Caterpillar (CAT) Suffers a Larger Drop Than the General Market: Key Insights

Caterpillar (CAT) closed the most recent trading day at $357.68, moving -1.31% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.7%, while the tech-heavy Nasdaq depreciated by 0.91%. Shares of the construction equipment company have appreciated by 2.51% over the course of the past month, outperforming the Industrial Products sector's loss of 0%, and the S&P 500's gain of 1.44%.Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.89, signifying a 18.36% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.42 billion, down 1.59% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.7 per share and a revenue of $63.25 billion, signifying shifts of -14.61% and -2.41%, respectively, from the last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% decrease. Caterpillar currently has a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 19.38 right now. This signifies a premium in comparison to the average Forward P/E of 15.1 for its industry. Meanwhile, CAT's PEG ratio is currently 2.41. 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 had an average PEG ratio of 4.93 as trading concluded yesterday. The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 22% echelons of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want 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