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Deere (DE) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Deere (DE - Free Report) closed at $380.25, marking a -0.22% move from the previous day. This change lagged the S&P 500's 0.05% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 3.09% over the past month. This has lagged the Industrial Products sector's gain of 3.52% and outpaced the S&P 500's gain of 1.18% 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. The company is expected to report EPS of $8.51, up 24.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.78 billion, up 22.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $30.47 per share and revenue of $54.96 billion, which would represent changes of +30.88% and +14.71%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher. Deere is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 12.51. For comparison, its industry has an average Forward P/E of 12.75, which means Deere is trading at a discount to the group.
Also, we should mention that DE has a PEG ratio of 1.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 0.98 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 89, which puts it in the top 36% 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.
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Deere (DE) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Deere (DE - Free Report) closed at $380.25, marking a -0.22% move from the previous day. This change lagged the S&P 500's 0.05% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 3.09% over the past month. This has lagged the Industrial Products sector's gain of 3.52% and outpaced the S&P 500's gain of 1.18% 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. The company is expected to report EPS of $8.51, up 24.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.78 billion, up 22.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $30.47 per share and revenue of $54.96 billion, which would represent changes of +30.88% and +14.71%, respectively, from the prior year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.05% higher. Deere is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 12.51. For comparison, its industry has an average Forward P/E of 12.75, which means Deere is trading at a discount to the group.
Also, we should mention that DE has a PEG ratio of 1.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 0.98 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 89, which puts it in the top 36% 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.