John Deere-Deere (DE) Stock Slides as Market Rises: Facts to Know Before You Trade

Core Viewpoint - Deere's stock has experienced a decline, and upcoming earnings are expected to show significant drops in both EPS and revenue compared to the previous year [1][2]. Company Performance - Deere's stock closed at $410, reflecting a decrease of 0.79% from the previous day, underperforming the S&P 500's gain of 0.16% [1]. - The stock has dropped by 8.49% over the past month, which is slightly better than the Industrial Products sector's loss of 8.6% but worse than the S&P 500's loss of 2.7% [1]. Earnings Estimates - Analysts anticipate an EPS of$ 3.08 for the upcoming earnings report, indicating a 50.56% decline year-over-year [2]. - Revenue is projected to be $7.79 billion, reflecting a 25.71% decrease from the same quarter last year [2]. - For the full year, earnings are estimated at$ 19.57 per share and revenue at $38.87 billion, showing declines of 23.61% and 13.15%, respectively, from the previous year [3]. Analyst Sentiment - Changes in analyst estimates for Deere are crucial as they often indicate shifts in near-term business trends [4]. - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [4]. Valuation Metrics - Deere's Forward P/E ratio stands at 20.95, which is higher than the industry average of 17.5, indicating that Deere is trading at a premium [7]. - The PEG ratio for Deere is currently 1.75, aligning with the average PEG ratio of the Manufacturing - Farm Equipment industry [8]. Industry Context - The Manufacturing - Farm Equipment industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 232, placing it in the bottom 8% of over 250 industries [9]. - The performance of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [9].