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Caterpillar (CAT) Advances While Market Declines: Some Information for Investors
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The latest trading session saw Caterpillar (CAT - Free Report) ending at $364.83, denoting a +0.3% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 1%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Shares of the construction equipment company witnessed a gain of 7.41% over the previous month, beating the performance of the Industrial Products sector with its gain of 4.93% and the S&P 500's gain of 2.16%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company's upcoming EPS is projected at $5.10, signifying a 3.87% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.97 billion, indicating a 0.65% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.26 per share and a revenue of $67.55 billion, signifying shifts of +0.24% and +0.74%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 17.11. This expresses a premium compared to the average Forward P/E of 10.86 of its industry.
One should further note that CAT currently holds a PEG ratio of 1.74. 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 was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Caterpillar (CAT) Advances While Market Declines: Some Information for Investors
The latest trading session saw Caterpillar (CAT - Free Report) ending at $364.83, denoting a +0.3% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 1%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Shares of the construction equipment company witnessed a gain of 7.41% over the previous month, beating the performance of the Industrial Products sector with its gain of 4.93% and the S&P 500's gain of 2.16%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company's upcoming EPS is projected at $5.10, signifying a 3.87% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.97 billion, indicating a 0.65% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.26 per share and a revenue of $67.55 billion, signifying shifts of +0.24% and +0.74%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 17.11. This expresses a premium compared to the average Forward P/E of 10.86 of its industry.
One should further note that CAT currently holds a PEG ratio of 1.74. 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 was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.