Back to top

Image: Bigstock

Deere (DE) Stock Moves -1.42%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Deere (DE - Free Report) closed at $341, marking a -1.42% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the agricultural equipment manufacturer had lost 5.3% over the past month, outpacing the Industrial Products sector's loss of 9.6% and the S&P 500's loss of 8.19% 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 $7.14, up 73.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 31.31% from the year-ago period.

DE's full-year Zacks Consensus Estimates are calling for earnings of $22.94 per share and revenue of $47.57 billion. These results would represent year-over-year changes of +20.8% and +19.71%, respectively.

Investors should also note any 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.

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 0.01% higher. Deere currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Deere is holding a Forward P/E ratio of 15.08. For comparison, its industry has an average Forward P/E of 13.47, which means Deere is trading at a premium to the group.

It is also worth noting that DE currently has a PEG ratio of 1.2. 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 183, which puts it in the bottom 28% 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.

To follow DE in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Deere & Company (DE) - free report >>

Published in