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Caterpillar (CAT) Stock Moves -0.08%: What You Should Know

Caterpillar (CAT) closed the most recent trading day at $187.44, moving -0.08% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.01%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Prior to today's trading, shares of the construction equipment company had lost 13.61% over the past month. This has lagged the Industrial Products sector's loss of 8.91% and the S&P 500's loss of 6.08% in that time.

Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. The company is expected to report EPS of $2.99, up 15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.31 billion, up 11.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.64 per share and revenue of $57.28 billion, which would represent changes of +16.93% and +12.39%, respectively, from the prior year.

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Any recent changes to analyst estimates for Caterpillar should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Caterpillar is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 14.84. This represents a premium compared to its industry's average Forward P/E of 10.38.

Also, we should mention that CAT has a PEG ratio of 1.24. 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. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.37 at yesterday's closing price.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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