Deere (DE) Stock Sinks As Market Gains: Here's Why

Company Overview - Deere's stock closed at $499.14, reflecting a -1.69% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.54% [1] - The stock has decreased by 3.29% over the past month, while the Industrial Products sector gained 5.35% and the S&P 500 increased by 4.2% [1] Earnings Expectations - The upcoming earnings release is anticipated, with expected EPS of $4.62, representing a 26.55% decline from the same quarter last year [2] - Revenue is projected at $10.26 billion, indicating a 9.92% decrease compared to the equivalent quarter last year [2] - Full-year estimates predict earnings of $18.84 per share and revenue of $38.05 billion, reflecting year-over-year changes of -26.46% and -14.99%, respectively [3] Analyst Estimates and Stock Performance - Recent modifications to analyst estimates are crucial as they indicate changing business trends, with positive revisions suggesting confidence in performance [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Deere at 3 (Hold), with a recent upward shift of 0.08% in the EPS estimate [6] Valuation Metrics - Deere's Forward P/E ratio stands at 26.95, which is a premium compared to the industry average of 20.49 [7] - The PEG ratio is currently at 3.22, aligning with the average PEG ratio of the Manufacturing - Farm Equipment industry [7] Industry Context - The Manufacturing - Farm Equipment industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 203, placing it in the bottom 18% of over 250 industries [8] - The Zacks Industry Rank evaluates the performance potential of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]