Send me real-time posts from this site at my email
Zacks

Will Deere (DE) Stock Continue to Climb After Q1 Earnings?

Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry’s 1% average climb and Caterpillar CAT and nearly match Boeing’s BA impressive run. The question now is can this manufacturing and farm equipment power’s recent success continue with it set to report earnings before the opening bell Friday?

Quick Overview

Deere and fellow industrial giants still face uncertainty regarding the future despite reports of increased trade talks between the U.S. and China. The company is also coming off a significant bottom-line miss in Q4 fiscal 2018. Deere fell short of adjusted revenue estimates as well, but did see its top-line jump 17% to $9.42 billion, driven by gains from its purchase of German construction firm, The Wirtgen Group.

Despite the relatively disappointing quarter, shares of Deere have climb over the last six months. With that said, Bank of America downgraded DE to “neutral” recently, citing its significant gains, among other reasons. We can also see that DE and CAT stock have tracked one another pretty closely historically, which means Deere could be set to drop back down.

 

Outlook & Earnings Trends

Moving on, our current Zacks Consensus Estimate calls for Deere’s first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion. Looking a bit further down the road, the company is expected to post full-year revenues of $35.67 billion, which would represent a nearly 7% climb above 2018.

At the bottom end of the income statement, DE’s adjusted quarterly earnings are projected to soar 37.4% to reach $1.80 per share. Meanwhile, the company’s fiscal 2019 earnings are expected to jump 21.5%.

Investors should also note that Deere’s Q1 EPS projection has climbed by $0.05 a share over the duration of the quarter, which means that analysts’ earnings sentiment turned more bullish. At the same time, however, the firm’s current full-year earnings outlook has fallen by $0.11.

Bottom Line

Deere is currently a Zacks Rank #2 (Buy) based on its Q1 and fiscal 2020 earnings revision activity. The company also sports a “B” grade for Value in our Style Scores system. With all that said, Deere stock has been riding high recently, which will likely make it harder to impress investors Friday.

Deere is scheduled to report its Q1 fiscal 2019 financial results before the opening bell on Friday, 15 February. Make sure to come back to Zacks for a full breakdown of the company’s actual metrics.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Boeing Company (BA): Free Stock Analysis Report
 
Caterpillar Inc. (CAT): Free Stock Analysis Report
 
Deere & Company (DE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue