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Caterpillar (CAT) Gains As Market Dips: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $241.48, moving +0.14% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%.
Heading into today, shares of the construction equipment company had gained 13.37% over the past month, outpacing the Industrial Products sector's gain of 7.54% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $4.54 per share, which would represent year-over-year growth of 42.77%. Meanwhile, our latest consensus estimate is calling for revenue of $16.46 billion, up 15.55% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.72 per share and revenue of $65.36 billion. These results would represent year-over-year changes of +28.03% and +9.98%, respectively.
Investors might also notice recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.59% higher. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.61. For comparison, its industry has an average Forward P/E of 12.39, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.13. 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 1.07 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Caterpillar (CAT) Gains As Market Dips: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $241.48, moving +0.14% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%.
Heading into today, shares of the construction equipment company had gained 13.37% over the past month, outpacing the Industrial Products sector's gain of 7.54% and the S&P 500's gain of 4.86% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $4.54 per share, which would represent year-over-year growth of 42.77%. Meanwhile, our latest consensus estimate is calling for revenue of $16.46 billion, up 15.55% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.72 per share and revenue of $65.36 billion. These results would represent year-over-year changes of +28.03% and +9.98%, respectively.
Investors might also notice recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.59% higher. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.61. For comparison, its industry has an average Forward P/E of 12.39, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.13. 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 1.07 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 5, which puts it in the top 2% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.