Here’s Why Deere Stock Is Likely To See Higher Levels After A 5% Fall In A Week

Here’s Why Deere Stock Is Likely To See Higher Levels After A 5% Fall In A Week

HAMPSHIRE, IL - AUGUST 19: A John Deere logo is painted on the side of a piece of farm equipment ... [+] offered for sale at the Buck Bros. dealership August 19, 2009 in Hampshire, Illinois. Deere & Co., the world�s largest maker of farm equipment, today posted a decline of approximately 27 percent in third-quarter profit. (Photo by Scott Olson/Getty Images) The stock price of Deere has seen a decline of 5% over the last five trading days. The recent decline can be attributed to rising concerns of slowing growth in China if Evergrande – China's largest real-estate firm with over $300 billion in debt – were to default. A default could impact Chinese banks and credit markets, potentially spilling over to other areas of the Chinese economy. This also impacts some of the industrial companies, such as Deere and Caterpillar, which generates some of their revenues from China. Although the exposure for Deere is far lower than Caterpillar, with just a little over 10% of its sales coming from Asia, Africa, Australia, New Zealand, and Middle East. Nevertheless, the markets were not kind to DE stock over the last week or so. This can be attributed to the