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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 $219.75, moving +0.77% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.94%. Meanwhile, the Dow lost 1.07%, and the Nasdaq, a tech-heavy index, lost 0.39%.

Prior to today's trading, shares of the construction equipment company had gained 6.65% over the past month. This has outpaced the Industrial Products sector's gain of 4.53% and the S&P 500's gain of 5.72% in that time.

Caterpillar will be looking to display strength as it nears its next earnings release. In that report, analysts expect Caterpillar to post earnings of $2.23 per share. This would mark year-over-year growth of 5.19%. Our most recent consensus estimate is calling for quarterly revenue of $13.31 billion, up 18.43% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 17.71. This valuation marks a premium compared to its industry's average Forward P/E of 15.83.

Investors should also note that CAT has a PEG ratio of 1.48 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.54 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 71, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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