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Deere (DE) Gains But Lags Market: What You Should Know

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Deere (DE) closed at $316.54 in the latest trading session, marking a +0.37% move from the prior day. The stock lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Prior to today's trading, shares of the agricultural equipment manufacturer had lost 0.81% over the past month. This has lagged the Industrial Products sector's gain of 5.21% and the S&P 500's gain of 7.91% in that time.

Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be August 19, 2022. The company is expected to report EPS of $6.60, up 24.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.95 billion, up 24.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.30 per share and revenue of $47.14 billion, which would represent changes of +22.7% and +18.64%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Deere currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Deere currently has a Forward P/E ratio of 13.54. This represents a no noticeable deviation compared to its industry's average Forward P/E of 13.54.

It is also worth noting that DE currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.07 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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