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The latest trading session saw Caterpillar (CAT - Free Report) ending at $293.35, denoting a +0.36% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.46%, and the technology-dominated Nasdaq saw an increase of 0.75%.
Prior to today's trading, shares of the construction equipment company had gained 11.8% over the past month. This has outpaced the Industrial Products sector's gain of 4.9% and the S&P 500's gain of 3.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.76, signifying a 23.32% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.15 billion, reflecting a 3.36% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.99% lower. At present, Caterpillar boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.25. This valuation marks a premium compared to its industry's average Forward P/E of 10.01.
Investors should also note that CAT has a PEG ratio of 1.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.93 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Caterpillar (CAT) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw Caterpillar (CAT - Free Report) ending at $293.35, denoting a +0.36% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.46%, and the technology-dominated Nasdaq saw an increase of 0.75%.
Prior to today's trading, shares of the construction equipment company had gained 11.8% over the past month. This has outpaced the Industrial Products sector's gain of 4.9% and the S&P 500's gain of 3.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.76, signifying a 23.32% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.15 billion, reflecting a 3.36% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.99% lower. At present, Caterpillar boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 14.25. This valuation marks a premium compared to its industry's average Forward P/E of 10.01.
Investors should also note that CAT has a PEG ratio of 1.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Construction and Mining industry had an average PEG ratio of 0.93 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.