primarily due to trade tariff wars between China and the US. China imposed tariffs on US agricultural products. The tariffs would impact US farmers and could impact Deere’s sales in the region. Caterpillar (CAT), CNH Industrial (CNHI), and AGCO (AGCO) declined 2.9%, 10.3%, and 6.7%, respectively.

Deere has provided a stable outlook for fiscal 2018. The company expects revenue growth of 29% and adjusted earnings at $2.85 billion. Deere’s growth story appears to be intact with its continued acquisitions. All of these positive factors could help the stock to recover and increase.

Moving averages

Deere’s lower stock price caused the stock to trade 6.0% below its 100-day moving average price of $156.1, which indicates slight weakness in the stock. However, Deere’s 14-day relative strength index of 55 indicates that the stock isn’t overbought or oversold.

Investors can hold Deere indirectly by investing in the iShares MSCI Global Agriculture Producers ETF (VEGI). VEGI invests 10.6% of its portfolio in Deere as of May 14.

Advertisement

More From Market Realist