How Did Deere Stock Leave Its Industry Behind?
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One stock outperformed 14 of the 15 other companies in its industry over the five years ending November 9, 2026. That company is Deere (DE), a tractor and combine manufacturer in the Agricultural & Farm Machinery industry. A lead this wide can originate from a company’s industry or from the company itself, and the share price alone does not tell you which. Take a guess: was it Deere’s industry, or Deere itself?
How Far Deere Is Ahead Of Its Industry
The company itself accounted for most of the outperformance. Deere’s stock gained 107.4% over those five years, while the typical company in the Agricultural & Farm Machinery industry lost 22.9%. The table below sets Deere alongside the S&P 500 and the median company of any size in its industry, its sector and all stocks over the past year, three years and five years.
| 1-year | 3-year | 5-year | |
|---|---|---|---|
| Deere (DE) | 49.5% | 92.4% | 107.4% |
| Agricultural & Farm Machinery industry (median company) | 23.0% | -0.4% | -22.9% |
| Industrials sector (median company) | 6.4% | 36.3% | 18.0% |
| All stocks in our data (median company) | 5.6% | 30.5% | -4.8% |
| S&P 500 index | 10.5% | 71.0% | 61.1% |
Total return to 2026-11-09, including dividends; the S&P 500 row is the index level, price only. Industry, sector and all-stock rows are the median company of each group.
Among the larger companies in Deere’s industry, only Blue Bird rose more over five years. Toro, another large peer, gained 16.2%. So the one company in its industry that beat Deere over five years is one of the big names.
Was It Deere’s Industry?
No, although the index and the wider sector around Deere both rose over those five years. The S&P 500 rose 61.1%, and the typical Industrials company gained 18.0%.
Deere’s own industry fared much worse. The typical company’s five-year return ranked 15th among the 23 industries in the Industrials sector. Deere’s stock rose from within one of the sector’s weaker industries, yet it still finished well ahead of the S&P 500.
What Did Deere’s Business Do?
Deere’s business grew far less than its stock. Over the last three years, Deere’s revenue change averaged a decline of 7.3% a year, against a decline of 0.7% for the typical company in its industry. Deere did not win on growth.
Between 2021 and 2026, revenue rose 13.1% and the operating margin barely moved. Each year here is the twelve months ended in early August. Earnings per share rose only 4.3%, and that gain came from fewer shares: net income fell, while Deere’s diluted share count dropped 13.6%.
Investors, however, now pay far more for those earnings. Deere trades at 38.3 times earnings today, compared to 19.2 times in 2021. The typical company in its industry trades at 28.3 times. So most of Deere’s lead came from the higher price investors now pay for each dollar of its earnings.
Production & Precision Agriculture, Deere’s largest business, generated 39.7% of its revenue in fiscal 2025. During the fiscal Q3 2026 call, management said its See & Spray technology is included on about a third of North American sprayers on order.
Is Deere Still Ahead Over The Past Year?
Yes, although its lead over its peers has narrowed. Deere’s stock beat 80.0% of its industry peers over the year ending November 9, 2026, compared to 93.3% over five years.
During the August 20, 2026 call, management raised its full-year net income outlook and said it continues to believe 2026 is the bottom of the agricultural equipment cycle. That outlook is a forecast, not a result. Deere’s earnings per share for fiscal 2026, which it is expected to report in November 2026, is the figure to watch.
How To Act On DE?
Not necessarily on Deere alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Deere is one. Over the five years to November 2026, its stock rose 107.4%, ahead of 14 of the 15 other companies in Agricultural & Farm Machinery, where the typical company fell 22.9%.
Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.
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