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Deere (DE) Stock Sinks As Market Gains: What You Should Know

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Deere (DE - Free Report) closed at $309.24 in the latest trading session, marking a -0.01% move from the prior day. This move lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.57%.

Heading into today, shares of the agricultural equipment manufacturer had gained 3.18% over the past month, lagging the Industrial Products sector's gain of 5.88% and the S&P 500's gain of 4.69% in that time.

Wall Street will be looking for positivity from DE as it approaches its next earnings report date. The company is expected to report EPS of $2.11, up 29.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.08 billion, up 8.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.16 per share and revenue of $35.13 billion, which would represent changes of +51.44% and +12.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection has moved 1.99% higher. DE currently has a Zacks Rank of #3 (Hold).

Investors should also note DE's current valuation metrics, including its Forward P/E ratio of 23.5. Its industry sports an average Forward P/E of 20.42, so we one might conclude that DE is trading at a premium comparatively.

Meanwhile, DE's PEG ratio is currently 1.47. 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 was holding an average PEG ratio of 1.76 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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