Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Deere as such a stock due to the following factors:
- DE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $254.6 million.
- DE traded 23,591 shares today in the pre-market hours as of 7:50 AM.
- DE is down 3.2% today from yesterday's close.
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More details on DE:
Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. The stock currently has a dividend yield of 2.8%. DE has a PE ratio of 9.8. Currently there are 3 analysts that rate Deere a buy, 8 analysts rate it a sell, and 8 rate it a hold.
The average volume for Deere has been 3.8 million shares per day over the past 30 days. Deere has a market cap of $31.2 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.92 and a short float of 9.9% with 12.27 days to cover. Shares are down 4.2% year-to-date as of the close of trading on Monday.
rates Deere as a
. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- DE, with its decline in revenue, slightly underperformed the industry average of 2.5%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, DE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Machinery industry and the overall market, DEERE & CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- DEERE & CO's earnings per share declined by 9.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DEERE & CO increased its bottom line by earning $9.08 versus $7.64 in the prior year. For the next year, the market is expecting a contraction of 7.7% in earnings ($8.38 versus $9.08).
- You can view the full Deere Ratings Report.