Deere's 0.67% Gain Despite 131st Trading Volume Rank

Deere & Company (DE) rose 0.67% on August 20, 2025, with a trading volume of $710 million, ranking 131st in market activity. The stock's performance reflects ongoing market sentiment shaped by its exposure to agricultural and construction sectors amid evolving macroeconomic conditions.

Jim Cramer of CNBC highlighted Deere's strategic positioning in U.S.-centric AI-driven data center construction and agricultural policy shifts, which could provide tailwinds. However, the company narrowed its full-year outlook in August, contributing to a 6.8% decline in the stock earlier in the month. Cramer noted the company's cyclical nature and dependence on external factors like crop prices and interest rates, emphasizing that its recent gains align with improving fundamentals in agribusiness despite operational challenges.

Recent developments include Deere announcing layoffs in Midwest operations due to weak farm equipment demand, signaling ongoing cost-cutting measures. Analysts remain divided, with some citing long-term growth potential from technological leadership in farm equipment and others cautioning about near-term pressures from soft demand and tariff-related costs. The stock's valuation at 27 times earnings is viewed as justified given its market dominance and potential for earnings recovery if agricultural conditions improve.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.