Core Viewpoint - Deere & Company (NYSE:DE) has shown significant stock performance with a 28% increase over the past year and a 31% increase year-to-date, despite a challenging financial outlook [1]. Financial Performance - In the fiscal first quarter, Deere reported a profit of $869 million, reflecting a 50% decrease compared to the previous year [1]. - The company also reported $8.5 billion in net income and revenue, indicating a 30% annual decline [1]. - Previous financial struggles were noted, particularly in the fourth quarter, where tariff pressures were expected to continue affecting margins [1]. Analyst Ratings and Price Targets - Jefferies raised Deere's share price target to $475 from $440 while maintaining a Hold rating, emphasizing the firm's growth strategy reliant on services [1]. - BMO Capital maintained a Market Perform rating with a price target of $460, praising the company's growth targets [1]. Market Sentiment - Jim Cramer expressed a positive sentiment regarding Deere's quarter, indicating confidence in the company's performance despite the financial challenges [2][4].

Group 1: Industry Overview - The industrial sector is experiencing growth driven by increased demand for infrastructure, particularly in semiconductors, data centers, and aerospace, supported by rising U.S. defense spending [1] - The manufacturing sector is showing signs of recovery, with the ISM Manufacturing PMI rising to 52.6, indicating expansion and the fastest growth in new orders since 2022 [3] - The industrial sector is benefiting from long-term tailwinds such as lower interest rates, a rebounding manufacturing cycle, and the adoption of agentic AI [6] Group 2: Company Performances - Illinois Tool Works operates with an 80/20 business model across seven divisions, focusing on high-value clients to mitigate cyclical risks [7] - Honeywell plans to spin off its Aerospace division to concentrate on industrial automation, with the split expected to be completed by Q3 2026 [9] - Deere and Company has transformed into a tech-oriented firm with high-margin revenue from automated farming equipment, reporting a 14% year-over-year revenue increase to $12.39 billion [12][13] Group 3: Stock Performance - The Industrial Select Sector SPDR Fund has gained nearly 13% year-to-date, indicating a breakout in the industrials sector amidst a market rotation away from tech stocks [4] - Illinois Tool Works, Honeywell, and Deere are all hitting new all-time highs, reflecting positive market sentiment and optimistic forecasts for 2026 [5] - Deere's stock has reached a new all-time high, driven by strong technical trends and investor confidence despite potential tariff headwinds [15]

Core Insights - Deere (DE) is expected to report quarterly earnings of $1.92 per share, reflecting a decline of 39.8% year-over-year, while revenues are forecasted to reach $7.6 billion, an increase of 11.7% year-over-year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Revenue Projections - Analysts estimate 'Net Sales and Revenues- Production & precision ag net sales' at $3.05 billion, indicating a decrease of 0.6% from the prior-year quarter [4] - 'Net Sales and Revenues- Equipment Operations- Net sales' is projected to reach $7.58 billion, suggesting an increase of 11.3% year-over-year [4] - 'Net Sales and Revenues- Small ag & turf net sales' is expected to be $2.16 billion, reflecting a growth of 23.7% from the year-ago quarter [5] - 'Net Sales and Revenues- Other revenues' is estimated at $223.12 million, indicating a decline of 2.6% from the prior-year quarter [5] Financial Services Revenue - The consensus estimate for 'Net Sales and Revenues- Financial services revenues' stands at $1.38 billion, suggesting a decrease of 5.9% year-over-year [6] - 'Net Sales and Revenues- Financial services- Total' is projected at $1.49 billion, indicating a year-over-year change of -5.6% [6] - 'Net Sales and Revenues- Financial services- Other Income' is expected to reach $118.14 million, reflecting a slight increase of 0.1% from the prior-year quarter [7] - 'Net Sales and Revenues- Financial services- Finance and Interest Income' is estimated at $1.37 billion, indicating a year-over-year decline of 6% [7] Overall Performance - Analysts forecast 'Net Sales and Revenues- Net sales' to reach $7.55 billion, suggesting a change of +10.9% from the year-ago quarter [8] - 'Net Sales and Revenues- Equipment Operations- Finance and interest income' is projected at $109.94 million, indicating a slight decline of 0.1% from the prior-year quarter [8] - The consensus for 'Net Sales and Revenues- Equipment Operations- Other income' is $196.47 million, reflecting a year-over-year change of -2.7% [9] - Over the past month, Deere shares have increased by 16.1%, contrasting with the Zacks S&P 500 composite's decline of 2% [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Deere (DE) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Deere is expected to report quarterly earnings of $1.92 per share, reflecting a year-over-year decrease of 39.8%, while revenues are projected at $7.6 billion, an increase of 11.7% from the previous year [3]. - The earnings report is scheduled for release on February 19, and better-than-expected results could lead to a stock price increase, whereas missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.07% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for Deere is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.13%, suggesting a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Historically, Deere has beaten consensus EPS estimates three out of the last four quarters, which may influence future earnings predictions [14]. Industry Comparison - CNH Industrial (CNH), a competitor in the agricultural equipment sector, is expected to report earnings of $0.11 per share, a year-over-year decline of 26.7%, with revenues projected at $5.02 billion, up 2.9% from the previous year [18]. - CNH's consensus EPS estimate has remained unchanged, but a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.08%, combined with a Zacks Rank of 4, making predictions of an earnings beat challenging [19].

Core Insights - Deere & Company has announced the five startups selected for its 2026 Startup Collaborator Program, aimed at enhancing interactions with startups that can provide valuable technology for agriculture, construction, and roadbuilding sectors [1][2] Group 1: Program Overview - The Startup Collaborator Program was initiated in 2019 to foster collaboration with startups addressing critical challenges in various industries [2] - The program focuses on technologies that improve precision, productivity, and sustainability for customers through innovations such as real-time equipment insights, AI-driven robotics, and digital crop intelligence [2][3] Group 2: Participating Startups - The 2026 cohort includes five startups: AIRS ML, IoTag, resonAg, TorqueAGI, and Aerobotics, each bringing complementary technologies in monitoring, sensing, AI, robotics, and data-driven insights [3][4] - AIRS ML specializes in on-device intelligence for real-time monitoring and predictive maintenance [4] - IoTag offers a telematics solution that optimizes performance across mixed fleets for agricultural and construction customers [4] - resonAg focuses on advanced soil sensing systems for precision agriculture, adapting technologies from other sectors [4] - TorqueAGI is developing an AI foundation model for enterprise robots capable of real-world reasoning and autonomy [4] - Aerobotics aids the fruit industry in making sustainable farming decisions using drone imagery and AI for yield estimation and operational optimization [4]

Company Overview - Deere & Company, headquartered in Moline, Illinois, manufactures and distributes agricultural, construction, forestry, and commercial and consumer equipment, with a market cap of $160.9 billion [1]. Stock Performance - Shares of Deere have outperformed the broader market over the past year, gaining 29.2% compared to the S&P 500 Index's 14.4% increase [2]. - Year-to-date, DE stock is up 31.6%, significantly surpassing the S&P 500's 1.4% rise [2]. - Compared to the First Trust Indxx Global Agriculture ETF, which gained 26.6% over the past year, DE's returns also outshine the ETF's 17.3% gains year-to-date [3]. Financial Results - On November 26, 2025, DE shares closed down by 5.7% after reporting Q4 results, with an EPS of $3.93, which fell short of Wall Street expectations of $3.96 [5]. - The company's net sales were reported at $10.6 billion, exceeding Wall Street forecasts of $10 billion [5]. Earnings Expectations - For the current fiscal year ending in October, analysts expect DE's EPS to decline by 9.1% to $16.82 on a diluted basis [6]. - The earnings surprise history for the company is mixed, having beaten consensus estimates in three of the last four quarters while missing on one occasion [6]. Analyst Ratings - Among the 24 analysts covering DE stock, the consensus rating is a "Moderate Buy," consisting of 11 "Strong Buy" ratings, two "Moderate Buys," and 11 "Holds" [6]. - The analyst configuration has become more bullish compared to three months ago, with 12 analysts now recommending a "Strong Buy" [7]. - Adam Seiden from Barclays PLC maintained a "Buy" rating on DE with a price target of $530, while the Street-high price target of $724 suggests an upside potential of 18.2% [7].

Group 1 - The fourth quarter earnings season is nearing completion, with 74% of S&P 500 companies having reported results, showing a blended earnings growth of 13.2%, which would mark the 10th consecutive quarter of annual earnings growth and the fifth consecutive quarter of double-digit growth [1] - Analysts had initially expected an 8.3% increase in earnings per share, a decrease from the previous quarter's 13.6% growth rate, but Wall Street has raised expectations, particularly for tech companies, which have been significant contributors to earnings growth [2] - Companies that missed earnings estimates have experienced an average stock decline of 2% during this earnings period, which is an improvement compared to the 2.8% decline seen over the past five years for similar misses [3] Group 2 - Major capital expenditures by Big Tech companies are influencing the AI trade, with ongoing themes such as artificial intelligence, economic policies from the Trump administration, and a K-shaped consumer economy continuing to provide investment opportunities [4] - Upcoming earnings reports from notable companies such as Walmart, Deere & Co., Analog Devices, Booking Holdings, DoorDash, and eBay are anticipated, which will further inform market trends and investor sentiment [4]

Core Insights - India's infrastructure boom is creating significant opportunities for U.S. industrial companies, particularly in sectors like agriculture, power, aviation, and renewable energy [1][2] - Six companies are highlighted as key beneficiaries of this growth: Caterpillar, Eaton, GE Aerospace, GE Vernova, Honeywell, and Deere [1][2] Company Summaries - **Caterpillar**: Achieved record Q4 2025 revenue of $19.13 billion, up 18% year-over-year, with a backlog of $51 billion. The stock has increased 29.9% year-to-date and 107.24% over the past year, benefiting from India's infrastructure spending [1] - **Eaton**: Reported record segment margins of 24.9% in Q4 2025, with Electrical Americas sales rising 21% to $3.5 billion. The stock has gained 18.51% year-to-date, driven by demand for data centers and renewable energy [1] - **GE Aerospace**: Generated Q4 2025 revenue of $12.72 billion, with orders surging 74% to $27 billion. The stock has increased 54.14% over the past year, capitalizing on India's aviation expansion [1] - **GE Vernova**: Recorded Q4 2025 revenue of $11.00 billion, a 4% year-over-year increase. The Electrification segment surged 28% to $9.6 billion, with a stock gain of 21.08% year-to-date, supported by grid modernization efforts [1] - **Honeywell**: Q4 2025 revenue was $9.76 billion, with orders up 23% and a backlog exceeding $37 billion. The stock has surged 24.73% year-to-date, driven by India's smart city initiatives [1] - **Deere**: Reported Q4 2025 revenue of $12.39 billion, up 14% year-over-year, with a 27% increase in its Construction & Forestry segment. The stock has gained 27.46% year-to-date, benefiting from agricultural mechanization trends in India [1]

分组1 - Analysts are generally cautious or bearish on Deere (DE), with recent ratings showing only 2 buys, 4 holds, and 4 sells [1] - Despite the negative sentiment from analysts, Deere's stock continues to perform well, defying expectations [1] 分组2 - The article emphasizes the importance of sustained profitability, including strong margins, stable and expanding free cash flow, and high returns on invested capital, as key drivers of investment returns [1] - The author manages a portfolio on eToro, focusing on undervalued growth stocks and high-quality dividend growers, indicating a strategic investment approach [1]

Core Insights - Deere (DE) shares increased by 4.1% to $567.26, with a notable trading volume, and have gained 12.2% over the past four weeks [1] - The company showcased new equipment at the 2026 GCSAA Conference, focusing on precision, performance, and operator experience [1][2] Financial Performance - Deere is projected to report quarterly earnings of $1.92 per share, reflecting a year-over-year decline of 39.8%, while revenues are expected to reach $7.6 billion, an increase of 11.7% from the previous year [3] - The consensus EPS estimate for Deere has been slightly revised upward in the last 30 days, indicating a potential for price appreciation [4] Industry Context - Deere holds a Zacks Rank of 3 (Hold) and is part of the Zacks Manufacturing - Farm Equipment industry, where CNH Industrial (CNH) also operates, having closed 6.6% higher at $11.96 [5] - CNH's EPS estimate remains unchanged at $0.11, representing a year-over-year decline of 26.7%, and it currently has a Zacks Rank of 4 (Sell) [6]