Deere (DE) ended the recent trading session at $468.30, demonstrating a +1.38% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 1.17%. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 2.04%.
The agricultural equipment manufacturer's stock has climbed by 1.01% in the past month, falling short of the Industrial Products sector's gain of 1.51% and the S&P 500's gain of 2.12%.
The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.96, reflecting a 12.97% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.99 billion, reflecting a 7.69% rise from the equivalent quarter last year.
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 0%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.91% downward. Currently, Deere is carrying a Zacks Rank of #4 (Sell).
Looking at its valuation, Deere is holding a Forward P/E ratio of 23.11. This signifies a premium in comparison to the average Forward P/E of 18.11 for its industry.
We can also see that DE currently has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on 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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