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

In the latest trading session, Deere (DE) closed at $398.77, marking a +0.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 1.31%, while the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the agricultural equipment manufacturer had gained 10.93% in the past month. In that same time, the Industrial Products sector gained 7.87%, while the S&P 500 lost 0.41%.

Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be November 23, 2022. On that day, Deere is projected to report earnings of $7.09 per share, which would represent year-over-year growth of 72.09%. Meanwhile, our latest consensus estimate is calling for revenue of $13.48 billion, up 31.16% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 0.28% 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 14.86. This valuation marks a premium compared to its industry's average Forward P/E of 13.7.

It is also worth noting that DE currently has a PEG ratio of 1.18. 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. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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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