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Kickstarting your investment journey can be both exciting and scary at the same time, and if you're new to investing, you may not know where to even begin. However, one thing is for certain -- stocks set to beat the market over the next 12 months serve as the perfect foundation for any kind of investor.
Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.
Why You Should Pay Attention to Caterpillar (CAT)
Caterpillar, known for its iconic yellow machines, is the largest global manufacturer of construction and mining equipment. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
Since being added to the Zacks Focus List on April 18, 2017 at $94.14 per share, shares of CAT have increased 146.61% to $232.16.
For fiscal 2022, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $12.32. CAT boasts an average earnings surprise of 24.1%.
Additionally, Caterpillar's earnings are expected to grow 14% for the current fiscal year.
Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like CAT, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
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