Caterpillar (CAT) Exceeds Market Returns: Some Facts to Consider

Caterpillar (CAT) ended the recent trading session at $366.23, demonstrating a +1.58% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%. Shares of the construction equipment company witnessed a gain of 4.99% over the previous month, beating the performance of the Industrial Products sector with its gain of 2.02%, and the S&P 500's gain of 0.5%.Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.89, showcasing a 18.36% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $16.42 billion, down 1.59% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.7 per share and revenue of $63.25 billion, indicating changes of -14.61% and -2.41%, respectively, compared to the previous year. Investors should also note any recent changes 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 business performance and profit potential. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. Caterpillar presently features a Zacks Rank of #3 (Hold). In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 19.28. This expresses a premium compared to the average Forward P/E of 14.87 of its industry. Also, we should mention that CAT has a PEG ratio of 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 4.79 as of yesterday's close. The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 22% 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. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks