Deere (DE) Gains But Lags Market: What You Should Know
Deere (DE) closed the most recent trading day at $325.71, moving +1.96% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.62%. Meanwhile, the Dow gained 1.37%, and the Nasdaq, a tech-heavy index, added 0.05%.
Coming into today, shares of the agricultural equipment manufacturer had gained 3.33% in the past month. In that same time, the Industrial Products sector gained 2.86%, while the S&P 500 gained 0.24%.
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. Our most recent consensus estimate is calling for quarterly revenue of $12.95 billion, up 24.35% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $23.30 per share and revenue of $47.73 billion. These results would represent year-over-year changes of +22.7% and +20.1%, respectively.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Deere is currently a Zacks Rank #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 13.71. Its industry sports an average Forward P/E of 13.71, so we one might conclude that Deere is trading at a no noticeable deviation comparatively.
We can also see that DE currently has a PEG ratio of 1.09. 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 1.09 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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