In the latest trading session, Deere (DE) closed at $361.21, marking a -0.58% move from the previous day. This move lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 0.01% over the past month. This has outpaced the Industrial Products sector's loss of 10.35% and the S&P 500's loss of 11.67% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. The company is expected to report EPS of $7.12, up 72.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.51 billion, up 31.43% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.92 per share and revenue of $47.07 billion. These results would represent year-over-year changes of +20.7% and +18.45%, respectively.
Any recent changes to analyst estimates for Deere should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Deere currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 15.85 right now. This valuation marks a premium compared to its industry's average Forward P/E of 13.66.
Investors should also note that DE has a PEG ratio of 1.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research