Strong Upward Pre-Market Activity For Deere (DE) - TheStreet

Trade-Ideas LLC identified

Deere

(

DE

) as a pre-market leader 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 $318.0 million.
  • DE traded 25,063 shares today in the pre-market hours as of 7:47 AM.
  • DE is up 5.4% 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 3.2%. DE has a PE ratio of 12. Currently there are 2 analysts that rate Deere a buy, 5 analysts rate it a sell, and 10 rate it a hold.

The average volume for Deere has been 3.7 million shares per day over the past 30 days. Deere has a market cap of $24.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 0.98 and a short float of 10.4% with 9.20 days to cover. Shares are down 15.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Deere as a

hold

. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:

  • DE, with its decline in revenue, slightly underperformed the industry average of 19.3%. Since the same quarter one year prior, revenues fell by 20.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Machinery industry and the overall market, DEERE & CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has decreased to $1,346.50 million or 11.06% when compared to the same quarter last year. Despite a decrease in cash flow of 11.06%, DEERE & CO is in line with the industry average cash flow growth rate of -18.51%.
  • The debt-to-equity ratio is very high at 4.81 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • The gross profit margin for DEERE & CO is currently lower than what is desirable, coming in at 31.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.73% trails that of the industry average.

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