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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $243.32, marking a -0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the construction equipment company had gained 18.46% in the past month. In that same time, the Industrial Products sector gained 8.46%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $4.51 per share, which would represent year-over-year growth of 41.82%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 14.95% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.64 per share and revenue of $65.11 billion. These results would represent year-over-year changes of +27.46% and +9.56%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.91. For comparison, its industry has an average Forward P/E of 12.39, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.16. 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $243.32, marking a -0.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the construction equipment company had gained 18.46% in the past month. In that same time, the Industrial Products sector gained 8.46%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release. On that day, Caterpillar is projected to report earnings of $4.51 per share, which would represent year-over-year growth of 41.82%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 14.95% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.64 per share and revenue of $65.11 billion. These results would represent year-over-year changes of +27.46% and +9.56%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 13.91. For comparison, its industry has an average Forward P/E of 12.39, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.16. 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.