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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $178.38, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the construction equipment company had lost 0.57% over the past month. This has was narrower than the Industrial Products sector's loss of 2.89% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be October 27, 2022. On that day, Caterpillar is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 21.43%. Meanwhile, our latest consensus estimate is calling for revenue of $14.18 billion, up 14.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.64 per share and revenue of $57.25 billion. These totals would mark changes of +16.93% and +12.31%, respectively, from last year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Caterpillar is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.21 right now. Its industry sports an average Forward P/E of 11.31, so we one might conclude that Caterpillar is trading at a premium comparatively.
It is also worth noting that CAT currently has a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAT's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $178.38, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the construction equipment company had lost 0.57% over the past month. This has was narrower than the Industrial Products sector's loss of 2.89% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be October 27, 2022. On that day, Caterpillar is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 21.43%. Meanwhile, our latest consensus estimate is calling for revenue of $14.18 billion, up 14.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.64 per share and revenue of $57.25 billion. These totals would mark changes of +16.93% and +12.31%, respectively, from last year.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Caterpillar is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.21 right now. Its industry sports an average Forward P/E of 11.31, so we one might conclude that Caterpillar is trading at a premium comparatively.
It is also worth noting that CAT currently has a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAT's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.