We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Caterpillar (CAT) Surpasses Market Returns: Some Facts Worth Knowing
Read MoreHide Full Article
Caterpillar (CAT - Free Report) closed the most recent trading day at $412.88, moving +2.04% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%.
Heading into today, shares of the construction equipment company had gained 13.13% over the past month, outpacing the Industrial Products sector's gain of 6.49% and the S&P 500's gain of 4.51%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.89, reflecting a 18.36% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.37 billion, down 1.91% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.8 per share and revenue of $63.24 billion, indicating changes of -14.16% and -2.43%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.56% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #2 (Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 21.52. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 21.52.
Meanwhile, CAT's PEG ratio is currently 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Manufacturing - Construction and Mining industry stood at 5.19 at the close of the market yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Caterpillar (CAT) Surpasses Market Returns: Some Facts Worth Knowing
Caterpillar (CAT - Free Report) closed the most recent trading day at $412.88, moving +2.04% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%.
Heading into today, shares of the construction equipment company had gained 13.13% over the past month, outpacing the Industrial Products sector's gain of 6.49% and the S&P 500's gain of 4.51%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.89, reflecting a 18.36% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.37 billion, down 1.91% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.8 per share and revenue of $63.24 billion, indicating changes of -14.16% and -2.43%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.56% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #2 (Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 21.52. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 21.52.
Meanwhile, CAT's PEG ratio is currently 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Manufacturing - Construction and Mining industry stood at 5.19 at the close of the market yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.