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) Suffers a Larger Drop Than the General Market: Key Insights
Read MoreHide Full Article
In the latest trading session, Caterpillar (CAT - Free Report) closed at $596.50, marking a -1.11% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.35%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the construction equipment company had gained 7.12% over the past month, outpacing the Industrial Products sector's gain of 1.35% and the S&P 500's gain of 1.2%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is expected to report EPS of $4.52, down 12.06% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $17.9 billion, showing a 10.37% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.4 per share and a revenue of $66.11 billion, representing changes of -15.98% and +2.01%, respectively, from the prior year.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Caterpillar possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 32.78. This indicates a premium in contrast to its industry's Forward P/E of 13.95.
It is also worth noting that CAT currently has a PEG ratio of 2.84. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 3.81 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Caterpillar (CAT) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Caterpillar (CAT - Free Report) closed at $596.50, marking a -1.11% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.35%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the construction equipment company had gained 7.12% over the past month, outpacing the Industrial Products sector's gain of 1.35% and the S&P 500's gain of 1.2%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is expected to report EPS of $4.52, down 12.06% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $17.9 billion, showing a 10.37% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.4 per share and a revenue of $66.11 billion, representing changes of -15.98% and +2.01%, respectively, from the prior year.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Right now, Caterpillar possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 32.78. This indicates a premium in contrast to its industry's Forward P/E of 13.95.
It is also worth noting that CAT currently has a PEG ratio of 2.84. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 3.81 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.