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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $130.93, marking a -1.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the construction equipment company had gained 9.59% in the past month. In that same time, the Industrial Products sector gained 9.57%, while the S&P 500 gained 7.92%.
Investors will be hoping for strength from CAT as it approaches its next earnings release, which is expected to be April 23, 2019. In that report, analysts expect CAT to post earnings of $2.89 per share. This would mark year-over-year growth of 2.48%. Our most recent consensus estimate is calling for quarterly revenue of $13.48 billion, up 4.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.28 per share and revenue of $57.49 billion. These totals would mark changes of +9.45% and +5.06%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CAT. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.8% lower within the past month. CAT currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CAT currently has a Forward P/E ratio of 10.84. For comparison, its industry has an average Forward P/E of 10.84, which means CAT is trading at a no noticeable deviation to the group.
It is also worth noting that CAT currently has a PEG ratio of 0.59. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $130.93, marking a -1.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the construction equipment company had gained 9.59% in the past month. In that same time, the Industrial Products sector gained 9.57%, while the S&P 500 gained 7.92%.
Investors will be hoping for strength from CAT as it approaches its next earnings release, which is expected to be April 23, 2019. In that report, analysts expect CAT to post earnings of $2.89 per share. This would mark year-over-year growth of 2.48%. Our most recent consensus estimate is calling for quarterly revenue of $13.48 billion, up 4.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.28 per share and revenue of $57.49 billion. These totals would mark changes of +9.45% and +5.06%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CAT. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.8% lower within the past month. CAT currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CAT currently has a Forward P/E ratio of 10.84. For comparison, its industry has an average Forward P/E of 10.84, which means CAT is trading at a no noticeable deviation to the group.
It is also worth noting that CAT currently has a PEG ratio of 0.59. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.