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Caterpillar (CAT) Stock Moves -0.77%: What You Should Know
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Caterpillar (CAT - Free Report) closed at $357.80 in the latest trading session, marking a -0.77% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.39%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw a decrease of 2.77%.
Shares of the construction equipment company witnessed a gain of 10.9% over the previous month, beating the performance of the Industrial Products sector with its gain of 6.64% and the S&P 500's gain of 4.43%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. On that day, Caterpillar is projected to report earnings of $5.58 per share, which would represent year-over-year growth of 0.54%. Meanwhile, the latest consensus estimate predicts the revenue to be $16.81 billion, indicating a 2.91% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.74 per share and a revenue of $66.7 billion, signifying shifts of +2.5% and -0.54%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% lower. At present, Caterpillar boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.59. This valuation marks a premium compared to its industry's average Forward P/E of 10.48.
It's also important to note that CAT currently trades at a PEG ratio of 1.86. 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 had an average PEG ratio of 1.88 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Caterpillar (CAT) Stock Moves -0.77%: What You Should Know
Caterpillar (CAT - Free Report) closed at $357.80 in the latest trading session, marking a -0.77% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.39%. Meanwhile, the Dow experienced a rise of 0.6%, and the technology-dominated Nasdaq saw a decrease of 2.77%.
Shares of the construction equipment company witnessed a gain of 10.9% over the previous month, beating the performance of the Industrial Products sector with its gain of 6.64% and the S&P 500's gain of 4.43%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. On that day, Caterpillar is projected to report earnings of $5.58 per share, which would represent year-over-year growth of 0.54%. Meanwhile, the latest consensus estimate predicts the revenue to be $16.81 billion, indicating a 2.91% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.74 per share and a revenue of $66.7 billion, signifying shifts of +2.5% and -0.54%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% lower. At present, Caterpillar boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 16.59. This valuation marks a premium compared to its industry's average Forward P/E of 10.48.
It's also important to note that CAT currently trades at a PEG ratio of 1.86. 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 had an average PEG ratio of 1.88 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.