24.80 0.00 (0.00%)
After hours: 5:14PM EDT
|Bid||18.00 x 1200|
|Ask||30.85 x 900|
|Day's Range||24.67 - 25.05|
|52 Week Range||23.13 - 42.74|
|Beta (3Y Monthly)||2.03|
|PE Ratio (TTM)||130.53|
|Forward Dividend & Yield||0.44 (1.53%)|
|1y Target Est||N/A|
If you own shares in Terex Corporation (NYSE:TEX) then it's worth thinking about how it contributes to the volatility...
Terex (TEX) trimmed 2019 earnings and revenue guidance owing to earnings miss in Q2 and lower expectations for the Aerial Work Platforms segment.
Terex (TEX) delivered earnings and revenue surprises of -9.70% and -0.78%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
While the impact of the trade war on the industrial products sector is pronounced, let's take a look at how John Bean Technologies (JBT), Terex (TEX) and EnPro Industries (NPO) might fare in their Q2 release.
Ingersoll-Rand's (IR) second-quarter earnings are likely to gain from strong prospects of its HVAC, industrial fluid management and compression technologies businesses.
Eaton (ETN) is expected to gain from organic and inorganic assets when it reports Q2 earnings on Jul 30, 2019. However, negative foreign currency translation is expected to offset the positives.
Illinois Tool's (ITW) second-quarter 2019 earnings to gain from product portfolio, Enterprise Strategy and share buybacks. Restructuring charges, forex woes and high taxes might prove dilutive.
Rockwell Automation (ROK) to gain from favorable manufacturing environment and strength in heavy industries in the third quarter of fiscal 2019.
Terex (TEX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
3M's (MMM) second-quarter 2019 results might gain from its consumer and health care businesses, and segment-realignment initiatives. Weakness in some end-markets and high costs are concerning.
Restructuring activities, execution of strategies, organic growth and strong presence in emerging markets to aid Avery Dennison's (AVY) Q2 performance.
International Paper's (IP) segments to be affected by price and volume pressure, as well as higher maintenance outages in second-quarter 2019.
Caterpillar (NYSE:CAT) has risen by nearly 5% over the last month. Though that leaves CAT stock still within its trading range, it offers some hope for the owners of CAT stock who have seen CAT do little over the last two years.Source: Shutterstock However, an ongoing trade war, as well as a perceived economic slowdown, have weighed on Caterpillar stock. As a result, CAT stock not only has a low valuation, but is also facing questions about how long it will take to move beyond its early 2018 highs. Considering the price action of CAT stock and the state of the global economy, only income-oriented investors should buy CAT at these levels. CAT Stock Is Primarily a Dividend StockGiven CAT's sector and its long-term track record, most investors who buy CAT stock will probably do so because of its dividend. The payout has risen in most years since 2003. The one exception was 2009, when the company maintained the same payout. The dividend has not been reduced since 1992.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTo achieve "dividend aristocrat" status, a company must have hiked its dividend for at least 25 straight years. CAT stock does not fit this description. Still, the company's consistent annual dividend growth since 2010 means investors can treat CAT like a dividend stock. Moreover, with a current yield of nearly 3.1%, I agree with my fellow InvestorPlace columnist, Dana Blankenhorn, that CAT stock is a buy for income investors. But a Case for Growth Exists as WellHowever, I disagree with Blankenhorn's assessment that investors seeking capital gains should not buy CAT stock. Investors should note that CAT stock price fell as low as $21.71 per share in 2009. At today's price of almost $133 per share, that represents an increase of more than six-fold. * 10 Stocks to Buy for Less Than Book Also, CAT is very well-positioned from a competitive standpoint. It's much larger than its competitors Terex (NYSE:TEX), CNH Industrial (NYSE:CNHI), and Komatsu (OTCMKTS:KMTUY).Moreover, it trades at a price-earnings (PE) ratio of about 12.4. History has shown that CAT stock rarely falls to such a low multiple. Consequently, Caterpillar stock is currently cheap. Growth-Oriented Investors should Wait for a PullbackDespite CAT's low valuation, I think Caterpillar stock is less of a slam dunk for growth investors. Given current global economic conditions, CAT stock is cheap for a reason. Thanks to the U.S.-China trade war, CAT stock has fallen by nearly 18% since January 2018.China accounts for only about 10% of Caterpillar's revenue. Still, an ongoing geopolitical dispute between the U.S. and China would not serve the company well.The trade war has slowed the growth of CAT's Construction Industries division. Also, with oil trading around $60 per barrel,the results of CAT's Energy and Transportation unit have only been improving modestly. The one bright spot within the unit came from the Resource Industries division, whose revenue grew by 18% year-over-year. Unfortunately, the division accounts for less than 20% of CAT's revenue.For investors focused on growth, I would wait for a slight pullback of Caterpillar stock price. Over the last year, CAT stock price fell below the $120 per share level three times and quickly recovered each time. I see this level as its floor. I also think the ongoing trade war and concerns about the economy could easily take CAT stock back to that level. While Caterpillar stock will be a winner over the long-term, winning with CAT stock in the shorter term will take patience. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 Final Thoughts on CAT StockAt its current levels, CAT stock remains a clear winner only for dividend investors. Under current conditions, I would not discourage income investors from buying CAT right now. The current CAT stock price of around $133 per share is well above the average of the last two months. However, it still gives income investors a low-cost entry point to achieve a 3%-plus cash return.On the other hand, investors who want both growth and income should wait. Current macro conditions and the trade war will probably keep CAT stock at a low PE ratio for the foreseeable future. Still, CAT has established a price floor just below the $120 per share level. For those with the courage to buy the shares at those levels, CAT stock could become both a growth and income play over the longer term.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Caterpillar Stock Is a Growth Play and (Maybe) an Income Play appeared first on InvestorPlace.