News

Deere (DE) closed the latest trading day at $393.33, indicating a -0.19% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.02%. On the other hand, the Dow registered a gain of 0.4%, and the technology-centric Nasdaq increased by 2.03%.

The agricultural equipment manufacturer's shares have seen a decrease of 4.06% over the last month, not keeping up with the Industrial Products sector's loss of 3.17% and the S&P 500's loss of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Deere in its upcoming earnings disclosure. The company is expected to report EPS of $7.83, down 18.86% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $13.26 billion, showing a 17.51% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $27.37 per share and revenue of $47.22 billion. These totals would mark changes of -20.96% and -15.01%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Deere. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. Deere presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Deere currently has a Forward P/E ratio of 14.4. This valuation marks a premium compared to its industry's average Forward P/E of 13.04.

We can also see that DE currently has a PEG ratio of 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Farm Equipment industry currently 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 69, which puts it in the top 28% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.