How Deere Has Performed since Third-Quarter Earnings

Peter Neil - Author

Nov. 20 2018, Published 8:19 a.m. ET

Deere’s fourth-quarter earnings

Deere (DE) is scheduled to announce its fourth quarter of fiscal 2018 earnings on November 21 before the market opens. The announcement is to be followed by a conference call at 9:00 AM CST. In this series, we’ll analyze Deere’s stock performance since it announced its third-quarter earnings on August 17. We’ll also discuss analysts’ earnings and revenue expectations for the fourth quarter.

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Deere’s stock performance

Since Deere announced its third-quarter earnings on August 17, the stock has gained 1.4%. In fact, during this period the stock gained as much as 11%. However, the sell-off in the US stock market wiped out the gains. In contrast, Deere’s peers AGCO (AGCO), Caterpillar (CAT), and CNH Industrial (CNHI) have fallen 4.7%, 9.6%, and 16.8%, respectively. The broader market S&P 500 (SPY) also fell by 5.6% during the same period.

Deere’s continued revenue growth due to positive developments could help the stock recover some of its lost ground. Deere now expects its fiscal 2018 revenues to grow by 30%. During the quarter, Deere completed the acquisition of PLA, which could help its revenue grow. Further, Deere is expected to increase the prices of its products. Plus, the launch of new products is expected to drive growth.

Moving averages

Deere is trading 1.2% below its 100-day moving average price of $144.33, which indicates weakness in the stock. However, Deere’s 14-day relative strength index of 46 indicates that the stock isn’t overbought or oversold.


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