Deere (DE) Stock Sinks As Market Gains: What You Should Know
Deere (DE) closed the most recent trading day at $355.30, moving -0.96% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 6% over the past month. This has lagged the Industrial Products sector's gain of 6.21% and outpaced the S&P 500's gain of 5.96% in that time.
DE will be looking to display strength as it nears its next earnings release, which is expected to be November 24, 2021. On that day, DE is projected to report earnings of $4.03 per share, which would represent year-over-year growth of 68.62%. Our most recent consensus estimate is calling for quarterly revenue of $10.54 billion, up 21.68% from the year-ago period.
Investors might also notice recent changes to analyst estimates for DE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. DE is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, DE currently has a Forward P/E ratio of 16.16. Its industry sports an average Forward P/E of 15.86, so we one might conclude that DE is trading at a premium comparatively.
It is also worth noting that DE currently has a PEG ratio of 0.76. 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 0.91 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 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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