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Deere (DE) Stock Declines While Market Improves: Some Information for Investors

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Deere (DE - Free Report) ended the recent trading session at $389.45, demonstrating a -1.09% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.02%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.26%.

Prior to today's trading, shares of the agricultural equipment manufacturer had lost 2.05% over the past month. This has lagged the Industrial Products sector's gain of 4.69% and the S&P 500's gain of 2.99% in that time.

The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company is scheduled to release its earnings on November 21, 2024. The company's earnings per share (EPS) are projected to be $3.90, reflecting a 52.78% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.34 billion, indicating a 32.35% decline compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for Deere. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 2.24% fall in the Zacks Consensus EPS estimate. Currently, Deere is carrying a Zacks Rank of #4 (Sell).

From a valuation perspective, Deere is currently exchanging hands at a Forward P/E ratio of 17.97. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 17.97.

Investors should also note that DE has a PEG ratio of 1.5 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Manufacturing - Farm Equipment industry held an average PEG ratio of 1.5.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 8% of all industries, numbering over 250.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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