Caterpillar stock: buy or sell?
September 20th, 2019
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries.
Should I buy Caterpillar stock?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Caterpillar stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Caterpillar stock a buy?
Financial institutions and banks post stock ratings everyday.At Stocks2.com, we collected 15 ratings published for CAT stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-9||Bank of America||n/a||Buy|
|2019-8-14||Royal Bank of Canada||n/a||Hold|
|2019-7-25||Robert W. Baird||n/a||Outperform|
|2019-7-25||Goldman Sachs Group||n/a||Buy|
|2019-7-17||Credit Suisse Group||n/a||Outperform|
|2019-2-4||BMO Capital Markets||n/a||Outperform|
|2019-2-14||Credit Suisse Group||n/a||Buy|
Caterpillar stock analysis
Caterpillar closed today at $128.20 and decreased a tragic -1.48%.
Caterpillar shares decreased -1.48% to $128.20 today. In this session, Caterpillar stock crossed down the SMA200d line. If you are using SMA200d line as stop loss trigger, double check your position in this stock. CAT is retaking the upward trend marking a new rising bottom heading to break out over $133.99.
After boosting an outstanding 8.28% in a week last week, Caterpillar closed this week at $128.20 and slipped a godawful -4.17%. Late July CAT collapsed a bloodcurdling -6.73% in just one week.
The downtrend marked by CAT has left consecutive declining peaks and bottoms. There is an opportunity to rebound and reverse this situation if price can hold above the level.
Caterpillar stock price history
Caterpillar stock historical price chart
CAT stock reached 52-week highs on October at $155.21, and all-time highs 2018-01-25 with a price of 166.71.
Caterpillar stock price target is $149.80Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 9 price predictions for Caterpillar stock published in the last 30 days:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-9||Bank of America||Reiterates||$150.00||$145.00||-3.3%|
|2019-7-25||Robert W. Baird||Reiterates||$161.00||$155.00||-3.7%|
|2019-7-25||Morgan Stanley||Lowers Target||$165.00||$155.00||-6.1%|
|2019-7-25||Goldman Sachs Group||Set Price Target||n/a||$156.00||-|
|2019-7-17||Credit Suisse Group||Reiterates||$172.00||$164.00||-4.7%|
|2019-6-4||UBS Group||Lowers Target||n/a||$115.00||-|
|2019-2-4||BMO Capital Markets||Lowers Target||n/a||$160.00||-|
|2019-2-14||Credit Suisse Group||Reiterates||n/a||$173.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when Caterpillar published its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Caterpillar annual revenues climbed an astounding 20.37% to $54,722.00 million dollars from $45,462.00 marked in 2017. Similarly, its earnings margin (compared to revenues) jumped to 11.23%, that is $6,147.00 million. Caterpillar presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Caterpillar TTM sales up to March 2019 were $55,329.00 and earnings $6,363.00 M USD. If we compare this TTM figures with the last reported annuality, we can review Caterpillar business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a tiny 1.11%. In line, profit margin (net income/revenues) remained stable at 11.23%.
|2013||$55,660 M||-||$3,790 M6.8%||-|
|2014||$55,184 M||-0.86%||$3,695 M6.7%||-2.51%|
|2015||$47,011 M||-14.81%||$2,102 M4.5%||-43.11%|
|2016||$38,537 M||-18.03%||$-67.00 M-0.2%||-103.19%|
|2017||$45,462 M||17.97%||$754 M1.7%||-1,225.37%|
|2018||$54,722 M||20.37%||$6,147 M11.2%||715.25%|
|TTM||$55,329 M||1.11%||$6,363 M11.5%||3.51%|
Quarterly financial resultsCaterpillar reported $13,466.00 M in sales for 2019-Q1, a -6.11% decline compared to previous quarter. Reported quarter income marked $1,881.00 M with a profit margin of 13.97%. Profit margin soared a 6.66% compared to previous quarter when profit margin was 7.31%. When comparing sales to same quarter last year, Caterpillar sales marked a decent gain and stepped up a 4.72%.
|2017-Q2||$11,330 M||-||$802 M7.1%||-|
|2017-Q3||$11,410 M||0.71%||$1,060 M9.3%||32.17%|
|2017-Q4||$12,896 M||13.02%||$-1,299 M-10.1%||-222.55%|
|2018-Q1||$12,859 M||-0.29%||$1,665 M12.9%||-228.18%|
|2018-Q2||$14,011 M||8.96%||$1,707 M12.2%||2.52%|
|2018-Q3||$13,510 M||-3.58%||$1,727 M12.8%||1.17%|
|2018-Q4||$14,342 M||6.16%||$1,048 M7.3%||-39.32%|
|2019-Q1||$13,466 M||-6.11%||$1,881 M14.0%||79.48%|
Caterpillar ownershipWhen you are planning to buy shares of a company, it's always worth to have a look its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Caterpillar, 0.17% of all outstanding shares are owned by its staff.
In case of Caterpillar stock, 68.58% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CAT stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Caterpillar:
|Market cap||$72.1 B||$719.8 M||$25.6 B||$14.8 B||$51.8 B|
|Total shares||562.6 M||22.5 M||157.8 M||1,350.0 M||314.9 M|
|Float shares||561.4 M||22.1 M||156.9 M||1,340.0 M||282.6 M|
|- Institutional holdings (%)||68.6%||93.5%||84.5%||42.0%||79.8%|
|- Insider holdings (%)||0.2%||1.8%||0.3%||26.9%||0.2%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$127.87 - $130.99|
|Average true range||$2.98|
|50d mov avg||$125.73|
|100d mov avg||$127.03|
|200d mov avg||$128.93|
Caterpillar performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Caterpillar, the comparison is made against Astec Industries, Cummins, CNH Industrial, Deere and General Electric.
Caterpillar competitorsOne check before trading any stock is to have a look a list of its competitors, in this case for Caterpillar. We picked 5 companies as Caterpillar competitors as they are in the same industry or have similar market objectives.
Latest Caterpillar stock news
- InvestorPlaceCaterpillar Stock Is Primed for a Post-Earnings ShortJuly 25, 2019
- InvestorPlaceDow Jones Today: The Dow Has a Caterpillar ProblemJuly 24, 2019
- InvestorPlaceCaterpillar Earnings: CAT Stock Down on Q2 MissJuly 24, 2019
- InvestorPlaceCaterpillar Stock Remains Unconvincing Prior to Q2 EarningsJuly 22, 2019
- Investors.comStocks Open Mixed; Caterpillar Drags On Dow Jones: ASML Breaks OutJuly 17, 2019