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Deere (DE) Falls More Steeply Than Broader Market: What Investors Need to Know

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Deere (DE - Free Report) closed at $375.69 in the latest trading session, marking a -0.35% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Shares of the agricultural equipment manufacturer witnessed a loss of 9% over the previous month, trailing the performance of the Industrial Products sector with its loss of 7.73% and the S&P 500's loss of 5.53%.

The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company's upcoming EPS is projected at $7.58, signifying a 1.88% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.82 billion, indicating a 3.69% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $33.91 per share and a revenue of $56.03 billion, demonstrating changes of +45.66% and +16.93%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% upward. At present, Deere boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Deere has a Forward P/E ratio of 11.12 right now. For comparison, its industry has an average Forward P/E of 11.65, which means Deere is trading at a discount to the group.

Meanwhile, DE's PEG ratio is currently 0.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DE's industry had an average PEG ratio of 0.95 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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