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Caterpillar (CAT) Surpasses Market Returns: Some Facts Worth Knowing
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Caterpillar (CAT - Free Report) closed the most recent trading day at $826.35, moving +1.92% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the construction equipment company had gained 2.34% over the past month, outpacing the Industrial Products sector's loss of 0.74% and the S&P 500's loss of 0.35%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.37 per share and a revenue of $79.37 billion, signifying shifts of +43.6% and +17.43%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 29.62. This expresses a premium compared to the average Forward P/E of 17.81 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Surpasses Market Returns: Some Facts Worth Knowing
Caterpillar (CAT - Free Report) closed the most recent trading day at $826.35, moving +1.92% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the construction equipment company had gained 2.34% over the past month, outpacing the Industrial Products sector's loss of 0.74% and the S&P 500's loss of 0.35%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.37 per share and a revenue of $79.37 billion, signifying shifts of +43.6% and +17.43%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 29.62. This expresses a premium compared to the average Forward P/E of 17.81 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.