How to Buy John Deere (DE) Stock

Invest in John Deere stock today with Interactive Brokers as your trusted online brokerage.

As farming and construction industries continue to evolve, investing in established companies like John Deere could be a smart move. This iconic brand has built a legacy over decades, symbolizing reliability and innovation in the agricultural sector.

Buying shares in John Deere is not just about clicking buy on your trading app; it involves understanding market trends, financial health and timing strategies. It’s essential to avoid common pitfalls and educate yourself on the intricacies of the stock. Keep reading to learn how to buy DE.

How to Buy John Deere (DE) Stock

Deere & Co., founded in 1837, headquarters in Moline, Illinois, and has over 70,000 employees. John Deere (DE) has been listed on the New York Stock Exchange (NYSE) for decades.

You can take basic steps to buy shares of DE, the same as you would with other major companies. Learn more about how to buy stocks.  

Step 1: Pick a Brokerage

The first step to buying John Deere (DE) stock: Pick a brokerage to open an account. Most brokers have switched to commission-free trading, so you can buy shares of DE without incurring additional fees.

Define your trading goals, then select the brokerage that best suits your needs. If you feel like you need some practice before risking your own money, select a brokerage that offers paper trading.

Many brokerages also offer added perks for signing up or getting your friends to. Keep these in mind, as you could end up getting a free stock or other bonuses.

Step 2: Decide How Many Shares You Want

Once you have your open brokerage account, you need to decide how many shares of DE you want to buy. Take these items into consideration: Your available funds, your time horizon and your outlook for the stock before settling on an amount.

Avoid investing more than a few percent of your account value into a stock, especially one near all-time highs. Before you buy, choose your amount of shares and determine the price you will take profits/losses down the road.

After considering all of these factors, you can now look for a good price to enter into your position in John Deere.

Step 3: Choose Your Order Type

Knowing how many shares you want to buy is only half of the battle. You now need to determine which order type you will use to purchase shares of John Deere. Numerous order types serve a different purpose.

If you use a market order to buy shares of John Deere (DE), it will instantaneously execute at the national bid and offer (NBBO) price. In contrast, if you use a limit order, it will not execute until it can be filled at the price you designate or better.

Market orders work well if you’re trying to buy shares of large-cap stocks immediately. Limit orders help you control your risk, so you may want to use them to buy shares in more volatile stocks. 

Step 4: Execute Your Trade

After selecting the appropriate order type, all you have to do is hit “buy” to execute the trade. Once you hit “buy,” simply sit back and wait for your broker to process and fill your order. Once your order fills, the shares of John Deere will appear in your account.

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John Deere Stock History

After surviving the Great Depression and numerous economic challenges, John Deere gained significant momentum in the 1990s as global demand for agricultural and construction equipment rose. By 1997, John Deere's stock had risen to approximately $27, marking a significant recovery from its earlier lows. The stock fluctuated with market conditions but saw a notable surge in the late 2010s, reflecting a booming agricultural economy due to increased demand for food production.

One of the significant events that impacted John Deere's stock was the global food crisis in 2007-2008, which resulted in soaring commodity prices. This scenario drove up demand for agricultural equipment, pushing John Deere's stock above $86 by 2013.

DE stock struggled in 2026, dipping to around $90 as farmers faced lower commodity prices and diminishing profit margins, resulting in reduced demand for new equipment. The trade tensions arising from tariffs imposed by the U.S. and the retaliatory measures from China further exacerbated this decline, adding to the stock's volatility.

By 2021, the stock skyrocketed to new heights, surpassing the $300 mark due to a combination of favorable market conditions, government support for agriculture, and increased investments in green technology. Major events such as the COVID-19 pandemic also prompted supply chain disruptions, yet John Deere effectively navigated the challenges and maintained its strong market position.

As of August 2024, DE stock continues to show a positive trajectory, reflecting ongoing demand for innovative agricultural solutions and sustainability initiatives.

DE stock chart as of 8/25/24. Source: TradingView

Pros of Buying John Deere Stock

Stocks associated with the agricultural sector can always be volatile, but becoming an owner of John Deere (DE) could result in benefits from:

• Strong market position: Deere & Company is a leading manufacturer of agricultural machinery with a solid reputation and a significant share of the market. This strong position enables the company to benefit from consistent demand in the agriculture sector, providing stability to its stock.
• Dividend payments: Deere has a history of paying dividends, making it an attractive option for income-seeking investors. Regular dividend payments can provide a steady stream of income, offering a financial incentive to hold the stock over the long term.
• Growth potential: With advancements in technology and a growing focus on sustainable agricultural practices, Deere is well-positioned to capitalize on these trends. The company's investment in innovative solutions, such as precision farming technology, provides opportunities for future growth and increased profitability.

Cons of Buying John Deere Stock

Any stock at an all-time high presents a risk and John Deere (DE) is no exception. Some things to keep in mind include:

• Cyclical Nature of the Industry: Deere operates in a cyclical industry, meaning its performance can be influenced by fluctuations in agricultural commodity prices and economic conditions. During downturns in the economy or agriculture sector, the company's revenues and stock price may decline significantly.
• Global supply chain challenges: As a global company, Deere may face challenges due to geopolitical tensions or disruptions in the supply chain. Such issues can impact production costs and inventory levels, potentially affecting the company's ability to meet market demand.
• Competition: The agricultural machinery market is competitive, with a number of established players and new entrants posing a threat to Deere's market share. Increased competition may lead to pricing pressure and reduced profit margins, affecting the company’s overall financial performance.

Investing in John Deere (DE) stock can be a strategic choice if you're to enter the agricultural and heavy machinery sector. The company's strong market position, commitment to innovation and resilience through economic fluctuations make it an appealing option for potential investors. However, before making any investment decisions, it is crucial to conduct thorough research and analysis. Take the time to evaluate all relevant aspects before investing to ensure it aligns with your financial strategy and risk tolerance.

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