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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $219.44, marking a -0.23% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the construction equipment company had lost 7.54% over the past month. This has lagged the Industrial Products sector's loss of 4.87% and the S&P 500's loss of 1.21% 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.
Investors might also notice recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.03. This valuation marks a premium compared to its industry's average Forward P/E of 12.42.
Investors should also note that CAT has a PEG ratio of 1.17 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 0.99 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 36, putting it in the top 15% 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.