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Caterpillar (CAT) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $821.58, marking a +2.03% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Shares of the construction equipment company have depreciated by 1.44% over the course of the past month, underperforming the Industrial Products sector's loss of 1.4%, and the S&P 500's gain of 0.74%.
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 $6.95 per share, which would represent year-over-year growth of 40.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $20.19 billion, indicating a 14.47% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.37 per share and a revenue of $79.37 billion, indicating changes of +43.6% and +17.43%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.86% upward. Currently, Caterpillar is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 29.42 right now. This signifies a premium in comparison to the average Forward P/E of 17.24 for its industry.
Also, we should mention that CAT has a PEG ratio of 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.25.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Caterpillar (CAT) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $821.58, marking a +2.03% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Shares of the construction equipment company have depreciated by 1.44% over the course of the past month, underperforming the Industrial Products sector's loss of 1.4%, and the S&P 500's gain of 0.74%.
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 $6.95 per share, which would represent year-over-year growth of 40.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $20.19 billion, indicating a 14.47% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.37 per share and a revenue of $79.37 billion, indicating changes of +43.6% and +17.43%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.86% upward. Currently, Caterpillar is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 29.42 right now. This signifies a premium in comparison to the average Forward P/E of 17.24 for its industry.
Also, we should mention that CAT has a PEG ratio of 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.25.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.