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Deere (DE) Declines More Than Market: Some Information for Investors

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Deere (DE - Free Report) closed the most recent trading day at $382.28, moving -1.82% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.63%.

The the stock of agricultural equipment manufacturer has fallen by 3.2% in the past month, lagging the Industrial Products sector's loss of 1.28% and the S&P 500's loss of 2.35%.

Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. On that day, Deere is projected to report earnings of $7.58 per share, which would represent year-over-year growth of 1.88%. In the meantime, our current consensus estimate forecasts the revenue to be $13.82 billion, indicating a 3.69% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $33.91 per share and revenue of $56.03 billion. These totals would mark changes of +45.66% and +16.93%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 0.02% higher. Deere is currently a Zacks Rank #2 (Buy).

Looking at valuation, Deere is presently trading at a Forward P/E ratio of 11.48. This valuation marks a discount compared to its industry's average Forward P/E of 12.02.

We can additionally observe that DE currently boasts a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Farm Equipment industry had an average PEG ratio of 1 as trading concluded yesterday.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DE in the coming trading sessions, be sure to utilize Zacks.com.


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