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Deere (DE) Registers a Bigger Fall Than the Market: Important Facts to Note
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The latest trading session saw Deere (DE - Free Report) ending at $375.15, denoting a -1.63% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the agricultural equipment manufacturer had lost 1.62% in the past month. In that same time, the Industrial Products sector lost 5.31%, while the S&P 500 lost 3.67%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company's earnings per share (EPS) are projected to be $7.58, reflecting a 1.88% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.82 billion, showing a 3.69% drop compared to the year-ago quarter.
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 take note of any recent adjustments to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Deere is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 11.25. Its industry sports an average Forward P/E of 11.44, so one might conclude that Deere is trading at a discount comparatively.
Meanwhile, DE's PEG ratio is currently 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment was holding an average PEG ratio of 0.98 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Deere (DE) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading session saw Deere (DE - Free Report) ending at $375.15, denoting a -1.63% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the agricultural equipment manufacturer had lost 1.62% in the past month. In that same time, the Industrial Products sector lost 5.31%, while the S&P 500 lost 3.67%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company's earnings per share (EPS) are projected to be $7.58, reflecting a 1.88% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $13.82 billion, showing a 3.69% drop compared to the year-ago quarter.
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 take note of any recent adjustments to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Deere is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Deere is holding a Forward P/E ratio of 11.25. Its industry sports an average Forward P/E of 11.44, so one might conclude that Deere is trading at a discount comparatively.
Meanwhile, DE's PEG ratio is currently 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment was holding an average PEG ratio of 0.98 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.