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The latest trading session saw Deere (DE) ending at $428.88, denoting a -0.79% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 2.45%.
The the stock of agricultural equipment manufacturer has fallen by 2.54% in the past month, leading the Industrial Products sector's loss of 4.59% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company is predicted to post an EPS of $3.08, indicating a 50.56% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.79 billion, reflecting a 25.71% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.57 per share and revenue of $38.87 billion, which would represent changes of -23.61% and -13.15%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Deere. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% higher. Deere is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Deere is at present trading with a Forward P/E ratio of 22.1. This represents a premium compared to its industry's average Forward P/E of 18.88.
It is also worth noting that DE currently has a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Farm Equipment industry was having an average PEG ratio of 1.84.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 22% of over 250 industries.