Click to get this free reportĭeere & Company (DE) : Free Stock Analysis Report Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Deere. Click here to see the values of some of the valuation metrics that have driven this grade. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B a B is better than a C and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.ĭeere is graded B on this front, indicating that it is trading at a discount to its peers. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.Ĭomparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. Without considering a stock's valuation, no investment decision can be efficient. The company topped consensus revenue estimates each time over this period. Over the last four quarters, Deere surpassed consensus EPS estimates three times. EPS of $9.65 for the same period compares with $6.81 a year ago.Ĭompared to the Zacks Consensus Estimate of $14.84 billion, the reported revenues represent a surprise of +8.32%. Last Reported Results and Surprise Historyĭeere reported revenues of $16.08 billion in the last reported quarter, representing a year-over-year change of +33.6%. The $55.75 billion and $56.05 billion estimates for the current and next fiscal years indicate changes of +16.4% and +0.5%, respectively. In the case of Deere, the consensus sales estimate of $14.36 billion for the current quarter points to a year-over-year change of +10.5%. So, it's important to know a company's potential revenue growth. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Over the last 30 days, this estimate has changed +1.4%.ġ2-month consensus EPS estimate for DE _12MonthEPSChartUrl The Zacks Consensus Estimate has changed -0.3% over the last 30 days.įor the current fiscal year, the consensus earnings estimate of $31.01 points to a change of +33.2% from the prior year. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.įor the current quarter, Deere is expected to post earnings of $8.23 per share, indicating a change of +33.6% from the year-ago quarter. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. Now the key question is: Where could the stock be headed in the near term?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. The Zacks Manufacturing - Farm Equipment industry, to which Deere belongs, has lost 6.4% over this period. Shares of this agricultural equipment manufacturer have returned -7.1% over the past month versus the Zacks S&P 500 composite's +1.6% change. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Deere (DE) is one of the stocks most watched by visitors lately.
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