Why Shares in Deere Surged in July
Shares in agricultural and infrastructural equipment maker Deere (NYSE: DE) rose 12.2% in July, according to data provided by S&P Global Market Intelligence. The stock price rise comes as Wall Street analysts and the market shifted toward a more positive sentiment for the company's prospects.
The word "sentiment" is very important when discussing Deere, and not just from the perspective of investors buying the stock. In reality, the company's sales outlook will largely depend on farmers' sentiment toward buying new equipment. Unfortunately, the COVID-19 pandemic has negatively impacted end demand in 2020 and, therefore, sentiment toward buying new agricultural equipment. Similarly, the shutdowns imposed on the global economy have significantly impacted sales in Deere's construction and forestry segment.
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Source Fool.com
