In the latest market close, Deere (DE) reached $479.72, with a -0.81% movement compared to the previous day. This change lagged the S&P 500's 0.33% loss on the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.53%.
Heading into today, shares of the agricultural equipment manufacturer had gained 1.07% over the past month, outpacing the Industrial Products sector's loss of 2.56% and the S&P 500's loss of 4.03% in that time.
Investors will be eagerly watching for the performance of Deere in its upcoming earnings disclosure. The company is predicted to post an EPS of $5.74, indicating a 32.71% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $10.75 billion, down 21.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.30 per share and revenue of $37.96 billion, indicating changes of -24.67% and -15.2%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Deere is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Deere currently has a Forward P/E ratio of 25.07. This indicates a premium in contrast to its industry's Forward P/E of 21.72.
It's also important to note that DE currently trades at a PEG ratio of 2.09. 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 the market closed yesterday, the Manufacturing - Farm Equipment industry was having an average PEG ratio of 2.09.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Deere & Company (DE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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