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Caterpillar (CAT) closed the most recent trading day at $341.01, moving +0.74% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.78%. Meanwhile, the Dow experienced a drop of 0.99%, and the technology-dominated Nasdaq saw a decrease of 2.61%.
Shares of the construction equipment company have depreciated by 5.67% over the course of the past month, underperforming the Industrial Products sector's loss of 5.1% and the S&P 500's loss of 3.48%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company is forecasted to report an EPS of $4.32, showcasing a 22.86% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.65 billion, down 7.29% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.64 per share and revenue of $63.29 billion, indicating changes of -10.32% and -2.34%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.75% fall in the Zacks Consensus EPS estimate. Caterpillar is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 17.23. This represents a discount compared to its industry's average Forward P/E of 18.27.
It's also important to note that CAT currently trades at a PEG ratio of 1.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining industry had an average PEG ratio of 2.03 as trading concluded yesterday.