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Caterpillar (CAT) Gains But Lags Market: What You Should Know
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Caterpillar (CAT - Free Report) closed at $253.65 in the latest trading session, marking a +0.32% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the construction equipment company had gained 3.02% over the past month, lagging the Industrial Products sector's gain of 7.74% and the S&P 500's gain of 3.34% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. In that report, analysts expect Caterpillar to post earnings of $4.50 per share. This would mark year-over-year growth of 41.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $17.85 per share and revenue of $65.44 billion. These totals would mark changes of +28.97% 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.19% higher. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.17. Its industry sports an average Forward P/E of 11.52, so we one might conclude that Caterpillar is trading at a premium comparatively.
Investors should also note that CAT has a PEG ratio of 1.18 right now. 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 1.11 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 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Gains But Lags Market: What You Should Know
Caterpillar (CAT - Free Report) closed at $253.65 in the latest trading session, marking a +0.32% move from the prior day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the construction equipment company had gained 3.02% over the past month, lagging the Industrial Products sector's gain of 7.74% and the S&P 500's gain of 3.34% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. In that report, analysts expect Caterpillar to post earnings of $4.50 per share. This would mark year-over-year growth of 41.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $17.85 per share and revenue of $65.44 billion. These totals would mark changes of +28.97% 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.19% higher. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.17. Its industry sports an average Forward P/E of 11.52, so we one might conclude that Caterpillar is trading at a premium comparatively.
Investors should also note that CAT has a PEG ratio of 1.18 right now. 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 1.11 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 3, which puts it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.