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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 $123.39, moving -0.13% from the previous trading session. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.74%.
Prior to today's trading, shares of the construction equipment company had lost 5.97% over the past month. This has was narrower than the Industrial Products sector's loss of 6.99% and the S&P 500's loss of 6.19% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, up 10.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.64 per share and revenue of $54.42 billion. These totals would mark changes of +69.19% and +19.7%, respectively, from last year.
Any recent changes to analyst estimates for CAT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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, 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 remained stagnant. CAT currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CAT has a Forward P/E ratio of 10.61 right now. Its industry sports an average Forward P/E of 10.65, so we one might conclude that CAT is trading at a discount comparatively.
Meanwhile, CAT's PEG ratio is currently 0.51. 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 0.68 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 222, which puts it in the bottom 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $123.39, moving -0.13% from the previous trading session. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.74%.
Prior to today's trading, shares of the construction equipment company had lost 5.97% over the past month. This has was narrower than the Industrial Products sector's loss of 6.99% and the S&P 500's loss of 6.19% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, up 10.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.64 per share and revenue of $54.42 billion. These totals would mark changes of +69.19% and +19.7%, respectively, from last year.
Any recent changes to analyst estimates for CAT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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, 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 remained stagnant. CAT currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CAT has a Forward P/E ratio of 10.61 right now. Its industry sports an average Forward P/E of 10.65, so we one might conclude that CAT is trading at a discount comparatively.
Meanwhile, CAT's PEG ratio is currently 0.51. 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 0.68 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 222, which puts it in the bottom 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.