Deere Story

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DE -- USA Stock  

USD 305.17  0.33  0.11%

It looks as if Deere will continue to recover much faster as its share price surged up 0.15% today. The company's current daily volatility is 1.81 percent, with a beta of 0.4 and an alpha of 0.38 over DOW. As many baby boomers are still indifferent towards current market swings, it makes sense to digest Deere Company. We will evaluate if Deere shares are reasonably priced going into December.
Published over a month ago
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Should you buy Deere after the latest volatility dip?
Deere Company reports roughly 8.35 B in cash with 7.06 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 26.65. On a scale of 0 to 100, Deere holds a performance score of 13. The firm shows a Beta (market volatility) of 0.3978, which means possible diversification benefits within a given portfolio. Let's try to break down what Deere's beta means in this case. As returns on the market increase, Deere returns are expected to increase less than the market. However, during the bear market, the loss on holding Deere will be expected to be smaller as well. Although it is vital to follow Deere Company historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Deere Company technical indicators, you can presently evaluate if the expected return of 0.36% will be sustainable into the future. Please utilizes Deere Company jensen alpha, maximum drawdown, and the relationship between the coefficient of variation and sortino ratio to make a quick decision on whether Deere price patterns will revert.
Investing in Deere, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Deere along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Deere's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Deere in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Deere. Your research has to be compared to or analyzed against Deere's peers to derive any actionable benefits. When done correctly, Deere's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Deere Company.

How important is Deere's Liquidity

Deere financial leverage refers to using borrowed capital as a funding source to finance Deere Company ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Deere financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Deere's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Deere, but it might be worth checking our own buy vs. sell analysis

Deere Correlation with Peers

Investors in Deere can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Deere Company. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Deere and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Deere is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Deere for more details

What is driving Deere Investor Appetite?

Deere appears to be very steady, given 1 month investment horizon. Deere Company secures Sharpe Ratio (or Efficiency) of 0.2, which denotes the company had 0.2% of return per unit of standard deviation over the last month. Our philosophy in predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Deere Company, which you can use to evaluate future volatility of the firm. Please utilize Deere Company Downside Deviation of 1.85, mean deviation of 1.35, and Semi Deviation of 1.44 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Possible December bounce-back of Deere?

Deere latest semi variance ascents over 2.06. Deere Company has relatively low volatility with skewness of -0.32 and kurtosis of 1.66. However, we advise all investors to independently investigate Deere Company to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Deere Investment

Although some companies under the farm & heavy construction machinery industry are still a bit expensive, Deere may offer a potential longer-term growth to shareholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your Deere holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Deere.

About Contributor

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 Gabriel Shpitalnik 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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