$DE — AVOID 📊 | 6 MONTHS THESIS

Deere & Company engages in the manufacture and distribution of various equipment worldwide. 🎯 FQ2 FY2026 (ends May) | reported May 21 | Rev $13.4B | Adj EPS $6.55 vs $5.70 🟢 💡 Consensus appears to extrapolate the recent beat, but management's full-year net income guidance of $4.5-5.0B is roughly flat with TTM, suggesting limited upside. The market's implied FCF growth of 25% is disconnected from the reality of a mature cycle. 📉 Reward/risk: 0.6:1 🏢 Business Quality: 8/10 📊 Valuation: rich — trailing GAAP P/E 34.4x vs. historical median 22.2x; reverse DCF implies 25% FCF growth which is unsupported; forward P/E on guidance midpoint... 🔮 Catalyst: next earnings report (FQ3 FY2026, likely Nov 2026) 💰 Entry: $607.33, stop $571.66, target $630.4 ⚖️ Avoid DE: both near-term upside capped and downside risk elevated as rich valuation meets stagnant earnings guidance. 📊 Our read: AVOID. Full analysis → https://stockduty.xyz/s/DE0723

Deere & Company engages in the manufacture and distribution of various equipment worldwide.