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Deere (DE) Gains As Market Dips: What You Should Know

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Deere (DE - Free Report) closed the most recent trading day at $382.36, moving +0.5% from the previous trading session. This change outpaced the S&P 500's 0.02% loss on the day.

Prior to today's trading, shares of the agricultural equipment manufacturer had gained 3.39% over the past month. This has outpaced the Industrial Products sector's gain of 1.88% and lagged the S&P 500's gain of 5.48% in that time.

Wall Street will be looking for positivity from DE as it approaches its next earnings report date. This is expected to be May 21, 2021. The company is expected to report EPS of $4.46, up 111.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.54 billion, up 28.11% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.01 per share and revenue of $38.51 billion. These totals would mark changes of +84.23% and +23.15%, respectively, from last year.

Any recent changes to analyst estimates for DE should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.98% higher within the past month. DE is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, DE is holding a Forward P/E ratio of 23.76. For comparison, its industry has an average Forward P/E of 22.72, which means DE is trading at a premium to the group.

Also, we should mention that DE has a PEG ratio of 1.24. 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. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.81 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.

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