Deere (DE) closed at $370.21 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.74%.
Coming into today, shares of the agricultural equipment manufacturer had lost 3.56% in the past month. In that same time, the Industrial Products sector gained 0.18%, while the S&P 500 gained 0.85%.
Investors will be hoping for strength from Deere as it approaches its next earnings release, which is expected to be May 19, 2023. On that day, Deere is projected to report earnings of $8.51 per share, which would represent year-over-year growth of 24.96%. Our most recent consensus estimate is calling for quarterly revenue of $14.78 billion, up 22.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $30.47 per share and revenue of $54.96 billion. These totals would mark changes of +30.88% and +14.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Deere. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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, the Zacks Consensus EPS estimate has moved 0.05% higher. Deere is currently a Zacks Rank #3 (Hold).
Investors should also note Deere's current valuation metrics, including its Forward P/E ratio of 12.27. This valuation marks a discount compared to its industry's average Forward P/E of 12.5.
Also, we should mention that DE has a PEG ratio of 1. 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. DE's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report