Caterpillar (CAT - Free Report) closed the most recent trading day at $146.76, moving -1.68% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3.51%. At the same time, the Dow lost 2.78%, and the tech-heavy Nasdaq lost 4.96%.
Heading into today, shares of the construction equipment company had gained 10.6% over the past month, outpacing the Industrial Products sector's gain of 10.35% and the S&P 500's gain of 9.58% in that time.
Investors will be hoping for strength from CAT as it approaches its next earnings release. The company is expected to report EPS of $1.08, down 59.4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.53 billion, down 25.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $41.25 billion, which would represent changes of -53.25% and -23.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CAT is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, CAT is currently trading at a Forward P/E ratio of 28.87. This represents a premium compared to its industry's average Forward P/E of 27.78.
Investors should also note that CAT has a PEG ratio of 2.41 right now. 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 5.02 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 124, which puts it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.