In the latest trading session, Deere (DE) closed at $598.97, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Shares of the agricultural equipment manufacturer witnessed a gain of 0.17% over the previous month, beating the performance of the Industrial Products sector with its loss of 0.95%, and underperforming the S&P 500's gain of 0.53%.
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 August 20, 2026. It is anticipated that the company will report an EPS of $4.82, marking a 1.47% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.83 billion, showing a 4.55% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.13 per share and revenue of $41.41 billion, indicating changes of -2% and +6.42%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Deere currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Deere is at present trading with a Forward P/E ratio of 32.51. This expresses a premium compared to the average Forward P/E of 20.61 of its industry.
One should further note that DE currently holds a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Farm Equipment industry stood at 1.46 at the close of the market yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 14% echelons 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.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
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Deere & Company (DE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).