Deere stock prediction as shares spike more than 5% on solid Q4 results

Deere & Co (NYSE:DE) shares on Wednesday advanced by more than 5% after reporting its most recent quarterly results. The company announced its fiscal Q4 2021 results before markets opened, beating the consensus expectations on earnings. However, Deere’s revenue for the quarter failed to match Street expectations.

The company posted FQ4 GAAP earnings per share of $4.12, beating the average analyst estimate of $3.89. On the other hand, revenue for the quarter grew by 18.7% to $10.28 billion, surpassing estimates by $190 million.

Deere’s growth prospects

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From an investment perspective, Deere shares trade at reasonable trailing 12-month and forward P/E ratios of 21.31 and 16.90, respectively. Therefore, the stock could gain the attention of value investors.

In addition, analysts expect Deere’s earnings per share to grow at an average annual rate of more than 40% over the next five years, making it a compelling option for growth investors.

Technically, Deere shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has recently bounced off the trendline support to surge closer to the overbought conditions of the 14-day RSI.

However, following the company’s impressive quarterly performance, investors could target extended gains deep into the overbought conditions at about $380.14, or higher at $392.72, while $354.17 and $340.77 are support levels.

In summary, although Deere shares have gained more than 37% this year, the stock trades at reasonable valuation multiples whilst offering exciting growth prospects.

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