Deere (DE) closed at $501.25 in the latest trading session, marking a -4.41% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.6%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 2.24%.
The agricultural equipment manufacturer's stock has climbed by 0.65% in the past month, falling short of the Industrial Products sector's gain of 5.21% and the S&P 500's gain of 2.25%.
Investors will be eagerly watching for the performance of Deere in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 14, 2025. It is anticipated that the company will report an EPS of $4.62, marking a 26.55% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.26 billion, down 9.92% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.84 per share and a revenue of $38.05 billion, representing changes of -26.46% and -14.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. As of now, Deere holds a Zacks Rank of #3 (Hold).
In the context of valuation, Deere is at present trading with a Forward P/E ratio of 27.83. Its industry sports an average Forward P/E of 20.57, so one might conclude that Deere is trading at a premium comparatively.
One should further note that DE currently holds a PEG ratio of 3.32. 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 3.32.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 22% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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