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DE's H Series Sets New Industry Standard: Will It Lead the C&F Market?
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Key Takeaways
DE launched H Series Forestry equipment with upgraded hydraulics and advanced automation.
New harvesters and forwarders offer better power, speed and efficiency over the G Series lineup.
DE also enhanced its backhoe lineup with an industry-first rear camera system.
Deere & Company (DE - Free Report) has raised the bar in forestry equipment with the launch of its H Series Forestry machines, boasting an industry-first innovation like enhanced hydraulic systems, advanced automation and ergonomic enhancements for operators. The range promises to deliver exceptional gains in productivity, fuel savings and jobsite performance, which is the need of the hour.
The lineup includes the 1270H and 1470H Harvesters and 2010H and 2510H Forwarders. The harvesters deliver impressive engine power and torque, with faster cycle times and improved cutting efficiency compared with their G Series predecessors. The advanced hydraulic systems, now featuring three dedicated pumps, provide greater power for feed rollers, saw units and boom movements. Both the harvesters and forwarders demonstrate superior boom capability, offering impressive lifting and slewing power, stability and efficiency. These factors are crucial in challenging forestry environments. In designing the H series, Deere has prioritized operator comfort and efficiency.
Deere also made significant updates to its backhoe lineup. Designed for underground and site development applications, the enhancements include an industry-first rear camera system and an expanded, redesigned cab.
These developments strengthen Deere’s Construction & Forestry (C&F) segment, which accounts for nearly 29% of its equipment revenues. The segment competes with other players like CNH Industrial N.V. (CNH - Free Report) and Komatsu (KMTUY - Free Report) , which deal in both the agriculture and construction markets.
CNH Industrial recently unveiled its new strategic business plan to consolidate its position as the #1 or #2 player in its major markets. CNH Industrial is leaning heavily on Artificial Intelligence (AI) capabilities to create the best user experience for customers. CNH Industrial plans to invest heavily in new product launches, updates to existing product lines and integrated digital technologies across its equipment lineup.
Komatsu forestry machinery is highly durable and comes with a variety of attachments designed to improve productivity and help reduce labor. Komatsu’s Smart Construction platform leverages ICT (Information and Communication Technology) to visualize operations from start to finish, aiming to ease labor shortages and boost productivity through smarter resource allocation.
DE’s Price Performance, Valuation & Estimates
DE shares have gained 21.2% so far this year compared with the industry’s 19.7% growth. In comparison, the Zacks Industrial Products sector has moved up 3.2%. The S&P 500 has gained 4.4% in the same time frame.
Image Source: Zacks Investment Research
Deere is currently trading at a forward 12-month price/earnings (P/E) ratio of 24.49X compared with the industry average of 22.95X. With a Value Score of D, DE stock does not appear to be a compelling value proposition at these levels.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deere’s fiscal 2025 earnings is $18.82 per share, indicating a year-over-year fall of 26.54%. The 2026 estimate implies growth of 17.13%. While the estimates for fiscal 2025 have moved down, the same has moved up over the past 60 days.
Image Source: Zacks Investment Research
Deere stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
DE's H Series Sets New Industry Standard: Will It Lead the C&F Market?
Key Takeaways
Deere & Company (DE - Free Report) has raised the bar in forestry equipment with the launch of its H Series Forestry machines, boasting an industry-first innovation like enhanced hydraulic systems, advanced automation and ergonomic enhancements for operators. The range promises to deliver exceptional gains in productivity, fuel savings and jobsite performance, which is the need of the hour.
The lineup includes the 1270H and 1470H Harvesters and 2010H and 2510H Forwarders. The harvesters deliver impressive engine power and torque, with faster cycle times and improved cutting efficiency compared with their G Series predecessors. The advanced hydraulic systems, now featuring three dedicated pumps, provide greater power for feed rollers, saw units and boom movements. Both the harvesters and forwarders demonstrate superior boom capability, offering impressive lifting and slewing power, stability and efficiency. These factors are crucial in challenging forestry environments. In designing the H series, Deere has prioritized operator comfort and efficiency.
Deere also made significant updates to its backhoe lineup. Designed for underground and site development applications, the enhancements include an industry-first rear camera system and an expanded, redesigned cab.
These developments strengthen Deere’s Construction & Forestry (C&F) segment, which accounts for nearly 29% of its equipment revenues. The segment competes with other players like CNH Industrial N.V. (CNH - Free Report) and Komatsu (KMTUY - Free Report) , which deal in both the agriculture and construction markets.
CNH Industrial recently unveiled its new strategic business plan to consolidate its position as the #1 or #2 player in its major markets. CNH Industrial is leaning heavily on Artificial Intelligence (AI) capabilities to create the best user experience for customers. CNH Industrial plans to invest heavily in new product launches, updates to existing product lines and integrated digital technologies across its equipment lineup.
Komatsu forestry machinery is highly durable and comes with a variety of attachments designed to improve productivity and help reduce labor. Komatsu’s Smart Construction platform leverages ICT (Information and Communication Technology) to visualize operations from start to finish, aiming to ease labor shortages and boost productivity through smarter resource allocation.
DE’s Price Performance, Valuation & Estimates
DE shares have gained 21.2% so far this year compared with the industry’s 19.7% growth. In comparison, the Zacks Industrial Products sector has moved up 3.2%. The S&P 500 has gained 4.4% in the same time frame.
Image Source: Zacks Investment Research
Deere is currently trading at a forward 12-month price/earnings (P/E) ratio of 24.49X compared with the industry average of 22.95X. With a Value Score of D, DE stock does not appear to be a compelling value proposition at these levels.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deere’s fiscal 2025 earnings is $18.82 per share, indicating a year-over-year fall of 26.54%. The 2026 estimate implies growth of 17.13%. While the estimates for fiscal 2025 have moved down, the same has moved up over the past 60 days.
Image Source: Zacks Investment Research
Deere stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.