Caterpillar (CAT) Gains As Market Dips: What You Should Know
In the latest trading session, Caterpillar (CAT) closed at $221.23, marking a +1.37% move from the previous day. This move outpaced the S&P 500's daily loss of 0.55%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 2.01%.
Prior to today's trading, shares of the construction equipment company had lost 0.88% over the past month. This has lagged the Industrial Products sector's gain of 19.87% and the S&P 500's gain of 0.84% in that time.
CAT will be looking to display strength as it nears its next earnings release. On that day, CAT is projected to report earnings of $1.87 per share, which would represent year-over-year growth of 16.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.83 billion, up 1.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.03 per share and revenue of $46.02 billion, which would represent changes of +22.41% and +10.22%, respectively, from the prior year.
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 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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. CAT is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note CAT's current valuation metrics, including its Forward P/E ratio of 27.17. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 27.17.
Investors should also note that CAT has a PEG ratio of 2.26 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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 Inc. (CAT) : Free Stock Analysis Report
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