Caterpillar (CAT) Stock Declines While Market Improves: Some Information for Investors

The latest trading session saw Caterpillar (CAT) ending at $365.39, denoting a -0.18% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.Heading into today, shares of the construction equipment company had lost 7.91% over the past month, lagging the Industrial Products sector's loss of 4.3% and the S&P 500's gain of 0.34% in that time.Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. In that report, analysts expect Caterpillar to post earnings of $5 per share. This would mark a year-over-year decline of 4.4%. At the same time, our most recent consensus estimate is projecting a revenue of $16.65 billion, reflecting a 2.44% fall from the equivalent quarter last year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.68 per share and a revenue of $65.25 billion, signifying shifts of +2.22% and -2.7%, respectively, from the last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Caterpillar currently has a Zacks Rank of #3 (Hold).Valuation is also important, so investors should note that Caterpillar has a Forward P/E ratio of 16.89 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.37.Investors should also note that CAT has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAT's industry had an average PEG ratio of 4.43 as of yesterday's close.The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% of all 250+ industries.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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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