deer
deer
EN
$30.35
7.53%
251%
IBD stock analysis
- Has 448.50 buy points
- Bounced above the 50-day moving average on Friday in big volume on strong gains
Industry Group Ranking
emerging pattern
flat base
* No real-time data. All data shown was captured on 02/17/2023 at 1:12 PM EST.
deer (DE) on Friday raised earnings prospects for 2023 on robust demand for agricultural and construction machinery after quarterly earnings more than doubled. DE shares bounced, offering early entry and working toward a traditional buy point.
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Deere Earnings Beat and Raise
As an industrial pioneer, Deere has shrugged off recession and inflation fears to deliver solid profits. Last year, higher commodity prices made farmers buy both new and upgraded machines.
In the fiscal first quarter ended Jan. 29, the tractor maker reported a 124% increase in EPS on a 32.2% increase in total revenue, beating both estimates. Earnings growth accelerated for the second straight quarter.
“Overall, the quarter “demonstrated Deere’s ability to produce and drive positive prices for its technology-driven products,” wrote William Blair analyst Lawrence De Maria in a Feb. 17 note.
Deere CEO John May said a better operating environment translates into higher production levels.
Additionally, Deere’s 2023 guidance for net income came in well above consensus estimates of $8.31 billion.
DE warehouse
Shares rose 7.5% to 433.31 in a big way in the stock market today. DE shares surged above the 50-day moving average, hitting that level for the first time since Jan. 18.
While investors could open a position here, perhaps they should wait. Deere stock is working its way up with a buy point of 448.50 on the right side of a flat base. The shallow base formed alongside a much deeper consolidation.
The flat base began after Deere stock rose from its fiscal fourth-quarter results.
inflation, supply chain
The farm giant faced a difficult 2022 due to supply issues and rising inflation. Still, Deere’s earnings remained solid, helped by demand for its iconic green tractors.
On Friday, Deere gave a far better-than-expected outlook for 2023. CEO John May cited solid fundamentals and low inventories.
China’s post-pandemic reopening is another likely driver for DE stocks.
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