Weekly Recap | Deere +6.34%, beats and raises guidance

The Week

Deere gained 6.34% this week, closing at $647.47 and outperforming the S&P 500 by roughly 7.77 percentage points. The stock carved out a sharp V-shaped recovery across a 12.36% trading range. Selling pressure early in the week pushed the price to a low of $579.31 by Wednesday, before a powerful earnings-driven rally on Thursday and Friday sent it to an intraday high of $654.28 — just shy of record territory. Weekly volume ran over 65% above the median, signalling heavy institutional participation.

Key Events

The week revolved around Deere’s fiscal Q3 results, released before Thursday’s open. Net income rose 7% year-on-year to $1.38 billion, while net sales climbed 6% to $11 billion, snapping a multi-quarter streak of declines. The Construction & Forestry segment stood out as the main growth engine, and management raised the lower end of its full-year 2026 net income guidance. On the earnings call, executives flagged data-centre construction as a structural demand driver for the construction equipment business. The stock surged 6.9% on Thursday and added another 4% on Friday, briefly making it the best performer in the S&P 500 for the day.

Analyst Ratings

Deere is covered by 24 analysts: 8 rate it buy, 5 overweight, and 11 hold, with no underweight or sell ratings. The consensus recommendation is ‘buy’, and the consensus target price sits at $661.03, implying roughly 2.1% upside from the current level. Individual targets range from $500 to $804, reflecting a wide divide between those focused on the agricultural cycle and those betting on construction demand. Deere ranks first among 11 peers in the agricultural machinery industry based on analyst ratings.

The Week Ahead

On the macro front, Tuesday brings US consumer confidence, new home sales, and the Case Shiller home price index — housing-related data points that can colour expectations for construction equipment demand. On the company side, Deere’s fiscal Q4 results are scheduled for 25 November, with consensus estimates currently at roughly $4.14 in EPS and $10.5 billion in revenue. Any management commentary on the data-centre pipeline will be a key signal to watch.

In Short

Deere broke a run of negative sentiment this week with a beat-and-raise quarter that introduced data-centre demand as a fresh narrative. The analyst community leans positive, though the wide target-price spread suggests the market is still wrestling with the timing of an agricultural recovery. At ~35.9x trailing earnings and ~6.25x book, the stock is not cheap, so the durability of this rally likely hinges on whether data-centre orders translate into sustained revenue and whether farm fundamentals begin to stabilise.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.