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Caterpillar (CAT) Suffers a Larger Drop Than the General Market: Key Insights
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Caterpillar (CAT - Free Report) closed at $707.59 in the latest trading session, marking a -1.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the construction equipment company had lost 3.46% was narrower than the Industrial Products sector's loss of 6.04% and lagged the S&P 500's loss of 2.16%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. In that report, analysts expect Caterpillar to post earnings of $4.44 per share. This would mark year-over-year growth of 4.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.28 billion, up 14.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $22.71 per share and a revenue of $73.64 billion, signifying shifts of +19.15% and +8.95%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. Caterpillar presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 31.56. Its industry sports an average Forward P/E of 18.32, so one might conclude that Caterpillar is trading at a premium comparatively.
We can also see that CAT currently has a PEG ratio of 1.69. 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. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.94.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Suffers a Larger Drop Than the General Market: Key Insights
Caterpillar (CAT - Free Report) closed at $707.59 in the latest trading session, marking a -1.27% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the construction equipment company had lost 3.46% was narrower than the Industrial Products sector's loss of 6.04% and lagged the S&P 500's loss of 2.16%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. In that report, analysts expect Caterpillar to post earnings of $4.44 per share. This would mark year-over-year growth of 4.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.28 billion, up 14.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $22.71 per share and a revenue of $73.64 billion, signifying shifts of +19.15% and +8.95%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. Caterpillar presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 31.56. Its industry sports an average Forward P/E of 18.32, so one might conclude that Caterpillar is trading at a premium comparatively.
We can also see that CAT currently has a PEG ratio of 1.69. 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. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.94.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.