Deere (DE) closed the most recent trading day at $456.44, moving +0.39% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
The agricultural equipment manufacturer's shares have seen a decrease of 5.07% over the last month, surpassing the Industrial Products sector's loss of 8.85% and the S&P 500's loss of 6.57%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company is forecasted to report an EPS of $5.70, showcasing a 33.18% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $10.65 billion, indicating a 21.75% decline compared to the corresponding quarter of the prior year.
DE's full-year Zacks Consensus Estimates are calling for earnings of $18.97 per share and revenue of $38.23 billion. These results would represent year-over-year changes of -25.96% and -14.59%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Deere presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Deere is currently being traded at a Forward P/E ratio of 23.97. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Also, we should mention that DE has a PEG ratio of 2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment industry had an average PEG ratio of 2 as trading concluded yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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