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) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Caterpillar (CAT - Free Report) ended the recent trading session at $505.06, demonstrating a +2.8% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.56% for the day. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
The construction equipment company's stock has climbed by 13.85% in the past month, exceeding the Industrial Products sector's loss of 1.1% and the S&P 500's gain of 0.41%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.51, indicating a 12.77% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.72 billion, up 3.81% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.8 per share and revenue of $64.81 billion. These totals would mark changes of -18.72% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. Right now, Caterpillar possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 27.61. Its industry sports an average Forward P/E of 19.16, so one might conclude that Caterpillar is trading at a premium comparatively.
It's also important to note that CAT currently trades at a PEG ratio of 3.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 3.92.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 250 industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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) Outperforms Broader Market: What You Need to Know
Caterpillar (CAT - Free Report) ended the recent trading session at $505.06, demonstrating a +2.8% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.56% for the day. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
The construction equipment company's stock has climbed by 13.85% in the past month, exceeding the Industrial Products sector's loss of 1.1% and the S&P 500's gain of 0.41%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.51, indicating a 12.77% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.72 billion, up 3.81% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.8 per share and revenue of $64.81 billion. These totals would mark changes of -18.72% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. Right now, Caterpillar possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 27.61. Its industry sports an average Forward P/E of 19.16, so one might conclude that Caterpillar is trading at a premium comparatively.
It's also important to note that CAT currently trades at a PEG ratio of 3.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 3.92.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 21% of over 250 industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.