Deere (DE) Outpaces Stock Market Gains: What You Should Know
Deere (DE) closed at $394.22 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 0.74% gain on the day.
Coming into today, shares of the agricultural equipment manufacturer had gained 4.23% in the past month. In that same time, the Industrial Products sector gained 2.98%, while the S&P 500 gained 3.21%.
DE will be looking to display strength as it nears its next earnings release, which is expected to be May 21, 2021. On that day, DE is projected to report earnings of $4.46 per share, which would represent 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.
DE's full-year Zacks Consensus Estimates are calling for earnings of $16.01 per share and revenue of $38.51 billion. These results would represent year-over-year changes of +84.23% and +23.15%, respectively.
Investors might also notice recent changes to analyst estimates for DE. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.98% higher. DE is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, DE is currently trading at a Forward P/E ratio of 24.35. This valuation marks a premium compared to its industry's average Forward P/E of 23.38.
Also, we should mention that DE has a PEG ratio of 1.27. 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. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.76 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 62, which puts it in the top 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
Deere & Company (DE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
