In the latest trading session, Deere (DE) closed at $522.38, marking a -1.35% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the agricultural equipment manufacturer had gained 13.28% in the past month. In that same time, the Industrial Products sector gained 8.63%, while the S&P 500 gained 0.71%.
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 $1.92, showcasing a 39.81% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.6 billion, up 11.68% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.56 per share and revenue of $39.99 billion. These totals would mark changes of -5.08% and +2.77%, respectively, from 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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. Deere is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 30.16. This valuation marks a premium compared to its industry average Forward P/E of 19.89.
Investors should also note that DE has a PEG ratio of 2.02 right now. 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 Manufacturing - Farm Equipment industry had an average PEG ratio of 2.02 as trading concluded yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 19% of all industries, numbering over 250.
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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
