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Deere (DE) Increases Yet Falls Behind Market: What Investors Need to Know

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The latest trading session saw Deere (DE - Free Report) ending at $378.54, denoting a +0.76% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.

Coming into today, shares of the agricultural equipment manufacturer had lost 8.75% in the past month. In that same time, the Industrial Products sector lost 6.49%, while the S&P 500 lost 5.17%.

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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.82 billion, down 3.69% from the year-ago period.

For the full year, the 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 might also notice recent changes to analyst estimates for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.46% increase. Currently, Deere is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Deere is presently trading at a Forward P/E ratio of 11.08. This expresses a discount compared to the average Forward P/E of 11.75 of its industry.

Also, we should mention that DE has a PEG ratio of 0.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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