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- 1 Within the last week, DE stock price gained over 5%.
- 2 Currently, Deere stock price is above the EMAs showing an uptrend.
- 3 The machinery manufacturer will be posting third quarter earnings for this year on August 18.
The American agriculture machinery and heavy equipment manufacturing company, Deere & Company (NYSE: DE) is marking 2023 as a great year. The company, popular by the business name John Deere, has witnessed a rise in profitability and margins in the past quarters.
Following the company’s path, DE stock prices stalled around high trading price levels.
Though the company is not dependent on agriculture, it holds a crucial position in the food supply chain and agro infrastructure. The current geopolitical tensions might benefit Deere & Company.
Impact on Wheat Supply to Benefit John Deere
The Black Sea Grain Initiative was to ease the military blockade from Russia and facilitate smooth trade through Black Sea ports in Ukraine. The export of grain, oilseed, fertilizer, etc. from Ukraine is now in jeopardy due to complicated matters aligned with the ongoing war.
In the wake of these circumstances, the export of wheat will be impacted and it will end up creating an artificial shortage. On the flip side, analysts believe agriculture stocks like John Deere might benefit from the contingency.
John Deere (DE) Stock Price Movement
Before starting the downside voyage, DE stock price attained an all-time high of $448 in December last year. The downtrend in stock price movement stopped in the coming days after Deere & Company posted its second-quarter earnings report.
For the past two months, DE stock price is in an uptrend and saw a rise of 30% from $345. Prior to attaining the current price level of $442, the stock price consolidated at $400, making it an immediate support.
Golden crossover of 50-day and 200-day EMA at the level made the price take an up move.
Currently, Deere stock is trading above both the exponential moving averages and moving forward creating a widening gap. If it maintains the pace and continues the uptrend, the stock price is likely to attain a new 52-week high.
MACD is witnessing an uptrend in the curve suggesting a bullish trend in DE stock price. RSI is at 72 suggesitng the stock has entered oversold zone and a slight retracement in the price is possible.
Will DE Stock Continue Estimated Growth?
The agriculture machinery manufacturer posted an increase in income and revenue for the second quarter ended on April 30, 2023. The revenue for the quarter was $17.387 Billion, 30% more than the previous quarter. Deere’s earnings stood at $2.86 Billion or $9.65 per share.
For the upcoming earnings report on August 18, 2023, the company is expected to maintain growth. DE stock is likely to leverage and attain new highs.
Oppenheimer & Co., an investment banking firm, recently reported to adjust the price target for Deere & Company from $436 to $467 while maintaining the “outperform” rating.
BofA Securities, a financial services company, raised the bar for the targeted price from $416 to $484 and maintained the “neutral” rating. Citigroup also slightly raised the price target to $475 from $460.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
