DE Research Update — September 21, 2026 (Updated)
Updated Thesis
Deere & Company is a 1837-founded global manufacturer of agricultural, turf, and construction equipment organized across Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services, employing roughly 73,100 people under CEO John C. May. Business quality is high on franchise strength but currently strained by the large-agriculture cycle: TTM gross margin is 35.7%, operating margin 19.0%, net margin 10.2%, and ROE 18.1%, while revenue and earnings each grew 7.0% in the most recent quarter.
The investment grade as of this refresh is C — average business quality. A-tier business, D-tier valuation, with 12.2% downside to $616.99 fair value.
Key Metrics at a Glance
- Revenue growth: +7.0% year over year
- Net margin: 10.2%
- Fair value upside: -12.2% to our estimate of $617
Current price: $703.12
These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.
Our 12–18 Month Outlook
Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. Deere & Company remains in our covered universe with a average-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.
Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.
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