Deere (DE) is back in focus after the White House cut tariffs on imported farm and construction equipment to 15% from 25%, a policy shift that immediately sent the stock almost 7% higher.

That tariff driven spike comes after a softer patch, with the stock down about 5% on a 30 day share price basis but still showing a 20% share price return year to date and a 77.71% total shareholder return over five years. This suggests that longer term momentum has been stronger than the recent pullback.

If policy changes and machinery demand are on your radar, it can be useful to see what else is moving in related areas of the market, including 34 power grid technology and infrastructure stocks

With DE now trading around $560 after the tariff driven jump and still showing solid multi year shareholder returns, the key question is whether the stock is still undervalued or if the market has already priced in potential future growth.

Most Popular Narrative: 12.9% Undervalued

At a last close of $560.05 versus a narrative fair value of about $642.90, Deere is framed as undervalued, with that gap linked to detailed earnings and margin assumptions.

Rapid adoption of Deere's precision agriculture and automation solutions (e.g., JDLink Boost, Precision Essentials bundles, See & Spray tech, and new automation features) is driving higher-value product sales and increased software engagement globally, positioning Deere to benefit from shifts toward high-efficiency, technology-enabled farming. This is expected to support both future revenue and net margins through higher-margin recurring software and data services.

Want to see what keeps this valuation above the current share price? The narrative leans on steadier top line expectations, rising margins, and a richer earnings mix. The key is how far profitability is modeled to stretch without assuming rapid revenue expansion.

Result: Fair Value of $642.90 (UNDERVALUED)

However, that upside story runs into real tension if Large Ag softness persists and tariff or input cost pressures squeeze the margin expansion that analysts are counting on.

Next Steps

If this mix of risks and rewards feels finely balanced, promptly review the underlying data and stress test your own conviction using the 2 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.