We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Caterpillar (CAT - Free Report) closed at $123.87, marking a +1.31% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Heading into today, shares of the construction equipment company had gained 2.77% over the past month, outpacing the Industrial Products sector's loss of 2.2% and the S&P 500's loss of 4.37% in that time.
Wall Street will be looking for positivity from CAT as it approaches its next earnings report date. This is expected to be January 24, 2019. In that report, analysts expect CAT to post earnings of $2.98 per share. This would mark year-over-year growth of 37.96%. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, up 10.56% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $11.64 per share and revenue of $54.42 billion. These results would represent year-over-year changes of +69.19% and +19.7%, respectively.
It is also important to note the recent changes to analyst estimates for CAT. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. CAT is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CAT is holding a Forward P/E ratio of 10.5. This represents a discount compared to its industry's average Forward P/E of 10.99.
It is also worth noting that CAT currently has a PEG ratio of 0.67. 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 0.72 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 237, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $123.87, marking a +1.31% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Heading into today, shares of the construction equipment company had gained 2.77% over the past month, outpacing the Industrial Products sector's loss of 2.2% and the S&P 500's loss of 4.37% in that time.
Wall Street will be looking for positivity from CAT as it approaches its next earnings report date. This is expected to be January 24, 2019. In that report, analysts expect CAT to post earnings of $2.98 per share. This would mark year-over-year growth of 37.96%. Our most recent consensus estimate is calling for quarterly revenue of $14.26 billion, up 10.56% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $11.64 per share and revenue of $54.42 billion. These results would represent year-over-year changes of +69.19% and +19.7%, respectively.
It is also important to note the recent changes to analyst estimates for CAT. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. CAT is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CAT is holding a Forward P/E ratio of 10.5. This represents a discount compared to its industry's average Forward P/E of 10.99.
It is also worth noting that CAT currently has a PEG ratio of 0.67. 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 0.72 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 237, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.