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If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Caterpillar (CAT - Free Report) ten years ago? It may not have been easy to hold on to CAT for all that time, but if you did, how much would your investment be worth today?
Caterpillar's Business In-Depth
With that in mind, let's take a look at Caterpillar's main business drivers.
Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
Since 1925, Caterpillar’s product portfolio has evolved and boasts 20 brands and generated revenues of $51 billion in 2021. It has more than 4 million products with an extensive dealer network of 165 dealers spanning 191 countries.
Caterpillar started using telematics in the 1990s and reached its target of 1 million connected assets in 2019. It currently has more than 1.2 million connected assets. The combination of innovation, and cutting-edge technology, coupled with the formidable reputation, set Caterpillar apart from its peers.
Caterpillar is the 68th largest company on the S&P 500 Index, with a market capitalization of around $111 billion. It holds the 8th position in the Dow Jones Industrial Average, with a 4.2% weight. It is also a member of the S&P 500 Dividend Aristocrat Index.
The Irving, TX-based company has six operating segments.
Machinery, Energy & Transportation (ME&T) (95.3% of total revenues in 2022) includes the Construction Industries segment manufactures machinery utilized in infrastructure, forestry and building construction.
The Resource Industries segment caters to customers using machinery in mining, quarry and aggregates, heavy construction, waste and material handling applications.
The Energy & Transportation segment supports customers in oil and gas, power generation, marine, rail and industrial applications.
All Other Segments primarily comprise activities such as re-manufacturing CAT engines and components and re-manufacturing services for other companies and product management, development, manufacturing, marketing and product support.
Financial Products Segment (5.7%) provides retail and wholesale financing alternatives for Caterpillar products.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Caterpillar, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2013 would be worth $2,898.44, or a 189.84% gain, as of June 21, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 176.33% and gold's return of 37.64% over the same time frame.
Analysts are forecasting more upside for CAT too.
Caterpillar’s revenues and earnings has grown year over year for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of the supply chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 19.5% and revenues are predicted to rise 7.6%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
Over the past four weeks, shares have rallied 13.37%, and there have been 13 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Caterpillar (CAT - Free Report) ten years ago? It may not have been easy to hold on to CAT for all that time, but if you did, how much would your investment be worth today?
Caterpillar's Business In-Depth
With that in mind, let's take a look at Caterpillar's main business drivers.
Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
Since 1925, Caterpillar’s product portfolio has evolved and boasts 20 brands and generated revenues of $51 billion in 2021. It has more than 4 million products with an extensive dealer network of 165 dealers spanning 191 countries.
Caterpillar started using telematics in the 1990s and reached its target of 1 million connected assets in 2019. It currently has more than 1.2 million connected assets. The combination of innovation, and cutting-edge technology, coupled with the formidable reputation, set Caterpillar apart from its peers.
Caterpillar is the 68th largest company on the S&P 500 Index, with a market capitalization of around $111 billion. It holds the 8th position in the Dow Jones Industrial Average, with a 4.2% weight. It is also a member of the S&P 500 Dividend Aristocrat Index.
The Irving, TX-based company has six operating segments.
Machinery, Energy & Transportation (ME&T) (95.3% of total revenues in 2022) includes the Construction Industries segment manufactures machinery utilized in infrastructure, forestry and building construction.
The Resource Industries segment caters to customers using machinery in mining, quarry and aggregates, heavy construction, waste and material handling applications.
The Energy & Transportation segment supports customers in oil and gas, power generation, marine, rail and industrial applications.
All Other Segments primarily comprise activities such as re-manufacturing CAT engines and components and re-manufacturing services for other companies and product management, development, manufacturing, marketing and product support.
Financial Products Segment (5.7%) provides retail and wholesale financing alternatives for Caterpillar products.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Caterpillar, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2013 would be worth $2,898.44, or a 189.84% gain, as of June 21, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 176.33% and gold's return of 37.64% over the same time frame.
Analysts are forecasting more upside for CAT too.
Caterpillar’s revenues and earnings has grown year over year for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of the supply chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 19.5% and revenues are predicted to rise 7.6%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
Over the past four weeks, shares have rallied 13.37%, and there have been 13 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.