|Bid||120.29 x 1300|
|Ask||120.27 x 1400|
|Day's Range||119.09 - 122.12|
|52 Week Range||111.75 - 150.55|
|Beta (5Y Monthly)||1.51|
|PE Ratio (TTM)||11.29|
|Earnings Date||Apr 27, 2020|
|Forward Dividend & Yield||4.12 (3.34%)|
|Ex-Dividend Date||Jan 16, 2020|
|1y Target Est||147.62|
American farmers have been greatly affected by President Trump’s trade war with China over the last two years. Although the president has suggested that he would give additional bailout payments to farmers this year, many question if he will get the farmers support for the 2020 election. Yahoo Finance’s Adriana Belmonte joins On the Move to discuss.
Tongaat Hulett, South Africa's heavily indebted sugar producer, said on Friday it would sell its starch business to Barloworld for 5.35 billion rand ($351.10 million), including debt. Separately, Barloworld, a dealer for Caterpillar and other industrial equipment makers, said the starch business was highly cash generative, relatively asset light and a defensive investment. Tongaat said earlier this month that it was in talks to sell the unit, Tongaat Hulett Starch (TSH), which, according to its website, is Africa's largest producer of starch, glucose and related products.
While the near-term prospects for Caterpillar (CAT) look bleak at the moment, we suggest five industrial stocks that are poised better with positive growth projections and estimate revision activity.
As the Dow Jones Industrial Average is in the midst of what could be its worst weekly decline since the financial crisis amid concerns regarding the spread of the COVID-19 coronavirus, many of the companies that make up the Dow Jones Industrial Average are preparing for potential workplace disruptions.
Is Caterpillar Inc. (NYSE:CAT) a good dividend stock? How can we tell? Dividend paying companies with growing earnings...
It wasn't "Black Monday," but today will not be remembered fondly over the course of market history as each of three major domestic equity benchmarks were punished amid intensifying concerns regarding the coronavirus from China. In the span of just two days, $1 trillion has been wiped off the market value of global equities.Source: Provided by Finviz * The S&P 500 tumbled 3.35%. * The Dow Jones Industrial Average plunged 3.56%. * The Nasdaq Composite shed 3.71%. * UnitedHealth Group (NYSE:UNH) felt the "Bern" and was the worst-performing Dow name today, sliding 7.8%.A lot of the talk about the coronavirus today had a "why today?" theme to it. What that means is that for weeks it appeared as though stocks in the U.S. and Europe, too (they deserve some credit across the pond) were holding up very nicely against the virus backdrop.However, that sentiment started to shift last week as it became more apparent that the virus isn't just a China problem. It's a global problem.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition to China, Covid-19 is wreaking havoc on technology hubs such as Japan and South Korea. It has forced the cancellation of major tourist events in Italy, the Eurozone's third-largest economy, prompting speculation that another recession there isn't far off.In other words, it's not surprising that in late trading, all of the 30 Dow stocks were in the red. A dozen of those 30 were lower by 3% or more. * 7 Tarnished Blue-Chip Stocks to Ditch Now Burned by BernieAs noted above, UnitedHealth was the worst-performing Dow component today, though the slump likely had little little to do with the coronavirus and plenty to do with Sen. Bernie Sanders winning the Nevada Democratic Caucus over the weekend. Sanders is a proponent of Medicare For All.This isn't a one-off problem for UNH stock. With the Silver State victory, Sanders continues building momentum and his odds of securing the Democratic nomination are getting shorter, not longer. With that in mind, the upcoming Super Tuesday primaries could be a real headwind for UNH. Card DeclinedI noted last week that American Express (NYSE:AXP) is one of the names most vulnerable to lingering coronavirus concerns because the virus is a real strain on global travel. Tourists are staying home and conferences and conventions are being canceled, none of which are good news for a stock like AXP. In fact, it was the second-worst name in the Dow today behind UNH. Tech, TooPredictably, technology stocks were repudiated today with Apple (NASDAQ:AAPL) and Intel (NASDAQ:INTC) among the worst offenders. Mentioning that duo as it relates to the coronavirus is relevant due to the China supply chain issues these companies are facing."The spread of the coronavirus in China is credit negative for US semiconductor companies that generate a large portion of revenues from sales to Chinese manufacturers or depend on end market demand from Chinese consumers," said Moody's Investors Service. Maybe, But Not YetThere was some chatter that some industrial stocks could be avenues for waiting out the coronavirus issue and Caterpillar (NYSE:CAT) got a nice write-up from Barron's, which noted the stock is inexpensive. However, that stock along with Boeing (NYSE:BA) and United Technologies (NYSE:UTX) each closed lower today. Bottom Line on the Dow Jones TodayTo quantify how bad things were for the Dow on Monday, none of its components finished in the green, none of the 11 S&P 500 sectors finished higher and the days best-performing assets were standard safe havens, such as gold and municipal bonds. That's to be expected on a day that was the worst for the S&P 500 in two years.As of this writing, Todd Shriber did not own any of the aforementioned securities. He has been an InvestorPlace contributor since 2014. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Delicious Restaurant Stocks to Buy * 10 Dividend Stocks to Buy That Are Off to a Fast Start in 2020 * 7 Tarnished Blue-Chip Stocks to Ditch Now The post Dow Jones Today: Monday, Bloody Monday appeared first on InvestorPlace.
The company has had a partnership with another heavy machinery firm for more than a decade, but now the two are under one brand.
Caterpillar Inc. (NYSE: CAT) Chief Financial Officer Andrew Bonfield is expected to participate in a fireside chat and Q&A; session with institutional investors at CONEXPO 2020 on Wednesday, March 11, 2020. This event is being hosted by Jefferies LLC, Evercore ISI, Goldman Sachs, and Robert W. Baird & Co. as part of the Association of Equipment Manufacturers (AEM). Mr. Bonfield is scheduled to speak for 25 minutes, beginning at approximately 1:40 p.m. PST. There are no presentation materials for this event.
This weekend's Barron's cover story ponders the significance of M&A in the financial sector. Other featured articles focus on recent moves by the Oracle of Omaha. Also, the prospects for a heavy equipment ...
Earnings could be bottoming out at the construction, mining, and energy and transportation machine maker. Absent a recession, its shares look cheap.
It was a miserable end to the week for equities as investors ditched riskier assets for safe-haven fare, such as the dollar and gold. Yes, that's correct. Despite the U.S. Dollar Index popping today, dollar-denominated gold closed at multi-year highs while stocks tumbled.Source: Provided by Finviz * The S&P 500 slid 1.05%. * The Dow Jones Industrial Average tumbled 0.78%. * The Nasdaq Composite plunged 1.79%. * Microsoft (NASDAQ:MSFT) was the worst-performing Dow name today, underscoring weakness across the large-cap tech space.Covid-19 concerns were again at the center of the broader market decline, but as was noted yesterday, markets are getting wise to the fact that this issue isn't confined to China -- or Asia for that matter -- and data are confirming as much.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEarlier today, the IHS Markit purchasing managers' index for February checked in at 49.6, a decline of 3.7 points from January and good for the worst reading in more than six years.The weakness "was in part linked to the coronavirus outbreak, manifesting itself in weakened demand across sectors such as travel and tourism, as well as via falling exports and supply chain disruptions," according to IHS Markit. * 7 Delicious Restaurant Stocks to Buy In late trading, 21 of the Dow's 30 components were lower and more than half that group were down 1% or more. Conversely, none of the winners were up 1%. Coke And CoronavirusBefore jumping into Friday's tech wreck, let's have a look at Dow component Coca-Cola Company (NYSE:KO). The defensive stock was up about half a percent in late trading, but investors may do well to not be deceived here.The company became the latest to warn that the novel coronavirus will affect its earnings, warning of a modest impact to first-quarter results. Fortunately, the soft drink giant said it still expects to earn $2.25 a share this year.That's likely the reason why Coca-Cola traded higher today. That and its status as a defensive name. Including Coca-Cola, three of the Dow's four consumer staples residents were in the green today. Usual SuspectsAlthough company-specific news for many of the following names was light to non-existent today, China-sensitive names such as Microsoft, Apple (NASDAQ:AAPL) and Intel (NASDAQ:INTC) were among the Dow's worst offenders.In fact, all of the Dow's technology constituents traded lower today. The only Dow Jones stock with significant China exposure that was higher, and only modestly so, was Caterpillar (NYSE:CAT). That was more a sympathy play on Deere & Company's (NYSE:DE) strong earnings report than anything else. Visa VexedVisa (NYSE:V) couldn't escape the tech carnage today, though there was one encouraging news item out on the name. Brazilian state-controlled bank Caixa Economica Federa is working with Visa on credit and debit cards in that country. That bank issues 109.3 million of those cards and Brazil is Latin America's largest economy. Speaking of Credit CardsAmerican Express (NYSE:AXP) was another Dow offender and this is very much a coronavirus-to-blame situation. With global travel expected to slump due to the virus, AXP could be pinched.AXP is one of Warren Buffett's "big four" holdings and the Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) annual shareholder letter, always widely anticipated, is due out this weekend, so there could be some AXP commentary in there. Bottom Line on the Dow Jones TodayBeyond the coronavirus, there's another issue that could act as a headwind for stocks: they're getting expensive as John Butters of FactSet points out."The forward 12-month P/E ratio of 19.0 on February 19 was above the four most recent historical averages for the S&P 500: five-year (16.7), 10-year (14.9), 15-year (14.6), and 20-year (15.5)," said Butters in a note. "In fact, this marked the first time the forward 12- month P/E had been equal to (or above) 19.0 since May 23, 2002 (19.1)."Of course, equities can get pricey and continue climbing, but a more sanguine environment than one riddled by fatal illnesses is probably necessary for that to happen.As of this writing, Todd Shriber did not own any of the aforementioned securities. He has been an InvestorPlace contributor since 2014. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Dow Jones Today: Flight to Safety Dings Stocks appeared first on InvestorPlace.
There is little good news to report about climate change. The greenhouse gases that most scientists believe create global warming are still being produced in record numbers, explains Jim Powell, editor of Global Changes & Opportunities Report.
CHICAGO/NEW YORK, Feb 20 (Reuters) - The outbreak of coronavirus in China has forced U.S.-based suppliers to industrial giants such as Caterpillar Inc, Deere & Co and Komatsu Ltd to grapple with a surge in costs to avoid production disruptions. China is struggling to get its economy back on track after imposing severe travel restrictions to contain the virus that emerged in the central province of Hubei late last year, which has so far killed over 2,100 in China and spread globally. The increased costs are not limited to the parts these companies make.
The overall news regarding the US economy has been good, there’s no doubt about that. Annualized growth was 2.3% in 2019, which was nothing to write home about but still indicative of expansion. The January 2020 jobs report showed an expanding labor market as more job hunters looked for work, along with upwards revisions to the December and November numbers.However, buried in all of the data, there were some warning signs related to manufacturing. PMI, the purchasing managers index, used as an indicator for future manufacturing growth, was down for the third month in a row, although the 51.9 reading beat the 51.7 expectation. It also doesn’t help that industrial output is down year-over-year.President Trump’s ‘trade war’ policy towards China gets much of the blame for the downward trend in industry. The US and Chinese economies, the world’s first and second largest, are interconnected in a complex web of imports, exports, and reimports, as companies manufacture parts, ship them, put them together into final products, and export those for sale. The Phase 1 agreement between the two governments, promising relief from trade dispute and tariff pressures, gave hope for an industrial and manufacturing recovery. The coronavirus outbreak in China, however, with its quarantines and travel disruptions, is threatening to set back this major sector.Goldman Sachs analyst Jerry Revich, in a major report on industrial stocks, sees potential for a general sector turnaround. He argues leading indicators for US machinery production are rising, along with increases in construction equipment inventories. Making use of the TipRanks database and Stock Comparison tool, we have taken a closer look at three of Revich’s more interesting industrial stock picks.Caterpillar, Inc. (CAT)Caterpillar, long a staple of the Dow Jones index, is known worldwide by its famous yellow logo, and the name ‘Cat’ is instantly recognizable in construction industry. The company manufactures heavy excavation and construction equipment, from bulldozers to excavators and everything in between, and its vehicles are found around the world. The general slowdown in 2H18 was hard on the company, and CAT stock had difficulty regaining traction through most of a volatile 2019. But in Q4, the shares began to gain again.The company reported mixed results in Q4. EPS was $2.63 for the fourth quarter, beating the forecast by 11%, and more importantly, gaining 3% year-over-year. This compares especially well to the Q3 results, which missed expectations by almost 6%. The gains in earnings came even as revenue missed the estimates. Furthermore, CAT has a long history – over 15 years – of maintaining and growing its dividend payment. The current payment, $1.03 per quarter, annualizes to $4.12 and gives a yield of 2.99%. For context, dividend yields average about 2% on the S&P 500, so CAT’s is 50% higher – and it is almost double the yield of US Treasury bonds. With a payout ratio of only 39%, this dividend is secure for the foreseeable future.Back in August, Goldman Sachs' Revich set a Hold on CAT stock. He has since changed his tune, and upgraded this stock from Neutral to Buy. Revich, says, backing his new rating, “We see a combination of (i) tightening US construction equipment capacity utilization, (ii) dealer inventories and backlog approaching trough levels, and (iii) margin tailwinds in 2021 from reduced restructuring and inventory destock.”In line with his Buy rating, Revich put a $168 price target on CAT, implying a 12-month upside of 23%. (To watch Revich’s track record, click here)Like many industrial stocks, CAT has mixed reviews from Wall Street’s analysts. With 6 Buys, 5 Holds, and 1 Sell, CAT shares get a Moderate Buy from the analyst consensus. The stock is currently trading for $137, and the $155.09 average price target suggests room for 13.55% upside growth. (See Caterpillar stock analysis on TipRanks)Cummins, Inc. (CMI)While not a household name, Cummins is a major supplier in heavy industry. The company specializes in engines and ancillary components for heavy vehicles. Its products are split into several categories, including – among others – engines, power systems, filtrations systems (for engine components), and emission solutions.Cummins’ earnings declined through 2019, but Q4 showed an important gain – it beat the both earnings and revenues estimate by wide margins. Top line revenues came in at $5.58 billion, 4.5% over the forecast. While down year-over-year, the revenues supported EPS of $2.56, 5.8% better than expected. In the days since the Q4 release, CMI shares have gained 3.5%.Like CAT above, CMI slipped in 2H18, and was volatile in 2019. The stock is up 12.5% in the last 12 months, however, in a general indication of investor confidence. That confidence is smoothed along by the CMI dividend, which is even stronger than CAT’s. CMI pays out $5.24 annually, or $1.31 per quarter; the 51% payout ratio indicates a sustainable commitment to sharing profits with stakeholders. The yield, at 3.14%, is double that of Treasury bonds and well above the average in the broader markets. CMI has raised the payment 3 times in the last three years.This stock is Revich’s second major industrial upgrade. He has bumped the rating up from Neutral to Buy, and set a $200 price target, suggesting a robust upside of 20%.Defending his decision to upgrade Cummins, Revich points out favorable trends in the trucking industry, which in his view outweigh risks from exposure to Asian markets: “We believe i) US truck leading indicators have inﬂected, ii) estimates have been de-risked following 2020 guidance that embeds a 40% US Truck production cut, and iii) sentiment on vertical integration risk has turned overly negative, in our view.”CMI’s analyst reviews show another deep split, this one with 4 Buys versus 8 Holds. The aggregate is a Moderate Buy consensus rating. The average price target of $187 indicates a 13% upside from the share price of $166. (See Cummins stock analysis at TipRanks)AGCO Corporation (AGCO)The third stock on our list, AGCO, is the one that Goldman Sachs says to avoid. AGCO is a major manufacturer of agricultural equipment, and owns several well-known brands in the segment: Challenger, Massey Ferguson, and Fend, among others. The company’s products include a wide range of tractors, combines, hay tools, and sprayers, and are mainly marketed to large-scale farms. AGCO has a $5 billion market cap and a worldwide customer base.It also has seen earnings slip badly in 2H19. While the first half of last year saw quarterly reports rise sequentially and beat the estimates, the second half saw an opposite trend. Q4 was particularly bad in that respect, with the 94-cent EPS missing estimates by 39%. Revenue dropped sequentially from $2.59 billion to $2.51 billion, a 3% fall, and missed the quarterly forecast by 5.6%. Shares are down 8.6% since the earnings release.With earnings falling, investor would normally look to the dividend for relief, but AGCO gives minimal relief there. The dividend, at just 64 cents annually, yields only 0.96%, less than half the average among S&P listed companies. Even Treasury bonds, at near-historic lows of just 1.5%, are offer a better yield at present than AGCO shares.Revich, writing for Goldman on this stock, does not pull punches. He describes this company’s path forward as “unclear,” and downgrades the shares from Buy to Neutral. His 12-month price target of $70 implies a minimal upside of 4.8%.In his comments on the stock, Revich highlights the risks that AGCO faces in the South American markets. He writes, “[O]ur belief that ag equipment share of farmer capex is still in the process of bottoming, coupled with the increasingly tightening levels of used ag equipment inventory, makes us view the ag end-market as well positioned for growth in the coming quarters. However, on a micro level, we no longer feel comfortable underwriting a margin recovery in South America where AGCO continues to face further risk of share loss.” (To watch Revich’s track record, click here)Overall, AGCO is another Moderate Buy on the analyst consensus. The stock has 5 Buys, 6 Holds, and 1 Sell set in recent weeks. Shares are selling for $66.76, and the average target, $79.50, remains more bullish than Revich’s, suggesting a 19% upside. (See AGCO’s stock analysis at TipRanks)
Caterpillar Inc. (NYSE: CAT), announced today its board of directors has appointed Pam Heminger a company vice president. Heminger will have responsibility for Caterpillar's Strategic Procurement Division.
DOW UPDATE Behind declines for shares of Apple Inc. and Dow Inc., the Dow Jones Industrial Average is down Tuesday morning. The Dow (DJIA) was most recently trading 270 points lower (-0.9%), as shares of Apple Inc.
(Bloomberg) -- For the second time in as many years, Apple Inc. has had to temper its sales outlook because of unexpected shifts in China, the country that’s served as the engine of its growth and success. First a trade war with the U.S. and now the outbreak of a novel coronavirus have called into question China’s role as a reliable market and supply chain partner for the world’s most valuable maker of consumer electronics.The coronavirus that’s stifled China’s meticulously orchestrated production and logistics has hit both Apple’s supply and demand -- factories are resuming work slower than expected, the company announced, and most of its 42 stores in the country lie dormant -- illustrating how heavily exposed its business is to disruptions in the world’s most populous country. A fall in sales within China is likely to be the most immediate impact this quarter, while widespread production bottlenecks there risk hurting global iPhone revenue in subsequent months.Amid its coronavirus troubles, Apple has been preparing to launch a new low-cost iPhone at around $400, Bloomberg News has reported. The model is still on track to launch in March, though the plans are still fluid, according to people familiar with the matter. Apple has also been preparing updated iPad Pro models with a new camera system for the first half of 2020 and the virus may yet impose delays or constraints on those plans.Apple Won’t Meet Quarterly Revenue Target Due to CoronavirusUpon joining the company in the late 1990s, Chief Executive Officer Tim Cook transformed Apple’s supply chain into the efficient juggernaut that’s been the longtime envy of the industry. Products are manufactured in China with the help of low-cost, but skilled, labor and shipped around the world in a matter of days. Relying on Taiwan’s Foxconn Technology Group to run on-the-ground operations and China’s abundant investment in transport to ensure logistics, Apple has become a trillion-dollar company largely by selling made-in-China iPhones, iPads, Macs and accessories.Responsible for millions of jobs in the country, Cook’s Apple has also garnered enough goodwill with the Chinese government to gain access to its market that is unmatched among U.S. tech heavyweights. Facebook Inc. and Alphabet Inc.’s Google are looking in from the outside, whereas Apple can sell all of its gadgets there. The Cupertino, California firm brings in more than $40 billion per year from Greater China, shy only of its takings from the U.S. and Europe. This strength is also the source of Apple’s vulnerability.On Monday, Apple cut its earnings guidance for the quarter ending Mar. 31, which was already wider than usual because of the unpredictability of the coronavirus fallout. U.S. stock index futures and shares in Apple suppliers from Japan to Hong Kong fell after the outlook warning kindled concerns about the damage the epidemic is causing global corporations and the Apple ecosystem. Last year, the company adjusted earnings because of a shortfall in iPhone demand in China, which it blamed in part on the ongoing trade war between Washington and Beijing.Production snarls at Apple’s main iPhone-making base of Zhengzhou may extend well into the June quarter and possibly beyond. Foxconn’s Hon Hai Precision Industry Co. only started seasonal recruitment on Monday, weeks behind schedule, and it’s been severely hindered by new policies intended to curb the spread of Covid-19 on campus. One recruiter, speaking on condition of anonymity, told Bloomberg News that the company was only hiring new workers from the local Zhengzhou area, tightening restrictions and eliminating the vast majority of available labor pool.Implementing a rolling quarantine of up to 14 days for returning workers from more distant provinces, Foxconn faces additional challenges in managing the movement of untold numbers of staff. In Shenzhen, as many as 10 workers are packed in each dorm room as they endure their assigned sequester period. The available beds are running short as a growing number of workers travel back, according to one person who helped arrange the program.‘Nightmare’ for Global Tech: Virus Fallout Is Just BeginningVirus contagion has shuttered plants across China for weeks longer than anticipated after the Lunar New Year break, and the nightmare scenario feared by Foxconn and its ilk is the infection spreading across factory floors, which could potentially freeze parts of the supply chain and trigger cascading shortages. Apple’s facilities have all reopened, said the U.S. firm, but evidence on the ground suggests they’re still far from fully operational.Existing iPhone inventories at retailers will soften the immediate blow of slower manufacturing, but analysts anticipate worldwide shortages will follow, extending the impact of the present disruption.“I expect we’re going to start seeing iPhone shortages outside of China, which plays into the guidance,” said Apple analyst Shannon Cross from Cross Research. “In theory, it shouldn’t be demand destructive. It should just mean there should be a larger backlog of demand when these issues are resolved.”The immediate reaction to Apple’s forecast cut has been a drag on Asian tech shares, especially those of suppliers to the company. But some impact on Apple was already widely anticipated.Tech Investors Jolted by Apple Pin Hopes on a Fast Turnaround“We’ve been getting nothing but headlines about the virus for weeks. Starbucks is closing its stores, Caterpillar is shutting its facilities. Company after company has been saying this,” Jim Paulsen, chief investment strategist at Leuthold Group, said by phone, expressing investor optimism for a fast turnaround. “We have been expecting bad sales headlines, this isn’t good, but it’s not surprising.” (Caterpillar closed its plants in China at the beginning of February at the direction of the Chinese government. It is re-opening them as the government allows; currently most are open.)Moving entirely out of China would be practically impossible for Apple in the short term, given the scale of its established network and the country’s incomparable ability to mobilize a workforce of millions. Similarly strong disruption threats to its supply chain arose in 2018 and 2019, largely spurred by trade war conflagrations, but Cook’s team has held steadfast in its commitment to the region and hasn’t shown any significant momentum toward a major move out.“Apple’s supply chain in China is so tight and large, it would be difficult to replicate outside the region,” Cross said. “I think you’ll continue to see small expansions into India, but the vast majority of production will remain in China.”Apple has indicated that its overall business is still strong, saying that it remained on track revenue-wise in regions outside of China for both products and services. The company is engaged in a long-term diversification shift that’s seen it pour billions of dollars into creating its own streaming content for Apple TV+ and building out subscription services like Apple Music and Apple Arcade. Its strongest step to reduce its China dependence to date has been this move to be less reliant on pure hardware sales for the bulk of its revenue.Addressing the wider smartphone industry in China, Strategy Analytics this month projected a significant hit to shipments in the first half of 2020, to be followed by a recovery and a slight increase in shipments in the closing months of the year. If Apple follows a similar trajectory, it could see iPhone demand shift into later quarters rather than vanishing entirely.“I think Apple remains in a very good position long-term,” Cross said. “I would assume there would be some pressure on the stock, but assuming this is a short term bump in the road, investors will look through it.”(Updates with comment from Caterpillar in 13th paragraph.)\--With assistance from Joe Deaux.To contact the reporters on this story: Mark Gurman in Los Angeles at email@example.com;Debby Wu in Taipei at firstname.lastname@example.org;Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DOW UPDATE Shares of IBM and Caterpillar are trading lower Friday afternoon, dragging the Dow Jones Industrial Average into negative territory. Shares of IBM (IBM) and Caterpillar (CAT) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 75 points lower (-0.
The Dow Jones Industrial Average - that group of 30 blue-chip behemoths with long track records of outperformance - is setting records seemingly every other day.The DJIA has climbed by more than 60% over the past five years on a price basis alone. Add in the dividends - all 30 Dow stocks are dividend payers - and the total return comes to a whopping 85%. The blue-chip average, trading at record levels, has 30,000 in its sights. That would have been unimaginable even half a decade ago.But not all Dow stocks are created equal. Each index component has a solid pedigree. However, their short- to intermediate-term prospects diverge widely, according to Wall Street's analyst community.If you want to pick and choose among the bluest of blue chips, you can look at this full list of 30 Dow stocks that we've sorted by analysts' average recommendation. Here's how it works: S&P; Global Market Intelligence surveys analysts' stock calls and scores them on a five-point scale, where 1.0 equals a Strong Buy and 5.0 is a Strong Sell. Scores between 3.5 and 2.5 translate into a Hold recommendation. Any score lower than 2.5 means that analysts, on average, rate the stock as being Buy-worthy. The closer a score gets to 1.0, the better.Here's a look at how analysts rate all 30 Dow stocks right now - and why. SEE ALSO: 64 Dividend Stocks You Can Count On in 2020
Goldman's bullish thesis amounts to the firm saying Caterpillar's stock is "really, really, really, really cheap" and buying the stock is merely a "value story," Sanchez said on a CNBC. The oil and mining sectors are struggling to keep up with other stock sectors and looking at Caterpillar's stock one thing is clear: the company is most exposed to oil and mining. "If you were to buy into this Goldman call, you have to believe that something else is going to catalyze this stock," she said.
Caterpillar's (CAT) global retail sales declined 7% in January and 5% in December putting an end to its stint of 33 consecutive months of sales growth.
Follow markets long enough and you're bound to hear some speculation regarding the efficacy of Chinese data. Meaning that there are plenty of folks out there that think economic numbers out of the world's second-largest economy may not always be accurate.Source: Provided by Finviz What is not up for debate, however, is that the number of new cases of the coronavirus from China spiked by 15,000 in the mainland, after the method for counting instances of the deadly respiratory illness was altered. That raises doubts, including in the White House, that China isn't being entirely forthright with just how bad the situation is there. As a result, stocks meandered Thursday, listlessly drifting between gains and losses. * The S&P 500 fell 0.16%. * The Dow Jones Industrial Average 0.43%. * The Nasdaq Composite lost 0.14%. * Cisco (NASDAQ:CSCO) was by far the worst-performing Dow name today, plunging 5.23% after revealing tepid guidance for the current quarter.Overall, these are not dramatic declines considering that it is clear the coronavirus situation is far from resolved. If anything, the scenario may be worsening in China and that presents a potential headwind for riskier assets.InvestorPlace - Stock Market News, Stock Advice & Trading TipsStill, with 14 Dow stocks higher in late trading, Thursday wasn't a good day nor was it alarmingly bad. Cisco ConundrumFor tech investors, Cisco just isn't the growth story it once was. Prospects for the networking gear maker partying like it's 1999 again appear grim at this point. The company served up guidance for the current quarter of earnings of 79 cents to 81 cents a share while Wall Street was expecting 80 cents. * 7 Reasons to Own Taylor Morrison Stock As I noted earlier this month, Cisco feels a lot more like an International Business Machines (NYSE:IBM) than a Microsoft (NASDAQ:MSFT).What that means is an ultra-conservative investor may like Cisco for buybacks and dividend growth, but don't expect much in the way of capital appreciation over the near-term. Speaking of MicrosoftMicrosoft was trading slightly lower at this writing after Judge Patricia E. Campbell-Smith approved Amazon's (NASDAQ:AMZN) request for a preliminary injunction on the now controversial $10 billion JEDI contract from the Pentagon.Microsoft, to the surprise of many, particularly Amazon, won that deal and the latter has consistently cried foul since then. Amazon even wants to depose President Trump on the matter.I'm not an attorney or a law professor, but granting the injunction, which halts Microsoft's JEDI work, seems to be a slippery slope. What's to stop any company that loses out on a government contract going forward from pursuing the same action and Campbell-Smith has now established precedent that could encourage sore losers to pursue legal action.There is a $42 million penalty for Amazon should the judge eventually rule the injunction was unnecessary. No, I'm not bearish on Amazon stock. Quite the contrary, but one gets the feeling between the $42 million (assuming it's paid) and legal fees, Amazon could find plenty of better ways to spend capital. Caterpillar AgainCaterpillar (NYSE:CAT) has been getting some run in this space this month and the industrial machinery maker is back again today with good reason.Goldman Sachs upgraded the Dow stock to "buy" from "neutral," while lifting its 12-month price forecast on the stock to $168 from $156. Even at $162, the mid-point of that range, that represents decent upside from today's close around $140. Bottom Line on the Dow Jones TodayTaking a break from the intraday conversation, I figured I'd pass along some interesting research I came across that's relevant to owners of Johnson & Johnson (NYSE:JNJ), UnitedHealth Group (NYSE:UNH) and the other Dow healthcare names.The long and the short of it is, State Street sees opportunity in the group despite this being a presidential election year."The current negativity towards health care sets the stage for the sector to potentially surprise to the upside, thanks to its fundamental backdrop combined with secular tailwinds," said State Street in a recent note. "Health care firms are expected to post the strongest earnings and revenue growth in 2019 of any sector, and over the past three months, analysts have been ratcheting up their 2020 earnings-per-share (EPS) estimates for the sector."As of this writing, Todd Shriber did not own any of the aforementioned securities. He has been an InvestorPlace contributor since 2014. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Dow Jones Today: Coronavirus Controversy Reemerges appeared first on InvestorPlace.
Caterpillar was upgraded by Goldman Sachs Thursday on the basis of an improving machinery sector outlook. The Caterpillar Analyst Jerry Revich upgraded Caterpillar Inc. (NYSE: CAT ) from Neutral to Buy ...
Wall Street's main indexes eased from record highs on Thursday, pressured by shares of Cisco after its disappointing quarterly forecast, while a spike in new coronavirus cases in China weighed on the sentiment. The Chinese province at the center of the coronavirus outbreak reported a record rise in deaths and thousands more infections using a new diagnostic method, casting fresh uncertainty over the scale of the virus outbreak. A day earlier, investors had bought on signs that the virus spread was slowing, lifting the benchmark S&P 500 and the Nasdaq to their third straight closing highs.