Deere ascents 5.33 percent despite modest market dip

In this story I am going to address all Deere shareholders. I will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. Will avarage Deere analyst consensus change from Buy? The current consensus of 15 analysts on Deere is Buy. Macroaxis considers Deere to be very steady. Deere Company secures Sharpe Ratio (or Efficiency) of -0.0928 which denotes the organization had -0.0928% of return per unit of standard deviation over the last 1 month. Macroaxis philosophy in predicting risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Deere Company exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Deere Company Mean Deviation of 1.3 to check risk estimate we provide.
Published over a year ago
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Reviewed by Vlad Skutelnik

The company reports 45.43B of total liabilities with total debt to equity ratio (D/E) of 369.8 which implies that the company may not be able to produce enough cash to satisfy its debt commitments. This firm dividends can provide a clue to current valuation of the stock. Deere one year expected dividend income is about $1.37 per share. Let me now go over Deere Retained Earnings. Based on latest financial disclosure Deere Company has Retained Earnings of 8.06B. This is 22.1% lower than that of the Industrials sector, and 232.7% higher than that of Farm & Construction Equipment industry, The Retained Earnings for all stocks is 13.58% higher than the firm.
What is the right price you would pay to acquire a share of Deere? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Deere Company this year

Annual and quarterly reports issued by Deere Company are formal financial statements that are published yearly and quarterly and sent to Deere stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Deere often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

Deere Gross Profit

Deere Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Deere previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Deere Gross Profit growth over the last 10 years. Please check Deere's gross profit and other fundamental indicators for more details.

What is driving Deere Investor Appetite?

Analysts have increased confidence in the organisation as compared to a month ago. The current consensus of 15 analysts is Buy. Deere Company reports 45.43B of total liabilities with total debt to equity ratio (D/E) of 369.8 which implies that Deere may not be able to produce enough cash to satisfy its debt commitments. The entity has Current Ratio of 1.97 which is generally considered normal. Deere Company price decrease over the last few months could raise concerns from investors as the firm closed today at a share price of 153.61 on 1828730.000 in volume. The company management were not very successful in positioning the firm components to exploit market volatility in July. However, diversifying your holdings with Deere Company or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.9779. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Deere maintains current asset of 12.18b. Deere is trading at 154.86 which is 5.33 percent increase. Opened at 154.86. Deere Operating Expenses is rather stable at the moment. Deere Return on Average Equity is increasing over the last 4 years. The previous year value of Deere Return on Average Equity was 0.29. Furthermore, Deere Price to Book Value is increasing over the last 4 years.
 2015 2016 2017 2018 2019 (projected)
Deere Receivables 3,328,300,000  4,248,900,000  5,370,300,000  4,833,270,000  4,210,904,211 
Deere Inventories 3,340,500,000  3,904,100,000  6,148,900,000  5,534,010,000  4,653,933,684 
To sum up, we believe that at this point Deere is very steady with below average chance of distress within the next 2 years. Our actual 'Buy/Hold/Sell' recommendation on the firm is Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Deere Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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