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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed at $252.70 in the latest trading session, marking a +1.2% move from the prior day. This change outpaced the S&P 500's 1.19% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the construction equipment company had gained 4.1% over the past month. This has outpaced the Industrial Products sector's gain of 3.88% and the S&P 500's gain of 4.06% in that time.
Caterpillar will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Caterpillar to post earnings of $3.95 per share. This would mark year-over-year growth of 46.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.89 billion, up 15.18% from the year-ago period.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. Caterpillar is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 16.33. For comparison, its industry has an average Forward P/E of 14.45, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 at $252.70 in the latest trading session, marking a +1.2% move from the prior day. This change outpaced the S&P 500's 1.19% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the construction equipment company had gained 4.1% over the past month. This has outpaced the Industrial Products sector's gain of 3.88% and the S&P 500's gain of 4.06% in that time.
Caterpillar will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Caterpillar to post earnings of $3.95 per share. This would mark year-over-year growth of 46.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.89 billion, up 15.18% from the year-ago period.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. Caterpillar is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 16.33. For comparison, its industry has an average Forward P/E of 14.45, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.