DE (Deere & Company): Themes, ETFs, and Basket Ideas
DE is the ticker for Deere & Company. This page covers what the company does, where it's heading, its approximate earnings and valuation, key competitors, the themes it belongs to, the ETFs that hold it, and similar stocks worth looking at.
What does Deere & Company do?
Deere & Company is the largest manufacturer of agricultural equipment in the world (the John Deere brand) and a major manufacturer of construction, forestry, turf, and utility equipment. The company is also one of the largest captive finance operators serving agriculture and construction. The agricultural equipment business is the largest and most strategically important, with the John Deere brand being one of the most recognized industrial brands globally.
Deere has been investing heavily in technology that transforms agriculture: GPS-guided autonomous tractors, computer vision for selective weed spraying (See & Spray), satellite connectivity for telematics, and integrated data services for farm management. The company positions itself increasingly as an agricultural technology company rather than just an equipment manufacturer. Founded in 1837 by John Deere in Illinois, headquartered in Moline, Illinois. John May has been CEO since 2019.
Where is Deere & Company heading?
1. Precision agriculture technology.
Deere's investment in precision agriculture (GPS guidance, autonomous operation, See & Spray computer vision, data services) is the central growth story. Premium pricing on technology-enabled equipment is meaningful and growing. Recurring revenue from data services is a structural shift.
2. Commodity crop and farmer income cycles.
Equipment sales depend on farmer income, which depends on commodity crop prices. The current cycle has been weaker as crop prices have softened from 2022 highs. Cycle timing matters substantially for Deere's near-term earnings.
3. Construction equipment exposure.
Deere's construction equipment business (including Wirtgen for road construction) is exposed to construction cycles. Infrastructure investment supports construction demand; residential construction softness is a near-term headwind.
4. Capital return and operating discipline.
Deere has historically been a meaningful capital returner. Through-cycle operating discipline has improved margins materially. Through-cycle earnings power has expanded.
Risks worth tracking: Commodity crop cycle volatility affects farmer purchasing power. Trade policy (tariffs and retaliatory tariffs in agricultural exports) affects farmer income. Construction cycle. Precision agriculture technology investment must continue to drive premium pricing for the multiple to hold.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Deere & Company's investor relations page or your broker.
- Revenue (TTM): ~$50 billion
- Operating margin: ~17% (cyclical)
- Net income (TTM): ~$7 billion
- EPS (TTM): ~$25.00
- P/E (TTM): ~18x
- Price to sales: ~3x
- Dividend yield: ~1.4%, with consistent growth
- Free cash flow: ~$6 billion annually
- Precision agriculture penetration: Growing across the equipment installed base
Deere trades at a premium to traditional industrials reflecting the precision agriculture technology story, the dominant agricultural equipment market position, and the demonstrated through-cycle operating discipline. The multiple compresses during commodity crop down-cycles when equipment demand weakens.
Themes DE belongs to
These are the investment theses DE naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
Dividend growth
Long history of consistent dividend growth; precision agriculture franchise supports through-cycle cash flow.
Infrastructure and reshoring
Construction equipment franchise (alongside agriculture); infrastructure investment supports through-cycle.
Agriculture
Largest agricultural equipment manufacturer worldwide; precision agriculture technology drives premium pricing.
ETFs that hold DE
If you want DE exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
| ETF | Name | % in DE | Expense ratio | |
|---|---|---|---|---|
| XLI | Industrial Select Sector SPDR Fund | ~2.7% | 0.09% |
DE's competitors
Agricultural equipment
CNH Industrial (Case IH, New Holland brands) is the primary direct competitor in agricultural equipment globally. AGCO (Massey Ferguson, Fendt, Valtra) is the third major global player. Kubota is significant in smaller tractors and Asian markets. Together with Deere, these dominate global agricultural equipment.
Construction equipment
Caterpillar is the largest global construction equipment competitor. Komatsu is the second-largest globally. Volvo Construction Equipment, CNH (Case Construction), and Hitachi Construction Machinery compete. Construction equipment is more fragmented than agricultural equipment.
Precision agriculture technology
Various specialty precision agriculture startups and incumbents (Trimble, Topcon, Raven Industries before acquisition by CNH, AGCO Precision Planting). Deere has the most integrated precision platform; competitors are catching up but generally retrofit rather than integrated.
Similar stocks
Other names that show up alongside DE in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using DE in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where DE would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around DE with Walnut
Use Deere & Company as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is Deere & Company's ticker symbol?
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DE, listed on NYSE. Officially Deere & Company. Founded 1837 by John Deere. Headquartered in Moline, Illinois. The largest manufacturer of agricultural equipment in the world; John Deere is one of the most recognized industrial brands globally. Trades during US market hours, available at every major US brokerage.
Who are Deere's competitors?
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In agricultural equipment: CNH Industrial (Case IH, New Holland), AGCO (Massey Ferguson, Fendt, Valtra), Kubota. In construction equipment: Caterpillar (the largest global construction equipment competitor), Komatsu, Volvo Construction Equipment, CNH Industrial. In precision agriculture technology: Trimble, Topcon, and various specialty precision agriculture firms.
Is Deere a precision agriculture stock?
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Increasingly yes. The investment thesis has shifted from being a cyclical equipment manufacturer to a precision agriculture technology company. GPS-guided autonomous operation, See & Spray computer vision (selective weed spraying), satellite connectivity, and integrated data services drive premium pricing. Recurring revenue from data services is a structural shift.
What is Deere's P/E ratio?
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Approximately 18x trailing twelve months as of early 2026. Modest multiple reflecting the agricultural cycle position; earnings are below peak. Forward P/E may be different depending on cycle expectations. The premium versus traditional industrials reflects the precision agriculture technology story.
What does Deere do?
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Deere is the largest manufacturer of agricultural equipment in the world (John Deere brand) and a major manufacturer of construction, forestry, turf, and utility equipment. The company is also one of the largest captive finance operators serving agriculture and construction. Deere has been investing heavily in precision agriculture technology (GPS guidance, autonomous operation, See & Spray, data services).
Who owns the most Deere stock?
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Major institutional holders include Vanguard (~9%), BlackRock (~7%), and State Street (~5%). Berkshire Hathaway has historically held positions; current holdings vary. Insider ownership is modest. Deere is broadly institutionally owned and widely held in dividend-growth, industrials-focused, and precision-agriculture-themed funds.
Which ETFs have the most Deere exposure?
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XLI (Industrial Select Sector SPDR) holds DE at ~2.7%, one of XLI's larger holdings. MOO (VanEck Agribusiness) holds DE at ~8-10%, one of MOO's top holdings. PAVE (US Infrastructure) holds DE at meaningful weight given construction equipment exposure. VOO holds DE at ~0.4%. Agriculture and industrial-themed ETFs are the most concentrated way to gain DE exposure.
Which thematic baskets typically include Deere?
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Three themes on Walnut. Agriculture (largest agricultural equipment manufacturer worldwide; precision agriculture technology drives premium pricing), Infrastructure and reshoring (construction equipment franchise; infrastructure investment supports through-cycle), and Dividend growth (long history of consistent dividend growth).
How much of XLI is Deere?
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Approximately 2.7% as of early 2026. DE is typically a top-10 XLI holding. In MOO (agriculture-specific), DE is at ~8-10%, by far the largest holding given its scale. In VOO, weight is ~0.4%.
Is Deere in the S&P 500?
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Yes. DE has been an S&P 500 constituent for many years and is consistently a top-100 S&P 500 holding by market cap. Among industrials specifically, DE is one of the larger US industrial companies.
What is Deere's market cap?
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Approximately $130 billion as of early 2026. DE is among the largest US industrials by market cap. Market cap has compressed from peak levels reached during the 2021-2022 commodity crop up-cycle but remains substantial reflecting the franchise scale and precision agriculture technology premium.
Does Deere pay a dividend?
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Yes. DE yields approximately 1.4% as of early 2026, paid quarterly. The dividend has been raised consistently for many years. DE also conducts meaningful share buybacks; total capital return is substantial. The dividend coverage is supported by stable agricultural equipment and finance subsidiary cash flows.
What is See & Spray?
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See & Spray is Deere's precision agriculture computer vision technology that identifies weeds in real time and applies herbicide only where needed. The technology reduces herbicide consumption by ~70% versus broadcast application while maintaining yield protection. See & Spray-equipped sprayers command premium pricing; the technology is one of the central proof points for Deere's precision agriculture investment thesis.
Is Deere a cyclical stock?
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Yes, but with shifting dynamics. Agricultural equipment demand depends on farmer income, which depends on commodity crop prices. Equipment cycles can swing 30-50% peak-to-trough. The current cycle is in a softer phase as crop prices have softened from 2022 highs. Bulls argue precision agriculture technology adoption continues regardless of the cycle; bears argue current valuations don't price in enough cyclical risk.
Should I own Deere directly or through MOO?
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Both common. Direct DE gives concentrated agricultural and construction equipment exposure with the precision agriculture growth story. MOO includes DE at ~8-10% along with broader agribusiness. For specifically Deere exposure with the precision agriculture thesis, direct ownership is more concentrated than MOO's diversified approach.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Deere & Company's investor relations page or your broker before making investment decisions.