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Earnings Estimates Rising for Caterpillar (CAT): Will It Gain?
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Caterpillar (CAT - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this construction equipment company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Caterpillar, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $4.50 per share for the current quarter, which represents a year-over-year change of +13.92%.
Over the last 30 days, seven estimates have moved higher for Caterpillar compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 10.35%.
Current-Year Estimate Revisions
The company is expected to earn $19.25 per share for the full year, which represents a change of +39.09% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Caterpillar. Over the past month, nine estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.83%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Caterpillar currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Caterpillar shares have added 10.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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Earnings Estimates Rising for Caterpillar (CAT): Will It Gain?
Caterpillar (CAT - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this construction equipment company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Caterpillar, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $4.50 per share for the current quarter, which represents a year-over-year change of +13.92%.
Over the last 30 days, seven estimates have moved higher for Caterpillar compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 10.35%.
Current-Year Estimate Revisions
The company is expected to earn $19.25 per share for the full year, which represents a change of +39.09% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Caterpillar. Over the past month, nine estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.83%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Caterpillar currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Caterpillar shares have added 10.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.