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Buy or Sell Deere Stock Ahead of Its Upcoming Earnings?
John DeereJohn Deere(US:DE) Forbesยท2025-08-12 14:55

Core Insights - Deere (NYSE: DE) is expected to release earnings on August 14, 2025, with analysts predicting earnings of $4.59 per share and revenues of $10.33 billion, a decline from the previous year's earnings of $6.29 per share and revenues of $11.39 billion [4] - Over the past five years, Deere's stock has increased by 100%, outperforming the S&P 500, which gained around 70% during the same period, indicating a better fit for long-term investors rather than short-term traders [3] - The company's current market capitalization stands at $138 billion, with $44 billion in revenue over the past twelve months, yielding an operating profit of $9.4 billion and a net income of $5.7 billion [5] Trading Strategies - For event-driven traders, two main strategies are suggested: assessing historical probabilities to take positions before earnings and analyzing immediate and medium-term returns post-earnings to adjust positions accordingly [7] - Historical data shows that in the past five years, Deere's stock had a balanced distribution in one-day performance post-earnings, with 50% of cases resulting in negative returns (median -3.1%) and 50% in positive returns (median +5.2%) [10] Correlation and Performance - There is a correlation between short-term (1D) and medium-term (5D, 21D) returns following earnings, which can be leveraged for trading strategies [8] - The performance of peers can influence Deere's stock reaction post-earnings, with historical comparisons showing how peer earnings impact stock performance [9]