Is DE a good stock to buy? We came across a bullish thesis on Deere & Company on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on DE. Deere & Company’s share was trading at $634.33 as of June 30th. DE’s trailing and forward P/E were 35.94 and 35.59 respectively according to Yahoo Finance.
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Deere & Company engages in the manufacture and distribution of various equipment worldwide. DE is presented as an attractive investment opportunity following a sharp post-earnings selloff that appears driven more by cautious market sentiment than by any deterioration in business fundamentals. Despite the stock falling roughly 7% after reporting second-quarter fiscal 2026 results, the company delivered a strong operational performance, with earnings per share of $6.55 exceeding consensus estimates of $5.74 and revenue of $13.37 billion surpassing expectations of $11.5 billion.
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While net income declined modestly year over year due to weakness in the large agriculture market, management maintained its full-year net income guidance of $4.5–$5.0 billion and equipment operations cash flow guidance of $4.5–$5.5 billion, reinforcing confidence that the business is navigating what it believes to be the bottom of the agricultural cycle. The company also highlighted that its direct tariff exposure remains largely unchanged, supported by a $272 million recovery related to the IEEPA decision, while growth in the Small Agriculture & Turf and Construction & Forestry segments continues to offset expected softness in large agriculture.
The investment thesis argues that the post-earnings decline creates an attractive entry point, with the $460 level representing strong historical support near the bottom of the stock’s 52-week trading range and well below the price where fundamental risks appear to lie. Deere’s market leadership in North American large agriculture, 56 consecutive years of dividend payments, five straight years of dividend increases, and resilient cash generation further strengthen the long-term case.
With analysts’ average price target of approximately $667, implying around 26% upside from the post-earnings share price, the company offers a compelling risk-reward profile for investors willing to look beyond near-term cyclical weakness.
Previously, we covered a bullish thesis on Deere & Company (DE) by Best Anchor Stocks in May 2025, which highlighted its margin resilience, cyclical recovery, and long-term earnings growth. DE’s stock price has appreciated by approximately 24.87% since our coverage. OppCost shares a similar view but emphasizes on the post-earnings selloff as an attractive entry point with potential 26% upside.
Deere & Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held DE at the end of the first quarter which was 60 in the previous quarter. While we acknowledge the risk and potential of DE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
