Caterpillar (CAT) Outperforms Broader Market: What You Need to Know

Company Performance - Caterpillar (CAT) stock closed at $393.62, reflecting a +1.45% increase from the previous day, outperforming the S&P 500's gain of 0.47% [1] - Over the last month, Caterpillar shares increased by 9.7%, surpassing the Industrial Products sector's gain of 5.71% and the S&P 500's gain of 3.48% [1] - The upcoming earnings report is expected to show an EPS of $5.36, down 2.9% year-over-year, with projected revenue of $16.34 billion, reflecting a 2.79% decline from the same quarter last year [1] Earnings Estimates - Full-year Zacks Consensus Estimates predict earnings of $21.91 per share and revenue of $65.53 billion, indicating year-over-year changes of +3.3% for earnings and -2.28% for revenue [2] - Recent analyst estimate revisions suggest a favorable outlook on Caterpillar's business health and profitability, which is correlated with near-term share price momentum [2] Valuation Metrics - Caterpillar has a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 0.03% in the past month [3] - The company is currently trading at a Forward P/E ratio of 17.71, which is a premium compared to the industry average Forward P/E of 10.02 [3] - The PEG ratio for Caterpillar stands at 1.81, while the average PEG ratio for Manufacturing - Construction and Mining stocks is 6.95 [3] Industry Overview - The Manufacturing - Construction and Mining industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 209, placing it in the bottom 18% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]