DE Stock Analysis — John Deere
Sector: Industrials
AI Verdict
Deere trades at 28.2x next year's earnings while analysts expect 17.9% EPS growth — that's paying up for its digital moat, but the price is only fair if its software and data strategy keeps delivering.
Competitive Moat
John Deere dominates agricultural and construction machinery thanks to its proprietary equipment, dealer network, and integrated software platforms that lock in customers. Its precision agriculture tools and telematics create data-driven switching costs, making it hard for farmers to leave the Deere ecosystem.
Summary
Deere's push into precision agriculture and connected equipment is driving both hardware sales and recurring software revenue.
Where It Stands
Deere is up 14.53% over the past year, trades at 28.2x forward earnings versus the industrials median of 20x, and its RSI of 46.3 signals the stock is cooling after recent gains.
Key Metrics
- RSI: 46.3 — Neutral
- Trailing P/E: 33.3x
- Forward P/E: 28.2x
- PEG Ratio: 1.61
- Earnings Growth: +0.2%
- Revenue Growth: +0.0%
- Market Cap: $158.4B
- Dividend Yield: 0.01%
- 1-Year Return: 14.53%
- 52-Week High: $674.19
- 52-Week Low: $433.00
Analyst Consensus
21 Buy · 13 Hold · 0 Sell (34 analysts)
Bull Case
Forward EPS growth of 17.9% paired with a 28.2x forward P/E means you're paying a fair multiple for double-digit earnings growth, especially if Deere's digital moat keeps competitors at bay.
Bear Case
If the P/E compresses to the sector median of 20x, the stock would drop about 29% from here, and at a trailing PEG of 1.61, you're not getting a bargain for the growth on offer.
Catalyst to Watch
Watch for adoption rates and margins from Deere's precision ag and software offerings — if these accelerate, the growth story strengthens.