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Caterpillar (CAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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The latest trading session saw Caterpillar (CAT - Free Report) ending at $247.32, denoting a -0.75% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
The construction equipment company's shares have seen a decrease of 8.74% over the last month, not keeping up with the Industrial Products sector's loss of 6.08% and the S&P 500's loss of 3.95%.
The upcoming earnings release of Caterpillar will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company's upcoming EPS is projected at $4.72, signifying a 19.49% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.52 billion, up 10.15% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.94 per share and a revenue of $67.23 billion, representing changes of +44.08% and +13.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% increase. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 12.5. This expresses a premium compared to the average Forward P/E of 8.93 of its industry.
Also, we should mention that CAT has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.81 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 6% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Caterpillar (CAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The latest trading session saw Caterpillar (CAT - Free Report) ending at $247.32, denoting a -0.75% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
The construction equipment company's shares have seen a decrease of 8.74% over the last month, not keeping up with the Industrial Products sector's loss of 6.08% and the S&P 500's loss of 3.95%.
The upcoming earnings release of Caterpillar will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company's upcoming EPS is projected at $4.72, signifying a 19.49% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.52 billion, up 10.15% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.94 per share and a revenue of $67.23 billion, representing changes of +44.08% and +13.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% increase. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 12.5. This expresses a premium compared to the average Forward P/E of 8.93 of its industry.
Also, we should mention that CAT has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.81 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 6% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.