Caterpillar (CAT) closed the most recent trading day at $170.55, moving -0.81% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.84%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the construction equipment company had lost 11.44% in the past month. In that same time, the Industrial Products sector lost 10.04%, while the S&P 500 lost 10.24%.
Investors will be hoping for strength from Caterpillar as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $3.23, up 21.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.18 billion, up 14.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.64 per share and revenue of $57.25 billion. These totals would mark changes of +16.93% and +12.31%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Caterpillar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Caterpillar is currently a Zacks Rank #3 (Hold).
Digging into valuation, Caterpillar currently has a Forward P/E ratio of 13.6. This represents a premium compared to its industry's average Forward P/E of 11.01.
We can also see that CAT currently has a PEG ratio of 1.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.85 at yesterday's closing price.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
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