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Deere (DE) Gains As Market Dips: What You Should Know

In the latest trading session, Deere (DE) closed at $166.88, marking a +1.58% move from the previous day. This change outpaced the S&P 500's 0.17% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.32%.

Prior to today's trading, shares of the agricultural equipment manufacturer had gained 20.38% over the past month. This has outpaced the Industrial Products sector's gain of 3.39% and the S&P 500's gain of 3.07% in that time.

Wall Street will be looking for positivity from DE as it approaches its next earnings report date. On that day, DE is projected to report earnings of $2.83 per share, which would represent year-over-year growth of 9.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.33 billion, up 0.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.27 per share and revenue of $34.97 billion. These totals would mark changes of +9.37% and +4.85%, respectively, from last year.

Any recent changes to analyst estimates for DE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DE currently has a Zacks Rank of #3 (Hold).

Digging into valuation, DE currently has a Forward P/E ratio of 16. This valuation marks a premium compared to its industry's average Forward P/E of 15.95.

We can also see that DE currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.

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


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