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 down 0.1%. By the end of trading, Deere fell $0.89 (-1.0%) to $86.29 on average volume. Throughout the day, 2,791,080 shares of Deere exchanged hands as compared to its average daily volume of 3,121,700 shares. The stock ranged in price between $85.82-$86.78 after having opened the day at $86.78 as compared to the previous trading day's close of $87.18. Other companies within the Industrial industry that declined today were: Exide Technologies ( XIDE), down 42.6%, Highway Holdings ( HIHO), down 15.6%, Nordson Corporation ( NDSN), down 7.0% and Cleantech Solutions International ( CLNT), down 7.0%.
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Deere & Company manufactures and distributes agriculture and turf equipment, and construction and forestry equipment worldwide. Deere has a market cap of $33.8 billion and is part of the industrial goods sector. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 0.5% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Deere a buy, 1 analyst rates it a sell, and 7 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, increase in stock price during the past year, growth in earnings per share, increase in net income and good cash flow from operations. 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, Fuelcell Energy ( FCEL), down 28.8%, Ballard Power Systems ( BLDP), down 15.8%, Adept Technology ( ADEP), down 12.4% and Hydrogenics Corporation ( HYGS), down 12.3% , were all gainers within the industrial industry with Siemens ( SI) 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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