- Deere & Company stock price (NYSE: DE) is currently trading at $432.95 while witnessing a -3.00% decrease during the intraday session.
- The year-to-date return of DE stock price is 1.16% and three month return is 16.25%.
Deere & Company, also known as John Deere, is a leading American agriculture machinery and heavy equipment manufacturing company which engages mainly in 3 segments-
- Agriculture and Turf
- Construction and Forestry
- Financial Services
The first two offer the manufacturing and distribution of equipment, machines and service parts used in the field of agriculture, turf, construction, earthmoving, road building, and timber harvesting.
The last focuses on the sales and leases perform by DE dealers of new and used equipment mentioned above.
John Deere stock price has witnessed a remarkable hike in price since the start of June, roughly about 30.44% hike from the lows of $345 to the highs of $450. This event occurred during June 1, 2023, to the present date July 27, 2023 time frame.
Despite global supply-chain of semiconductors and other raw materials, the DE stock price has been gaining from the high replacement demands, and the need for its versatile equipment. The company launched a new product with advanced technology envisioned for automation farming and improved pricing.
Surge in Demand of John Deere Equipments
The major factor affecting the growth of the DE stock price is the heavy demand of new and improved equipment, which was entirely pre-booked till the fourth quarter of fiscal 2023.
Amid the Ukraine-Russia war, the Black Sea Grain initiative was presented by Türkiye and was brought into action by the U.N.. It decreased the globe’s food shortage and increased the supply chain of agricultural machinery and heavy equipment. Analysts believe companies like Deere & Company are benefiting from this contingency.
Sales projection in the North America region for the construction and forestry segments is up to 10-15% in fiscal 2023. The earnings per share analyst forecast is reported while keeping in consideration of previous reported earnings of estimated $8.21 for the 3rd quarter of 2023.
The current sales analyst forecast is estimated to be $14.1 Billion for the 3rd quarter and yearly forecast is estimated to be $55.3 Billion by 2023.
Technical analysis
The Relative Strength Index (RSI) trades at 58.15 during the intraday session. RSI denotes the bullish momentum, as the RSI indicates the strength in the market.
The Chaikin Money Flow score is 0.10, the CMF moves in upward momentum, and the rise in participation of buyers in the market remains in the past 24 hours.
The John Deere srock price is currently trading above the 20, 50, 100, and 200-day EMA, indicating strength in the market. However, it has witnessed downward momentum in the price from the previous week.
Conclution
As the recent development in geopolitics results in rapid growth in global infrastructure and global food security John Deere will benefit in the long run.
Technical Levels
Major support: $449 and $418
Major resistance: $345 and $395
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
