Investment View on Deere & Company (NYSE: DE)

The US earnings season is still ongoing, and with upside surprises like the agricultural machinery and tractor company Deere, we might see some interest in the financial markets.

Despite the US Fed’s approach to curbing inflation with rising interest rates, the Industrial Index (XLI) has been holding up nicely, and so has Deere & Company’s share price.


A broader continuation triangle pattern can be seen as the price action broke through the $393.93 resistance level, retested this significant level, and moved higher. The premarket price is gapping higher from current price levels, and a gap-and-go scenario exists toward the all-time high of $446 a share. If the gap closes, we could expect the major breakout zone at $393.93 to be retested before another leg higher, which should give long-term investors better entry points.


Deere and Company posted better-than-expected quarterly profits, as eased supply constraints and higher crop prices kept the farming community upgrading their machinery. The famous tractor company’s Q4 earnings report showed earnings per share increased to $7.44 from $4.12 a year earlier, with revenue up nearly 40% year-over-year. Deere mentioned in the statement that increased shipments across all segments and higher prices offset higher production costs and a stronger greenback.

The company’s forward guidance also impressed, sending shares higher in the premarket as an increase in earnings of $8.5 billion, vs. $7.13 billion this year, is expected in 2023.


Long-term investors holding Deere & Company could see higher prices back to all-time highs if the price action moves higher from current levels. New and current Deere investors could find lower entry levels if economic events damper the economic outlook, which could see prices back at the $393.93 support level.

Sources: Deere & Company, TradingView, Reuters

Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27237). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters which may include price, time, economic events, liquidity, risk, macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein.  Please consider the risks involved before you trade or invest.