John Deere (DE) stock welcomed Friday’s trading session with a nice 7% bump – and it doesn’t appear to be slowing down any time soon. This came as a result of an impressive earnings beat and a revised outlook for the year ahead.

The company walloped Wall Street’s estimates for the first fiscal quarter of the year, reporting an increase in revenue of 34% – $12.65 billion. Meanwhile, profits soared to $1.96 billion – or $6.55/share compared to the $5.57/share analysts were expecting.

This impressive performance can be attributed to a few different segments within the Deere business. For example, Deere’s herbicide applicator products saw a spike of 308% from this quarter last year. Equipment sales were up 34% as well.

It wasn’t just an increase in sales that helped the company in this first quarter either – they increased pricing as demand soared, helping achieve higher profitability figures. This price increase was key in fending off rising shipping costs and tight supply chains.

And, on that note, Deere doubled down on what was already an upbeat outlook for the year. Now, they’ve revised the full-year net income outlook from $8-$8.5 billion up to $8.75-$9.25 billion.

We last discussed DE stock in November of 2022 when the company enjoyed another earnings beat sending shares higher. At that time, we took a deeper look at the stock itself through the VectorVest stock analysis software and gave you a clear buy recommendation. Does that stance still hold true? Read below to discover what your next move should be with this stock.

Despite Excellent Upside Potential and Good Safety, Timing is Holding This Stock Back Right Now

The VectorVest system is built on a proprietary stock rating system that tells you exactly what to buy, when to buy it, and when to sell it. It simplifies your trading strategy while eliminating human error, guesswork, and emotion - so you can win more trades with less work.

It’s all based on three simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). Interpreting these ratings is quick and easy as they sit on a scale of 0.00-2.00, with 1.00 being the average. Based on the overall VST rating for a stock, you’re given a clear buy, sell, or hold recommendation - and we’ll find out what’s going on with DE below:

  • Excellent Upside Potential: The RV rating compares a stock’s 3-year price appreciation potential to AAA corporate bond rates and risk. And right now, DE has excellent upside potential with an RV rating of 1.47. Moreover, the stock is undervalued at its current price point. The current value is $561/share.
  • Good Safety: An indicator of risk, the RS rating analyzes a company’s financial consistency & predictability alongside its debt-to-equity ratio and business longevity. As for DE, the RS rating of 1.17 is good.
  • Fair Timing: The one thing holding this stock back from reaching its full potential is timing - but maybe today’s news can help create a positive price trend that begins pushing this stock back up in the right direction. Right now, the RT rating of 0.96 is just fair. This is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year.

These three ratings contribute to an overall VST rating of 1.19 - which is good. Is it enough to earn the stock a buy, though? Or, should you hold on a bit longer and await the formation of a stronger price trend? You can get a clear answer on what your next move with DE stock should be by getting a free stock analysis here at VectorVest.

John Deere (DE) stock analysis chart by VectorVest

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VectorVest advocates buying safe, undervalued stocks, rising in price. Right now, DE has excellent upside potential - and it’s way undervalued. It also has good safety - the one issue is that the timing is just fair. But, it’ll be interesting to see what today’s earnings news does to create a positive price trend for DE stock.

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