The most recent trading session ended with Caterpillar (CAT) standing at $294.25, reflecting a +1.42% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. Elsewhere, the Dow saw a downswing of 1.33%, while the tech-heavy Nasdaq depreciated by 0.13%.
Shares of the construction equipment company witnessed a loss of 14.32% over the previous month, trailing the performance of the Industrial Products sector with its loss of 10.03% and the S&P 500's loss of 6.3%.
Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 30, 2025. The company is expected to report EPS of $4.31, down 23.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.6 billion, down 7.6% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.32 per share and a revenue of $61.68 billion, signifying shifts of -11.78% and -4.83%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.22% fall in the Zacks Consensus EPS estimate. Caterpillar presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 15.02. This denotes a premium relative to the industry's average Forward P/E of 14.96.
We can additionally observe that CAT currently boasts a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.93.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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