Caterpillar Stock on a Record Run Ahead of Earnings

Blue-chip machinery stock Caterpillar Inc (NYSE:CAT) is gearing up for its second-quarter earnings report, due out before the open Tuesday, August 5. Wall Street expects earnings of $4.88 per share, an 18.5% decline from the same quarter last year, on revenue of $16.35 billion, a 2% year-over-year increase. 

Ahead of the event, Caterpillar stock is extending its recent streak of record highs, hitting an all-time peak of $439.95 today. The stock has been on a tear since its early-April lows, looking to close July with a roughly 13% monthly win. This would mark its third consecutive month with a double-digit percentage gain.

For the last couple months, the ascending 10-day moving average has provided close support. Since the start of the year, the equity is up 21%. 

A look at the security's post-earnings history shows split results, finishing four of its last eight next-day sessions higher and four lower. This time around, options traders are pricing in an earnings swing of 4.9%, regardless of direction, which is slightly higher than the 4.4% move the stock has averaged over the last two years. 

Calls have been much more popular than usual over the last 10 weeks. CAT's 50-day call/put volume ratio of 1.89 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 98% of readings from the past year.