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Caterpillar (CAT) Registers a Bigger Fall Than the Market: Important Facts to Note
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Caterpillar (CAT - Free Report) closed the most recent trading day at $667.43, moving -4.02% from the previous trading session. This change lagged the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.73%.
Shares of the construction equipment company witnessed a loss of 6.39% over the previous month, beating the performance of the Industrial Products sector with its loss of 9.95%, and the S&P 500's loss of 7.34%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. On that day, Caterpillar is projected to report earnings of $4.49 per share, which would represent year-over-year growth of 5.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.45 billion, up 15.44% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.72 per share and a revenue of $73.88 billion, indicating changes of +19.2% and +9.31%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.28% upward. Caterpillar currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 30.6. This denotes a premium relative to the industry average Forward P/E of 15.68.
We can additionally observe that CAT currently boasts a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 15% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Caterpillar (CAT) Registers a Bigger Fall Than the Market: Important Facts to Note
Caterpillar (CAT - Free Report) closed the most recent trading day at $667.43, moving -4.02% from the previous trading session. This change lagged the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.73%.
Shares of the construction equipment company witnessed a loss of 6.39% over the previous month, beating the performance of the Industrial Products sector with its loss of 9.95%, and the S&P 500's loss of 7.34%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. On that day, Caterpillar is projected to report earnings of $4.49 per share, which would represent year-over-year growth of 5.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.45 billion, up 15.44% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.72 per share and a revenue of $73.88 billion, indicating changes of +19.2% and +9.31%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.28% upward. Caterpillar currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 30.6. This denotes a premium relative to the industry average Forward P/E of 15.68.
We can additionally observe that CAT currently boasts a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 15% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.