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Here's How Much You'd Have If You Invested $1000 in Deere a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Deere (DE - Free Report) ten years ago? It may not have been easy to hold on to DE for all that time, but if you did, how much would your investment be worth today?
Deere's Business In-Depth
With that in mind, let's take a look at Deere's main business drivers.
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. It is the 70th-largest company in the S&P 500 Index with a market capitalization of around $109 billion. It has an advantage in most farm machinery categories as its machines come with advanced features and are better constructed than its competitors. Deere is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology, in an effort to make farming automated, easier and more precise across the production process.
Beginning fiscal 2021, the company has four reportable segments. Agriculture and turf operations, which generated around 63% of Deere’s revenues in fiscal 2020 has been divided into two new segments:
The Production and Precision Agriculture segment is responsible for defining, developing, and delivering global equipment and technology solutions that cater to production-scale growers of large grains, small grains, cotton, and sugar. Primary products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application and crop care equipment.
The Small Agriculture and Turf segment will deliver products to support mid-size and small growers and producers globally, and turf customers. It will cater to production systems for dairy and livestock, high-value crops, and turf and utility operators. Products include certain mid-size and small tractors, and hay and forage equipment, riding and commercial lawn equipment, golf course equipment, and utility vehicles.
The Construction and Forestry (25% of revenues in fiscal 2020) segment manufactures machines and service parts used in construction, earthmoving, material handling and timber harvesting. Deere also manufactures and distributes road building equipment through its wholly-owned subsidiaries of the Wirtgen Group.
Deere also finances sales and leases for new and used equipment through its Financial Services segment, which generated 10% of the Deere’s revenues in fiscal 2021.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Deere, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2011 would be worth $4,269.73, or a gain of 326.97%, as of March 16, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 209.62% and the price of gold went up 19.05% over the same time frame.
Going forward, analysts are expecting more upside for DE.
Deere’s first-quarter fiscal 2021 earnings and revenues both improved year over year and beat the respective Zacks Consensus Estimate. Backed by improving conditions in the farm and construction sectors, the company expects net income for fiscal 2021 between $4.6 billion and $5 billion. The mid-point of the range suggests year-over-year improvement of 75%. Pick-up in commodity prices bodes well for agricultural equipment demand. Further, replacement demand triggered by the need to replace old equipment will continue to boost revenues. The Construction and Forestry segment will gain on strong demand from housing market. Deere’s focus on investing in new products with advanced technologies provides it a competitive edge. Additionally, efforts to expand in precision agriculture will drive growth in the long haul.
The stock is up 18.05% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Deere a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Deere (DE - Free Report) ten years ago? It may not have been easy to hold on to DE for all that time, but if you did, how much would your investment be worth today?
Deere's Business In-Depth
With that in mind, let's take a look at Deere's main business drivers.
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme. It is the 70th-largest company in the S&P 500 Index with a market capitalization of around $109 billion. It has an advantage in most farm machinery categories as its machines come with advanced features and are better constructed than its competitors. Deere is currently the world leader in precision agriculture and remains focused on revolutionizing agriculture with technology, in an effort to make farming automated, easier and more precise across the production process.
Beginning fiscal 2021, the company has four reportable segments. Agriculture and turf operations, which generated around 63% of Deere’s revenues in fiscal 2020 has been divided into two new segments:
The Production and Precision Agriculture segment is responsible for defining, developing, and delivering global equipment and technology solutions that cater to production-scale growers of large grains, small grains, cotton, and sugar. Primary products include large and certain mid-size tractors, combines, cotton pickers, sugarcane harvesters and loaders, and soil preparation, seeding, application and crop care equipment.
The Small Agriculture and Turf segment will deliver products to support mid-size and small growers and producers globally, and turf customers. It will cater to production systems for dairy and livestock, high-value crops, and turf and utility operators. Products include certain mid-size and small tractors, and hay and forage equipment, riding and commercial lawn equipment, golf course equipment, and utility vehicles.
The Construction and Forestry (25% of revenues in fiscal 2020) segment manufactures machines and service parts used in construction, earthmoving, material handling and timber harvesting. Deere also manufactures and distributes road building equipment through its wholly-owned subsidiaries of the Wirtgen Group.
Deere also finances sales and leases for new and used equipment through its Financial Services segment, which generated 10% of the Deere’s revenues in fiscal 2021.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Deere, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2011 would be worth $4,269.73, or a gain of 326.97%, as of March 16, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 209.62% and the price of gold went up 19.05% over the same time frame.
Going forward, analysts are expecting more upside for DE.
Deere’s first-quarter fiscal 2021 earnings and revenues both improved year over year and beat the respective Zacks Consensus Estimate. Backed by improving conditions in the farm and construction sectors, the company expects net income for fiscal 2021 between $4.6 billion and $5 billion. The mid-point of the range suggests year-over-year improvement of 75%. Pick-up in commodity prices bodes well for agricultural equipment demand. Further, replacement demand triggered by the need to replace old equipment will continue to boost revenues. The Construction and Forestry segment will gain on strong demand from housing market. Deere’s focus on investing in new products with advanced technologies provides it a competitive edge. Additionally, efforts to expand in precision agriculture will drive growth in the long haul.
The stock is up 18.05% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2021. The consensus estimate has moved up as well.