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Caterpillar (CAT) Gains But Lags Market: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $128.23, moving +0.06% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the construction equipment company had lost 0.17% over the past month, outpacing the Industrial Products sector's loss of 5.98% and the S&P 500's loss of 6.13% in that time.
CAT will be looking to display strength as it nears its next earnings release, which 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.
It is also important to note the recent changes to analyst estimates for CAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 moved 0.44% higher. CAT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CAT is holding a Forward P/E ratio of 10. This represents a premium compared to its industry's average Forward P/E of 9.81.
Investors should also note that CAT has a PEG ratio of 0.55 right now. 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. CAT's industry had an average PEG ratio of 0.71 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 179, which puts it in the bottom 30% 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.
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Caterpillar (CAT) Gains But Lags Market: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $128.23, moving +0.06% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the construction equipment company had lost 0.17% over the past month, outpacing the Industrial Products sector's loss of 5.98% and the S&P 500's loss of 6.13% in that time.
CAT will be looking to display strength as it nears its next earnings release, which 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.
It is also important to note the recent changes to analyst estimates for CAT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 moved 0.44% higher. CAT is currently a Zacks Rank #3 (Hold).
Looking at its valuation, CAT is holding a Forward P/E ratio of 10. This represents a premium compared to its industry's average Forward P/E of 9.81.
Investors should also note that CAT has a PEG ratio of 0.55 right now. 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. CAT's industry had an average PEG ratio of 0.71 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 179, which puts it in the bottom 30% 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.