Deere & Company (DE): A Bull Case Theory 

We came across a bullish thesis on Deere & Company on Expanse Stocks’s Substack by Nikotes. In this article, we will summarize the bulls’ thesis on DE. Deere & Company’s share was trading at $468.11 as of December 1st. DE’s trailing and forward P/E were 25.30 and 27.78 respectively according to Yahoo Finance.

Deere & Company (DE), with a legacy spanning over 180 years, has evolved from a traditional equipment manufacturer into a data-driven ecosystem with recurring revenue streams. The company’s competitive moat lies in its powerful combination of brand loyalty, an extensive dealer network, and a growing suite of embedded software and precision agriculture technologies. Through its Operations Center platform, Deere collects and analyzes vast amounts of agronomic data uploaded by its tractors and combines, creating a digital layer of intelligence and connectivity across farms.

Subscription-based features such as yield mapping and automated guidance enhance productivity while generating recurring, high-margin software revenue. These digital integrations also deepen customer lock-in, as farmers benefit from seamless service, localized dealer support, and integrated financing, making switching costs prohibitively high. Meanwhile, Deere’s recurring parts and service segment, now contributing nearly 40% of total profits, provides a steady cash flow base that smooths earnings across agricultural cycles.

This shift toward recurring and software-linked revenues marks Deere’s transformation from an original equipment manufacturer (OEM) to a durable industrial platform company with software-like retention economics. Beyond fundamentals, technical indicators suggest an attractive setup, supported by a strong decade-long compound annual growth rate (CAGR).

Altogether, Deere’s blend of advanced technology, entrenched customer relationships, and recurring revenue model positions it as a structurally stronger, more resilient enterprise than in any prior cycle—offering investors a unique mix of defensiveness and secular growth.

Previously we covered a bullish thesis on Deere & Company (DE) by Best Anchor Stocks in May 2025, which highlighted the company’s margin strength, buybacks, and early signs of an ag cycle recovery. The stock has depreciated approximately 7.85% since our coverage due to tariff pressures. The thesis still stands as profitability remains resilient. Nikotes shares a similar view but emphasizes Deere’s digital ecosystem and recurring revenue moat.

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Disclosure: None.