Deere (DE) Stock Retreating on Lower 2016 Sales Forecast, Layoffs

Deere (DE) stock is falling this afternoon after announcing layoffs and a decrease in the sales forecast of agricultural equipment for the year.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Deere (DE) - Get Report are down 2.41% to $80.24 in mid-afternoon trading after the company announced layoffs and lower sales expectations for the 2016 fiscal year. 

The 120 employee-layoff at the East Moline, IL-based John Deere Harvester Works facility will be effective September 6. The factory currently employs about 1050 workers, meaning it will lose approximately 11% of its workforce. 

Deere said it's downsizing to reflect "demand for products manufactured at each of its factories," as the company expects sales of agricultural equipment to decline for the fiscal 2016 year. 

Deere manufactures agricultural, construction, and forestry machinery, diesel engines, and lawn care equipment.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate DEERE & CO as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

You can view the full analysis from the report here: DE

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