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Deere (DE) Outpaces Stock Market Gains: What You Should Know
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Deere (DE - Free Report) closed at $396.69 in the latest trading session, marking a +1.35% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.
Heading into today, shares of the agricultural equipment manufacturer had lost 0.78% over the past month, lagging the Industrial Products sector's gain of 4.73% and the S&P 500's gain of 6.17% in that time.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2023. In that report, analysts expect Deere to post earnings of $8.50 per share. This would mark year-over-year growth of 24.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.78 billion, up 22.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $30.46 per share and revenue of $54.5 billion. These totals would mark changes of +30.84% and +13.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Deere is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Deere currently has a Forward P/E ratio of 12.85. Its industry sports an average Forward P/E of 12.61, so we one might conclude that Deere is trading at a premium comparatively.
Also, we should mention that DE has a PEG ratio of 1.04. 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 industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
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Deere (DE) Outpaces Stock Market Gains: What You Should Know
Deere (DE - Free Report) closed at $396.69 in the latest trading session, marking a +1.35% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 2.51%.
Heading into today, shares of the agricultural equipment manufacturer had lost 0.78% over the past month, lagging the Industrial Products sector's gain of 4.73% and the S&P 500's gain of 6.17% in that time.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2023. In that report, analysts expect Deere to post earnings of $8.50 per share. This would mark year-over-year growth of 24.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.78 billion, up 22.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $30.46 per share and revenue of $54.5 billion. These totals would mark changes of +30.84% and +13.74%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Deere is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Deere currently has a Forward P/E ratio of 12.85. Its industry sports an average Forward P/E of 12.61, so we one might conclude that Deere is trading at a premium comparatively.
Also, we should mention that DE has a PEG ratio of 1.04. 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 industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.