Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .Volatility comes with the benefits of being an equity investor, the same way rain is necessary for a lush garden to grow, or a challenging workout isAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CAT either through stock ownership, options, or other ...

Core Viewpoint - Analysts forecast Caterpillar (CAT) will report quarterly earnings of $4.30 per share, reflecting a year-over-year decline of 23.2%, with anticipated revenues of $14.54 billion, down 8% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 2.3% in the past 30 days, indicating a reassessment by covering analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Revenue Projections - Total sales and revenues for Machinery, Energy & Transportation - Resource Industries are expected to be $2.85 billion, a decline of 10.7% year over year [5]. - Total sales and revenues for Machinery, Energy & Transportation - Total are projected at $13.66 billion, indicating an 8.7% decrease from the prior-year quarter [5]. - Financial Products - Total revenues are expected to reach $895.58 million, reflecting a year-over-year increase of 6.7% [6]. - All Other revenues in Machinery, Energy & Transportation are anticipated to be $115.32 million, showing a 5.8% increase year over year [6]. Regional Sales Estimates - Sales and Revenues for Asia/Pacific - Machinery, Energy & Transportation are projected at $2.58 billion, down 5.4% year over year [7]. - Latin America - Machinery, Energy & Transportation revenues are expected to be $1.43 billion, indicating a 3% decline [8]. - North America - Machinery, Energy & Transportation revenues are forecasted at $7.20 billion, reflecting a 10% decrease from the previous year [8]. Sales Volume and Price Realization - Sales Volume for Machinery, Energy & Transportation - Energy & Transportation is expected to be -$63.89 million, compared to $231 million in the same quarter last year [9]. - Price Realization - Total is projected at -$359.41 million, down from $575 million in the same quarter last year [9]. - Price Realization for Machinery, Energy & Transportation - Construction Industries is estimated at -$321.51 million, contrasting with $199 million from the previous year [10]. - Price Realization for Machinery, Energy & Transportation - Resource Industries is expected to be -$97.84 million, down from $173 million year over year [10]. Stock Performance - Caterpillar shares have returned -9.6% over the past month, compared to a -4.8% change in the Zacks S&P 500 composite [11].

Investment Rating - The report suggests a positive investment outlook for the diesel generator set industry, particularly for domestic OEM manufacturers and key players in the supply chain [2][5]. Core Insights - The domestic AI model Deepseek is accelerating the application of AI in China, leading to a significant increase in computing power demand, which in turn benefits the diesel generator set market as it is a core component of data center infrastructure [3][5]. - Diesel generator sets are essential for data centers, accounting for approximately 23% of supporting infrastructure costs and 6%-7% of total data center construction costs. The market for diesel generators in data centers is projected to grow from 4.57 billion yuan in 2023 to 13.16 billion yuan by 2028, with a compound annual growth rate (CAGR) of 24% [3][31]. - Domestic brands are expected to benefit from the challenges faced by foreign manufacturers in expanding production capacity, leading to opportunities for volume and price increases for local suppliers [3][5]. Summary by Sections 1. Deepseek Accelerates Domestic AI Application and Drives Computing Power Demand - Deepseek demonstrates performance comparable to leading international AI models, significantly enhancing domestic AI application scenarios and driving up computing power demand [3][6]. - Major tech companies like Tencent and Alibaba are increasing capital expenditures for computing power infrastructure, with Tencent's capital expenditure reaching 768 billion yuan in 2024, a 221% year-on-year increase [3][14]. 2. Diesel Generator Sets as Core CAPEX for Data Centers - Diesel generator sets are critical backup power sources for data centers, complementing UPS systems to ensure continuous operation during power outages [22][24]. - The construction of data centers requires diesel generator sets, which are mandated for A and B level data centers as per national standards [24][26]. - The market for diesel generator sets in data centers is expected to reach 13.16 billion yuan by 2028, driven by the rapid growth of intelligent computing power [31][32]. 3. Domestic Supply Chain Benefits from High Demand and Limited Foreign Expansion - The core components of diesel generator sets, particularly diesel engines, are dominated by foreign brands, which hold a 90% market share in 2024. However, domestic brands are gaining market share due to supply chain challenges faced by foreign manufacturers [3][47]. - Recent bidding results show that domestic manufacturers like Weichai Heavy Machinery have significantly increased their market share in high-pressure diesel generator sets [66][68]. 4. Investment Recommendations - The report recommends focusing on domestic OEM manufacturers such as KOTAI Power, Taihao Technology, and Sumida, as well as main engine manufacturers like Weichai Heavy Machinery and component manufacturers like Linde [3][5].

Investment Rating - The report suggests a positive investment outlook for the diesel generator set industry, particularly for domestic OEM manufacturers and key players in the supply chain [2][5]. Core Insights - The domestic AI model Deepseek is accelerating the application of AI in China, significantly increasing the demand for computing power, which in turn benefits the diesel generator set market as it is a core component of data center infrastructure [3][5]. - Diesel generator sets are essential backup power sources for data centers, which are experiencing substantial capital expenditure growth due to rising computing power demands [3][5]. - Domestic brands are poised to benefit from the challenges faced by foreign manufacturers in expanding production capacity, leading to opportunities for volume and price increases for local suppliers [3][5]. Summary by Sections 1. Deepseek Accelerates Domestic AI Application and Boosts Computing Power Demand - Deepseek demonstrates performance comparable to leading international AI models, enhancing the domestic AI application landscape and driving up computing power needs [6][14]. - Major tech companies like Tencent and Alibaba are significantly increasing their capital expenditures for computing infrastructure, with Tencent's capital expenditure reaching 768 billion yuan in 2024, a 221% year-on-year increase [14][15]. 2. Diesel Generator Sets as Core CAPEX for Data Centers - Diesel generator sets account for 23% of the supporting infrastructure costs in data centers, which are projected to grow from a market size of 4.57 billion yuan in 2023 to 13.16 billion yuan by 2028, reflecting a compound annual growth rate (CAGR) of 24% [3][31]. - The demand for high-capacity diesel generators is expected to rise significantly due to the increasing construction of AI-related data centers, which require robust power backup systems [24][26]. 3. Domestic Supply Chain Benefits from High Demand and Limited Foreign Expansion - The market for diesel engines in data centers is dominated by foreign brands, but domestic manufacturers are gaining market share due to supply chain challenges faced by foreign companies [3][47]. - Recent bidding results show that domestic brands like Weichai Heavy Machinery have significantly increased their market share, with Weichai's share rising to 40% in recent tenders [3][68]. 4. Investment Recommendations - The report recommends focusing on domestic OEM manufacturers such as Keta Power, Taihao Technology, and Sumida, as well as main engine manufacturers like Weichai Heavy Machinery and component manufacturers like Linde [3][5].

Core Viewpoint - The market anticipates a year-over-year decline in Caterpillar's earnings due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Caterpillar is expected to report quarterly earnings of $4.30 per share, reflecting a year-over-year decrease of 23.2% [3]. - Revenue projections stand at $14.54 billion, which is an 8% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.32% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Caterpillar is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +0.16% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Caterpillar currently holds a Zacks Rank of 3, suggesting a potential to beat the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Caterpillar exceeded the expected earnings of $4.97 per share, achieving $5.14, resulting in a surprise of +3.42% [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13]. Conclusion - While an earnings beat may influence stock movement, other factors can also play a significant role in stock performance [14]. - Caterpillar is viewed as a strong candidate for an earnings beat, but investors should consider additional factors before making investment decisions [16].

Shares in Caterpillar (CAT -3.07%) were down by 3% in today's trading at 3:20 p.m. ET. The decline comes on a bad day for the markets overall and, more importantly, for the commodities that drive orders for its machinery.Caterpillar's end marketsCaterpillar is well known for its construction equipment and its sales aligning with the construction cycle. And it plays a significant role in mining machinery, gas turbines, generators, solar gas turbines/compressors, and energy storage, with some construction mac ...

Group 1 - The stock market experienced an uptrend until mid-February, which then quickly turned into a brief downturn [1] - The article emphasizes the importance of in-depth research on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] Group 2 - The article does not provide specific financial data or performance metrics related to the companies mentioned [2]

Company Performance - Caterpillar's stock closed at $294.25, reflecting a +1.42% change from the previous trading day's close, outperforming the S&P 500 which gained 0.13% [1] - Over the past month, Caterpillar's shares have declined by 14.32%, underperforming the Industrial Products sector's loss of 10.03% and the S&P 500's loss of 6.3% [2] Upcoming Earnings - Caterpillar is set to disclose its earnings on April 30, 2025, with an expected EPS of $4.31, down 23.04% from the same quarter last year, and a projected quarterly revenue of $14.6 billion, down 7.6% year-over-year [3] - For the annual period, the Zacks Consensus Estimates predict earnings of $19.32 per share and revenue of $61.68 billion, representing declines of -11.78% and -4.83% respectively from the previous year [4] Analyst Estimates and Rankings - Recent changes in analyst estimates for Caterpillar are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Caterpillar at 3 (Hold), with a 2.22% decrease in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - Caterpillar is trading at a Forward P/E ratio of 15.02, which is a premium compared to the industry's average Forward P/E of 14.96 [7] - The company has a PEG ratio of 1.6, while the Manufacturing - Construction and Mining industry has an average PEG ratio of 1.93 [7] Industry Context - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [8]

Group 1 - The article discusses the impact of new import tariffs announced by the Trump administration on companies like Caterpillar Inc. and Deere & Company, highlighting the long-term growth potential and dividend growth investing strategies [1] - The focus is on the importance of profitability as a driver of gains, emphasizing the significance of margins, free cash flow stability and growth, and returns on invested capital in evaluating companies [1] Group 2 - The author expresses a commitment to researching high-quality companies, indicating a preference for undervalued stocks and those with strong dividend growth potential [1]

Core Viewpoint - Caterpillar Inc. and Deere & Company are two leading heavy equipment manufacturers facing challenges in their respective markets, with Caterpillar experiencing revenue declines and Deere aligning production with demand due to weak market conditions [2][3][10]. Caterpillar Inc. (CAT) - CAT's revenues have declined for the past four quarters, with earnings falling in the last two quarters due to volume weakness in Resource Industries and Construction Industries [3][4]. - The company expects a slight revenue dip in 2025 from the 2024 reported number of $64.8 billion, driven by lower sales in Construction and Resource Industries [7]. - CAT anticipates its adjusted operating margin to be in the top half of its target range, with a broad revenue guidance of $42-$72 billion and margins between 10% and 22% [7]. - The U.S. Infrastructure Investment and Jobs Act is expected to create opportunities for CAT's construction equipment portfolio, while demand for mining equipment is anticipated to rise due to the shift toward clean energy [8]. - CAT is focused on doubling its service revenues from $14 billion in 2016 to $28 billion in 2026, capitalizing on growth in aftermarket parts and service-related revenues [9]. Deere & Company (DE) - DE has experienced top-line declines for the past six quarters and lower earnings over the last five due to weak farmer spending and rising costs [10][12]. - The company expects sales volumes to decline in 2025 across all segments, including Production & Precision Agriculture and Construction & Forestry [12]. - DE's fiscal 2025 net income is projected to be between $5 billion and $5.5 billion, indicating a 26% decline from the previous year's net income of $7.1 billion [13]. - Despite current weaknesses, long-term agricultural equipment demand is supported by global food demand and the need to replace aging equipment [15][16]. - DE is well-positioned for growth through consistent investments in innovation and geographic expansion, focusing on advanced technologies in agriculture [16]. Financial Comparisons - The Zacks Consensus Estimate for CAT's 2025 earnings is $19.32, reflecting an 11.8% year-over-year decline, while DE's estimate is $19.15, indicating a 25.3% decline [19][20]. - Year-to-date, CAT's stock has declined by 20%, while DE has gained 6.8%, outperforming the Industrial Products Sector and the S&P 500 [21]. - CAT is trading at a forward 12-month earnings multiple of 14.45X, lower than its five-year median, while DE is at 22.14X, higher than its five-year median [23]. - CAT's return on equity is 58.18%, significantly higher than DE's 27.31%, indicating more efficient use of shareholder funds [24]. - CAT's dividend yield of 1.94% surpasses DE's 1.43%, making it more attractive for income-focused investors [27]. Investment Considerations - Both companies currently hold a Zacks Rank 3 (Hold), indicating challenges in choosing between them [28]. - While DE has strong long-term prospects tied to food demand and agricultural technology, its current valuation is less favorable compared to CAT [29]. - CAT offers a higher dividend yield and more attractive valuation, benefiting from trends like infrastructure spending and AI-driven growth [30].