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Is Caterpillar (CAT) Stock Outpacing Its Industrial Products Peers This Year?

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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Caterpillar (CAT - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Caterpillar is one of 212 companies in the Industrial Products group. The Industrial Products group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CAT is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CAT's full-year earnings has moved 8.23% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, CAT has gained about 9.83% so far this year. In comparison, Industrial Products companies have returned an average of 5.41%. This shows that Caterpillar is outperforming its peers so far this year.

To break things down more, CAT belongs to the Manufacturing - Construction and Mining industry, a group that includes 8 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, stocks in this group have gained 10.17% this year, meaning that CAT is slightly underperforming its industry in terms of year-to-date returns.

Investors with an interest in Industrial Products stocks should continue to track CAT. The stock will be looking to continue its solid performance.


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