Should You Run With Deere After Big Beat-and-Raise Quarter? - 24/7 Wall St.[S&P 5006,842.20 -0.56%][Dow Jones49,245.00 -0.83%][Nasdaq 10024,729.40 -0.63%][Russell 20002,642.68 -0.59%][FTSE 10010,638.20 -0.67%][Nikkei 22556,868.00 -1.18%][Stock Market Live February 19, 2026: S&P 500 (SPY) Slips on Walmart Outlook][Investing]# Should You Run With Deere After Big Beat-and-Raise Quarter?### Quick ReadDeere ([DE]) beat Q1 expectations with equipment sales of $8B, up 17.5%. Deere raised full-year net income guida ...

Market Overview - The U.S. stock market experienced volatility, with the S&P 500 finishing just one-third of a point lower, while the Dow and Nasdaq saw slightly larger declines of -0.13% and -0.16% respectively. The Russell 2000 was the worst performer, declining by -0.38% due to concerns about potential rate cuts being delayed by a strong job market [2]. Company-Specific Updates - Ernst & Young flagged a $27 billion data-center project by Meta as a "critical audit matter," which was not included on the company's balance sheet. This project, named the Hyperion Data Center, is a joint venture with Blue Owl Capital and was announced in late October [3]. - The precarious nature of large off-balance sheet deals has drawn comparisons to the Dot-com Bubble, where such practices were linked to questionable business behavior [4]. Stock Performance Winners - Diodes, Inc. (Ticker: DIOD) saw a significant increase of 29.60%, closing at $79.96 with a market cap of $3.71 billion [6]. - Teradata Corp (Ticker: TDC) rose by 24.89%, closing at $36.51 with a market cap of $3.40 billion [6]. - BorgWarner Inc. (Ticker: BWA) increased by 22.33%, closing at $66.03 with a market cap of $14.13 billion [6]. - Vertiv Holdings Co. (Ticker: VRT) gained 19.22%, closing at $237.98 with a market cap of approximately $90.998 million [6]. - Generac Holdings Inc. (Ticker: GNRC) rose by 17.22%, closing at $213.70 with a market cap of $12.54 billion [6]. Losers - The midday market showed that nearly two-thirds of U.S. issues were declining, with the Russell 2000 down by 1.12% [5].

Group 1 - Alamo Group Inc. (ALG) designs and manufactures high-quality agricultural equipment and provides infrastructure maintenance, with a nearly 10% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Azenta, Inc. (AZTA) offers life sciences solutions, including sample management and laboratory automation, experiencing an 11.8% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Chipotle Mexican Grill, Inc. (CMG) is a restaurant chain that has seen a 2.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Company Overview - PACCAR Inc. is based in Bellevue, Washington, and specializes in designing, manufacturing, and distributing light, medium, and heavy-duty commercial trucks, with a market cap of $55.4 billion [1] - The company also offers aftermarket parts, financial services, and technology-driven transport solutions, highlighting its diversified business model [1] Market Position - PACCAR is classified as a "large-cap stock" due to its market cap exceeding $10 billion, indicating its significant size and influence in the farm and heavy construction machinery industry [2] - The company is actively investing in next-generation technologies, including zero-emission trucks, autonomous driving, and advanced telematics, to enhance fleet efficiency and sustainability [2] Stock Performance - Currently, PACCAR's shares are trading 12.5% below their 52-week high of $118.81, reached on December 4, 2024, while the stock has gained 4% over the past three months, outperforming the Dow Jones Industrial Average's 3.8% rise [3][4] - Year-to-date, PACCAR shares are down slightly, contrasting with the Dow Jones Industrial Average's 11.2% return, and have decreased 11.1% over the past 52 weeks, underperforming the Dow's 5.3% increase [4] Recent Financial Performance - Following the Q3 earnings release on October 21, PACCAR's shares surged 2.4%, despite a 20.7% year-over-year decline in net sales to $6.1 billion, which still surpassed consensus estimates by 1.7% [5] - The company reported 31,900 global truck deliveries in the quarter and achieved record PACCAR parts revenues of $1.7 billion, although its EPS decreased 39.5% year-over-year to $1.12, aligning with analyst expectations [5] Competitive Landscape - PACCAR has underperformed compared to its rival, Oshkosh Corporation, which saw a 12% increase over the past 52 weeks and a 33.9% rise year-to-date [6] - Analysts maintain a moderately optimistic outlook for PACCAR, with a consensus rating of "Moderate Buy" from 18 analysts and a mean price target of $107.47, suggesting a 3.4% premium to current price levels [6]

Core Insights - Deere & Company is a leading American multinational with a market cap of $127 billion, making it a large-cap stock in the agricultural and heavy construction machinery industry [2]. Financial Performance - In Q4 2025, Deere reported net sales of $12.02 billion, a 9% decline year-over-year, with net income dropping to $1.29 billion or $4.75 per share from $1.73 billion or $6.29 per share a year earlier [5]. - The company's operating profit fell 32% to $1.57 billion, indicating compressed margins [5]. - Full-year net-income guidance was narrowed to $4.75–$5.25 billion, reflecting challenging market conditions and weaker equipment demand [6]. Segment Performance - The Production & Precision Agriculture segment experienced a 16% decline in sales and a 50% drop in operating profit [6]. - The Construction & Forestry segment also saw a 5% decrease in sales, with profits nearly halved [6]. Stock Performance - DE stock has decreased 12% from its all-time high of $533.78 on May 16 and has dropped 3.7% over the past three months, underperforming the Nasdaq Composite's 7.8% rise [3]. - Year-to-date, DE stock has increased by 10.9% and 1.9% over the past 52 weeks, although it has lagged behind the Nasdaq's 20.2% and 21.1% increases respectively [4].

Core Insights - Caterpillar Inc. is a leading manufacturer in the construction and mining equipment sector, with a market capitalization of $265.2 billion, indicating its significant influence in infrastructure, mining, energy, and transportation projects globally [1][2] Company Performance - Caterpillar's stock is currently trading 4.8% below its 52-week high of $596.21, reached on October 29, and has seen a rally of 31.9% over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) [3] - Year-to-date, Caterpillar shares have increased by 57.3%, significantly higher than XLI's 15.5% rise, and over the past 52 weeks, the stock has soared 39.9%, compared to XLI's 5.9% increase [4] - Following the release of impressive Q3 earnings, Caterpillar's shares rose by 11.6%. The company reported a 9.5% year-over-year revenue increase to $17.6 billion, exceeding consensus estimates by 5.3% [5] Competitive Position - Caterpillar has outperformed its main competitor, Deere & Company, which gained 4% over the past 52 weeks and 13.2% year-to-date. Analysts maintain a moderately optimistic outlook for Caterpillar, with a consensus rating of "Moderate Buy" from 23 analysts [6]

Core Insights - Deere & Company (DE) is valued at a market cap of $127.8 billion and operates in manufacturing agricultural, construction, forestry machinery, and financial services [1] Financial Performance - Analysts expect DE to report a profit of $3.96 per share for fiscal Q4 2025, a decrease of 13% from $4.55 per share in the same quarter last year [2] - For fiscal 2025, DE's expected profit is $18.57 per share, down 27.5% from $25.62 per share in fiscal 2024, but projected to rebound to $19.99 in fiscal 2026, reflecting a year-over-year growth of 7.7% [3] Stock Performance - DE's stock has increased by 17.6% over the past 52 weeks, outperforming the S&P 500 Index's return of 16.9% and the Industrial Select Sector SPDR Fund's 15% increase [4] Recent Developments - Despite reporting better-than-expected Q3 total revenue of $12 billion and EPS of $4.75, DE's shares fell by 6.8% due to a decline in net sales across all major segments, particularly a 16.2% drop in the Production & Precision Agriculture division [5] - The company has narrowed its fiscal 2025 net income guidance, citing challenges from high interest rates and trade uncertainties affecting demand, especially in North America [6] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for DE, with 11 out of 23 analysts recommending "Strong Buy," 2 suggesting "Moderate Buy," 9 advising "Hold," and 1 indicating "Strong Sell." The mean price target for DE is $523.52, suggesting a potential upside of 10.7% from current levels [7]