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) Stock Declines While Market Improves: Some Information for Investors
Read MoreHide Full Article
The latest trading session saw Caterpillar (CAT - Free Report) ending at $365.39, denoting a -0.18% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.
Heading into today, shares of the construction equipment company had lost 7.91% over the past month, lagging the Industrial Products sector's loss of 4.3% and the S&P 500's gain of 0.34% in that time.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. In that report, analysts expect Caterpillar to post earnings of $5 per share. This would mark a year-over-year decline of 4.4%. At the same time, our most recent consensus estimate is projecting a revenue of $16.65 billion, reflecting a 2.44% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.68 per share and a revenue of $65.25 billion, signifying shifts of +2.22% and -2.7%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Caterpillar currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 16.89 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.37.
Investors should also note that CAT has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAT's industry had an average PEG ratio of 4.43 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Caterpillar (CAT - Free Report) ending at $365.39, denoting a -0.18% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.
Heading into today, shares of the construction equipment company had lost 7.91% over the past month, lagging the Industrial Products sector's loss of 4.3% and the S&P 500's gain of 0.34% in that time.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. In that report, analysts expect Caterpillar to post earnings of $5 per share. This would mark a year-over-year decline of 4.4%. At the same time, our most recent consensus estimate is projecting a revenue of $16.65 billion, reflecting a 2.44% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.68 per share and a revenue of $65.25 billion, signifying shifts of +2.22% and -2.7%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Caterpillar currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 16.89 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.37.
Investors should also note that CAT has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAT's industry had an average PEG ratio of 4.43 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.