In the latest trading session, Caterpillar (CAT) closed at $645.38, marking a +2.6% move from the previous day. This change outpaced the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.18%.
The construction equipment company's stock has climbed by 8% in the past month, exceeding the Industrial Products sector's gain of 6.02% and the S&P 500's loss of 0.42%.
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 January 29, 2026. The company's earnings per share (EPS) are projected to be $4.56, reflecting a 11.28% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $17.91 billion, reflecting a 10.45% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.53 per share and a revenue of $66.35 billion, representing changes of -15.39% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.71% higher. Caterpillar is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 28 right now. For comparison, its industry has an average Forward P/E of 14.15, which means Caterpillar is trading at a premium to the group.
It is also worth noting that CAT currently has a PEG ratio of 2.43. 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 average PEG ratio for the Manufacturing - Construction and Mining industry stood at 3.8 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 100, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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