Back to top

Image: Bigstock

Deere (DE) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

Deere (DE - Free Report) closed the most recent trading day at $393.62, moving +0.16% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.07%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.36%.

Shares of the agricultural equipment manufacturer witnessed a loss of 1.57% over the previous month, trailing the performance of the Industrial Products sector with its loss of 0.09% and the S&P 500's gain of 3.05%.

Investors will be eagerly watching for the performance of Deere in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 15, 2024. In that report, analysts expect Deere to post earnings of $5.16 per share. This would mark a year-over-year decline of 21.22%. At the same time, our most recent consensus estimate is projecting a revenue of $10.31 billion, reflecting a 9.53% fall from the equivalent quarter last year.

DE's full-year Zacks Consensus Estimates are calling for earnings of $28.46 per share and revenue of $48.96 billion. These results would represent year-over-year changes of -17.82% and -11.89%, respectively.

Investors should also pay attention to any latest changes in 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. At present, Deere boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Deere is currently trading at a Forward P/E ratio of 13.81. For comparison, its industry has an average Forward P/E of 13.57, which means Deere is trading at a premium to the group.

Investors should also note that DE has a PEG ratio of 1.14 right now. 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. As the market closed yesterday, the Manufacturing - Farm Equipment industry was having an average PEG ratio of 1.51.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


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


Deere & Company (DE) - free report >>

Published in