Shares of ag equipment maker Deere & Co. (DE - Get Report) hit a 52-week high on Tuesday as investors are optimistic that smart management and its wide range of products should insulate from sluggish growth expected in the short term.
The shares added 0.7%, or 80 cents to $114.60.
Deere has said already that it expects 1% growth in its fiscal quarter equipment sales to rise about 1% in second-quarter fiscal 2017 compared with the year-ago period.
Analysts polled by FactSet expect the firm to earn $1.68 a share on $7.25 billion revenues compared to $1.56 a share, on $7.11 billion a year ago.
And Bruce Kamich, who writes about technical trading for The Street's sister publication Real Money says Deere's charts are bullish.
Kamich wrote on Tuesday that, "Deere has rallied strongly since last fall, including a big upside price gap in November. Prices have leveled off recently in what I see as a pause before they move still higher in the months ahead. A review of the current state of the indicators gives us the confidence to put forth higher price targets."
"Bottom line," Kamic says, "Continue to trade DE from the long side, risking a close below $110. The $125 area is our initial upside price target."
European sales look to provide another tailwind for Deere shares. On Monday Reuters reported that sales of agricultural machinery look set to rebound there in 2017 following a multi-year soft market. Reuters reported that rising German demand look to counter French agricultural lethargy. rance
It said Deere and rivals are this month reporting their best sales since 2013.