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Deere (DE) Stock Moves -0.99%: What You Should Know

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Deere (DE - Free Report) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. This change was narrower than the S&P 500's 1.58% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.

Prior to today's trading, shares of the agricultural equipment manufacturer had gained 2.96% over the past month. This has outpaced the Industrial Products sector's loss of 8.44% and the S&P 500's loss of 6.62% in that time.

DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. On that day, DE is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 35.88%. Our most recent consensus estimate is calling for quarterly revenue of $6.90 billion, up 15.42% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.43 per share and revenue of $35.94 billion. These totals would mark changes of +21.73% and +7.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.74% lower. DE currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DE is currently trading at a Forward P/E ratio of 12.78. Its industry sports an average Forward P/E of 14.39, so we one might conclude that DE is trading at a discount comparatively.

It is also worth noting that DE currently has a PEG ratio of 1.43. 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. DE's industry had an average PEG ratio of 1.43 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 6% 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.

To follow DE in the coming trading sessions, be sure to utilize Zacks.com.


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