Caterpillar (CAT) closed at $165.90 in the latest trading session, marking a -1.11% move from the prior day. This change was narrower than the S&P 500's 2.11% loss on the day. Elsewhere, the Dow lost 1.54%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the construction equipment company had lost 9.18% over the past month. This has was narrower than the Industrial Products sector's loss of 9.6% and lagged the S&P 500's loss of 8.19% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. This is expected to be October 27, 2022. In that report, analysts expect Caterpillar to post earnings of $3.23 per share. This would mark year-over-year growth of 21.43%. Our most recent consensus estimate is calling for quarterly revenue of $14.18 billion, up 14.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.64 per share and revenue of $57.25 billion, which would represent changes of +16.93% and +12.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.04% lower. 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 13.27 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.42.
Meanwhile, CAT's PEG ratio is currently 1.11. 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 0.82 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 233, which puts it in the bottom 8% 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.
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