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Deere (DE) Stock Slides as Market Rises: Facts to Know Before You Trade

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Deere (DE - Free Report) ended the recent trading session at $457.26, demonstrating a -1.77% change from the preceding day's closing price. This change lagged the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.31%.

Shares of the agricultural equipment manufacturer have depreciated by 2.75% over the course of the past month, underperforming the Industrial Products sector's gain of 0.77%, and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.97, indicating a 12.75% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.97 billion, up 7.5% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.56 per share and a revenue of $38.28 billion, indicating changes of -27.56% and -14.48%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. At present, Deere boasts a Zacks Rank of #4 (Sell).

Digging into valuation, Deere currently has a Forward P/E ratio of 25.08. This indicates a premium in contrast to its industry's Forward P/E of 20.46.

It's also important to note that DE currently trades at a PEG ratio of 2.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.74 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 13% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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