In the latest trading session, Deere (DE) closed at $467.68, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily gain of 0.39%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.2%.
The agricultural equipment manufacturer's stock has climbed by 14.28% in the past month, exceeding the Industrial Products sector's gain of 1.89% and the S&P 500's gain of 1.7%.
The investment community will be paying close attention to the earnings performance of Deere in its upcoming release. The company is slated to reveal its earnings on February 13, 2025. The company's upcoming EPS is projected at $3.14, signifying a 49.6% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.7 billion, showing a 26.62% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.38 per share and revenue of $38.76 billion, which would represent changes of -24.36% and -13.41%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.81% lower. Right now, Deere possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Deere is holding a Forward P/E ratio of 24.37. This denotes a premium relative to the industry's average Forward P/E of 22.5.
It is also worth noting that DE currently has a PEG ratio of 2.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Manufacturing - Farm Equipment industry held an average PEG ratio of 2.91.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 186, positioning it in the bottom 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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