Deere & Co (DE): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Deere ( DE) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Deere fell $3.16 (-3.7%) to $82.83 on heavy volume. Throughout the day, 10.6 million shares of Deere exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $82.06-$84.33 after having opened the day at $83.16 as compared to the previous trading day's close of $85.99. Other companies within the Industrial industry that declined today were: Cleantech Solutions International ( CLNT), down 10.4%, Altair Nanotechnologies ( ALTI), down 9.3%, Renewable Energy Trade Board ( EBOD), down 7.1%, and Research Frontiers ( REFR), down 6.1%.
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Deere & Company provides products and services primarily for agriculture and forestry worldwide. Deere has a market cap of $33.78 billion and is part of the industrial goods sector. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Deere a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Deere as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, CUI Global ( CUI), up 10.1%, Hydrogenics Corporation ( HYGS), up 8.6%, ZBB Energy Corporation ( ZBB), up 8%, and Highpower International ( HPJ), up 7.5%, were all gainers within the industrial industry with ABB ( ABB) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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