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Caterpillar (CAT) Laps the Stock Market: Here's Why
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Caterpillar (CAT - Free Report) closed the most recent trading day at $740.21, moving +2.06% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.
The stock of construction equipment company has fallen by 10.24% in the past month, lagging the Industrial Products sector's loss of 2.94% and the S&P 500's gain of 0.97%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. It is anticipated that the company will report an EPS of $7.12, marking a 43.84% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.58 billion, up 16.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $27.74 per share and a revenue of $80.19 billion, demonstrating changes of +45.54% and +18.65%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.34% higher within the past month. Currently, Caterpillar is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 26.15. This expresses a premium compared to the average Forward P/E of 16.68 of its industry.
Also, we should mention that CAT has a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 19% of all 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) Laps the Stock Market: Here's Why
Caterpillar (CAT - Free Report) closed the most recent trading day at $740.21, moving +2.06% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.
The stock of construction equipment company has fallen by 10.24% in the past month, lagging the Industrial Products sector's loss of 2.94% and the S&P 500's gain of 0.97%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. It is anticipated that the company will report an EPS of $7.12, marking a 43.84% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.58 billion, up 16.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $27.74 per share and a revenue of $80.19 billion, demonstrating changes of +45.54% and +18.65%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.34% higher within the past month. Currently, Caterpillar is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 26.15. This expresses a premium compared to the average Forward P/E of 16.68 of its industry.
Also, we should mention that CAT has a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 19% of all 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.