This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Let's Make a Deal

As for Wednesday's scheduled news, it's a slow earnings day ahead of the Thanksgiving holiday on Thursday. Deere (DE - Get Report) is really the only name brand that's slated to open its books, and Wall Street is looking for a profit of $1.88 a share from the agricultural equipment maker in its fiscal fourth quarter ended in October on revenue of $8.85 billion.

Shares of Moline, Ill.-based Deere are up roughly 11% so far in 2012, though the stock's 52-week high of $89.70 dates back to Feb. 14. Since hitting a low for the past year of $69.51 on June 4, the shares have appreciated nearly 24% based on Tuesday's close at $86.

With a forward price-to-earnings ratio of 10.3X, the stock is still relatively cheap, and at least one prominent investor bought in last quarter as Warren Buffett's Berkshire Hathaway (BRK.B) revealed a new stake of 3.98 million Deere shares in a recent filing with the Securities and Exchange Commission.

Deere seven-quarter streak of quarterly profit surprises last time around but still delivered year-over-year revenue growth of 15%. For the fourth quarter, it forecast a 13% increase in company equipment sales and said some "caution" was warranted about the coming months because of uncertain global economic conditions and dryness in several key markets.

The sell side is slightly bearish ahead of the print with 11 of the 21 analysts covering the stock at either hold (9) or underperform (2) and the 12-month median price target sitting at $90.

Check out TheStreet's quote page for Deere for year-to-date share performance, analyst ratings, earnings estimates and much more.

The economic calendar, however, is pretty packed with the Mortgage Bankers Association's weekly mortgage application activity index due at 7 a.m. ET; weekly initial and continuing jobless claims at 8:30 a.m. ET; the final University of Michigan consumer sentiment index for November at 9:55 a.m. ET; leading indicators for October at 10 a.m. ET; and weekly crude inventories data at 10:30 a.m. ET.

And finally, shares of (CRM - Get Report) were up slightly after the cloud computing company delivered a 35% year-over-year revenue increase in its latest quarter.

The San Francisco-based company reported non-GAAP earnings of $49.6 million, or 33 cents a share, for the third quarter on revenue of $788 million. The average estimate of analysts polled by Thomson Reuters was for a profit of 32 cents a share on revenue of $776.5 million in the October-ended period. also forecast non-GAAP earnings of 38 to 40 cents a share in its fiscal fourth quarter on revenue ranging from $825 million to $830 million. Wall Street's current consensus view is for a profit of 40 cents a share on revenue of $829.9 million in the quarter.

The stock was last quoted at $148.49, up 1.8%, on extended volume of nearly 500,000, according to

The story at Scholastic (SCHL - Get Report) isn't as favorable as the publishing company lowered its outlook after Tuesday's closing bell.

Citing lower curriculum product sales in its Educational Technology and Services business, delays in purchasing decisions because of uncertainty about the federal budget, and lower sales in its Book Club business, New York-based Scholastic now sees earnings from continuing operations of $1.40 to $1.60 a share for its fiscal year ending in May on revenue ranging from $1.8 billion to $1.9 billion.

The previous forecast was for earnings of $2.20 to $2.40 a share on revenue of $1.9 billion to $2 billion. The stock was called down nearly 19% after the bell but volume was very light.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CRM $58.51 0.00%
DE $78.42 0.00%
SCHL $33.65 0.00%
SPY $187.95 0.00%
AAPL $94.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs