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

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In the latest trading session, Deere (DE - Free Report) closed at $401.24, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.28% loss on the day. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.33%.

The agricultural equipment manufacturer's stock has dropped by 1.86% in the past month, falling short of the Industrial Products sector's loss of 0.73% and the S&P 500's gain of 0.41%.

The upcoming earnings release of Deere will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.90, reflecting a 52.78% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.34 billion, reflecting a 32.35% fall from the equivalent quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.96% lower. Currently, Deere is carrying a Zacks Rank of #4 (Sell).

With respect to valuation, Deere is currently being traded at a Forward P/E ratio of 18.2. This valuation marks a premium compared to its industry's average Forward P/E of 16.36.

We can also see that DE currently has a PEG ratio of 1.52. 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 1.52 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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