We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
The latest trading session saw Caterpillar (CAT - Free Report) ending at $393.62, denoting a +1.45% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.47% for the day. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The construction equipment company's shares have seen an increase of 9.7% over the last month, surpassing the Industrial Products sector's gain of 5.71% and the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is expected to report EPS of $5.36, down 2.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $16.34 billion, reflecting a 2.79% fall from the equivalent quarter last year.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $21.91 per share and revenue of $65.53 billion. These results would represent year-over-year changes of +3.3% and -2.28%, respectively.
Investors might also notice recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.03% lower within the past month. Currently, Caterpillar is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 17.71. This signifies a premium in comparison to the average Forward P/E of 10.02 for its industry.
Investors should also note that CAT has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 6.95 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Caterpillar (CAT) Outperforms Broader Market: What You Need to Know
The latest trading session saw Caterpillar (CAT - Free Report) ending at $393.62, denoting a +1.45% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.47% for the day. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The construction equipment company's shares have seen an increase of 9.7% over the last month, surpassing the Industrial Products sector's gain of 5.71% and the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is expected to report EPS of $5.36, down 2.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $16.34 billion, reflecting a 2.79% fall from the equivalent quarter last year.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $21.91 per share and revenue of $65.53 billion. These results would represent year-over-year changes of +3.3% and -2.28%, respectively.
Investors might also notice recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.03% lower within the past month. Currently, Caterpillar is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 17.71. This signifies a premium in comparison to the average Forward P/E of 10.02 for its industry.
Investors should also note that CAT has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 6.95 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 209, positioning it in the bottom 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.