What's happening with Caterpillar's stock price?
Caterpillar (CAT) Stock Moves -1.07%: What You Should Know Caterpillar (CAT) closed at $232.57 in the latest trading session, marking a -1.07% move from the prior day. Zacks
Will cat stock rebound?
Jun 14, 2021 · CAT stock is up 2.7x from the levels of under $90 it was at in March 2020, compared to the S&P which has moved 84%. CAT stock has significantly outperformed the broader markets, primarily due to...
Is cat a great dividend stock to buy?
Apr 22, 2022 · A high-level overview of Caterpillar Inc. (CAT) stock. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools.
Why is the market worrying about caterpillar's machine sales in Asia?
Why Caterpillar (CAT) Stock Is Down Today Shares of Caterpillar (CAT) are lower after the company was downgraded to 'neutral' from 'buy' at Bank of America (BAC) this morning. Kurumi Fukushima Sep...
Why did CAT stock fall?
Caterpillar's Trend When dealers anticipate that sales are rising, they invest in equipment. One reason for the severe decline in 2020 is that dealers dropped inventory to the tune of $1.1 billion. However, inventories increased during Q3 and Q4 2021, according to the earnings report.Feb 11, 2022
Is CAT stock a good buy now?
Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of CAT, demonstrate its potential to outperform the market. It currently has a Growth Score of C.
Is CAT stock overvalued?
CAT' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. CAT's PE and PEG are worse than the market average leading to a below average valuation score.Mar 25, 2022
Should I sell my CAT stock?
Caterpillar(CAT-N) Rating A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
Will CAT stock go up?
Stock Price Forecast The 23 analysts offering 12-month price forecasts for Caterpillar Inc have a median target of 245.00, with a high estimate of 347.00 and a low estimate of 164.00. The median estimate represents a +13.27% increase from the last price of 216.30.
Is CAT a good dividend stock?
Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CAT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).Feb 16, 2022
Is CAT stock undervalued?
Is Caterpillar Inc Stock Undervalued? The current Caterpillar Inc [CAT] share price is $216.30. The Score for CAT is 59, which is 18% above its historic median score of 50, and infers lower risk than normal. CAT is currently trading in the 50-60% percentile range relative to its historical Stock Score levels.
Is Caterpillar a cyclical stock?
Summary. Caterpillar has a highly cyclical business and a highly cyclical stock price.Feb 1, 2022
Analyzing the construction equipment stock's recent fall and whether it's a good value now
Why Caterpillar's stock declined
Industrial sector focus. I write about electrical equipment, transportation, and multi-industry industrial stocks. Engineer, investment manager and property developer. I'm a firm believer that there is something noble about the industrial sector. Blue collar workers physically making a better world.
Raw material costs
Rising raw material prices have pressured margins at machinery manufacturers, and Caterpillar and others are seeing rising costs.
Growth in China
Starting with raw material costs, CFO Andrew Bonfield said during the earnings call that the third-quarter profit margin would "moderate" from the second quarter.
Valuation concerns
Usually, with cyclical stocks, each region of the world tends to operate in tandem. However, COVID-19 originated in China and then spread to the rest of the world, meaning that China's growth trend has fallen out of step.
The bulls' case
Valuing a cyclical stock is always tricky. Not least because it sometimes makes sense to buy cyclical stocks on a high valuation and sell on a low valuation. They tend to trade on a high valuation precisely when earnings bottom and then take off.
What happens if you buy Caterpillar stock?
In response, it's worth highlighting a few points. First, rising raw material prices are an issue, but they stem from the fact that construction activity is strong, and so is energy and mining demand.
Is 2020 a good year for caterpillar?
Answer: If you buy and hold Caterpillar stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong.
Is Caterpillar Inc. (CAT) a buy, sell, or hold?
2020 has not been a great year for Caterpillar’s revenue growth, given the lower demand for equipment across its verticals - construction, resource, and energy & transportation. This can be attributed to the impact of the pandemic on the non-residential construction, and lower demand for energy.
What is Caterpillar Inc.'s stock price today?
27 analysts have issued ratings. Wall Street analysts rate CAT as Neutral on average, for a Wall Street consensus of hold. View CAT’s ratings here.
Is Caterpillar Inc. (CAT) overvalued or undervalued?
Caterpillar Inc. is currently listed on NYSE under CAT. One share of CAT stock can currently be purchased for approximately $ 209.14.
What are your Caterpillar Inc. (CAT) stock predictions?
Caterpillar Inc.’s current P/E Non-GAAP (TTM) sector relative grade is C. With Seeking Alpha Premium, you can easily view each stock's full value grade, which takes into account key metrics such as P/E ratio, Price/Book, Price/Sales and Enterprise Value to EBITDA. See more detailed value information.
What is Caterpillar Inc.'s stock symbol?
27 Wall Street analysts have issued ratings. Currently, 10 analysts rated CAT as Bullish, 3 rated it Bearish, and 14 rated it Neutral. This suggests a neutral outlook. To see CAT’s analyst predictions, sign up for Premium now.
How much money does Caterpillar Inc. make?
Caterpillar Inc.'s stock symbol is CAT and currently trades under NYSE. It’s current price per share is approximately $ 209.14.
How do I buy Caterpillar Inc. stock?
Caterpillar Inc. generated $45.89B in revenue this past year and has a market capitalization of $112.2B. They earned $4.39B in net income in the past year.
Market Wrap
Caterpillar Inc. is listed on NYSE under CAT. You can buy Caterpillar Inc. stock through any online brokerage account such as E*TRADE, Charles Schwab, or Merrill Edge. Premium subscribers can easily link their Seeking Alpha portfolios to their brokerage account. (Your credentials will never be made accessible to Seeking Alpha.)
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Who Will Lead the Markets in the Second Half of 2021?
Let's take a look at Caterpillar and others for clues about what's happening in the industrials and also track the moves of new fave Amazon and Apple.
What is the biggest growth market for Caterpillar?
Indicators are strong for the market indexes right now, but that can change. Here's how to look at the six months ahead.
How does caterpillar make money?
China, and the Asia-Pacific region in general, was Caterpillar's biggest growth market in 2020. Management noted that infrastructure spending in China is leading to a sustained boom in construction activities. However, growth could slow later in the year seeing as China is ahead of the U.S. and other regions in the growth cycle.
What is the operating margin of Caterpillar?
Caterpillar generates the majority of its sales through an independent dealer network. Dealers tend to decrease their inventories when they expect customers to spend less and increase inventories in preparation for customers to spend more. 2020 saw a sharp $2.9 billion reduction in dealer inventories, the largest annual decline in seven years.However, dealer inventories rose $700 million in the first quarter compared to the fourth quarter of 2020 -- a positive sign that business is picking up. Given the severity of last year's drawdown, dealers could simply be restocking back to normal levels. We'll need to see a sustained increase in dealer inventories for a true boom to take shape.
Is Caterpillar giving full year guidance?
Operating margin is a metric that illustrates the profitability of Caterpillar's business. Its Q1 adjusted operating margins improved across all three business lines for a companywide average of 15.3% -- above the 11.8% average in 2020.
Is the Fed keeping interest rates low?
Once again, Caterpillar refrained from giving full-year guidance. This uncertainty, paired with the fact it has yet to reinstate share buybacks could be met with scrutiny. However, it seems management is taking a cautious approach given 2020's lackluster performance.
Why Caterpillar's Stock Declined
Raw Material Costs
- Starting with raw material costs, CFO Andrew Bonfield said during the earnings call that the third-quarter profit margin would "moderate" from the second quarter. Furthermore, he went on to note, "we do expect higher manufacturing costs, which means that our gross margin percentage will be moderately lower in the second half of the year versus the first half." That's a disappointment, a…
Growth in China
- Usually, with cyclical stocks, each region of the world tends to operate in tandem. However, COVID-19 originated in China and then spread to the rest of the world, meaning that China's growth trend has fallen out of step. As you can see below, the Asia/Pacific region recovered quicker than Europe and North America. The China economy was hit the hardest in the first quar…
valuation Concerns
- Valuing a cyclical stock is always tricky. Not least because it sometimes makes sense to buy cyclical stockson a high valuation and sell on a low valuation. They tend to trade on a high valuation precisely when earnings bottom and then take off. The cycle continues until they trade on low valuations at peak earnings, just as earnings start declining. You can see these dynamic…
The Bulls' Case
- In response, it's worth highlighting a few points. First, rising raw material prices are an issue, but they stem from the fact that construction activity is strong, and so is energy and mining demand. That's arguably a net positive for Caterpillar's revenue generation, and once the company starts pushing through price increases, its margin should improve. Second, the worries over China's gr…