Why Deere Stock Hit an All-Time High This Week

Deere & Co. (NYSE: DE) stock reached an all-time high above $700 per share this week. The share price surged 10% since last Friday's close, according to S&P Global Market Intelligence. After releasing a strong fiscal third-quarter report on Aug. 20, Deere increased its full-year net income guidance by $250 million. An analyst believes that this guidance change signals the start of a recovery cycle in agricultural equipment sales and considers Deere stock a buy near its record high.

In 2009, a similar "Double Down" signal appeared for Nvidia, a chipmaker. Now, a "Total Conviction" signal is flashing for Deere, a company one-hundredth the size of Nvidia. Deere CEO John May asserted that 2026 will mark the bottom of the current agricultural equipment cycle. Citing diversified product groups, advanced technology offerings, and stable U.S. market conditions, Deere is confident.

Baird analyst Mircea Dobre anticipates that the anticipated recovery cycle in the agricultural equipment sector will drive Deere stock to $800 per share, representing a potential 15% upside from its current price. Despite not being included in The Motley Fool Stock Advisor's 10 best stocks list, Deere & Company remains a compelling investment option.