In the latest trading session, Caterpillar (CAT) closed at $130.61, marking a +0.21% move from the previous day. The stock lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.42%.
Prior to today's trading, shares of the construction equipment company had gained 4.31% over the past month. This has outpaced the Industrial Products sector's gain of 2.78% and the S&P 500's gain of 2.2% in that time.
Investors will be hoping for strength from CAT as it approaches its next earnings release. The company is expected to report EPS of $3.12, up 5.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.52 billion, up 3.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.25 per share and revenue of $57.09 billion. These totals would mark changes of +9.18% and +4.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CAT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CAT is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CAT has a Forward P/E ratio of 10.64 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.96.
We can also see that CAT currently has a PEG ratio of 0.89. 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. CAT's industry had an average PEG ratio of 1.02 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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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Caterpillar Inc. (CAT) : Free Stock Analysis Report
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