In the latest trading session, Deere (DE) closed at $355.47, marking a -0.08% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.39%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 2.78% over the past month. This has was narrower than the Industrial Products sector's loss of 3.14% and the S&P 500's loss of 3.51% in that time.
Deere will be looking to display strength as it nears its next earnings release. In that report, analysts expect Deere to post earnings of $7.14 per share. This would mark year-over-year growth of 73.3%. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 31.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.94 per share and revenue of $47.57 billion, which would represent changes of +20.8% and +19.71%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Deere is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 15.51. This represents a premium compared to its industry's average Forward P/E of 14.05.
Meanwhile, DE's PEG ratio is currently 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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