|Bid||104.96 x 0|
|Ask||105.10 x 0|
|Day's Range||104.60 - 104.98|
|52 Week Range||98.56 - 137.20|
|Beta (3Y Monthly)||0.89|
|PE Ratio (TTM)||9.76|
|Forward Dividend & Yield||3.68 (3.54%)|
|1y Target Est||N/A|
Stephens launched coverage of Caterpillar with an Underweight rating, the equivalent of a sell, citing worries about global growth.
Investing.com – Wall Street slumped on Wednesday after the yield curve on the 2-year and 10-year Treasury note briefly inverted for the first time since 2007, increasing fears of a recession.
Kuala Lumpur-headquartered trading conglomerate Sime Darby (BMB: 4197) of Malaysia has conditionally acquired the privately held automotive and construction machinery dealer Gough Group of Christchurch, New Zealand. Commenting on the sale, Gough Group Chairman Keith Sutton said: "we are confident that, under Sime Darby's ownership, the outlook for the business will be strengthened, service to customers enhanced, and opportunities for our employees improved. Sime Darby noted in a statement that Gough owns the Caterpillar dealership in New Zealand along with interests in the transport and materials handling sectors in both Australia and New Zealand.
Did the global economic picture just turn more positive on U.S.-China trade war news? This episode of Free Lunch also takes a look at what to expect from Cisco (CSCO) and Macy's (M) earnings, and why RH is a Zacks Rank 1 (Strong Buy) stock.
Caterpillar released retail sales trends today and the power generation business is improving. General Electric and Woodward are seeing similar trends. That’s good news for the stocks—GE in particular—because power industry weakness has been a sore spot for investors.
There's not a lot of mystery at the moment when it comes to railroad operator CSX Corporation (NASDAQ:CSX). CSX news of late has been disappointing, thanks to a soft second-quarter earnings report. That report has pulled the CSX stock price down more than 10% -- and trade worries have kept the pressure on.Source: Shutterstock CSX unquestionably is a solid company -- and, at the moment, the premier railroad operator in North America. That alone creates a strong "buy the dip" argument with the CSX stock price now down 17% from its highs.But there are two key questions here. The first is whether even a 17% pullback is enough given factors outside of CSX's control. The second is whether the "buy the dip" case for CSX stock applies just as well to other, cheaper cyclical plays.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now From here, the answers to those questions are somewhat of a split decision. I'd wager the CSX stock price will start climbing again. But I'd bet, too, that other stocks -- maybe even some in the railroad industry -- will do better. CSX News Doesn't Change the Long-Term CaseShort-term weakness aside, CSX still has been a star performer. The CSX stock price has almost doubled since the 2016 United States presidential election. Even after the selloff, it has seen the biggest gains of the seven major railroad stocks that comprise the Dow Jones Railroads Index. The 132% increase dwarfs the 104% gains at second-place Norfolk Southern (NYSE:NSC).The company has been excellent at controlling expenses. Its 2018 operating ratio -- operating expenses divided by revenues -- was the lowest in that index, at 60.3%. The two Canadian operators, Canadian National Railway (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP), come in next -- at a full point higher.To top it off, after the disappointing CSX news, the stock now is the cheapest of the group. The forward price-to-earnings ratio sits at 14.5x, slightly lower than NSC. It's possible that multiple will rise -- some analysts may still lower 2020 earnings estimates -- but at the least, CSX is valued in line with the peers it's currently outperforming.Given all these positive factors, the selloff looks like an opportunity. And it's not as if the Q2 earnings report was truly that bad. The company did cut full-year revenue guidance, but it left itself room to outperform if second-half demand strengthens. Operating income still increased 2% year-over-year. This wasn't a disaster, but some investors seemed to treat it as such. The Concerns Going ForwardThe performance of CSX stock so far raises one key and seemingly counterintuitive concern. There simply may not be much room left for improvement.Again, CSX's operating ratio is a full point better than that of every other major railroad play. It's three points better than that of Kansas City Southern (NYSE:KSU), and a full five ahead of Norfolk Southern. Is CSX that much better than the rest of its sector? Or is there more room for rivals to catch up -- and drive earnings growth in the process?That concern becomes more important amid the current cyclical fears. Operating expenses for railroads, like those of any business, can be leveraged by revenue growth. But CSX isn't seeing revenue growth coming in the second half of the year. The obvious worry is that declines may continue if the macroeconomic environment in the U.S. weakens. CSX stock already has a headwind from coal shipments, which may not come back. Its CEO, on the Q2 conference call, called the macro picture "puzzling."If the economy turns, revenue growth may head south for more than just a couple of quarters. And it may be CSX whose growth and share price lags, as rivals find more room to cut costs in the new environment. Is CSX Stock the Best Play?Those concerns are real. But at 14x-15x forward earnings, they look priced in. At this point, the declines do seem like they've gone too far.But, again, the other important question is whether CSX stock is the best play. And that's a tougher case to make. Cyclical stocks across the board generally have struggled since the beginning of last year, even though many have rallied somewhat so far this year. And many are downright cheap.Caterpillar (NYSE:CAT), for instance, trades at 10x forward earnings. Many other stocks in industries like construction, boating and automobiles look even cheaper. The risks in those sectors are higher -- but so are the rewards. If an investor has the stomach to make a contrarian bet against the current macro worries, there are options that go beyond CSX and beyond railroads.So from here, the case for CSX stock looks solid but also a bit narrow. It's for investors who are willing to take on cyclical risk -- but only a little. Long-term, the selloff is an opportunity. But the same factors that drove the selloff could open up intriguing opportunities elsewhere.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post CSX Stock Is a Good Play -- But Is It the Best One? appeared first on InvestorPlace.
An increase in Caterpillar's global sales is powered by a 9% jump in heavy equipment sales in North America and a 20% rise in Latin America, which offset a decline in China and in the Asia/Pacific region as a whole.
Investing.com – Stocks fell sharply Monday afternoon and money poured into bonds again as worries about global trade battles grew.
President Trump has criticized the Fed several times. While Trump sees the economy as doing well despite higher rates, we’re seeing a US economic slowdown.
The SPDR S&P 500 ETF Trust (NYSE: SPY) is down more than 2% so far in the month of August after President Donald Trump threatened to impose new 10% tariffs on $300 billion worth of Chinese imports not already covered under the existing tariffs. Trump again took to Twitter on Thursday morning, blaming the Federal Reserve for what he says is an unfair competitive landscape for U.S. businesses. Despite the Federal Reserve cutting interest rates by 0.25% on July 31, Trump said Thursday American companies like Caterpillar Inc. (NYSE: CAT), Boeing Co (NYSE: BA) and Deere & Company (NYSE: DE) can’t compete internationally when the Federal Reserve is keeping interest rates and the value of the dollar high.
Shares of Caterpillar Inc. edged up 0.4% in morning trading Thursday, but was still down 7.9% this month, after Goldman Sachs backed away from its 3-year long bullish stance on the machinery maker, citing concerns over lower resources demand and over-supply in the construction business. Analyst Jerry Revich cut his rating to neutral, after being at buy since October 2016, and cut his stock price target to $130 from $156. "First, [Caterpillar's] resource order recovery has slowed significantly earlier than in prior cycles, with segment revenue and orders stabilizing at $11 billion run-rate this year, about 50% below the prior peak of $21 billion," Revich wrote in a note to clients. "Second, after CAT had significantly reduced dealer inventories--particularly in construction industries--at the trough of the cycle, we were surprised to see the company build North America construction industries dealer inventories in the beginning of the North America construction season this year." The stock has shed 4.5% year to date, while the Dow Jones Industrial Average has gained 0.8%.
Shares of Caterpillar were higher Thursday despite a Goldman Sachs downgrade of the farm and construction equipment maker to neutral from buy. Analyst Jerry Revich also cut his price target to $130 from $156 a share. Caterpillar's resource order recovery has slowed significantly earlier than in prior cycles, Revich said.
U.S. stocks fell Monday to their lowest levels in 2019 — how the Federal Reserve can help consumer confidence amid an escalating trade war.
U.S. stocks were set to open sharply lower on Monday as China's yuan hit its lowest in more than a decade, spurring a continuation of a sell-off on trade concerns on Friday that generated the S&P 500's worst weekly performance of 2019. China let the yuan breach the key 7-per-dollar level on Monday, a sign Beijing might be willing to tolerate more currency weakness that could further inflame the trade conflict with the United States. "People are fearful that (the latest round of levies) is going to make coming to an agreement on trade that much harder," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
Earnings from companies such as Eaton, Cummins, Terex, and Caterpillar are coming in fast and furious. So far, the numbers are not so hot.
The Industrial Select Sector SPDR (XLI) , the largest industrial exchange traded fund by assets, is higher by more than 23% year-to-date and that upside could be extended if the Federal Reserve, as expected, proceeds with cutting interest rates at its meeting this week. “All is not ideal for industrial stocks right now,” reports Al Root for Barron's.
The Federal Reserve is expected to cut interest rates next week even though the US economy is doing pretty well. Here's former White House Director of Economic Policy Todd Buchholz take on why.