DE
US Lowers Tariffs to Boost Investment in Industrial Economy
Article Summary
HOLD- Deere & Company (NYSE: DEE) fell after the U.S. government announced it will reduce tariffs on farm and construction equipment such as harvesters and forklifts, in an effort to boost investment in industrial economy through next year.
- The White House said tariffs on those products would drop to 15% from 25% under a proclamation issued late Monday, with foreign companies qualifying for lower 10% duty rates if capital equipment contains at least 85% US steel or aluminum.
- The changes take effect June 8 and would run through the end of 2027, with temporary relief expected to spur near-term investments that will rebuild the Nation's industrial base.
- The directive is the latest effort to adjust steel and aluminum duties dating back to President Trump's first administration using so-called 232 authority that has broadly produced mixed results on growth, hiring and investment, with domestic steel production surging but many users grappling with high costs and spending more trying to comply with evolving tariff regime.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.0% | 25% | 20.0 ptsMinimal (4.0%) - Very weak |
| EPS Growth Next 5Y ? | 14.0% | 25% | 35.0 ptsBelow Screener (14.0%) - Modest outlook |
| Target Price Upside ? | 16.8% | 20% | 60.0 ptsModerate Upside (16.8%) - Target: $647.47 vs Current: $554.24 |
| Gross Margin % ? | 36.9% | 15% | 60.0 ptsSolid (36.9%) - Decent margins |
| Drawdown from 52-Wk High ? | -17.8% | 15% | 40.0 ptsMild Pullback (-17.8%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About DE
- Deere & Company engages in the manufacture and distribution of various equipment worldwide.
- The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services.
- The Production and Precision Agriculture segment provides four-wheel-drive track and row crop tractors, harvesters, cotton pickers and strippers, sugarcane harvesters and loaders, soil preparation, tillage, seeding, and crop care equipment, as well as application equipment, including sprayers and nutrient management, soil preparation machinery, and related attachments and service parts.
- The Small Agriculture and Turf segment offers specialty, utility, and compact tractors; self-propelled forage harvesters and attachments; rotary mowers, hay and forage equipment, and utility vehicles; turf and utility equipment, including riding lawn, commercial mowing, and golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications.
- The Construction and Forestry segment provides backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, skid-steer loaders, milling machines, recyclers, slipform and asphalt pavers, surface miners, compactors, tandem, static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and log harvesters; and road building and rehabilitation equipment.
- The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment.
- It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties.
- Deere & Company has a strategic partnership with Tarter USA to develop and produce flex wing rotary cutters.
- The company was founded in 1837 and is headquartered in Moline, Illinois.