Deere (DE) Outpaces Stock Market Gains: What You Should Know
Deere (DE) ended the recent trading session at $388.41, demonstrating a +0.25% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.36%.
The the stock of agricultural equipment manufacturer has fallen by 3.44% in the past month, lagging the Industrial Products sector's loss of 0.83% and the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Deere in its upcoming release. It is anticipated that the company will report an EPS of $5.16, marking a 21.22% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $10.31 billion, down 9.53% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $28.46 per share and a revenue of $48.96 billion, demonstrating changes of -17.82% and -11.89%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Deere. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.16% decrease. Deere is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Deere currently has a Forward P/E ratio of 13.62. Its industry sports an average Forward P/E of 13.34, so one might conclude that Deere is trading at a premium comparatively.
One should further note that DE currently holds a PEG ratio of 1.12. 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. The Manufacturing - Farm Equipment industry had an average PEG ratio of 1.46 as trading concluded yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Deere & Company (DE) : Free Stock Analysis Report
