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Caterpillar (CAT) Increases Despite Market Slip: Here's What You Need to Know

The most recent trading session ended with Caterpillar (CAT) standing at $330, reflecting a +0.66% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq depreciated by 1.09%.

Prior to today's trading, shares of the construction equipment company had lost 6.04% over the past month. This has lagged the Industrial Products sector's loss of 5.25% and the S&P 500's gain of 2.73% in that time.

Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.60, marking a 0.9% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.85 billion, showing a 2.7% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $21.84 per share and revenue of $67.04 billion, indicating changes of +2.97% and -0.03%, respectively, compared to the previous year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.14% 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 15.01. This indicates a premium in contrast to its industry's Forward P/E of 9.84.

Investors should also note that CAT has a PEG ratio of 1.68 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 was holding an average PEG ratio of 1.68 at yesterday's closing price.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 24% of over 250 industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Caterpillar Inc. (CAT) : Free Stock Analysis Report

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