Should You Buy Deere Stock After A 10% Fall In A Week Despite Solid Q3?

Deere stock (NYSE: DE) dropped 10% in a week despite a Q3 beat in performance and improved guidance. We believe the selling in Deere is overdone, and investors will likely be better off buying this dip for reasonable gains in the long run.

Interestingly, DE stock had a Sharpe Ratio of 0.8 since early 2017, higher than 0.6 for the S&P 500 Index over the same period. Still, it falls short of the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.