Deere (DE) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, Deere (DE) closed at $393.68, marking a +0.03% move from the previous day. The stock lagged the S&P 500's daily gain of 1.25%. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 1.3%.
The agricultural equipment manufacturer's shares have seen an increase of 0.06% over the last month, surpassing the Industrial Products sector's loss of 2.19% and falling behind the S&P 500's gain of 1.58%.
The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company is scheduled to release its earnings on February 15, 2024. The company's earnings per share (EPS) are projected to be $7.44, reflecting a 13.59% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.29 billion, down 9.79% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $28.46 per share and revenue of $47.74 billion. These results would represent year-over-year changes of -17.82% and -14.09%, respectively.
Any recent changes to analyst estimates for Deere should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.21% fall in the Zacks Consensus EPS estimate. At present, Deere boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 13.83. This signifies a premium in comparison to the average Forward P/E of 13.67 for its industry.
One should further note that DE currently holds a PEG ratio of 1.14. 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. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Deere & Company (DE) : Free Stock Analysis Report
