Caterpillar (CAT) closed at $131.38 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the construction equipment company had lost 6.56% over the past month, lagging the Industrial Products sector's loss of 3.66% and the S&P 500's gain of 0.52% in that time.
CAT will be looking to display strength as it nears its next earnings release. In that report, analysts expect CAT to post earnings of $2.86 per share. This would mark year-over-year growth of 1.42%. Our most recent consensus estimate is calling for quarterly revenue of $13.42 billion, up 4.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.24 per share and revenue of $57.45 billion, which would represent changes of +9.09% and +4.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CAT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.02% higher. CAT currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CAT currently has a Forward P/E ratio of 10.6. For comparison, its industry has an average Forward P/E of 10.6, which means CAT is trading at a no noticeable deviation to the group.
It is also worth noting that CAT currently has a PEG ratio of 0.68. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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