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Caterpillar (CAT) Dips More Than Broader Market: What You Should Know
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Caterpillar (CAT - Free Report) closed the most recent trading day at $344.17, moving -1.06% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.06%.
The the stock of construction equipment company has risen by 5.42% in the past month, leading the Industrial Products sector's gain of 3.98% and the S&P 500's gain of 1.96%.
The upcoming earnings release of Caterpillar will be of great interest to investors. It is anticipated that the company will report an EPS of $5.53, marking a 0.36% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $16.76 billion, indicating a 3.2% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $21.61 per share and revenue of $66.54 billion, which would represent changes of +1.89% and -0.77%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1% downward. Caterpillar is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 10.51, which means Caterpillar is trading at a premium to the group.
Investors should also note that CAT has a PEG ratio of 1.8 right now. 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 currently had an average PEG ratio of 1.88 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 100, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.
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Caterpillar (CAT) Dips More Than Broader Market: What You Should Know
Caterpillar (CAT - Free Report) closed the most recent trading day at $344.17, moving -1.06% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.06%.
The the stock of construction equipment company has risen by 5.42% in the past month, leading the Industrial Products sector's gain of 3.98% and the S&P 500's gain of 1.96%.
The upcoming earnings release of Caterpillar will be of great interest to investors. It is anticipated that the company will report an EPS of $5.53, marking a 0.36% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $16.76 billion, indicating a 3.2% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $21.61 per share and revenue of $66.54 billion, which would represent changes of +1.89% and -0.77%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1% downward. Caterpillar is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 10.51, which means Caterpillar is trading at a premium to the group.
Investors should also note that CAT has a PEG ratio of 1.8 right now. 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 currently had an average PEG ratio of 1.88 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 100, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.