Deere (DE) closed the most recent trading day at $593.41, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.33%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 19.34% outpaced the Industrial Products sector's gain of 11.29% and the S&P 500's loss of 0%.
The investment community will be paying close attention to the earnings performance of Deere in its upcoming release. The company is slated to reveal its earnings on February 19, 2026. The company is predicted to post an EPS of $1.92, indicating a 39.81% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.6 billion, up 11.68% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $16.82 per share and revenue of $40 billion. These results would represent year-over-year changes of -9.08% and +2.78%, respectively.
Any recent changes to analyst estimates for Deere should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% increase. Right now, Deere possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Deere is currently being traded at a Forward P/E ratio of 34.82. This indicates a premium in contrast to its industry's Forward P/E of 22.23.
We can additionally observe that DE currently boasts a PEG ratio of 2.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Farm Equipment industry held an average PEG ratio of 1.16.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.