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Top Stock Picks for Week of September 11, 2023

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Caterpillar (CAT - Free Report) ), known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer.Caterpillar’s revenues and earnings has grown year over year for 10 straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 37% and revenues are predicted to rise 11%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns. The stock has been one of the most searched-for stocks on Zacks.com lately.

 

NVIDIA Corporation (NVDA - Free Report) is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. NVIDIA is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space. The company recently reported robust second-quarter fiscal 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate and marked a significant year-over-year improvement.NVIDIA is a cash rich company with a strong balance sheet. The company boasts a sturdy cash-flow generating ability. We expect its revenues to grow at a CAGR of 30.3% through fiscal 2023-2025.


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