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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $286.25, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the construction equipment company had lost 0.11% over the past month, outpacing the Industrial Products sector's loss of 1.01% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. In that report, analysts expect Caterpillar to post earnings of $4.64 per share. This would mark year-over-year growth of 17.47%. Meanwhile, our latest consensus estimate is calling for revenue of $16.3 billion, up 8.72% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.82 per share and revenue of $66.51 billion, which would represent changes of +43.21% and +11.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 7.91% higher. Caterpillar currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 14.25. For comparison, its industry has an average Forward P/E of 10.95, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAT's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Caterpillar (CAT) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $286.25, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the construction equipment company had lost 0.11% over the past month, outpacing the Industrial Products sector's loss of 1.01% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. In that report, analysts expect Caterpillar to post earnings of $4.64 per share. This would mark year-over-year growth of 17.47%. Meanwhile, our latest consensus estimate is calling for revenue of $16.3 billion, up 8.72% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.82 per share and revenue of $66.51 billion, which would represent changes of +43.21% and +11.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection has moved 7.91% higher. Caterpillar currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 14.25. For comparison, its industry has an average Forward P/E of 10.95, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAT's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.