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Deere (DE) Gains But Lags Market: What You Should Know
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In the latest trading session, Deere (DE - Free Report) closed at $395.40, marking a +1.42% move from the previous day. This change lagged the S&P 500's 1.45% gain on the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.
Coming into today, shares of the agricultural equipment manufacturer had gained 2.45% in the past month. In that same time, the Industrial Products sector lost 6.32%, while the S&P 500 lost 3.26%.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.22 per share. This would mark a year-over-year decline of 42.64%. Meanwhile, our latest consensus estimate is calling for revenue of $8.09 billion, up 0.52% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. These results would represent year-over-year changes of +16.96% and +18.21%, respectively.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 17.56. For comparison, its industry has an average Forward P/E of 16.78, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.57 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 1.23 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
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Deere (DE) Gains But Lags Market: What You Should Know
In the latest trading session, Deere (DE - Free Report) closed at $395.40, marking a +1.42% move from the previous day. This change lagged the S&P 500's 1.45% gain on the day. At the same time, the Dow added 0.86%, and the tech-heavy Nasdaq gained 0.44%.
Coming into today, shares of the agricultural equipment manufacturer had gained 2.45% in the past month. In that same time, the Industrial Products sector lost 6.32%, while the S&P 500 lost 3.26%.
Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.22 per share. This would mark a year-over-year decline of 42.64%. Meanwhile, our latest consensus estimate is calling for revenue of $8.09 billion, up 0.52% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $22.21 per share and revenue of $46.97 billion. These results would represent year-over-year changes of +16.96% and +18.21%, respectively.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Deere is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 17.56. For comparison, its industry has an average Forward P/E of 16.78, which means Deere is trading at a premium to the group.
Investors should also note that DE has a PEG ratio of 1.57 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 1.23 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.