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Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Caterpillar (CAT - Free Report) closed at $281.43, marking a -0.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the construction equipment company had lost 0.57% in the past month. In that same time, the Industrial Products sector lost 0.33%, while the S&P 500 lost 0.12%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. The company is expected to report EPS of $4.64, up 17.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.3 billion, up 8.72% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $19.82 per share and revenue of $66.51 billion. These results would represent year-over-year changes of +43.21% and +11.92%, respectively.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 1.88% higher within the past month. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.28 right now. This represents a premium compared to its industry's average Forward P/E of 10.94.
Investors should also note that CAT has a PEG ratio of 1.19 right now. 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. The Manufacturing - Construction and Mining industry currently 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 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Caterpillar (CAT - Free Report) closed at $281.43, marking a -0.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the construction equipment company had lost 0.57% in the past month. In that same time, the Industrial Products sector lost 0.33%, while the S&P 500 lost 0.12%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. The company is expected to report EPS of $4.64, up 17.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.3 billion, up 8.72% from the year-ago period.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $19.82 per share and revenue of $66.51 billion. These results would represent year-over-year changes of +43.21% and +11.92%, respectively.
Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 1.88% higher within the past month. Caterpillar is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 14.28 right now. This represents a premium compared to its industry's average Forward P/E of 10.94.
Investors should also note that CAT has a PEG ratio of 1.19 right now. 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. The Manufacturing - Construction and Mining industry currently 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 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.