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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $225.20, moving -0.02% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Coming into today, shares of the construction equipment company had gained 2.24% in the past month. In that same time, the Industrial Products sector gained 4.73%, while the S&P 500 gained 6.17%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $3.78, up 31.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.18 billion, up 11.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.71 per share and revenue of $63.8 billion, which would represent changes of +13.51% and +7.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.27% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.33. For comparison, its industry has an average Forward P/E of 12.59, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.19. 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. CAT's industry had an average PEG ratio of 1.02 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 11, which puts it in the top 5% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $225.20, moving -0.02% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Coming into today, shares of the construction equipment company had gained 2.24% in the past month. In that same time, the Industrial Products sector gained 4.73%, while the S&P 500 gained 6.17%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $3.78, up 31.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.18 billion, up 11.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.71 per share and revenue of $63.8 billion, which would represent changes of +13.51% and +7.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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 0.27% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.33. For comparison, its industry has an average Forward P/E of 12.59, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.19. 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. CAT's industry had an average PEG ratio of 1.02 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 11, which puts it in the top 5% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.