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The latest trading session saw Deere (DE) ending at $460.64, denoting a +0.1% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Shares of the agricultural equipment manufacturer witnessed a loss of 1.95% over the previous month, beating the performance of the Industrial Products sector with its loss of 3.25% and underperforming the S&P 500's loss of 0.84%.
Market participants will be closely following the financial results of Deere in its upcoming release. The company plans to announce its earnings on May 15, 2025. The company's upcoming EPS is projected at $5.68, signifying a 33.41% drop compared to the same quarter of the previous 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.91 per share and a revenue of $38.23 billion, representing changes of -26.19% and -14.59%, respectively, from the prior year.
Investors might also notice 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.98% lower. 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 24.33. This indicates a premium in contrast to its industry's Forward P/E of 19.55.
One should further note that DE currently holds a PEG ratio of 2.03. 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 average PEG ratio for the Manufacturing - Farm Equipment industry stood at 2.03 at the close of the market yesterday.