In This Article:
In the latest market close, Caterpillar (CAT) reached $295.77, with a +1.58% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
The the stock of construction equipment company has fallen by 15.02% in the past month, lagging the Industrial Products sector's loss of 8.85% and the S&P 500's loss of 6.57%.
Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company's earnings report is set to go public on April 30, 2025. The company is forecasted to report an EPS of $4.30, showcasing a 23.21% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.54 billion, down 7.96% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.07 per share and a revenue of $61.48 billion, signifying shifts of -12.92% and -5.14%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.49% lower within the past month. Caterpillar is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Caterpillar is presently trading at a Forward P/E ratio of 15.27. Its industry sports an average Forward P/E of 15.14, so one might conclude that Caterpillar is trading at a premium comparatively.
It's also important to note that CAT currently trades at a PEG ratio of 2.02. 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 currently had an average PEG ratio of 2.02 as of yesterday's close.