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

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Deere (DE - Free Report) closed the most recent trading day at $364.03, moving -0.07% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.

Prior to today's trading, shares of the agricultural equipment manufacturer had gained 4.31% over the past month. This has outpaced the Industrial Products sector's loss of 3.12% and the S&P 500's loss of 5.39% in that time.

Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.24 per share. This would mark a year-over-year decline of 42.12%. 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. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Deere is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Deere is holding a Forward P/E ratio of 16.42. For comparison, its industry has an average Forward P/E of 15.68, which means Deere is trading at a premium to the group.

Also, we should mention that DE has a PEG ratio of 1.47. 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 1.21 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 51, which puts it in the top 20% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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