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Caterpillar (CAT) Stock Sinks As Market Gains: Here's Why
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Caterpillar (CAT - Free Report) ended the recent trading session at $285.71, demonstrating a -0.01% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company's upcoming EPS is projected at $4.76, signifying a 23.32% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.26 billion, indicating a 3.97% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.58 per share and a revenue of $67.25 billion, representing changes of +48.7% and +13.16%, respectively, from the prior year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.89. This valuation marks a premium compared to its industry's average Forward P/E of 10.08.
We can also see that CAT currently has a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 0.96.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 9% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Caterpillar (CAT) Stock Sinks As Market Gains: Here's Why
Caterpillar (CAT - Free Report) ended the recent trading session at $285.71, demonstrating a -0.01% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company's upcoming EPS is projected at $4.76, signifying a 23.32% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.26 billion, indicating a 3.97% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.58 per share and a revenue of $67.25 billion, representing changes of +48.7% and +13.16%, respectively, from the prior year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.89. This valuation marks a premium compared to its industry's average Forward P/E of 10.08.
We can also see that CAT currently has a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 0.96.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 230, placing it within the bottom 9% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.