How much did Deere stock rise in 6 months?

It rose 28.4% to $602, outperforming the S&P 500 by 22.1%.

Is the stock rally justified?

The rally is supported by solid quarterly results, but the current valuation is high relative to historical averages.

Deere: 3 Reasons to Sell and 1 Stock to Buy Instead

Deere (DE) surged 28.4% in 6 months, outperforming the S&P 500. However, analysis suggests 3 reasons to sell and recommends a better-valued alternative.

June 25, 2026

2 min read

Source: StockStory

Key Numbers

stock price

$602

return vs sp500

22.1%

price change 6m

28.4%

Deere & Company (DE) stock has climbed 28.4% over the past six months, beating the S&P 500 by 22.1% and reaching $602. This strong performance, fueled by solid quarterly results, prompts investors to consider their next move.

3 Reasons to Sell

1. High Valuation

The stock trades at a P/E ratio above 25x, well above its historical average of 18x, making it vulnerable to a correction.

2. Weak Agricultural Demand

Deere faces slowing demand for tractors and harvesters due to falling crop prices and declining farm income.

3. Supply Chain Challenges

Raw material costs remain elevated, pressuring profit margins.

A Stock to Buy Instead

Consider Caterpillar (CAT), which benefits from infrastructure and mining spending, with a more attractive P/E ratio of 15x.

What to Conclude

While Deere has performed well, current risks suggest selling is prudent. Investors seeking growth may find a better opportunity in Caterpillar.

Frequently Asked Questions

Due to its high valuation (P/E 25x vs historical 18x), weak agricultural demand, and supply chain challenges.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.