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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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Deere (DE - Free Report) closed at $345.71 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the agricultural equipment manufacturer had gained 1.22% over the past month, lagging the Industrial Products sector's gain of 2.29% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. The company is expected to report EPS of $2.24, down 42.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 0.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.18 per share and revenue of $46.97 billion. These totals would mark changes of +16.8% and +18.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 15.77. For comparison, its industry has an average Forward P/E of 16.87, which means Deere is trading at a discount to the group.
Investors should also note that DE has a PEG ratio of 1.41 right now. 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 industry currently had an average PEG ratio of 1.23 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 184, which puts it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
Deere (DE - Free Report) closed at $345.71 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the agricultural equipment manufacturer had gained 1.22% over the past month, lagging the Industrial Products sector's gain of 2.29% and the S&P 500's gain of 4.32% in that time.
Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. The company is expected to report EPS of $2.24, down 42.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 0.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.18 per share and revenue of $46.97 billion. These totals would mark changes of +16.8% and +18.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 15.77. For comparison, its industry has an average Forward P/E of 16.87, which means Deere is trading at a discount to the group.
Investors should also note that DE has a PEG ratio of 1.41 right now. 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 industry currently had an average PEG ratio of 1.23 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 184, which puts it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.