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Deere (DE) Gains But Lags Market: What You Should Know
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Deere (DE - Free Report) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.
Heading into today, shares of the agricultural equipment manufacturer had gained 16.15% over the past month, outpacing the Industrial Products sector's gain of 6.37% and the S&P 500's gain of 2.94% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. In that report, analysts expect Deere to post earnings of $7.09 per share. This would mark year-over-year growth of 72.09%. Meanwhile, our latest consensus estimate is calling for revenue of $13.48 billion, up 31.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.89 per share and revenue of $47.04 billion, which would represent changes of +20.54% and +18.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 16.86. For comparison, its industry has an average Forward P/E of 14.39, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.
View the Zacks #1 Rank List
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Deere (DE) Gains But Lags Market: What You Should Know
Deere (DE - Free Report) closed the most recent trading day at $391.63, moving +1.49% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 0.3%.
Heading into today, shares of the agricultural equipment manufacturer had gained 16.15% over the past month, outpacing the Industrial Products sector's gain of 6.37% and the S&P 500's gain of 2.94% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. In that report, analysts expect Deere to post earnings of $7.09 per share. This would mark year-over-year growth of 72.09%. Meanwhile, our latest consensus estimate is calling for revenue of $13.48 billion, up 31.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $22.89 per share and revenue of $47.04 billion, which would represent changes of +20.54% and +18.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Deere currently has a Forward P/E ratio of 16.86. For comparison, its industry has an average Forward P/E of 14.39, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.34 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.