Deere (DE) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Deere (DE) closed at $379.56, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Coming into today, shares of the agricultural equipment manufacturer had gained 9.37% in the past month. In that same time, the Industrial Products sector gained 1.34%, while the S&P 500 gained 0.64%.

Deere will be looking to display strength as it nears its next earnings release, which is expected to be February 18, 2022. In that report, analysts expect Deere to post earnings of $2.24 per share. This would mark a year-over-year decline of 42.12%. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 0.52% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.18 per share and revenue of $46.97 billion. These totals would mark changes of +16.8% and +18.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Deere. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.44% lower. Deere is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Deere is currently trading at a Forward P/E ratio of 17.11. This valuation marks a premium compared to its industry's average Forward P/E of 16.3.

Investors should also note that DE has a PEG ratio of 1.53 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment industry currently had an average PEG ratio of 1.26 as of yesterday's close.

The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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