In the latest close session, Deere (DE) was up +2.4% at $545.00. This move outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
The stock of agricultural equipment manufacturer has risen by 14.19% in the past month, leading the Industrial Products sector's gain of 8.35% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. On that day, Deere is projected to report earnings of $1.92 per share, which would represent a year-over-year decline of 39.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.6 billion, up 11.68% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.82 per share and revenue of $40 billion, indicating changes of -9.08% and +2.78%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Deere is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 31.64. Its industry sports an average Forward P/E of 20.03, so one might conclude that Deere is trading at a premium comparatively.
Also, we should mention that DE has a PEG ratio of 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 96, putting it in the top 40% 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.
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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