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Deere (DE) closed the most recent trading day at $456.44, moving +0.39% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
The agricultural equipment manufacturer's shares have seen a decrease of 5.07% over the last month, surpassing the Industrial Products sector's loss of 8.85% and the S&P 500's loss of 6.57%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company is forecasted to report an EPS of $5.70, showcasing a 33.18% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $10.65 billion, indicating a 21.75% decline compared to the corresponding quarter of the prior year.
DE's full-year Zacks Consensus Estimates are calling for earnings of $18.97 per share and revenue of $38.23 billion. These results would represent year-over-year changes of -25.96% and -14.59%, respectively.
Investors should also note any recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Deere presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Deere is currently being traded at a Forward P/E ratio of 23.97. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Also, we should mention that DE has a PEG ratio of 2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Farm Equipment industry had an average PEG ratio of 2 as trading concluded yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 173, positioning it in the bottom 31% of all 250+ industries.