|Bid||127.31 x 900|
|Ask||127.40 x 1000|
|Day's Range||125.50 - 127.65|
|52 Week Range||112.06 - 159.37|
|Beta (3Y Monthly)||1.47|
|PE Ratio (TTM)||11.84|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||4.12 (3.44%)|
|1y Target Est||148.65|
The Trump administration is considering delaying tariffs on Mexico, according to Bloomberg. Drew Matus, Chief Market Strategist at MetLife Investment Management, discusses with Yahoo Finance's Seana Smith on "The Ticker."
Caterpillar Inc NYSE:CATView full report here! Summary * Perception of the company's creditworthiness is neutral * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for CAT with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting CAT. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold CAT had net inflows of $7.15 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. CAT credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The story of slowing global growth that Wall Street has been telling itself in recent months added a new chapter Friday in the form of Chinese industrial production data. The news comes as the trade war between the Asian nation and the United States drags on and President Trump has threatened additional tariffs on Chinese goods.
Caterpillar's (CAT) global machine sales growth rate chart has been in the single digits so far this year, at levels last witnessed in 2017.
China accounts for up to 10% of the company's sales and is critical to its growth prospects as it is one of the world's largest commodities importers. Despite the drop, machine retail sales globally rose 6% during the period, the world's largest construction equipment maker said in a regulatory filing. Caterpillar had spooked investors in April when its first-quarter results showed rising costs hitting margins in its construction equipment business and tepid sales in the Asia-Pacific region pointing to subdued growth in China.
Global industry bellwether Caterpillar Inc said on Thursday its retail sales for machines used in construction and mining in the Asia-Pacific region fell 4% for the rolling three-month period ended May, pointing to weakness in China. China accounts for up to 10% of the company's sales and is critical to its growth prospects as it is one of the world's largest commodities importers. Despite the drop, machine retail sales globally rose 6% during the period, the world's largest construction equipment maker said in a regulatory filing https://www.sec.gov/Archives/edgar/data/18230/000001823019000169/form8-kx2019mayretailstats.htm.
Between 2016 and 2018, Caterpillar (NYSE:CAT) earnings more than tripled. Unsurprisingly, the stock price soared. Caterpillar stock started 2016 near $60; it started 2018 roughly one hundred points higher.Source: Anthony via FlickrThere were several factors at play in earnings growth. Easy comparisons helped, certainly. Revenue fell 18% year-over-year in 2016. That was the fourth straight year in which sales declined, a first for the company. Not even during the Great Depression did Caterpillar's top line stay negative for so long. Those four years of declines also led to a great deal of pent-up demand, which has benefited results over the last nine quarters.In addition, Caterpillar aggressively cut costs: its headcount shrunk by 20% between the end of 2013 and the end of 2017. Corporate tax reform boosted EPS. Almost everything has gone right of late - but that hardly seems reflected in Caterpillar shares.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks Winning the Race in 2019 Indeed, over the last eighteen months, Caterpillar stock now has declined over 20%. Yet earnings still are expected to grow, if at a slower rate. Caterpillar is guiding for adjusted EPS this year (excluding a one-time tax benefit) of $11.75-$12.75, 5-14% above 2018 levels. Investors don't seem to care: the CAT stock price touched a 2019 low just week, and now sits at a little over 10x the midpoint of that guidance range.The issue is that investors aren't looking at 2019, or 2016. They're looking at 2020 and beyond. To some investors, that might present an opportunity. To others, it explains why the CAT stock price continues to fall and may have further to go. The Cyclical CATAlong with John Deere (NYSE:DE), Caterpillar is one of the most widely-held cyclical stocks. That's been particularly true this decade. Back in 2012, the company generated nearly $66 billion in revenue. That year, the so-called commodity supercycle driven in part by Chinese growth peaked, and Caterpillar sold billions of dollars of equipment to miners worldwide. Commodity prices collapsed, demand dried up, and the overhang of barely used equipment pressured sales for years.Indeed, Caterpillar's Resource Industries segment saw revenue drop by over 70 percent between 2012 and 2016. Operating profit went from over $4 billion to a loss of $1 billion. That business now has recovered - but a $1.6 billion profit in 2018 obviously sits well below early-decade peaks.That volatility explains, at least in part, why Caterpillar stock looks so cheap at the moment. Investors always know Caterpillar is a cyclical play, but the roller-coaster ride of this decade remains fresh in their memories. In theory, a cyclical stock should see its earnings multiple expand at the bottom as was the case in 2016 when savvy investors started buying CAT stock ahead of its rebound.Of course, that also means multiples should contract at the top, and it's the fear that we indeed are at, or near, the top that explains why the CAT stock price sits at barely 10x 2019 earnings per share. The Cycle Weighs on Caterpillar StockTo be sure, there are some company-specific factors as well. Caterpillar cited a $70 million direct impact from tariffs just in the first quarter, and trade war fears no doubt have weighed on CAT. Like other American firms including Deere, 3M (NYSE:MMM), and even Apple (NASDAQ:AAPL), the company also cited market share struggles in the Chinese market.But China only accounts for roughly 10% of Caterpillar revenue. Potential market share issues in one region don't offset the fact that Caterpillar earnings have soared - or that the company seems to be performing exceedingly well everywhere else.CAT's cheap multiple is a function primarily of cyclical worries. To be sure, it's not alone. Banks like Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) look cheap. Homebuilders Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI), too, trade at single-digit multiples, even after solid YTD rallies.Investors in these stocks, and in Caterpillar, are looking to ahead to looming trouble. That might be a trade war. It might just be the natural end of a U.S. economic expansion heading into its eleventh year. Caterpillar is a more global play. Over half of its sales come from outside North America, but the logic is the same. A slowdown is coming and investors don't want to own the stocks most likely to be affected. The Bet on CAT StockAnd so investors aren't really focused on 2019 results and they're not going to be. An extra dime or two in 2019 EPS doesn't matter much, if at all, if those earnings start declining in 2020 anyhow. UBS (NYSE:UBS) made that case last week, cutting its CAT stock price target to $115 while projecting a decrease in earnings next year.That's the problem for Caterpillar stock right now: there's not much Caterpillar can really do. It's cut costs so significantly of late that there's probably less room to react if sales do start turning negative. What growth it does muster in 2019 could well be overshadowed, or ignored, amid fears of what comes next. Moreso than other cyclicals, CAT is going to be held hostage to the broader sentiment toward the global economy.Of course, that's precisely what makes CAT so interesting, particularly near YTD lows. There is a nice case here for the stock. As Dana Blankenhorn pointed out last month, CAT is an attractive pick for income investors. The dividend already yields 3.3%, and Caterpillar management has promised further hikes going forward.Those hikes are presumably dependent on some degree of cooperation from the broader economy, but at least for now the dividend is well-covered.But even a 4% dividend isn't quite enough to turn bullish. An investor has to trust the global economy to go long CAT, even at these levels. And if an investor does see global macro worries as overdone, there are few better plays than Caterpillar stock.Another leg up in the global economy and particularly in demand for commodities like minerals, oil and natural gas would allow earnings to keep growing. CAT's earnings multiple likely would expand as well thanks to increased investor confidence. It's not unreasonable in that scenario to see Caterpillar stock clearing $200, something like 14-15x adjusted EPS of $14-$15. For what it's worth, the high Wall Street target price is exactly $200.It's not quite that simple but it's close. CAT is a bet on the global economy being better than feared. It's not a bet I'm quite willing to take but I can see why other investors might.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post As Solid as It Is, Looming Fears Will Hold Back Caterpillar Stock appeared first on InvestorPlace.
U.S. stocks traded higher earlier Tuesday after Chinese policymakers revealed support for infrastructure projects, the latest effort by Beijing to keep the world's second-largest economy on solid footing despite the lingering trade war with the U.S.Source: Shutterstock However, the major domestic equity benchmarks could not hold those gains and traded progressively lower as the day wore on. When the closing bell range, the Nasdaq Composite and the S&P 500 were lower by 0.01% and 0.03%, respectively. The Dow Jones Industrial Average saw its winning streak snapped as the blue-chip benchmark lost 0.05%.President Donald Trump continued his trade rhetoric aimed at China and renewed calls for a weaker dollar, though the Invesco DB US Dollar Index Bullish Fund (NYSEARCA:UUP) was mostly flat following those comments.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTrump took to Twitter to say the euro and other major currencies were devalued, putting the dollar at a disadvantage. UUP is up 2.3% this year after the dollar was the best-performing major currency last year, but some data points suggest traders are expecting the dollar to slump in the second half of this year as markets price in rising odds of an interest rate cut. Roll CallIn late trading on the Dow Jones today, 18 of the 30 members were in the green, though just a handful were higher by 1% or more. Industrial component Caterpillar (NYSE:CAT), the largest maker of construction equipment, was the Dow's best performer on a percentage basis today. There was not much in the way of company-specific news out Tuesday pertaining to Caterpillar, but the company is sensitive to conversations about things like tariffs and the weaker dollar. * 7 Dark Horse Stocks Winning the Race in 2019 Caterpillar was beaten up in May, but the stock is higher by more than 4% over the past week, an encouraging sign for risk appetite. The stock is trying to work its way out of a bear market (still 19.90% below its 52-week high) and if it can gain another 4.4% to reclaim its 200-day moving average, there could be something to see here.Shares of Apple (NASDAQ:AAPL) added 1.16% after iPhone supplier Foxconn said Tuesday that is the capability to shift iPhone assembly out of China if needed and that it has capacity in other locations to meet U.S. demand for the popular smartphone. About a quarter of Foxconn's production capacity is found outside of China.Apple is now on a six-day winning streak. CEO Tim Cook said last week he does not expect China to overtly target his company as a result of the trade war and analysts seem to think tariff talk as it pertain to Apple is mostly noise."The fundamental impact on iPhone production and the potential cost increases are thus far containable with shares baking in a much more draconian/worst-case scenario," said Wedbush analyst Daniel Ives in a recent note.As was noted here yesterday, the Dow's financial services components have been solid recently. While the group did not set the world on fire today, JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS) trader higher on the likelihood of higher dividends from the sector following completion of the Federal Reserve's stress tests."Large bank stocks could go still higher, boosted by double-digit dividend increases expected to be authorized under the Federal Reserve's Comprehensive Capital Analysis and Review, or CCAR, according to analysts at JPMorgan," reports Lawrence Strauss for Barron's. Bottom Line on the Dow Jones Today: Banks And Burgers?With dividends poised to rise, revenue streams that rely heavily on the U.S. and surprisingly low volatility, bank stocks, including those in the Dow, are sensible ideas for investors to consider over the near-term.Add burgers into that conversation as Dow component McDonald's (NYSE:MCD) continues trading higher. On Tuesday, UBS reiterated a "neutral" rating on the stock, but did boost its price target to $203 from $185. Shares of McDonald's are up nearly 14% this year, so it is not clear why UBS is not rating the stock a "buy" while raising its price target, but more upside appears imminent for the fast-food giant.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post Dow Jones Today: It Should Have Been Better appeared first on InvestorPlace.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Caterpillar (CAT) have what it takes? Let's find out.
San Antonio manufacturer HOLT CAT could enter its sixth generation as a family-owned business if President Corinna Holt Richter realizes her dream.
Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each […]
Wall Street's main indexes rose 1% on Friday, as a sharp slowdown in May domestic job growth raised hopes of an interest rate cut, while Washington's decision to delay tariffs on Chinese goods added to the upbeat mood. The S&P 500 is up 4.8% this week, putting it on pace for its best weekly gain since November, on rising expectations that the Fed would turn more accommodative to blunt the impact of escalating trade tensions. "We've seen a bit of slowing in jobs growth which will embolden those in the rate cut camp," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
Stocks with a positive early tone included Apple Inc (NASDAQ: AAPL), Nvidia Corporation (NASDAQ: NVDA), and Caterpillar Inc. (NYSE: CAT). Financials, which had been smacked most of the last month, were among the best performing sectors yesterday and stayed in the green early Wednesday as well. This was the first major buying interest the stock market has seen in weeks, as people mainly had stayed on the sidelines or bought Treasuries.
Industrial heavyweight stocks - Caterpillar (CAT) and Deere (DE) are good options supported by a favorable Zacks Rank, but analysis of their financials will help decide which investment option is better.
Wall Street was set to open higher on Tuesday, bouncing back from a selloff in technology stocks a day earlier, after a senior Federal Reserve official pointed the way to a cut in interest rates in response to slowing economic growth. St. Louis Fed President James Bullard said late on Monday that a rate cut "may be warranted soon", driving Fed funds futures to price in a 67% chance the central bank would reduce key short-term borrowing costs at its July policy meeting.
John Whiteman, former president and chairman of Empire Southwest Co., died May 30. He was 79. Whiteman is credited in helping to grow the heavy equipment dealership into one of the Valley’s largest private companies and a major Caterpillar dealership in the Southwest.
Coming off a May drubbing, U.S. stocks experienced more downside to start June, a month this historically unkind to equities. In June's first trading day, the Nasdaq Composite and the S&P 500 lost 1.6% and 0.3%, respectively. That after the S&P 500 slipped by 5.7% last month.Source: Shutterstock The Dow Jones Industrial Average was somewhat better by comparison, adding 0.02% on Monday. However, potentially significant problems still linger for the blue-chip index. Some marquee names in the Dow are facing technical issues that could portend more near-term downside.Let's start with industrial machinery giant Caterpillar (NYSE:CAT). The largest maker of construction equipment is coming off a May loss of just over 13%, so Monday's modest gain for shares of Caterpillar could be taken as a positive sign.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, the stock has some work to do to snap out of a technical scenario known as the "death cross." That is when a stock's 50-day moving average slides below its 200-day line, something that occurred in Caterpillar stock last week. Why It's ImportantCaterpillar's technical woes are important for several reasons. First, the company resides in the cyclical industrial sector, the Dow Jones' largest sector weight at 20.43%. Cyclical sectors are usually good gauges of investors' willingness to embrace riskier assets. Second, Caterpillar is the 15th-largest stock in the Dow, meaning its place in the blue-chip index is not small enough to buffer the rest of the benchmark from this stock's struggles.Perhaps more importantly is this final reason: Caterpillar is not the only Dow stock knocking on the door of a death cross. Boeing (NYSE:BA), Exxon Mobil (NYSE:XOM) and Johnson & Johnson (NYSE:JNJ), three other Dow members, are also close to death cross territory."Sixteen of the 30 names in the Dow are now in some sort of bearish technical setup at this point in time. If you do the math on the S&P 500, you've got about 15% of the S&P 500 now below its December lows," said Craig Johnson, chief market technician at Piper Jaffray, in an interview with CNBC.As it pertains to Boeing, technical erosion in the aerospace and defense giant is particularly problematic for the Dow Jones because the it is a price-weighted index, meaning the member with the largest price tag is the benchmark's largest component. That honor currently belongs to Boeing, which represents 9.33% of the Dow.Combine Boeing with Caterpillar, Exxon Mobil and Johnson & Johnson and we're talking about 18.11% of the index being on the cusp of a death cross. Bottom Line on the Dow Jones TodayStocks remain in a tenuous place, which is not the best of news when considering the historically weak tendencies of major U.S. benchmarks in the month of June.Consider this: Just seven of the Dow's 30 components notched gains in May. None of the four Dow stocks mentioned in this article so far were among them.One of the Dow names currently impressing is property and casualty insurance behemoth The Travelers Cos. (NYSE:TRV) The ninth-largest member of the blue-chip index jumped 1.74% last month and resides near record highs.Shares of Travelers yield 2.25% and the stock appears attractively valued relative to some other marquee Dow names, but those may not be the best reasons to consider the insurance stock right now. Perhaps the best reason for investors to consider Travelers right now is that the company, as the stock's recent price action suggests, is not vulnerable to the trade war being waged on multiple fronts by the White House.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post Dow Jones Today: 4 Big Stocks That Could Be in Big Trouble appeared first on InvestorPlace.