Deere (DE) Dips More Than Broader Markets: What You Should Know

·3 min read

Deere (DE) closed the most recent trading day at $338.23, moving -0.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.51%.

Prior to today's trading, shares of the agricultural equipment manufacturer had lost 3.61% over the past month. This has lagged the Industrial Products sector's gain of 0.34% and the S&P 500's gain of 3.08% in that time.

DE will be looking to display strength as it nears its next earnings release, which is expected to be November 24, 2021. In that report, analysts expect DE to post earnings of $4.03 per share. This would mark year-over-year growth of 68.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.54 billion, up 21.68% from the year-ago period.

DE's full-year Zacks Consensus Estimates are calling for earnings of $18.91 per share and revenue of $40 billion. These results would represent year-over-year changes of +117.61% and +27.9%, respectively.

Investors might also notice recent changes to analyst estimates for DE. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. DE currently has a Zacks Rank of #2 (Buy).

Investors should also note DE's current valuation metrics, including its Forward P/E ratio of 18.04. Its industry sports an average Forward P/E of 16.8, so we one might conclude that DE is trading at a premium comparatively.

It is also worth noting that DE currently has a PEG ratio of 0.85. 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 was holding an average PEG ratio of 0.96 at yesterday's closing price.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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