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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $250.51, marking a +1.58% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Coming into today, shares of the construction equipment company had gained 5.82% in the past month. In that same time, the Industrial Products sector gained 2.5%, while the S&P 500 lost 0.94%.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, Caterpillar is projected to report earnings of $3.96 per share, which would represent year-over-year growth of 47.21%. Meanwhile, our latest consensus estimate is calling for revenue of $15.89 billion, up 15.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.37% higher within the past month. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.1. For comparison, its industry has an average Forward P/E of 14.23, which means Caterpillar is trading at a premium to the group.
Also, we should mention that CAT has a PEG ratio of 1.34. 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 industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
In the latest trading session, Caterpillar (CAT - Free Report) closed at $250.51, marking a +1.58% move from the previous day. This change outpaced the S&P 500's 0.7% gain on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.
Coming into today, shares of the construction equipment company had gained 5.82% in the past month. In that same time, the Industrial Products sector gained 2.5%, while the S&P 500 lost 0.94%.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, Caterpillar is projected to report earnings of $3.96 per share, which would represent year-over-year growth of 47.21%. Meanwhile, our latest consensus estimate is calling for revenue of $15.89 billion, up 15.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.37% higher within the past month. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.1. For comparison, its industry has an average Forward P/E of 14.23, which means Caterpillar is trading at a premium to the group.
Also, we should mention that CAT has a PEG ratio of 1.34. 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 industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.