Should You Investigate Deere & Company (NYSE:DE) At US$192?
NYSE:DE). The company’s shares led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Deere’s outlook and valuation to see if the opportunity still exists.” data-reactid=”28″>Let’s talk about the popular Deere & Company (NYSE:DE). The company’s shares led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Deere’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Deere ” data-reactid=”29″> See our latest analysis for Deere
What’s the opportunity in Deere?
According to my valuation model, the stock is currently overvalued by about 38%, trading at US$192 compared to my intrinsic value of $138.97. Not the best news for investors looking to buy! Another thing to keep in mind is that Deere’s share price is quite stable relative to the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What kind of growth will Deere generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Deere’s earnings over the next few years are expected to increase by 42%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
2 warning signs (1 shouldn’t be ignored!) that you ought to be aware of before buying any shares in Deere.” data-reactid=”53″>If you want to dive deeper into Deere, you’d also look into what risks it is currently facing. To help with this, we’ve discovered 2 warning signs (1 shouldn’t be ignored!) that you ought to be aware of before buying any shares in Deere.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Deere, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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