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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $235.49, moving +1.04% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the construction equipment company had lost 1.45% over the past month. This has lagged the Industrial Products sector's gain of 0.35% and the S&P 500's gain of 0.09% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $3.95 per share, which would represent year-over-year growth of 46.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.78 billion, up 14.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.85 per share and revenue of $58.32 billion. These totals would mark changes of +28.12% and +14.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. Caterpillar currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.83. Its industry sports an average Forward P/E of 13.98, so we one might conclude that Caterpillar is trading at a premium comparatively.
It is also worth noting that CAT currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $235.49, moving +1.04% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the construction equipment company had lost 1.45% over the past month. This has lagged the Industrial Products sector's gain of 0.35% and the S&P 500's gain of 0.09% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $3.95 per share, which would represent year-over-year growth of 46.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.78 billion, up 14.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.85 per share and revenue of $58.32 billion. These totals would mark changes of +28.12% and +14.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. Caterpillar currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.83. Its industry sports an average Forward P/E of 13.98, so we one might conclude that Caterpillar is trading at a premium comparatively.
It is also worth noting that CAT currently has a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.