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

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Deere (DE - Free Report) closed the most recent trading day at $396.88, moving +0.98% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.58%. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw a decrease of 1.15%.

Prior to today's trading, shares of the agricultural equipment manufacturer had gained 0.38% over the past month. This has outpaced the Industrial Products sector's gain of 0.09% and the S&P 500's loss of 1.09% in that time.

The upcoming earnings release of Deere will be of great interest to investors. The company's upcoming EPS is projected at $7.79, signifying a 19.27% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $13.19 billion, down 17.99% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $27.39 per share and revenue of $47.85 billion, which would represent changes of -20.91% and -13.89%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, 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 0.11% lower within the past month. Right now, Deere possesses a Zacks Rank of #4 (Sell).

In the context of valuation, Deere is at present trading with a Forward P/E ratio of 14.35. This valuation marks a premium compared to its industry's average Forward P/E of 13.5.

Investors should also note that DE has a PEG ratio of 1.48 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. DE's industry had an average PEG ratio of 0.95 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 170, putting it in the bottom 33% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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