Deere & Company (NYSE: DE), commonly known as John Deere, makes agricultural machinery, engines and lawn service equipment. The Illinois-based manufacturer took off in 2021 and recently crushed its earnings. The company also raised its projected yearly net income to nearly $5 billion. In a surprising turn of events, John Deere was even recently included in Cathie Wood's new ARK Space Exploration ETF (ticker: ARKX).
Interested in buying some shares of John Deere (DE) stock? Keep reading to learn how to buy DE.
How to Buy John Deere Stock Summary:
John Deere (DE) has been listed on the New York Stock Exchange (NYSE) for decades. You can take basic steps to buy shares of DE, the same as you would with other major companies. Learn more about how to buy stocks.
Keep the following things in mind before buying shares of John Deere (DE):
- Open a brokerage account. Before you can think about purchasing shares of John Deere, you need to open up a brokerage account. Take some time to consider your investing goals before you choose a broker.
- Deposit funds. Once you open a brokerage account, you need to fund it. Link your bank account with your brokerage and deposit some funds. Only deposit funds that you do not mind losing.
- Search the ticker symbol and hit “buy.” You should have no problem finding shares to buy, regardless of the broker you choose. Simply search the ticker symbol DE and hit “buy” to become an owner of John Deere stock.
How to Buy John Deere (DE) Stock
Deere & Co., founded in 1837, headquarters in Moline, Illinois, and has over 70,000 employees.
Although John Deere blew away its latest earnings estimate, agriculture-related stocks become prone to unique risks such as extreme weather. Keep these risks in mind before investing money in John Deere (DE) stock.
- Pick a brokerage.
The first step to buying John Deere (DE) stock: Pick a brokerage to open an account. Most brokers have switched to commission-free trading, so you can buy shares of DE without incurring additional fees.
Define your trading goals, then select the brokerage that best suits your needs. If you feel like you need some practice before risking your own money, select a brokerage that offers paper trading.
Many brokerages also offer added perks for signing up or getting your friends to. Keep these in mind, as you could end up getting a free stock or other bonuses.
- Decide how many shares you want.
Once you have your open brokerage account, you need to decide how many shares of DE you want to buy. Take these items into consideration: Your available funds, your time horizon and your outlook for the stock before settling on an amount.
Avoid investing more than a few percent of your account value into a stock, especially one near all-time highs. Before you buy, choose your amount of shares and determine the price you will take profits/losses down the road.
After considering all of these factors, you can now look for a good price to enter into your position in John Deere.
- Choose your order type.
Knowing how many shares you want to buy is only half of the battle. You now need to determine which order type you will use to purchase shares of John Deere. Numerous order types serve a different purpose.
If you use a market order to buy shares of John Deere (DE), it will instantaneously execute at the national bid and offer (NBBO) price. In contrast, if you use a limit order, it will not execute until it can be filled at the price you designate or better.
Market orders work well if you’re trying to buy shares of large-cap stocks immediately. Limit orders help you control your risk, so you may want to use them to buy shares in more volatile stocks.
- Execute your trade.
After selecting the appropriate order type, all you have to do is hit “buy” to execute the trade. Once you hit “buy,” simply sit back and wait for your broker to process and fill your order. Once your order fills, the shares of John Deere will appear in your account.
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John Deere Stock History
John Deere, the brand name of Deere & Company, has been a household name in America for over a century. John Deere (DE) had an amazing earnings report on February 19. The company’s over $8 billion in sales far exceeded analyst estimates. The stock set an all-time high of over $335 per share.
John Deere (DE) has been one of the most reliable stocks on the market, and the company beat its last 6 earnings expectations. Furthermore, the company has been able to fully capitalize on rising crop prices. The USDA forecasts corn prices to rise 18% and soybeans to rise 30% in the 2020-2021 season.
Although John Deere (DE) has been one of the most consistent stocks. Its stock experienced a sharp decline at the start of the COVID-19 pandemic. The stock set a low in March of 2020 at around $106 per share. As of today, the stock has fully rebounded and continues to grow. John Deere (NYSE: DE) closed at an all-time high of over $392 on March 18th. On March 29, it was revealed that John Deere would be the 13th largest holding of Cathie Wood's new ARK Space Exploration ETF (ticker: ARKX). The company even decided to have a little laugh about it on twitter, which Benzinga's Chris Katje took note of.
Pros to Buying John Deere Stock
Stocks associated with the agricultural sector can always be volatile, but becoming an owner of John Deere (DE) could result in benefits from:
- Rising crop prices: As the USDA forecasts rising prices for a variety of crops, John Deere (DE) could continue to set all-time highs throughout 2021 and beyond.
- Good financial performance: John Deere (DE) has experienced excellent financial performance. Analysts were expecting John Deere to report $7.1 billion in sales and $2.15 in per-share earnings. Instead, sales exceeded $8 billion and per-share earnings came in at $3.87. The stock could continue to rise.
Cons to Buying John Deere Stock
Any stock at an all-time high presents a risk and John Deere (DE) is no exception. Some things to keep in mind include:
- A market correction: Following its recent earnings beat, John Deere (DE) stock is now priced at all-time highs. Furthermore, the overall market is also near all-time highs. If conditions would change in the market, an overall correction would likely result in a sizable decline in the price of John Deere (DE) stock.
- Extreme weather: Extreme weather events can result in price shocks in the sector. While John Deere (DE) could benefit if extreme weather causes crop prices to rapidly rise, this isn’t always the case. Weather-related volatility could affect investors, especially considering the recent extreme winter weather in Texas.
Consider Investing in Deere & Co.
While the outlook for Deere & Co. (DE) looks bright, keep in mind that the stock recently set an all-time high of over $330 dollars. As a result, consider setting tighter stop-losses in case the stock experiences a pull-back. Furthermore, only invest money into John Deere (DE) that you can afford to lose and always diversify your investments.