Deere (DE) Outpaces Stock Market Gains: What You Should Know
Deere (DE) closed at $349.48 in the latest trading session, marking a +1.72% move from the prior day. This change outpaced the S&P 500's 1.13% gain on the day.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 0.63% over the past month. This has outpaced the Industrial Products sector's loss of 3.12% and lagged the S&P 500's gain of 2.39% in that time.
Investors will be hoping for strength from DE as it approaches its next earnings release, which is expected to be August 20, 2021. In that report, analysts expect DE to post earnings of $4.43 per share. This would mark year-over-year growth of 72.37%. Our most recent consensus estimate is calling for quarterly revenue of $10.05 billion, up 27.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.89 per share and revenue of $39.21 billion, which would represent changes of +105.87% and +25.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DE. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DE currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, DE currently has a Forward P/E ratio of 19.2. Its industry sports an average Forward P/E of 19.39, so we one might conclude that DE is trading at a discount comparatively.
Also, we should mention that DE has a PEG ratio of 0.95. 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 1.24 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
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