Investing.com - Financial Markets Worldwide

Deere Shares Drop After Earnings. More Risk Ahead

BySteve Miller
Published 11/28/2019, 02:51 AM
DE
3.36%

Summary:

  • Deere & Company (NYSE:DE) fell 4% on Wednesday after the company met Wall Street earnings expectations while falling short on guidance.

  • Based on its market cycles, we believe the stock has more risk in the coming months.
John Deere (DE) Stock Weekly Chart

The company reported earnings per share of $2.14 and total revenue of $8.7 billion, compared to analyst estimates of $2.14 and $8.5 billion. Looking forward, management said that for 2020 it expects to earn $9.20 per share, compared to the $11.01 consensus.

CEO John May said that, “Lingering trade tensions coupled with a year of difficult growing and harvesting conditions have caused many farmers to become cautious about making major investments in new equipment.”

Our approach to stock analysis uses market cycles to project price action. Our analysis shows that DE may have topped. Our target is for the stock to drop to near $160, with chance for $150 in coming months.

For the “Best and Worst Stocks of the Week” check out the askSlim Market Week show every Friday on our YouTube channel.

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