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The Zacks Industrial Products sector is currently ranked #1 out of all 16 Zacks sectors, indicating that companies within the realm have witnessed positive earnings estimate revisions.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, reflecting the importance of targeting stocks in sectors with bright outlooks.
One company in the sector, Deere & Company (DE - Free Report) , has been no exception, currently sporting the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme.
Let’s take a deeper dive into the company.
Valuation
DE shares aren’t pricey in terms of valuation, with its current 15.1X forward earnings multiple sitting beneath the five-year median and Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
In addition, the company’s forward price-to-sales currently works out to be 2.4X, modestly above the five-year median and again below the Zacks sector average.
Image Source: Zacks Investment Research
Strong Growth
Deere certainly sports a favorable growth profile, with the Zacks Consensus EPS Estimate of $29.82 for its current fiscal year (FY23) suggesting year-over-year growth of nearly 30%. And in FY24, estimates allude to a further 4% of earnings growth.
The projected earnings growth comes on the back of forecasted year-over-year revenue upticks of 13% in FY23 and 1.6% in FY24.
Quarterly Performance
DE has consistently posted better-than-expected results as of late, exceeding both earnings and revenue estimates in back-to-back quarters.
Just in its latest release, the agriculture titan registered a sizable 18% EPS beat and reported sales 1% above expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
And for the cherry on top, DE shares pay a dividend, currently yielding 1.1% annually.
While the yield is below the Zacks sector average, Deere’s 13% five-year annualized dividend growth rate bridges the gap in a big way.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Deere & Company (DE - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Deere & Company (DE)
The Zacks Industrial Products sector is currently ranked #1 out of all 16 Zacks sectors, indicating that companies within the realm have witnessed positive earnings estimate revisions.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, reflecting the importance of targeting stocks in sectors with bright outlooks.
One company in the sector, Deere & Company (DE - Free Report) , has been no exception, currently sporting the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand with its signature green and yellow color scheme.
Let’s take a deeper dive into the company.
Valuation
DE shares aren’t pricey in terms of valuation, with its current 15.1X forward earnings multiple sitting beneath the five-year median and Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
In addition, the company’s forward price-to-sales currently works out to be 2.4X, modestly above the five-year median and again below the Zacks sector average.
Image Source: Zacks Investment Research
Strong Growth
Deere certainly sports a favorable growth profile, with the Zacks Consensus EPS Estimate of $29.82 for its current fiscal year (FY23) suggesting year-over-year growth of nearly 30%. And in FY24, estimates allude to a further 4% of earnings growth.
The projected earnings growth comes on the back of forecasted year-over-year revenue upticks of 13% in FY23 and 1.6% in FY24.
Quarterly Performance
DE has consistently posted better-than-expected results as of late, exceeding both earnings and revenue estimates in back-to-back quarters.
Just in its latest release, the agriculture titan registered a sizable 18% EPS beat and reported sales 1% above expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
And for the cherry on top, DE shares pay a dividend, currently yielding 1.1% annually.
While the yield is below the Zacks sector average, Deere’s 13% five-year annualized dividend growth rate bridges the gap in a big way.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Deere & Company (DE - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).