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.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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