Deere (DE) closed the most recent trading day at $617.88, moving +1.4% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.
Heading into today, shares of the agricultural equipment manufacturer had gained 2.57% over the past month, lagging the Industrial Products sector's gain of 3.89% and outpacing the S&P 500's gain of 0.8%.
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 May 21, 2026. The company is forecasted to report an EPS of $5.81, showcasing a 12.5% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $11.43 billion, up 2.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.98 per share and a revenue of $40.85 billion, representing changes of -2.81% and +4.98%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Deere is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Deere is presently trading at a Forward P/E ratio of 33.9. This signifies a premium in comparison to the average Forward P/E of 20.84 for its industry.
Investors should also note that DE has a PEG ratio of 2.13 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Manufacturing - Farm Equipment stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 198, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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).