In the latest trading session, Deere (DE) closed at $473.49, marking a +1.13% move from the previous day. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq increased by 0.55%.
Heading into today, shares of the agricultural equipment manufacturer had gained 2.39% over the past month, lagging the Industrial Products sector's gain of 2.75% and the S&P 500's gain of 3.83%.
Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.96, marking a 12.97% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $9.99 billion, up 7.69% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $18.57 per share and revenue of $38.31 billion. These results would represent year-over-year changes of -27.52% and -14.4%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Deere is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at valuation, Deere is presently trading at a Forward P/E ratio of 25.21. This denotes a premium relative to the industry average Forward P/E of 18.06.
Meanwhile, DE's PEG ratio is currently 3.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Farm Equipment industry stood at 1.72 at the close of the market yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 6% 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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