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

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Deere (DE - Free Report) closed the most recent trading day at $338.29, moving -0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.05%.

Heading into today, shares of the agricultural equipment manufacturer had lost 13.07% over the past month, lagging the Industrial Products sector's loss of 8.84% and the S&P 500's loss of 5.07% in that time.

Wall Street will be looking for positivity from DE as it approaches its next earnings report date. On that day, DE is projected to report earnings of $4.02 per share, which would represent year-over-year growth of 68.2%. Our most recent consensus estimate is calling for quarterly revenue of $10.76 billion, up 24.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.90 per share and revenue of $40.87 billion, which would represent changes of +117.49% and +30.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DE. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DE is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, DE currently has a Forward P/E ratio of 17.91. This represents a premium compared to its industry's average Forward P/E of 16.59.

We can also see that DE currently has a PEG ratio of 0.85. 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. The Manufacturing - Farm Equipment was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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