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Caterpillar (CAT) Stock Dips While Market Gains: Key Facts
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Caterpillar (CAT - Free Report) closed the most recent trading day at $938.39, moving -1.02% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 1.3%.
Shares of the construction equipment company witnessed a gain of 10.74% over the previous month, beating the performance of the Industrial Products sector with its gain of 0.86%, and the S&P 500's gain of 1.13%.
The upcoming earnings release of Caterpillar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $6.21, reflecting a 31.57% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $19.08 billion, up 15.17% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.71 per share and revenue of $76.56 billion, which would represent changes of +29.64% and +13.28%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Caterpillar presently features a Zacks Rank of #2 (Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 38.37. Its industry sports an average Forward P/E of 15.52, so one might conclude that Caterpillar is trading at a premium comparatively.
We can also see that CAT currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.63.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 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.
View the Zacks #1 Rank List
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Caterpillar (CAT) Stock Dips While Market Gains: Key Facts
Caterpillar (CAT - Free Report) closed the most recent trading day at $938.39, moving -1.02% from the previous trading session. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 1.3%.
Shares of the construction equipment company witnessed a gain of 10.74% over the previous month, beating the performance of the Industrial Products sector with its gain of 0.86%, and the S&P 500's gain of 1.13%.
The upcoming earnings release of Caterpillar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $6.21, reflecting a 31.57% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $19.08 billion, up 15.17% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $24.71 per share and revenue of $76.56 billion, which would represent changes of +29.64% and +13.28%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Caterpillar presently features a Zacks Rank of #2 (Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 38.37. Its industry sports an average Forward P/E of 15.52, so one might conclude that Caterpillar is trading at a premium comparatively.
We can also see that CAT currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.63.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 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.