Deere (DE) Gains But Lags Market: What You Should Know
In the latest trading session, Deere (DE) closed at $378.11, marking a +1.2% move from the previous day. This move lagged the S&P 500's daily gain of 1.22%.
Heading into today, shares of the agricultural equipment manufacturer had lost 2.06% over the past month, lagging the Industrial Products sector's loss of 0.44% and the S&P 500's loss of 1.49% in that time.
DE will be looking to display strength as it nears its next earnings release, which is expected to be May 21, 2021. In that report, analysts expect DE to post earnings of $4.46 per share. This would mark year-over-year growth of 111.37%. Meanwhile, our latest consensus estimate is calling for revenue of $10.54 billion, up 28.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.01 per share and revenue of $38.51 billion, which would represent changes of +84.23% and +23.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.78% higher. DE currently has a Zacks Rank of #2 (Buy).
Digging into valuation, DE currently has a Forward P/E ratio of 23.34. Its industry sports an average Forward P/E of 22.02, so we one might conclude that DE is trading at a premium comparatively.
Also, we should mention that DE has a PEG ratio of 1.22. 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. DE's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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