Deere (DE) Stock Sinks As Market Gains: What You Should Know
Deere (DE) closed the most recent trading day at $409.52, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Coming into today, shares of the agricultural equipment manufacturer had lost 4.2% in the past month. In that same time, the Industrial Products sector gained 4.52%, while the S&P 500 gained 5.64%.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be February 17, 2023. The company is expected to report EPS of $5.51, up 88.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.44 billion, up 34.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.01 per share and revenue of $54.38 billion. These totals would mark changes of +20.32% and +13.49%, respectively, from last year.
Any recent changes to analyst estimates for Deere should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Deere is currently a Zacks Rank #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 14.65. This valuation marks a premium compared to its industry's average Forward P/E of 13.92.
Also, we should mention that DE has a PEG ratio of 1.23. 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. 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 group has a Zacks Industry Rank of 35, putting it in the top 14% 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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Deere & Company (DE) : Free Stock Analysis Report
