Caterpillar (CAT) Rises But Trails Market: What Investors Should Know

The latest trading session saw Caterpillar (CAT) ending at $374.89, denoting a +0.89% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.Prior to today's trading, shares of the construction equipment company had lost 1.13% over the past month. This has was narrower than the Industrial Products sector's loss of 4.59% and the S&P 500's loss of 3.31% in that time.The upcoming earnings release of Caterpillar will be of great interest to investors. On that day, Caterpillar is projected to report earnings of $5 per share, which would represent a year-over-year decline of 4.4%. In the meantime, our current consensus estimate forecasts the revenue to be $16.65 billion, indicating a 2.44% decline compared to the corresponding quarter of the prior year.Any recent changes to analyst estimates for Caterpillar should also be noted by investors. 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 company's business health and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Caterpillar currently has a Zacks Rank of #3 (Hold).From a valuation perspective, Caterpillar is currently exchanging hands at a Forward P/E ratio of 17.02. This valuation marks a premium compared to its industry's average Forward P/E of 10.06.We can additionally observe that CAT currently boasts a PEG ratio of 1.82. 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. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 4.67.The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 190, this industry ranks in the bottom 25% of all industries, numbering over 250.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.To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks