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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed at $798.57 in the latest trading session, marking a +2.02% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.14% for the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
The stock of construction equipment company has fallen by 4.1% in the past month, leading the Industrial Products sector's loss of 7.18% and undershooting the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.95, showcasing a 40.4% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $20.19 billion, up 14.47% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $27.37 per share and revenue of $79.37 billion. These results would represent year-over-year changes of +43.6% and +17.43%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 moved 1.45% higher. Caterpillar presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 28.63. This expresses a premium compared to the average Forward P/E of 16.97 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.36. 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. The average PEG ratio for the Manufacturing - Construction and Mining industry stood at 1.24 at the close of the market yesterday.
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 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
Caterpillar (CAT - Free Report) closed at $798.57 in the latest trading session, marking a +2.02% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.14% for the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
The stock of construction equipment company has fallen by 4.1% in the past month, leading the Industrial Products sector's loss of 7.18% and undershooting the S&P 500's loss of 2.85%.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.95, showcasing a 40.4% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $20.19 billion, up 14.47% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $27.37 per share and revenue of $79.37 billion. These results would represent year-over-year changes of +43.6% and +17.43%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 moved 1.45% higher. Caterpillar presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 28.63. This expresses a premium compared to the average Forward P/E of 16.97 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.36. 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. The average PEG ratio for the Manufacturing - Construction and Mining industry stood at 1.24 at the close of the market yesterday.
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 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.