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Deere (DE) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Deere (DE - Free Report) standing at $401.99, reflecting a -1.41% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.76%. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 1.01%.

Coming into today, shares of the agricultural equipment manufacturer had gained 3.31% in the past month. In that same time, the Industrial Products sector gained 6.33%, while the S&P 500 gained 4.31%.

The investment community will be paying close attention to the earnings performance of Deere in its upcoming release. The company is predicted to post an EPS of $3.97, indicating a 51.94% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.37 billion, down 32.12% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $25.03 per share and a revenue of $45.33 billion, signifying shifts of -27.72% and -18.42%, respectively, from the last year.

Any recent changes to analyst estimates for Deere should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Deere is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Deere is presently being traded at a Forward P/E ratio of 16.29. For comparison, its industry has an average Forward P/E of 16.29, which means Deere is trading at no noticeable deviation to the group.

It's also important to note that DE currently trades at a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Manufacturing - Farm Equipment industry stood at 1.36 at the close of the market yesterday.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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