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

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Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Caterpillar (CAT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.

Caterpillar is a member of the Industrial Products sector. This group includes 218 individual stocks and currently holds a Zacks Sector Rank of #6. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CAT is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CAT's full-year earnings has moved 7.75% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, CAT has returned 26.42% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 15.80% on average. 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 #18 in the Zacks Industry Rank. This group has gained an average of 28.33% so far this year, so CAT is slightly underperforming its industry in this area.

CAT will likely be looking to continue its solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to the company.


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