Caterpillar (CAT) closed the most recent trading day at $417.19, moving +1.74% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
Shares of the construction equipment company have appreciated by 11.97% over the course of the past month, outperforming the Industrial Products sector's gain of 6.94%, and the S&P 500's gain of 5.88%.
The upcoming earnings release of Caterpillar will be of great interest to investors. It is anticipated that the company will report an EPS of $4.88, marking a 18.53% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $16.36 billion, indicating a 2% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $18.79 per share and a revenue of $63.23 billion, demonstrating changes of -14.2% and -2.44%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been a 0.48% rise in the Zacks Consensus EPS estimate. At present, Caterpillar boasts a Zacks Rank of #3 (Hold).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 21.83. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 21.83.
Meanwhile, CAT's PEG ratio is currently 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining was holding an average PEG ratio of 5.06 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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Caterpillar Inc. (CAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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