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Caterpillar (CAT) Gains As Market Dips: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $200, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.28% loss on the day.
Prior to today's trading, shares of the construction equipment company had lost 7.52% over the past month. This has lagged the Industrial Products sector's loss of 3.59% and the S&P 500's loss of 0.56% in that time.
Investors will be hoping for strength from CAT as it approaches its next earnings release. On that day, CAT is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 67.91%. Our most recent consensus estimate is calling for quarterly revenue of $12.59 billion, up 27.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $50.82 billion, which would represent changes of +53.66% and +21.73%, respectively, from the prior year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.04% lower. CAT is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CAT has a Forward P/E ratio of 19.53 right now. This represents a discount compared to its industry's average Forward P/E of 21.02.
Investors should also note that CAT has a PEG ratio of 1.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 1.15 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 126, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Caterpillar (CAT) Gains As Market Dips: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $200, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.28% loss on the day.
Prior to today's trading, shares of the construction equipment company had lost 7.52% over the past month. This has lagged the Industrial Products sector's loss of 3.59% and the S&P 500's loss of 0.56% in that time.
Investors will be hoping for strength from CAT as it approaches its next earnings release. On that day, CAT is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 67.91%. Our most recent consensus estimate is calling for quarterly revenue of $12.59 billion, up 27.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.08 per share and revenue of $50.82 billion, which would represent changes of +53.66% and +21.73%, respectively, from the prior year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.04% lower. CAT is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CAT has a Forward P/E ratio of 19.53 right now. This represents a discount compared to its industry's average Forward P/E of 21.02.
Investors should also note that CAT has a PEG ratio of 1.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 1.15 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 126, putting it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.