Deere (DE) closed at $515.17 in the latest trading session, marking a +1.87% move from the prior day. This move outpaced the S&P 500's daily gain of 0.78%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.61%.
Shares of the agricultural equipment manufacturer witnessed a loss of 1.64% over the previous month, trailing the performance of the Industrial Products sector with its gain of 8.59%, and the S&P 500's gain of 5.88%.
Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. The company's earnings report is set to go public on August 14, 2025. In that report, analysts expect Deere to post earnings of $4.62 per share. This would mark a year-over-year decline of 26.55%. Alongside, our most recent consensus estimate is anticipating revenue of $10.26 billion, indicating a 9.92% downward movement from the same quarter last year.
DE's full-year Zacks Consensus Estimates are calling for earnings of $18.84 per share and revenue of $38.05 billion. These results would represent year-over-year changes of -26.46% and -14.99%, respectively.
Investors might also notice recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Deere is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is presently being traded at a Forward P/E ratio of 26.84. For comparison, its industry has an average Forward P/E of 20.73, which means Deere is trading at a premium to the group.
One should further note that DE currently holds a PEG ratio of 3.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Farm Equipment industry held an average PEG ratio of 3.21.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 20% of over 250 industries.
The Zacks Industry Rank is ordered 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.
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Deere & Company (DE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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