In the latest trading session, Deere (DE) closed at $439.17, marking a -1.61% move from the previous day. This change lagged the S&P 500's daily gain of 1.56%. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.
The stock of agricultural equipment manufacturer has fallen by 5.13% in the past month, lagging the Industrial Products sector's loss of 1.1% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company's earnings per share (EPS) are projected to be $3.97, reflecting a 12.75% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.99 billion, showing a 7.69% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.58 per share and a revenue of $38.31 billion, signifying shifts of -27.48% and -14.4%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. At present, Deere boasts a Zacks Rank of #4 (Sell).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 24.02. This represents a premium compared to its industry average Forward P/E of 19.41.
Also, we should mention that DE has a PEG ratio of 2.87. 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 industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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