Latest news with #Deere&Co
CNBC
21-05-2025
- Business
- CNBC
This Ag play at all-time highs is due for a reversal. How to trade it with options
With agricultural commodity prices facing downward pressure due to oversupply, Deere & Co (DE) is likely to face headwinds as demand for heavy machinery weakens. DE, a leading agricultural equipment manufacturer, has seen its stock rally significantly in recent months, but the recent peak suggests that the uptrend may be losing steam. This creates an opportunity to position for a potential pullback in DE, especially as macroeconomic conditions weigh on the agricultural sector. Trade timing The timing for adding bearish exposure to DE is optimal, as the stock has reached a recent all-time high and is showing signs of exhaustion with bearish divergence on the weekly RSI. While the stock made a higher high, the RSI formed a lower high, indicating weakening momentum and potential for a reversal. This divergence, combined with macro headwinds in the agricultural sector, suggests a pullback is likely, making this an attractive entry point for a bearish trade Fundamentals DE trades at a premium to its industry on a forward P-E basis, which is supported by growth and profitability metrics that exceed the industry average, however, with 6 straight quarters of revenue and EPS declines, there is substantial risk to this elevated valuation. Forward PE Ratio: 28.1x vs. Industry Median 17.8x Expected EPS Growth: 18.5% vs. Industry Average 2.5% Expected Revenue Growth: 7.8% vs. Industry Average 1.2% Net Margin: 13.0% vs. Industry Average 8.9% Bearish thesis Net Sales Decline : DE just posted a 16% YoY decline in sales with every business unit posting double digit declines across the board. Net Income Decline : The most recent quarter just saw a 22% YoY decline in EPS showing the significant challenges in agriculture equipment macroeconomic conditions. Technical Reversal Signal : The bearish divergence on the weekly RSI, with the stock hitting $532.47 while RSI fails to confirm the high, signals a potential reversal and pullback. The trade To capitalize on DE's potential downside, I'm buying a Jun 20, 2025 $530/520 Put Vertical @ $4.48 Debit. This entails: Buying the Jun 20, 2025 $530 put @ $15.73 Selling the Jun 20, 2025 $520 put @ $11.25 The maximum reward is $552 if DE is above $530 at maximum risk is $448 if DE is below $520 at expiration. The breakeven point for this trade is $525.52. View this Trade with Updated Prices at OptionsPlay This strategy positions you to benefit from DE's anticipated pullback, leveraging the bearish RSI divergence, overvaluation concerns, and macro headwinds to profit from a potential decline in this agricultural equipment stock with defined risk. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Business Insider
18-05-2025
- Business
- Business Insider
Analysts Cut Guidance Across Sectors Amid Tariff Shock – But Nvidia (NVDA) May Be the Exception
What happens when strong earnings collide with even stronger uncertainty? That's the story of Q1 2025. On paper, corporate America and global markets posted impressive numbers, beating expectations by a wide margin. But under the surface, anxiety is building. With a surge in tariff threats and geopolitical risks, companies are no longer celebrating – they're bracing. Forecasts are being pulled, guidance is sinking, and executives are sounding cautious even after solid results. It's not about what happened last quarter but what might happen next. Confident Investing Starts Here: Across the U.S., Europe, and China, companies are slashing their 2025 forecasts or pulling them altogether. The reason is soaring costs, shaky consumer sentiment, and trade disruptions linked to President Trump's latest round of tariffs. Many executives are now more focused on preparing for multiple economic scenarios than celebrating last quarter's wins. Cautioned Guidance Despite Solid Results Despite this, the S&P 500 delivered double the expected earnings growth, and Europe's Stoxx 600 beat forecasts with a 5% earnings increase. However, guidance momentum – a measure of how many companies are raising vs. lowering forecasts – has dropped to its lowest point since 2010. That's a big warning sign for markets. Mentions of 'tariffs' during earnings calls surged to a record high this season. Companies like Walmart (WMT) and Deere & Co. (DE) flagged rising costs, with DE estimating a $500 million hit in 2025. Expedia (EXPE) warned of softer U.S. travel demand, while Alibaba (BABA) reported disappointing revenue. Even Mercedes-Benz and Daimler Truck (DTG) cut their guidance due to weak North American orders and pricier parts. Some, like United Airlines (UAL), issued dual profit forecasts depending on whether we get a recession. Others, like Delta (DAL) and American Airlines (AAL), pulled their full-year outlooks completely. And yet, not all is doom and gloom. The bright spot this season was tech, especially the AI heavyweights. So far, six of the 'Magnificent Seven' have reported, and four delivered revenue guidance in line with or above expectations. Alphabet (GOOGL) kept quiet, but investors are watching closely as Nvidia (NVDA) prepares to report on May 28. In Uncertain Times, Data-Driven Investors Stay Ahead So, what does this mean for investors? Volatility is back, and forward guidance is now more influential than raw earnings. But in uncertain times, data-driven decisions matter more than ever. If you're looking for stocks analysts still believe in, check out TipRanks' Smart Score and Top Analyst Picks to stay one step ahead. Using Tipranks' Comparison Tool, we've collected all the publicly traded companies mentioned in the article, despite representing different sectors. This way, you can examine each stock and industry to form your own perspective.
Yahoo
15-05-2025
- Business
- Yahoo
Crude oil prices slide, Deere shares up on Q2 earnings beat
Yahoo Finance host Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute, including crude oil prices (CL=F, BZ=F) sliding lower on headlines that the US and Iran could be nearing closing a nuclear deal, and Deere & Co. (DE) shars surging on the farm machinery manufacturer's fiscal second quarter earnings beat. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. U.S. stocks hovering near the flat line, markets on watch for the next catalyst as the U.S.-China trade truce euphoria fades, with the S&P trying to stay steady with its three-day positive run. Investors digesting Walmart's tariff-clattered earnings, as well as fresh economic data. And JP Morgan Chase's CEO, Jamie Dimon, says he's not ruling out the possibility of a U.S. recession in an interview with Bloomberg. Oil prices seeing a slide as President Trump indicates the U.S. is getting close to reaching a nuclear deal with Iran. The move would boost oil supply onto the global market. And shares of Deere hitting an all-time high after topping earnings expectations. The earnings beat comes even as profit fell 22% compared to the same period last year. The tractor and lawn mower maker is looking to cut its net income outlook for the year amid, quote, heightened uncertainty. And that's your Yahoo! Finance Market Minute. For more on what's trending on Yahoo! Finance, scan the QR code below. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Crude oil prices slide, Deere shares up on Q2 earnings beat
Yahoo Finance host Josh Lipton tracks today's top moving stocks and biggest market stories in this Market Minute, including crude oil prices (CL=F, BZ=F) sliding lower on headlines that the US and Iran could be nearing closing a nuclear deal, and Deere & Co. (DE) shars surging on the farm machinery manufacturer's fiscal second quarter earnings beat. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. Sign in to access your portfolio
Washington Post
15-05-2025
- Business
- Washington Post
Deere: Fiscal Q2 Earnings Snapshot
MOLINE, Ill. — MOLINE, Ill. — Deere & Co. (DE) on Thursday reported fiscal second-quarter earnings of $1.8 billion. On a per-share basis, the Moline, Illinois-based company said it had net income of $6.64. The results exceeded Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $5.68 per share.
