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Caterpillar (CAT) Gains But Lags Market: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $255.31, marking a +1.24% move from the previous day. The stock lagged the S&P 500's daily gain of 1.62%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 12.91%.
Prior to today's trading, shares of the construction equipment company had gained 2.97% over the past month. This has outpaced the Industrial Products sector's loss of 0.8% and the S&P 500's loss of 4.54% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $3.71 per share, which would represent year-over-year growth of 28.82%. Meanwhile, our latest consensus estimate is calling for revenue of $14.93 billion, up 9.9% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $15.67 per share and revenue of $63.72 billion. These results would represent year-over-year changes of +13.22% and +7.22%, respectively.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.24% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.09. This represents a premium compared to its industry's average Forward P/E of 14.96.
Meanwhile, CAT's PEG ratio is currently 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
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Caterpillar (CAT) Gains But Lags Market: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $255.31, marking a +1.24% move from the previous day. The stock lagged the S&P 500's daily gain of 1.62%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 12.91%.
Prior to today's trading, shares of the construction equipment company had gained 2.97% over the past month. This has outpaced the Industrial Products sector's loss of 0.8% and the S&P 500's loss of 4.54% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $3.71 per share, which would represent year-over-year growth of 28.82%. Meanwhile, our latest consensus estimate is calling for revenue of $14.93 billion, up 9.9% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $15.67 per share and revenue of $63.72 billion. These results would represent year-over-year changes of +13.22% and +7.22%, respectively.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 1.24% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.09. This represents a premium compared to its industry's average Forward P/E of 14.96.
Meanwhile, CAT's PEG ratio is currently 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.