Earnings Snapshot: Deere beats FQ3 top and bottom line estimates; raises FY2026 net income outlook
Positive news as Deere (DE) reported FQ3 results that exceeded expectations and upwardly revised its FY2026 net income guidance.
In light of the strong earnings and upward guidance news, and with the current price ($580.63) trading near the 20‑day low support level ($579.31) and testing downside rigidity, a bounce may be anticipated, making an entry worth considering.
Based on strong earnings and Baird's upgrade to Outperform, we will treat the resistance level at $643.99 as the profit‑taking target on a rebound, and if the support level at $579.31 (the 20‑day low near the current price of $580.63) is breached, we will act based on a stop‑loss of $579.31.
The 14‑day RSI is at 41.2, placing it in the neutral zone; the moving averages are in a bullish alignment, and trading volume is 1.54 times the 20‑day average, although the seven‑day price change was –4.7%.
Based on strong earnings, upward guidance, and Baird's upgrade to Outperform, we considered entering near the $579.31 support level—the 20‑day low—relying on its downside rigidity. The actual result exceeded the projected 2.5% return, delivering a 10.9% gain and earning an OVERHIT rating. Although the number of theme‑related news items was trending downward (falling), the stock's robust earnings momentum and analyst upgrades—fundamental factors that outweighed the broader market's stagnation—produced far stronger upside pressure than anticipated.
Through this trade, it was confirmed that if a strong earnings surprise is accompanied by an upgrade in investment ratings, and the results of testing downward rigidity near support levels are positive, it can lead to a much larger-than-expected rally (OVERHIT). In future trades, when technical support levels coincide with key catalysts such as earnings reports or changes in investment ratings, one should maintain flexibility by allowing for momentum persistence rather than simply stopping at the target price.