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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 $432.61 in the latest trading session, marking a -0.88% move from the prior day. This change lagged the S&P 500's 0.71% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the agricultural equipment manufacturer had gained 25.78% over the past month, outpacing the Industrial Products sector's gain of 4.66% and the S&P 500's gain of 3.76% in that time.

Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. In that report, analysts expect Deere to post earnings of $6.70 per share. This would mark year-over-year growth of 17.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.5 billion, up 22.73% from the year-ago period.

DE's full-year Zacks Consensus Estimates are calling for earnings of $22.74 per share and revenue of $47.67 billion. These results would represent year-over-year changes of +19.75% and +19.96%, respectively.

Investors should also note any recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Deere is currently a Zacks Rank #2 (Buy).

Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 19.19. This represents a premium compared to its industry's average Forward P/E of 17.93.

Meanwhile, DE's PEG ratio is currently 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.61 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 58, putting it in the top 23% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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