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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
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Caterpillar (CAT - Free Report) closed at $240.58 in the latest trading session, marking a -1.74% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the construction equipment company had gained 3.94% over the past month, lagging the Industrial Products sector's gain of 8.98% and the S&P 500's gain of 4.16% 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 $4.50 per share, which would represent year-over-year growth of 41.51%. Our most recent consensus estimate is calling for quarterly revenue of $16.47 billion, up 15.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.78 per share and revenue of $65.44 billion. These totals would mark changes of +28.47% and +10.12%, respectively, from last year.
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. 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. 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 0.8% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.77. For comparison, its industry has an average Forward P/E of 11.03, which means Caterpillar is trading at a premium to the group.
It is also worth noting that CAT currently has a PEG ratio of 1.15. 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 4, 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
Caterpillar (CAT - Free Report) closed at $240.58 in the latest trading session, marking a -1.74% move from the prior day. This move lagged the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Heading into today, shares of the construction equipment company had gained 3.94% over the past month, lagging the Industrial Products sector's gain of 8.98% and the S&P 500's gain of 4.16% 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 $4.50 per share, which would represent year-over-year growth of 41.51%. Our most recent consensus estimate is calling for quarterly revenue of $16.47 billion, up 15.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.78 per share and revenue of $65.44 billion. These totals would mark changes of +28.47% and +10.12%, respectively, from last year.
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. 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. 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 0.8% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.77. For comparison, its industry has an average Forward P/E of 11.03, which means Caterpillar is trading at a premium to the group.
It is also worth noting that CAT currently has a PEG ratio of 1.15. 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 4, 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.