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A behemoth in the Zacks Industrial Products sector, Caterpillar (CAT - Free Report) has seen its near-term earnings outlook improve nicely over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. We see those iconic yellow machines at nearly every construction site.
The company operates through three primary segments: Construction Industries, Resource Industries, and Energy & Transportation. In addition, Caterpillar provides financing and other related services through its Financial Products segment.
Current Standing
Caterpillar posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 30%. Quarterly revenue totaled $15.8 billion, more than 4% above expectations and improving roughly 17% from the year-ago period.
Image Source: Zacks Investment Research
In addition, CAT shares could entice value-focused investors, with the current 11.9X forward earnings multiple sitting well below the 15.7X five-year median and the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
For those with an appetite for income, CAT shares have that covered as well; the company’s annual dividend presently yields a solid 2.3% with a payout ratio sitting sustainably at 30% of earnings.
Impressively, CAT has shown a commitment to increasingly rewarding its shareholders, boasting an 8.2% five-year annualized dividend growth rate and holding a spot within the elite Dividend Aristocrat group.
Image Source: Zacks Investment Research
And to top it off, Caterpillar carries a favorable growth profile, with estimates calling for a nearly 30% jump in earnings in the current fiscal year (FY23) on 10% higher revenues.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Caterpillar (CAT - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Bull of the Day: Caterpillar Inc. (CAT)
A behemoth in the Zacks Industrial Products sector, Caterpillar (CAT - Free Report) has seen its near-term earnings outlook improve nicely over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. We see those iconic yellow machines at nearly every construction site.
The company operates through three primary segments: Construction Industries, Resource Industries, and Energy & Transportation. In addition, Caterpillar provides financing and other related services through its Financial Products segment.
Current Standing
Caterpillar posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 30%. Quarterly revenue totaled $15.8 billion, more than 4% above expectations and improving roughly 17% from the year-ago period.
Image Source: Zacks Investment Research
In addition, CAT shares could entice value-focused investors, with the current 11.9X forward earnings multiple sitting well below the 15.7X five-year median and the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
For those with an appetite for income, CAT shares have that covered as well; the company’s annual dividend presently yields a solid 2.3% with a payout ratio sitting sustainably at 30% of earnings.
Impressively, CAT has shown a commitment to increasingly rewarding its shareholders, boasting an 8.2% five-year annualized dividend growth rate and holding a spot within the elite Dividend Aristocrat group.
Image Source: Zacks Investment Research
And to top it off, Caterpillar carries a favorable growth profile, with estimates calling for a nearly 30% jump in earnings in the current fiscal year (FY23) on 10% higher revenues.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Caterpillar (CAT - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).