Caterpillar (CAT) Surpasses Market Returns: Some Facts Worth Knowing

Caterpillar (CAT) closed the most recent trading day at $412.88, moving +2.04% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%. Heading into today, shares of the construction equipment company had gained 13.13% over the past month, outpacing the Industrial Products sector's gain of 6.49% and the S&P 500's gain of 4.51%.Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.89, reflecting a 18.36% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.37 billion, down 1.91% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.8 per share and revenue of $63.24 billion, indicating changes of -14.16% and -2.43%, respectively, compared to the previous year. Investors should also note any recent changes to analyst estimates for Caterpillar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.56% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #2 (Buy). Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 21.52. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 21.52. Meanwhile, CAT's PEG ratio is currently 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Manufacturing - Construction and Mining industry stood at 5.19 at the close of the market yesterday. The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 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. You can find more information on all of these metrics, and much more, on Zacks.com. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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