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

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Deere (DE - Free Report) closed the most recent trading day at $377.38, moving -1.91% from the previous trading session. This change lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the agricultural equipment manufacturer had lost 6.38% over the past month, lagging the Industrial Products sector's loss of 2.82% and the S&P 500's loss of 2.86% in that time.

Wall Street will be looking for positivity from Deere as it approaches its next earnings report date. 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $33.91 per share and revenue of $56.03 billion, which would represent changes of +45.66% and +16.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.96% higher within the past month. Deere is currently a Zacks Rank #3 (Hold).

Digging into valuation, Deere currently has a Forward P/E ratio of 11.35. This represents a discount compared to its industry's average Forward P/E of 12.23.

Also, we should mention that DE has a PEG ratio of 0.87. 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. 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 110, which puts it in the top 44% 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.

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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