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Caterpillar Inc. (CAT - Free Report) recently acquired San Francisco, CA-based robot and autonomy technology solutions company — Marble Robot, Inc. The buyout is in sync with Caterpillar’s automation and autonomy strategy.
Founded in 2015, Marble Robot creates a fleet of intelligent courier robots to transport goods reliably and securely. Caterpillar plans to leverage the company’s expertise to bring solutions to meet the ever-changing needs of customers in the construction, quarry, industrial and waste industries.
To improve productivity and ensure safety in the mine sites, mining companies are resorting to equipment automation. In the scenario of falling commodity prices, automation proves to be a cost-effective solution. Caterpillar set upon this journey three decades ago, having demonstrated its first autonomous truck at its Peoria Proving Grounds in 1985. Currently, Caterpillar’s autonomous trucks lead the heavy equipment industry with more than 65.4 million kilometers of autonomous driving, more than double of any automotive manufacturer.
The company boasts the world’s largest single fleet of autonomous haul trucks (282 as of Mar 31, 2020). It also has proven solutions for drills, dozers, underground loaders and longwall systems, which ensure that customers get their work done with greater productivity, safety and consistency than ever. The company has also achieved a milestone of safely hauling 2 billion tons this year — significantly faster than its competitors. It has doubled its autonomous haulage figures in under two years.
In the near future, Caterpillar plans to build upon its current solutions to offer autonomous loaders, dozers, graders, water carts and shovels. It also intends to create a fully autonomous site where data feeds into mine planning will enable customer to improve ore body yield.
The company also remains focused on making continued investment in services and expanded offerings, which are crucial to its strategy for profitable growth. However, Caterpillar lately has been bearing the brunt of the ongoing slowdown in the manufacturing sector, low oil prices, constrained spending in the mining sector, suspension of mining and construction activities amid the coronavirus pandemic. Meanwhile, it is taking actions to reduce costs, which include cutting down discretionary expenses, and suspending 2020 base salary increases and short-term incentive compensation plans for many employees and all senior executives. These actions will help sustain margins in the current weak demand scenario.
Price Performance
Over the past year, shares of Caterpillar have fallen 9.7% compared with the industry’s decline of 8.2%.
Zacks Rank & Stocks to Consider
Caterpillar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , SiteOne Landscape Supply, Inc. (SITE - Free Report) and Axon Enterprise, Inc. . While Lakeland Industries and SiteOne Landscape Supply sport a Zacks Rank #1 (Strong Buy), Axon carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for 2020. The company’s shares have soared 122% in the past year.
SiteOne Landscape Supply has an expected earnings growth rate of 15% for the current year. The stock has appreciated 19% in a year’s time.
Axon has an estimated earnings growth rate of 14.4% for the ongoing year. The company’s shares have rallied 28% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Caterpillar Acquires Marble Robot, Advances Automation Strategy
Caterpillar Inc. (CAT - Free Report) recently acquired San Francisco, CA-based robot and autonomy technology solutions company — Marble Robot, Inc. The buyout is in sync with Caterpillar’s automation and autonomy strategy.
Founded in 2015, Marble Robot creates a fleet of intelligent courier robots to transport goods reliably and securely. Caterpillar plans to leverage the company’s expertise to bring solutions to meet the ever-changing needs of customers in the construction, quarry, industrial and waste industries.
To improve productivity and ensure safety in the mine sites, mining companies are resorting to equipment automation. In the scenario of falling commodity prices, automation proves to be a cost-effective solution. Caterpillar set upon this journey three decades ago, having demonstrated its first autonomous truck at its Peoria Proving Grounds in 1985. Currently, Caterpillar’s autonomous trucks lead the heavy equipment industry with more than 65.4 million kilometers of autonomous driving, more than double of any automotive manufacturer.
The company boasts the world’s largest single fleet of autonomous haul trucks (282 as of Mar 31, 2020). It also has proven solutions for drills, dozers, underground loaders and longwall systems, which ensure that customers get their work done with greater productivity, safety and consistency than ever. The company has also achieved a milestone of safely hauling 2 billion tons this year — significantly faster than its competitors. It has doubled its autonomous haulage figures in under two years.
In the near future, Caterpillar plans to build upon its current solutions to offer autonomous loaders, dozers, graders, water carts and shovels. It also intends to create a fully autonomous site where data feeds into mine planning will enable customer to improve ore body yield.
The company also remains focused on making continued investment in services and expanded offerings, which are crucial to its strategy for profitable growth. However, Caterpillar lately has been bearing the brunt of the ongoing slowdown in the manufacturing sector, low oil prices, constrained spending in the mining sector, suspension of mining and construction activities amid the coronavirus pandemic. Meanwhile, it is taking actions to reduce costs, which include cutting down discretionary expenses, and suspending 2020 base salary increases and short-term incentive compensation plans for many employees and all senior executives. These actions will help sustain margins in the current weak demand scenario.
Price Performance
Over the past year, shares of Caterpillar have fallen 9.7% compared with the industry’s decline of 8.2%.
Zacks Rank & Stocks to Consider
Caterpillar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Industrial Products sector are Lakeland Industries, Inc. (LAKE - Free Report) , SiteOne Landscape Supply, Inc. (SITE - Free Report) and Axon Enterprise, Inc. . While Lakeland Industries and SiteOne Landscape Supply sport a Zacks Rank #1 (Strong Buy), Axon carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lakeland Industries has a projected earnings growth rate of 418% for 2020. The company’s shares have soared 122% in the past year.
SiteOne Landscape Supply has an expected earnings growth rate of 15% for the current year. The stock has appreciated 19% in a year’s time.
Axon has an estimated earnings growth rate of 14.4% for the ongoing year. The company’s shares have rallied 28% in the past year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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