Why Did Deere Stock Rise 13% Last Month?
Shares of Deere & Company (NYSE: DE) rose 12.5% in March, according to data provided by S&P Global Market Intelligence. Bullish data from the agricultural sector helped to soothe investor concerns about demand for the company's products. Meanwhile, favorable capital market conditions stimulated demand for dividend stocks, which created momentum for Deere stock.
Deere reported earnings in February that beat Wall Street's estimates, but the stock tumbled thanks to a disappointing full-year outlook. High crop prices throughout last year led to many farmers being flush with cash, creating a "tractor boom." Investors have been anticipating an end to that boom for multiple quarters, and it seems that high interest rates combined with normalizing inflation are putting a damper on Deere's forecasts.
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Source Fool.com
