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Deere (DE) Dips More Than Broader Markets: What You Should Know

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Deere (DE - Free Report) closed at $294.33 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the agricultural equipment manufacturer had lost 10.22% over the past month, lagging the Industrial Products sector's loss of 4.76% and the S&P 500's gain of 1.51% in that time.

Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. The company is expected to report EPS of $6.59, up 23.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.96 billion, up 24.45% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $23.31 per share and revenue of $47.78 billion, which would represent changes of +22.75% and +20.24%, respectively, from the prior year.

Any recent changes to analyst estimates for Deere should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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% lower. Deere is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Deere is currently trading at a Forward P/E ratio of 12.73. Its industry sports an average Forward P/E of 12.73, so we one might conclude that Deere is trading at a no noticeable deviation comparatively.

Investors should also note that DE has a PEG ratio of 0.98 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 0.98 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 44, putting it in the top 18% 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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