2024-05-13 07:50:00 ET
Summary
- Deere's earnings are coming with analysts racing to revise down their expectations.
- Deere is also considered a cyclical stock, meaning it is an unreliable investment with poor prospects.
- Deere stock, however, is in value territory and, in case of post-earnings drops, we might find ourselves before a very compelling opportunity.
John Deere Heading Into Earnings
Deere & Company ( DE ) is about to report its Q2 earnings and in the last 90 days, we have had 19 down revisions and only 1 up revision. Expectations are low, with EPS forecasted to be 21% lower YoY. As Deere reached the peak of its cycle, DE stock has started to move around between $350 and $450, consolidating within that range, but without being able to keep up with the general market. As a result, DE shares have been underperforming the S&P 500 ( SPY ) in the past three years.
When Deere reported its FY 2023 results, which were outstanding, the outlook for its 2024 sales was weak and 10% to 15% declines were expected across all segments....
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For further details see:
Deere 'Rollercoaster' Earnings: Don't Scream On The Way Down And Forget To Enjoy The Up