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Caterpillar (CAT) ended the recent trading session at $363.01, demonstrating a -0.51% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 1.19%.
The construction equipment company's stock has dropped by 10.16% in the past month, falling short of the Industrial Products sector's loss of 8.64% and the S&P 500's loss of 0.36%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company's earnings per share (EPS) are projected to be $5, reflecting a 4.4% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.65 billion, down 2.44% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $21.68 per share and a revenue of $65.25 billion, demonstrating changes of +2.22% and -2.7%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Caterpillar is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Caterpillar is presently being traded at a Forward P/E ratio of 16.83. This valuation marks a premium compared to its industry's average Forward P/E of 10.65.
We can also see that CAT currently has a PEG ratio of 1.8. 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 of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 4.5.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 7% of all 250+ industries.