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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Caterpillar (CAT - Free Report) closed at $209.78, marking a -0.1% move from the previous day. This change lagged the S&P 500's 2.57% gain on the day. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.66%.

Coming into today, shares of the construction equipment company had gained 4.22% in the past month. In that same time, the Industrial Products sector lost 5.34%, while the S&P 500 lost 7.68%.

Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be April 28, 2022. In that report, analysts expect Caterpillar to post earnings of $2.69 per share. This would mark a year-over-year decline of 6.27%. Meanwhile, our latest consensus estimate is calling for revenue of $13.54 billion, up 13.91% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.30 per share and revenue of $57.73 billion. These totals would mark changes of +13.78% and +13.26%, respectively, from last year.

Any recent changes to analyst estimates for Caterpillar should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Caterpillar currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 17.07. This represents a premium compared to its industry's average Forward P/E of 14.77.

Meanwhile, CAT's PEG ratio is currently 1.42. 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. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 0.46 as of yesterday's close.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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

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