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Deere (DE) Gains But Lags Market: What You Should Know
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Deere (DE - Free Report) closed at $384.73 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the agricultural equipment manufacturer had lost 7% over the past month, lagging the Industrial Products sector's loss of 2.72% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. On that day, Deere is projected to report earnings of $7.58 per share, which would represent year-over-year growth of 1.88%. Meanwhile, our latest consensus estimate is calling for revenue of $13.82 billion, down 3.69% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $33.91 per share and revenue of $56.03 billion. These results would represent year-over-year changes of +45.66% and +16.93%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. Deere is currently a Zacks Rank #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 11.34. This valuation marks a discount compared to its industry's average Forward P/E of 12.25.
Also, we should mention that DE has a PEG ratio of 0.87. 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 0.91 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 109, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Deere (DE) Gains But Lags Market: What You Should Know
Deere (DE - Free Report) closed at $384.73 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the agricultural equipment manufacturer had lost 7% over the past month, lagging the Industrial Products sector's loss of 2.72% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Deere as it approaches its next earnings release. On that day, Deere is projected to report earnings of $7.58 per share, which would represent year-over-year growth of 1.88%. Meanwhile, our latest consensus estimate is calling for revenue of $13.82 billion, down 3.69% from the prior-year quarter.
DE's full-year Zacks Consensus Estimates are calling for earnings of $33.91 per share and revenue of $56.03 billion. These results would represent year-over-year changes of +45.66% and +16.93%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. Deere is currently a Zacks Rank #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 11.34. This valuation marks a discount compared to its industry's average Forward P/E of 12.25.
Also, we should mention that DE has a PEG ratio of 0.87. 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 0.91 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 109, which puts it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.