Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.
Now, let's take a deep dive into a great stock that could be just the right addition to your portfolio.
Why You Should Pay Attention to Caterpillar (CAT)
Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
On April 18, 2017, CAT was added to the Zacks Focus List at $94.14 per share. Shares have increased 190.06% to $273.06 since then.
11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $1.88 to $19.82. CAT also boasts an average earnings surprise of 18.5%.
Additionally, Caterpillar's earnings are expected to grow 43.2% for the current fiscal year.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks like CAT offer investors a great opportunity to get into a company whose future earnings estimates will be raised, potentially leading to price momentum.
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