Deere (DE) ended the recent trading session at $452.28, demonstrating a -1.95% swing from the preceding day's closing price. This change was narrower than the S&P 500's 2.24% loss on the day. Elsewhere, the Dow saw a downswing of 1.73%, while the tech-heavy Nasdaq depreciated by 3.07%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 4.14% over the past month. This has was narrower than the Industrial Products sector's loss of 8.57% and the S&P 500's loss of 4.17% in that time.
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 $5.72, reflecting a 32.94% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.71 billion, indicating a 21.33% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.15 per share and revenue of $37.98 billion. These totals would mark changes of -25.25% and -15.15%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Deere. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Currently, Deere is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Deere is at present trading with a Forward P/E ratio of 24.08. This represents a premium compared to its industry's average Forward P/E of 19.49.
One should further note that DE currently holds a PEG ratio of 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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