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Deere (DE) Gains But Lags Market: What You Should Know
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Deere (DE - Free Report) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the agricultural equipment manufacturer had gained 9.01% over the past month, outpacing the Industrial Products sector's loss of 8.37% and the S&P 500's loss of 7.36% 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. On that day, Deere is projected to report earnings of $2.22 per share, which would represent a year-over-year decline of 42.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.09 billion, up 0.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.21 per share and revenue of $46.97 billion, which would represent changes of +16.96% and +18.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 16.83 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.83.
It is also worth noting that DE currently has a PEG ratio of 1.5. 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. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.2 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 38, which puts it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Deere (DE) Gains But Lags Market: What You Should Know
Deere (DE - Free Report) closed at $376.40 in the latest trading session, marking a +0.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.
Heading into today, shares of the agricultural equipment manufacturer had gained 9.01% over the past month, outpacing the Industrial Products sector's loss of 8.37% and the S&P 500's loss of 7.36% 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. On that day, Deere is projected to report earnings of $2.22 per share, which would represent a year-over-year decline of 42.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.09 billion, up 0.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.21 per share and revenue of $46.97 billion, which would represent changes of +16.96% and +18.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Deere. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 16.83 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.83.
It is also worth noting that DE currently has a PEG ratio of 1.5. 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. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.2 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 38, which puts it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.