138.00 -0.10 (-0.07%)
After hours: 6:12PM EDT
|Bid||137.05 x 800|
|Ask||138.20 x 800|
|Day's Range||135.53 - 138.23|
|52 Week Range||112.06 - 159.37|
|Beta (3Y Monthly)||1.51|
|PE Ratio (TTM)||12.85|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||4.12 (3.05%)|
|1y Target Est||147.13|
Embattled industrial giant Boeing takes center stage Wednesday morning, while social media company Facebook and electric automaker Tesla grab investors' attention after the closing bell.
(Bloomberg Opinion) -- Good news comes with baggage for industrial companies this earnings season. United Technologies Corp., Stanley Black & Decker Inc. and Sherwin-Williams Co. all reported better-than-expected second-quarter earnings per share on Tuesday, but each company also gave investors new data points to worry about.For United Technologies, it was the fact that its aerospace businesses seem to be the only thing driving its improved outlook for sales and earnings in 2019. New equipment orders dropped 12% at Carrier in the period and 6% at the Otis elevator division, echoing reports of damped enthusiasm from industrial distributor Fastenal Co. and indications of an overall stagnation in new U.S. factory orders in June from the Institute for Supply Management. Stanley and Sherwin-Williams both left their full-year adjusted profit guidance unchanged despite notable beats in the second quarter, suggesting a cautious outlook on the rest of the year. Indeed, Stanley modestly reduced its expectation for volume growth amid a weaker outlook for industrial and emerging markets. Sherwin-Williams now expects overall revenue to increase only as much as 4% in 2019, down from an April projection of as much as 7%. Both companies think they can make up ground via price increases, but such sales weakness is troubling because Stanley and Sherwin-Williams can also be good proxies for the housing market and consumer demand.Despite the mixed results, stocks of all three companies rose Tuesday. Sherwin-Williams hit a new high and was on track for its biggest gain since 2009, while Stanley saw its biggest intraday gain since December. This is partly a reflection of lowered expectations. Industrial companies within the S&P 500 command a price-earnings ratio of about 17.5, a 10% discount to the broader benchmark’s valuation of 19.5 times profit. The average discount over the past five years is closer to 4%. Stanley had been down nearly 2% in the year leading up to Tuesday’s earnings report, owing in part to margin pressure it flagged earlier in the year. United Technologies has missed out on a nearly 4% gain in the S&P 500 after announcing a merger with Raytheon Co. that’s roused pushback from activist investors Bill Ackman and Dan Loeb.Generally speaking, though, investors appear to be choosing to prioritize the good headlines over the bad. Pentair Plc rose as much as 5.1% on Tuesday, despite relying mostly on tax benefits to beat analysts' second-quarter earnings estimates and cutting its organic growth guidance for the year. The International Monetary Fund further reduced its global growth outlook on Tuesday, saying a projected pickup from 2019’s pace in 2020 is “precarious,” with the principal risk factors being the U.S.’s various trade battles and Brexit. But for now, industrial companies are drawing on every means they have to keep the boom going, whether that’s relying on the still-robust aerospace market, pushing through price increases and cost cuts, or simply wagering a Federal Reserve interest-rate cut will boost investment.The thing about price increases is they get much trickier to pass along if demand starts to wobble. Stanley is also feeling the pain from the U.S.-China trade war. It now expects a $390 million hit to 2019 earnings from tariffs, currency swings and rising commodity prices, up from $340 million previously. Come 2020, United Technologies’ Carrier and Otis units will be spun off as independent companies, freeing the company from any future underperformance. Currency swings wiped out the modest organic revenue gain at Carrier in the second quarter, leaving it with a 1% decline in overall sales for the first six months of the year, and United Technologies lowered its full-year sales and profit outlook for the division. The flip side of United Technologies’ breakup is that it will be more exposed to an eventual downturn in aerospace markets without those two divisions, something it hopes to offset by expanding its defense business through the Raytheon deal.This willingness to look past trouble spots will be put to the test later this week when Caterpillar Inc. and 3M Co. report.(Updates stock activity in the third and fourth paragraphs.)To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Counter-trade strategy: Buy Caterpillar on weakness to the 200-day and 50-day simple moving averages at $131.66 and $129.68, respectively, and sell strength to its semiannual risky level at $145.60.
Construction equipment manufacturer Caterpillar is expected to report second-quarter earnings before the market opens on Wednesday.
If there's any one company that should benefit from President Trump's administration, it's Caterpillar (NYSE:CAT). Although several organizations have flourished under the general Republican ethos of less government restrictions, Trump himself routinely mentioned CAT stock on the campaign trail.Source: Shutterstock For him, it was a great juxtaposition for his somewhat anachronistic world view. On one hand, we have Caterpillar stock, an icon of American industry, but one that has faded under liberal policies. And on the other hand, we have the "bad guys," or Japanese firms like Komatsu (OTCMKTS:KMTUY).These foreign companies are out on the prowl, stealing American jobs through unfair trade platforms and currency manipulation. Thus, the message was that the CAT stock price had nowhere to go but down.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks That Are Still Worth Your Time (And Money) Of course, nuance has never been the President's strong suit, or at least he doesn't reveal much of it publicly. That said, his fiery brand of conservatism obviously worked. Enough Americans bought into the us-versus-them message, handing the former real estate mogul an unexpected victory. What's more, he has done a great job for Caterpillar stock.Since election day Nov. 8, 2016, the CAT stock price has gained nearly 73%. Although that's nothing to write home about considering the time length, it's a remarkable turnaround. Following an initial recovery from the 2008 financial crisis, Caterpillar stock entered a choppy, but largely sideways consolidation pattern.The second half of 2014 devolved into an ugly downtrend. In the following year, nothing changed.Thus, Trump's election gave CAT stock a fundamental boost. But is there enough juice left for a repeat performance following a year of lackluster performance? CAT Stock Needs a Compelling Earnings ReportOn Wednesday before the opening bell, Caterpillar is on schedule to release its second quarter of 2019 earnings report. While all quarterly fiscal performances are important, this one could be especially crucial to the CAT stock price. For the trailing 52-weeks, shares haven't gone anywhere.Clearly, investors haven't gotten over the electoral narrative that first skyrocketed Caterpillar stock. Now, they want to see substance. Can management deliver the goods?For Q2, covering analysts peg consensus earnings-per-share at $3.12. This figure is just slightly toward the bullish end of the estimate spectrum, ranging from $2.99 to $3.25. In the year-ago quarter, Caterpillar produced an EPS of $2.97 against a consensus $2.73 target.On the revenue front, analysts anticipate a consensus haul of $14.4 billion. This is much more aligned with the optimistic end of estimates, which range from $13.5 billion to $14.9 billion. In Q2 2018, the industrial-equipment maker rang up $14 billion.Can Caterpillar produce a beat? Based on historical performances in the Trump era (Q1 2017 through Q1 2019), I don't think a beat is unreasonable. For instance, if Q2 sales comes in as forecast, it would represent a 2.8% year-over-year lift. During Trump's administration, the average YOY sales growth is 16.4%. Click to EnlargeHowever, I believe that Caterpillar stock will need much more than a solid beat to interest prospective buyers. During the Obama administration, quarterly revenue peaked at $14.24 billion in Q4 2014 before immediately tumbling thereafter.In the Trump years, Caterpillar revenue has peaked at $14.34 billion. It's an improvement over Q4 2014's sales haul, but not by much. And, overall, the company has only brought revenue to its last high point, and not above it. That's got to be concerning for stakeholders of CAT stock. Caterpillar Stock Is An "Avoid" Prior to Q2 EarningsInterestingly, Zacks Equity Research doesn't predict that CAT stock will produce an earnings beat for Q2. The research firm uses various proprietary mechanisms to forecast which companies are likely to bring home the bacon. Apparently, Caterpillar isn't one of them. * 7 Cloud Computing Stocks to Buy for 2019 Before you call me a hater, I don't think it's all bad news for the company. Certainly, speculators can gamble on certain bullish subsegments, such as mining. Recently, gold and silver prices have skyrocketed, which draws positive interest to the mining industry.However, that's just one segment. Overall, I don't like the lack of substantive progress that Caterpillar has made. In the nine quarters of the Trump administration, the company has rang up $113.7 billion in top-line sales. In the nine quarters prior to Trump, Caterpillar generated $99.8 billion.But here's the thing: the $99.8 billion was during a downtrend. The $113.7 billion, though, was during an uptrend. And at just a 14% increase during the Trump administration, it's nothing to write home about. So, unless you feel there's a compelling driver here, I'd sit Caterpillar stock on the sidelines.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Caterpillar Stock Remains Unconvincing Prior to Q2 Earnings appeared first on InvestorPlace.
One-third of the 30 components of the Dow Jones Industrial Average and roughly the same for the S&P 500 index are due to report in the coming week
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Strong backlog and end markets and benefits from cost saving actions are likely to help deliver year-over-year improvement in Caterpillar's (CAT) second-quarter 2019 revenues and earnings.
In advance of important earnings reports coming Thursday from some big-name members of the Dow Jones Industrial Average, the major U.S. equity indexes did a whole lot of nothing Wednesday.Source: Shutterstock The Nasdaq Composite and the S&P 500 lost 0.46% and 0.65%, respectively, while the Dow Jones Industrial Average nudged lower by 0.42%.On World Emoji Day, investors probably were not throwing around a lot of smiley emojis. The earnings reports that were out today, though not from members of the Dow Jones Industrial Average, were concerning.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBank of America (NYSE:BAC) echoed a refrain that we've been hearing a lot of during financial services reporting season: expect lower net interest margins.Adding to the concern, at least for industrial stocks, a bellwether sector due to its cyclical nature, was a roughly 10% plunge for railroad operator CSX (NASDAQ:CSX). That's a tumble that occurred on more than seven times the stock's average daily volume. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip CSX "earned $1.08 in adjusted earnings per share from almost $3.1 billion in sales, about 2% worse than analysts predicted. Weak volumes were to blame. Shipments fell 4% year over year in the second quarter. What's more, CSX lowered its 2019 sales guidance and now expects revenue to fall about 1% this year," according to Barron's. Wednesday WinnersIn what could be an encouraging sign, some of the members of the Dow Jones Industrial Average that report earnings tomorrow were among the index's better-performing names today. For example, UnitedHealth Group (NYSE:UNH) jumped 0.76%. The managed care provider delivers second-quarter results Thursday before the open of U.S. markets.Analysts are expecting earnings of $3.45 per share on revenue of $60.6 billion. UNH has endured its share of politically-charged struggles this year, but the shares have been on a torrid pace of late and enter the Thursday earnings report up more than 8% this month.Microsoft (NASDAQ:MSFT) lost 0.59% today. The software giant reports fiscal fourth-quarter earnings Thursday as well with analysts expecting adjusted earnings per share of $1.21 on revenue of $32.8 billion.Much of the story here will revolve around Microsoft's comments on refreshing existing products, new offerings and the company's commentary on Azure, its booming cloud business. The stock is up nearly 36% year-to-date, good for one of the best showings among mature, mega-cap technology names.It wasn't one of the Dow winners today and it doesn't report earnings tomorrow, but Caterpillar (NYSE:CAT) is a name worth discussing briefly. As an industrial stock and one of the larger ones at that, Caterpillar slumped 2.39% today, a decline largely tied to the aforementioned glum earnings report from CSX.Shares of Caterpillar could be boosted by an interest rate cut, any progress on the trade front with China and some market observers note the stock is attractively valued relative to other well-known industrial names. Bottom Line: Some HopeOne more thing to watch: International Business Machines (NYSE:IBM), another member of the Dow Jones Industrial Average, reports earnings after the bell today. The stock fell 0.31% in advance of that report. Wall Street is expecting earnings of $3.07 per share on revenue of $19.16 billion.In the good news category, this earnings season may prove to be better than previously expected if the reports revealed prior to Wednesday are accurate indicators."The earnings season began this week, with 43 S&P 500 companies reporting as of Wednesday morning, and a whopping 84% beating analysts' estimates," according to CNBC.Analysts were expecting an earnings contraction, but the reports to date indicate the S&P 500 will likely see a modest uptick in second-quarter profits.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Dow Jones Today: A Lackluster Showing appeared first on InvestorPlace.
Caterpillar (CAT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The industrial supply companies' results had a lot to say about the outlook for the upcoming quarterly reports -- not all of it good.
Metro Planning Commission was unanimously opposed to a rezoning request, though so far, it's sailed through Metro Council.
U.S. equities continue to show an upward bias on Monday, with the S&P 500 holding above the 3,000 level while the Dow Jones Industrial Average remains north of the 27,000 level. Impressive gains all around as Wall Street continues to look past things like uneven economic data and an inverted yield curve to focus instead on the dovish policy pivot by the Federal Reserve and the likelihood of interest rate cuts later this year. A number of mega-cap components in the Dow are perking up nicely and still present attractive entry points for buyers on the sidelines looking to get into the action. The early action in many of the names seems predicated on a thawing of U.S.-China trade relations later this year. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond With all of that in mind, here are five Dow Jones stocks to consider: InvestorPlace - Stock Market News, Stock Advice & Trading Tips Caterpillar (CAT) Click to EnlargeShares of heavy equipment maker Caterpillar (NYSE:CAT) are extending further away from its 200-day moving average to close in on the prior high set back in April. A breakout here would put an end to a long downtrend pattern going back to January 2018 and would set the stage for a challenge on the prior record high near $170, which would be worth a gain of more than 21% from here. The company will next report results on July 24 before the bell. Analysts are looking for earnings of $3.12 per share on revenues of $14.5 billion. When the company last reported on April 24, earnings of $2.94 beat estimates by 8 cents on a 4.7% rise in revenues. Disney (DIS) Click to EnlargeDisney (NYSE:DIS) shares keep marching higher, pushing to new records as it exits a multi-year funk. The opening of the new Galaxy's Edge theme park area as well as the approach of the release of the latest Star Wars movie has investors excited about ticket sales and merchandising revenue heading into the holiday shopping season. * 7 Services Stocks to Buy for the Rest of 2019 The company will next report results on Aug. 6 after the close. Analysts are looking for earnings of $1.76 per share on revenues of $21.5 billion. When the company last reported on May 8, earnings of $1.61 per share beat estimates by 4 cents on a 2.6% rise in revenues. Goldman Sachs (GS) Click to EnlargeShares of Goldman Sachs (NYSE:GS) are pushing away from a consolidation range going back to last fall with an extension away from its 200-day moving average. The stock is benefiting from expectations of easier policy from the Federal Reserve later this year, which would bolster long-term interest rates and help with net interest margins. Watch for a run at the mid-2018 highs near $240, which would be worth a gain of more than 14% from here. The company will next report results on July 16 before the bell. Analysts are looking for earnings of $4.82 per share on revenues of $8.6 billion. When the company last reported on April 15, earnings of $5.71 beat estimates by 69 cents on a 12.6% decline in revenues. Home Depot (HD) Click to EnlargeHome Depot (NYSE:HD) shares are enjoying an extended rally off of their 200-day moving average, setting up a run to new record highs after breaking up and over old resistance near the $210 a share level. Falling long-term interest rates could help the housing market enjoy another surge of activity after a lack of affordability dampened activity last summer. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The company will next report results on Aug. 20 before the bell. Analysts are looking for earnings of $3.09 per share on revenues of $30.9 billion. When the company last reported on May 21, earnings of $2.27 beat estimates by 8 cents on a 5.7% rise in revenues. Intel (INTC) Click to EnlargeIntel (NASDAQ:INTC) shares are breaking up and out of resistance from their 200-day moving average to end a two-month funk and close in on the gap down range near $55. Such a move would be worth a gain of 10% from here. Remember that semiconductors are the raw materials that the modern economy runs on, with pretty much every device containing processing power of some type these days. A turnaround in economic activity, spurred by easier money, will benefit chipmakers like Intel. The company will next report results on July 25 after the close. Analysts are looking for earnings of 88 cents per share on revenues of $15.6 billion. When the company last reported on April 25, earnings of 89 cents per share beat estimates by 2 cents on $16 billion in revenues. As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 5 Dow Jones Stocks to Buy Now appeared first on InvestorPlace.
Caterpillar Inc. (NYSE:CAT) stock is about to trade ex-dividend in 3 days time. You can purchase shares before the...
Sometimes the market has a great reason for knocking down a company's stock price. Other times it knocks it down too far and enterprising investors can find opportunities.
Investing.com – The very merry July stock market rally bubbled along Friday with the major averages all setting new highs and the S&P; 500 closing above 3,000 for the first time.
Friday market action in the summer months can be somewhat lethargic, but investors got a respite from that scenario today. One of the driving forces behind the Friday rally was the lingering belief that the Federal Reserve will cut interest rates later this month.Source: Shutterstock That was enough to power the Nasdaq Composite higher by 0.59% while the S&P 500 rallied above 3,000, gaining 0.39%. The Dow Jones Industrial Average continued its move above 27,000, adding 0.82% to finish the week."Market expectations for lower rates currently sit at 100%, according to the CME Group's FedWatch tool. Traders are also pricing in a 20% chance of the Fed cutting by 50 basis points," reports CNBC.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn late trading, close to 25 of the Dow's 30 components were higher, but Friday was another troublesome day for the index's healthcare constituents, as all three of the Dow's pharmaceuticals names traded lower.Johnson & Johnson (NYSE:JNJ) was the first offender. JNJ slid 4.15% on more than double the average daily volume on its way to shedding about $15 billion in market value. This was after news broke that the Justice Department is pursuing a criminal probe into the company possibly covering up health risks associated with its popular talcum powder. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond "J&J disclosed in its annual report in February that it had received subpoenas from the Justice Department and Securities and Exchange Commission related to the ongoing baby powder litigation but did not give more details," according to Reuters. Better News Here With GS, DOW, and CATGoldman Sachs Group (NYSEARCA:GS) added 1.23% after research firm IHS Markit said it is likely the investment bank will reveal a dividend increase next week. Goldman recently forecast an almost 50% bump to its quarterly dividend to $1.25 a share from 85 cents, which is what Markit is expecting, too.On a light news day and below-average volume, chemicals maker Dow Inc. (NYSE:DOW) was the Dow's biggest winner, surging 4.04%. The one news item that possibly sparked the rally in shares of Dow was a report from FactSet. The report highlighted the stock as the member of the Dow Jones Industrial Average with the most potential upside over the next 12 months.The research firm sees Dow stock climbing more than 22% over the next year, a move that would take the shares over $60.Caterpillar (NYSE:CAT) jumped 3.28% today. The industrial machinery maker joined DOW on the list of Dow components expected to generate big returns over the next year. FactSet is forecasting almost 12% for shares of Caterpillar over the next year. As it is, the stock is up 8% over the past month and could offer investors a compelling mix of growth and income. Bottom Line: Fun Starts Next WeekSecond-quarter earnings season starts in earnest next week. Financial services, the S&P 500's third-largest sector weight, is the sector that will dominate earnings headlines next week. But due to that group's domestic focus, those reports will not provide much in the way of tariff-related guidance.However, bank earnings could present their own set of challenges for investors."Kenneth Leon, CFRA Research's bank analyst, says the capital markets, while improved, are likely to be a wild card for big bank earnings this quarter, with year-over-year comparisons challenging for debt underwriting and trading operations," according to CNBC.Bottom line: prepare for some excitement -- maybe even some volatility -- over the next several weeks, particularly if cyclical sectors like industrials and technology deliver earnings disappointments.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Dow Jones Today: A Fantastic Friday 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.