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Deere (DE) Gains But Lags Market: What You Should Know

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In the latest trading session, Deere (DE - Free Report) closed at $380.55, marking a +0.18% move from the previous day. This change lagged the S&P 500's 0.92% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.54%.

Coming into today, shares of the agricultural equipment manufacturer had gained 8.09% in the past month. In that same time, the Industrial Products sector lost 0.31%, while the S&P 500 lost 0.85%.

Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be February 18, 2022. The company is expected to report EPS of $2.24, down 42.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.44% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 17.13 right now. This represents a premium compared to its industry's average Forward P/E of 16.13.

We can also see that DE currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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