Caterpillar (CAT) Suffers a Larger Drop Than the General Market: Key Insights

Company Performance - Caterpillar (CAT) closed at $357.68, down 1.31% from the previous trading session, underperforming the S&P 500's loss of 0.84% [1] - Over the past month, Caterpillar's shares have appreciated by 2.51%, outperforming the Industrial Products sector's flat performance and the S&P 500's gain of 1.44% [1] Upcoming Earnings - The upcoming EPS for Caterpillar is projected at $4.89, indicating an 18.36% decline compared to the same quarter last year [2] - Quarterly revenue is expected to be $16.42 billion, down 1.59% from the previous year [2] Annual Estimates - For the annual period, earnings are anticipated at $18.7 per share and revenue at $63.25 billion, reflecting declines of 14.61% and 2.41% respectively from last year [3] - Recent revisions to analyst forecasts are important as they indicate evolving short-term business trends [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Caterpillar at 3 (Hold) [5] - Caterpillar has a Forward P/E ratio of 19.38, which is a premium compared to the industry average of 15.1 [6] Industry Context - The Manufacturing - Construction and Mining industry, part of the Industrial Products sector, has a Zacks Industry Rank of 193, placing it in the bottom 22% of over 250 industries [8] - The average PEG ratio for Caterpillar is 2.41, while the industry average is 4.93 [7]