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

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Deere (DE - Free Report) closed the most recent trading day at $388.04, moving +0.35% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.

Heading into today, shares of the agricultural equipment manufacturer had gained 0.05% over the past month, lagging the Industrial Products sector's gain of 0.41% and the S&P 500's gain of 3.31% in that time.

Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. This is expected to be May 19, 2023. The company is expected to report EPS of $8.51, up 24.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.78 billion, up 22.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $30.46 per share and revenue of $54.94 billion. These totals would mark changes of +30.84% and +14.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 has moved 0.04% higher. Deere is currently a Zacks Rank #2 (Buy).

Digging into valuation, Deere currently has a Forward P/E ratio of 12.69. This valuation marks a premium compared to its industry's average Forward P/E of 12.66.

Meanwhile, DE's PEG ratio is currently 1.03. 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 industry currently had an average PEG ratio of 1.01 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 57, putting it in the top 23% 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.

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


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