Deere (DE) Falls More Steeply Than Broader Market: What Investors Need to Know

Core Viewpoint - Deere's upcoming earnings release is anticipated to show a significant year-over-year decline in earnings per share, despite an expected increase in revenue [2][3]. Financial Performance - Deere's stock closed at $475.20, reflecting a decrease of 2.22% from the previous day, underperforming the S&P 500's loss of 0.34% [1] - Over the past month, Deere's shares increased by 4.99%, outperforming the Industrial Products sector's gain of 3.18% and the S&P 500's gain of 1.19% [1] - The projected earnings for the upcoming report are $1.9 per share, indicating a year-over-year decline of 40.44%, while revenue is expected to be $7.6 billion, representing an 11.67% increase from the same quarter last year [2] - Full-year estimates predict earnings of $17.51 per share and revenue of $39.99 billion, reflecting year-over-year changes of -5.35% and +2.77%, respectively [3] Analyst Insights - Recent revisions to analyst forecasts for Deere are crucial as they indicate changing business trends, with positive revisions seen as a favorable sign for the company's outlook [3] - The Zacks Rank system, which evaluates estimated changes, currently ranks Deere at 3 (Hold), with a recent 0.85% decrease in the consensus EPS estimate over the last 30 days [5] Valuation Metrics - Deere's Forward P/E ratio stands at 27.76, which is a premium compared to the industry average of 19.15 [6] - The PEG ratio for Deere is 1.86, aligning with the average PEG ratio of the Manufacturing - Farm Equipment industry [6] Industry Context - The Manufacturing - Farm Equipment industry is part of the Industrial Products sector and currently holds a Zacks Industry Rank of 211, placing it in the bottom 14% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [7]