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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $240.69, marking a +1.58% move from the previous day. This move outpaced the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Coming into today, shares of the construction equipment company had gained 11.87% in the past month. In that same time, the Industrial Products sector gained 8.44%, while the S&P 500 gained 3.08%.
Caterpillar will be looking to display strength as it nears its next earnings release. On that day, Caterpillar is projected to report earnings of $4.52 per share, which would represent year-over-year growth of 42.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.46 billion, up 15.55% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.76 per share and revenue of $65.36 billion. These results would represent year-over-year changes of +28.32% and +9.98%, respectively.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.71% higher. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.34. This represents a premium compared to its industry's average Forward P/E of 12.02.
It is also worth noting that CAT currently has a PEG ratio of 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAT's industry had an average PEG ratio of 1.03 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 6, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $240.69, marking a +1.58% move from the previous day. This move outpaced the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Coming into today, shares of the construction equipment company had gained 11.87% in the past month. In that same time, the Industrial Products sector gained 8.44%, while the S&P 500 gained 3.08%.
Caterpillar will be looking to display strength as it nears its next earnings release. On that day, Caterpillar is projected to report earnings of $4.52 per share, which would represent year-over-year growth of 42.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.46 billion, up 15.55% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.76 per share and revenue of $65.36 billion. These results would represent year-over-year changes of +28.32% and +9.98%, respectively.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.71% higher. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.34. This represents a premium compared to its industry's average Forward P/E of 12.02.
It is also worth noting that CAT currently has a PEG ratio of 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAT's industry had an average PEG ratio of 1.03 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 6, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.