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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $124.60, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the construction equipment company had gained 9.49% in the past month. In that same time, the Industrial Products sector gained 5.45%, while the S&P 500 gained 0.89%.
CAT will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $2.98, up 37.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.26 billion, up 10.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.64 per share and revenue of $54.42 billion, which would represent changes of +69.19% and +19.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CAT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CAT is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CAT is holding a Forward P/E ratio of 10.72. For comparison, its industry has an average Forward P/E of 11.52, which means CAT is trading at a discount to the group.
It is also worth noting that CAT currently has a PEG ratio of 0.46. 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 0.76 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 228, putting it in the bottom 11% 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.
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: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $124.60, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Coming into today, shares of the construction equipment company had gained 9.49% in the past month. In that same time, the Industrial Products sector gained 5.45%, while the S&P 500 gained 0.89%.
CAT will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $2.98, up 37.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.26 billion, up 10.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.64 per share and revenue of $54.42 billion, which would represent changes of +69.19% and +19.7%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CAT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CAT is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CAT is holding a Forward P/E ratio of 10.72. For comparison, its industry has an average Forward P/E of 11.52, which means CAT is trading at a discount to the group.
It is also worth noting that CAT currently has a PEG ratio of 0.46. 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 0.76 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 228, putting it in the bottom 11% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.