In the latest close session, Deere (DE) was up +1.53% at $469.42. The stock's change was more than the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.31%, and the technology-centric Nasdaq increased by 0.89%.
Coming into today, shares of the agricultural equipment manufacturer had lost 1.4% in the past month. In that same time, the Industrial Products sector lost 0.21%, while the S&P 500 gained 0.16%.
The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company is forecasted to report an EPS of $3.96, showcasing a 12.97% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.99 billion, indicating a 7.69% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.57 per share and revenue of $38.31 billion. These totals would mark changes of -27.52% and -14.4%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 0.08% upward. Currently, Deere is carrying a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Deere is holding a Forward P/E ratio of 24.9. This valuation marks a premium compared to its industry average Forward P/E of 19.22.
Also, we should mention that DE has a PEG ratio of 2.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Farm Equipment industry had an average PEG ratio of 1.72.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 240, positioning it in the bottom 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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