The most recent trading session ended with Deere (DE) standing at $409, reflecting a +0.88% shift from the previouse trading day’s closing. The stock’s change was more than the S&P 500’s daily gain of 0.51%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.27%.
Coming into today, shares of the agricultural equipment manufacturer had lost 1.59% in the past month. In that same time, the Industrial Products sector lost 2.22%, while the S&P 500 lost 0.25%.
The investment community will be paying close attention to the earnings performance of Deere in its upcoming release. The company is slated to reveal its earnings on May 16, 2024. In that report, analysts expect Deere to post earnings of $7.83 per share. This would mark a year-over-year decline of 18.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.26 billion, down 17.51% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.37 per share and revenue of $47.22 billion, indicating changes of -20.96% and -15.01%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there’s been a 0.14% fall in the Zacks Consensus EPS estimate. Currently, Deere is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Deere is currently trading at a Forward P/E ratio of 14.81. This represents a premium compared to its industry’s average Forward P/E of 13.57.
Investors should also note that DE has a PEG ratio of 1.52 right now. 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 0.95 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 191, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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