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Why Caterpillar (CAT) Dipped More Than Broader Market Today
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Caterpillar (CAT - Free Report) closed the latest trading day at $336.75, indicating a -1.03% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the construction equipment company had gained 4.23% in the past month. In that same time, the Industrial Products sector gained 3.11%, while the S&P 500 gained 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $5.37, reflecting a 2.72% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.3 billion, indicating a 3.05% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $21.87 per share and a revenue of $65.35 billion, indicating changes of +3.11% and -2.55%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.41% higher. Caterpillar presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 15.56. This indicates a premium in contrast to its industry's Forward P/E of 10.22.
One should further note that CAT currently holds a PEG ratio of 1.59. 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. CAT's industry had an average PEG ratio of 2.64 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 223, finds itself in the bottom 12% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Why Caterpillar (CAT) Dipped More Than Broader Market Today
Caterpillar (CAT - Free Report) closed the latest trading day at $336.75, indicating a -1.03% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the construction equipment company had gained 4.23% in the past month. In that same time, the Industrial Products sector gained 3.11%, while the S&P 500 gained 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $5.37, reflecting a 2.72% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.3 billion, indicating a 3.05% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $21.87 per share and a revenue of $65.35 billion, indicating changes of +3.11% and -2.55%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.41% higher. Caterpillar presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 15.56. This indicates a premium in contrast to its industry's Forward P/E of 10.22.
One should further note that CAT currently holds a PEG ratio of 1.59. 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. CAT's industry had an average PEG ratio of 2.64 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 223, finds itself in the bottom 12% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.