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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
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Caterpillar (CAT - Free Report) closed at $239.38 in the latest trading session, marking a -1.55% move from the prior day. This move lagged the S&P 500's daily loss of 1.2%. At the same time, the Dow lost 1.1%, and the tech-heavy Nasdaq lost 2.86%.
Coming into today, shares of the construction equipment company had gained 3.41% in the past month. In that same time, the Industrial Products sector lost 2.62%, while the S&P 500 lost 4.77%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $3.96 per share, which would represent year-over-year growth of 47.21%. Our most recent consensus estimate is calling for quarterly revenue of $15.9 billion, up 15.25% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $13.85 per share and revenue of $58.73 billion. These results would represent year-over-year changes of +28.12% and +15.23%, respectively.
It is also important to note the recent changes to analyst estimates for Caterpillar. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 17.56. This valuation marks a premium compared to its industry's average Forward P/E of 15.8.
It is also worth noting that CAT currently has a PEG ratio of 1.46. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 at $239.38 in the latest trading session, marking a -1.55% move from the prior day. This move lagged the S&P 500's daily loss of 1.2%. At the same time, the Dow lost 1.1%, and the tech-heavy Nasdaq lost 2.86%.
Coming into today, shares of the construction equipment company had gained 3.41% in the past month. In that same time, the Industrial Products sector lost 2.62%, while the S&P 500 lost 4.77%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $3.96 per share, which would represent year-over-year growth of 47.21%. Our most recent consensus estimate is calling for quarterly revenue of $15.9 billion, up 15.25% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $13.85 per share and revenue of $58.73 billion. These results would represent year-over-year changes of +28.12% and +15.23%, respectively.
It is also important to note the recent changes to analyst estimates for Caterpillar. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. Caterpillar is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 17.56. This valuation marks a premium compared to its industry's average Forward P/E of 15.8.
It is also worth noting that CAT currently has a PEG ratio of 1.46. 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. Manufacturing - Construction and Mining stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.