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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $739.57, marking a -1.26% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.33% for the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Shares of the construction equipment company have depreciated by 4.31% over the course of the past month, underperforming the Industrial Products sector's loss of 0.6%, and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.17 billion, reflecting a 14.36% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.49 per share and a revenue of $79.4 billion, indicating changes of +44.23% and +17.47%, 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 help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.42% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 27.25. This indicates a premium in contrast to its industry's Forward P/E of 17.16.
Meanwhile, CAT's PEG ratio is currently 1.29. 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 had an average PEG ratio of 1.19 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Sinks As Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $739.57, marking a -1.26% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.33% for the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Shares of the construction equipment company have depreciated by 4.31% over the course of the past month, underperforming the Industrial Products sector's loss of 0.6%, and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.17 billion, reflecting a 14.36% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.49 per share and a revenue of $79.4 billion, indicating changes of +44.23% and +17.47%, 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 help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.42% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 27.25. This indicates a premium in contrast to its industry's Forward P/E of 17.16.
Meanwhile, CAT's PEG ratio is currently 1.29. 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 had an average PEG ratio of 1.19 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.