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Deere (DE) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Deere (DE - Free Report) closed at $421.20, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 3.84% over the past month. This has lagged the Industrial Products sector's gain of 4.05% and the S&P 500's gain of 4.58% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be February 17, 2023. The company is expected to report EPS of $5.49, up 88.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.44 billion, up 34.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.86 per share and revenue of $54.38 billion. These totals would mark changes of +19.67% and +13.49%, respectively, from last year.
Any recent changes to analyst estimates for Deere should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Deere is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 14.85. This represents a premium compared to its industry's average Forward P/E of 13.87.
Meanwhile, DE's PEG ratio is currently 1.25. 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 35, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Deere (DE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Deere (DE - Free Report) closed at $421.20, marking a +1.83% move from the previous day. This change outpaced the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.
Prior to today's trading, shares of the agricultural equipment manufacturer had lost 3.84% over the past month. This has lagged the Industrial Products sector's gain of 4.05% and the S&P 500's gain of 4.58% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be February 17, 2023. The company is expected to report EPS of $5.49, up 88.01% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.44 billion, up 34.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $27.86 per share and revenue of $54.38 billion. These totals would mark changes of +19.67% and +13.49%, respectively, from last year.
Any recent changes to analyst estimates for Deere should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Deere is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 14.85. This represents a premium compared to its industry's average Forward P/E of 13.87.
Meanwhile, DE's PEG ratio is currently 1.25. 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 35, putting it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.