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Caterpillar (CAT) Declines More Than Market: Some Information for Investors
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $858.02, marking a -6.2% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.62%. At the same time, the Dow lost 1.87%, and the tech-heavy Nasdaq lost 1.98%.
The stock of construction equipment company has risen by 0.28% in the past month, lagging the Industrial Products sector's gain of 0.72% and overreaching the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. On that day, Caterpillar is projected to report earnings of $6.19 per share, which would represent year-over-year growth of 31.14%. Meanwhile, the latest consensus estimate predicts the revenue to be $19.08 billion, indicating a 15.17% increase compared to the same quarter of the previous year.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $24.68 per share and revenue of $76.5 billion. These results would represent year-over-year changes of +29.49% and +13.19%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.68% higher within the past month. Caterpillar is currently a Zacks Rank #2 (Buy).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 37.06. This indicates a premium in contrast to its industry's Forward P/E of 16.28.
It is also worth noting that CAT currently has a PEG ratio of 1.8. 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 of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 1.55.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 15% 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
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Caterpillar (CAT) Declines More Than Market: Some Information for Investors
In the latest trading session, Caterpillar (CAT - Free Report) closed at $858.02, marking a -6.2% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.62%. At the same time, the Dow lost 1.87%, and the tech-heavy Nasdaq lost 1.98%.
The stock of construction equipment company has risen by 0.28% in the past month, lagging the Industrial Products sector's gain of 0.72% and overreaching the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. On that day, Caterpillar is projected to report earnings of $6.19 per share, which would represent year-over-year growth of 31.14%. Meanwhile, the latest consensus estimate predicts the revenue to be $19.08 billion, indicating a 15.17% increase compared to the same quarter of the previous year.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $24.68 per share and revenue of $76.5 billion. These results would represent year-over-year changes of +29.49% and +13.19%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.68% higher within the past month. Caterpillar is currently a Zacks Rank #2 (Buy).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 37.06. This indicates a premium in contrast to its industry's Forward P/E of 16.28.
It is also worth noting that CAT currently has a PEG ratio of 1.8. 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 of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 1.55.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 15% 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.