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Caterpillar (CAT) Increases Despite Market Slip: Here's What You Need to Know
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Caterpillar (CAT - Free Report) closed at $286.10 in the latest trading session, marking a +0.63% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
The construction equipment company's stock has climbed by 11.07% in the past month, exceeding the Industrial Products sector's gain of 4.44% and the S&P 500's gain of 2.56%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company's earnings per share (EPS) are projected to be $4.76, reflecting a 23.32% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.2 billion, indicating a 3.63% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Caterpillar presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 13.7. This indicates a premium in contrast to its industry's Forward P/E of 10.26.
It's also important to note that CAT currently trades at a PEG ratio of 1.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 219, this industry ranks in the bottom 14% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Caterpillar (CAT) Increases Despite Market Slip: Here's What You Need to Know
Caterpillar (CAT - Free Report) closed at $286.10 in the latest trading session, marking a +0.63% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.34%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.56%.
The construction equipment company's stock has climbed by 11.07% in the past month, exceeding the Industrial Products sector's gain of 4.44% and the S&P 500's gain of 2.56%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company's earnings per share (EPS) are projected to be $4.76, reflecting a 23.32% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.2 billion, indicating a 3.63% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Caterpillar presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 13.7. This indicates a premium in contrast to its industry's Forward P/E of 10.26.
It's also important to note that CAT currently trades at a PEG ratio of 1.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 219, this industry ranks in the bottom 14% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.