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Caterpillar (CAT) Stock Declines While Market Improves: Some Information for Investors
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Caterpillar (CAT - Free Report) ended the recent trading session at $296.88, demonstrating a -0.42% swing from the preceding day's closing price. This change lagged the S&P 500's 0.04% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.
The construction equipment company's stock has climbed by 19.51% in the past month, exceeding the Industrial Products sector's gain of 10.92% and the S&P 500's gain of 5.28%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. It is anticipated that the company will report an EPS of $4.76, marking a 23.32% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $17.2 billion, indicating a 3.63% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.58 per share and a revenue of $67.19 billion, indicating changes of +48.7% and +13.06%, respectively, from the former year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Caterpillar possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.49 right now. This represents a premium compared to its industry's average Forward P/E of 10.59.
It's also important to note that CAT currently trades at a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Construction and Mining industry had an average PEG ratio of 0.98.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Declines While Market Improves: Some Information for Investors
Caterpillar (CAT - Free Report) ended the recent trading session at $296.88, demonstrating a -0.42% swing from the preceding day's closing price. This change lagged the S&P 500's 0.04% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.03%.
The construction equipment company's stock has climbed by 19.51% in the past month, exceeding the Industrial Products sector's gain of 10.92% and the S&P 500's gain of 5.28%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. It is anticipated that the company will report an EPS of $4.76, marking a 23.32% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $17.2 billion, indicating a 3.63% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.58 per share and a revenue of $67.19 billion, indicating changes of +48.7% and +13.06%, respectively, from the former year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Right now, Caterpillar possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.49 right now. This represents a premium compared to its industry's average Forward P/E of 10.59.
It's also important to note that CAT currently trades at a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Manufacturing - Construction and Mining industry had an average PEG ratio of 0.98.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.