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Caterpillar (CAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest market close, Caterpillar (CAT - Free Report) reached $378.25, with a -1.99% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.04%.
The construction equipment company's stock has climbed by 9.91% in the past month, exceeding the Industrial Products sector's gain of 4.53% and the S&P 500's gain of 1.95%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is predicted to post an EPS of $5.36, indicating a 2.9% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.36 billion, down 2.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $21.91 per share and revenue of $65.59 billion, which would represent changes of +3.3% and -2.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. Caterpillar is currently a Zacks Rank #3 (Hold).
In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 17.61. This expresses a premium compared to the average Forward P/E of 10.16 of its industry.
One should further note that CAT currently holds a PEG ratio of 1.8. 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. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 6.75.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 28% 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.
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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, Caterpillar (CAT - Free Report) reached $378.25, with a -1.99% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.04%.
The construction equipment company's stock has climbed by 9.91% in the past month, exceeding the Industrial Products sector's gain of 4.53% and the S&P 500's gain of 1.95%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is predicted to post an EPS of $5.36, indicating a 2.9% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.36 billion, down 2.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $21.91 per share and revenue of $65.59 billion, which would represent changes of +3.3% and -2.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. Caterpillar is currently a Zacks Rank #3 (Hold).
In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 17.61. This expresses a premium compared to the average Forward P/E of 10.16 of its industry.
One should further note that CAT currently holds a PEG ratio of 1.8. 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. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 6.75.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 28% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.