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Caterpillar (CAT) Stock Declines While Market Improves: Some Information for Investors
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Caterpillar (CAT - Free Report) closed the most recent trading day at $371.98, moving -0.02% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
The construction equipment company's stock has climbed by 8.95% in the past month, exceeding the Industrial Products sector's gain of 3.51% and the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. In that report, analysts expect Caterpillar to post earnings of $5.11 per share. This would mark year-over-year growth of 4.07%. Our most recent consensus estimate is calling for quarterly revenue of $15.99 billion, up 0.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $21.33 per share and a revenue of $67.61 billion, demonstrating changes of +0.57% and +0.82%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 17.44. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry.
We can also see that CAT currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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 industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Caterpillar (CAT) Stock Declines While Market Improves: Some Information for Investors
Caterpillar (CAT - Free Report) closed the most recent trading day at $371.98, moving -0.02% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
The construction equipment company's stock has climbed by 8.95% in the past month, exceeding the Industrial Products sector's gain of 3.51% and the S&P 500's gain of 0.8%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. In that report, analysts expect Caterpillar to post earnings of $5.11 per share. This would mark year-over-year growth of 4.07%. Our most recent consensus estimate is calling for quarterly revenue of $15.99 billion, up 0.78% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $21.33 per share and a revenue of $67.61 billion, demonstrating changes of +0.57% and +0.82%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 17.44. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry.
We can also see that CAT currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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 industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.