Deere and Caterpillar Are Both Up Over 40% This Year: Take Profits or Hold On for the Ride?

Deere (DE) and Caterpillar (CAT) stocks have surged by 47% and 44% year-to-date, respectively, significantly outperforming the broader industrial sector and the S&P 500. This narrow rally prompts investors to decide whether to take profits or hold their positions, as the gains are company-specific rather than a sector-wide re-rating. While taking profits addresses the concentration risk and less attractive reward-to-risk for new money, holding on is supported by the continued momentum and the fact that neither stock has shown a sell signal, attracting benchmark-driven investments.