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Deere (DE) Stock Moves -0.97%: What You Should Know

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Deere (DE - Free Report) closed the most recent trading day at $381.77, moving -0.97% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.82%. At the same time, the Dow lost 2.38%, and the tech-heavy Nasdaq lost 0.23%.

Prior to today's trading, shares of the agricultural equipment manufacturer had lost 10.89% over the past month. This has lagged the Industrial Products sector's loss of 6.38% and the S&P 500's loss of 5.33% in that time.

Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 20, 2022. In that report, analysts expect Deere to post earnings of $6.67 per share. This would mark year-over-year growth of 17.43%. Our most recent consensus estimate is calling for quarterly revenue of $13.44 billion, up 22.22% from the year-ago period.

DE's full-year Zacks Consensus Estimates are calling for earnings of $22.71 per share and revenue of $48.18 billion. These results would represent year-over-year changes of +19.59% and +21.24%, respectively.

Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Deere is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Deere is holding a Forward P/E ratio of 16.98. Its industry sports an average Forward P/E of 16.14, so we one might conclude that Deere is trading at a premium comparatively.

It is also worth noting that DE currently has a PEG ratio of 1.26. 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 industry currently had an average PEG ratio of 1.26 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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