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Caterpillar (CAT) Increases Despite Market Slip: Here's What You Need to Know
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The most recent trading session ended with Caterpillar (CAT - Free Report) standing at $272.65, reflecting a +0.69% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.25%.
The construction equipment company's stock has dropped by 3.61% in the past month, falling short of the Industrial Products sector's loss of 1.74% and the S&P 500's loss of 1.6%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.67, signifying a 18.23% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.42 billion, up 9.54% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.87 per share and a revenue of $67.03 billion, signifying shifts of +43.57% and +12.8%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Caterpillar is currently a Zacks Rank #2 (Buy).
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.63. This expresses a premium compared to the average Forward P/E of 9.45 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.85 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Caterpillar (CAT) Increases Despite Market Slip: Here's What You Need to Know
The most recent trading session ended with Caterpillar (CAT - Free Report) standing at $272.65, reflecting a +0.69% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.25%.
The construction equipment company's stock has dropped by 3.61% in the past month, falling short of the Industrial Products sector's loss of 1.74% and the S&P 500's loss of 1.6%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.67, signifying a 18.23% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.42 billion, up 9.54% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.87 per share and a revenue of $67.03 billion, signifying shifts of +43.57% and +12.8%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Caterpillar is currently a Zacks Rank #2 (Buy).
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 13.63. This expresses a premium compared to the average Forward P/E of 9.45 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.85 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.