Caterpillar stock: buy or sell?

CAT stock price: $128.20 -1.48% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

Caterpillar decreased a tragic -1.48% and closed at $128.20. With Friday it's been 5 sliding days in a row, loosing $-5.58 (-4.24%).

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.

Is CAT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9Bank of American/aBuy
2019-8-14Stephensn/aUnderweight
2019-8-14Royal Bank of Canadan/aHold
2019-7-25Robert W. Bairdn/aOutperform
2019-7-25Morgan Stanleyn/aOverweight
2019-7-25Goldman Sachs Groupn/aBuy
2019-7-25Buckingham ResearchBuyNeutral
2019-7-17Credit Suisse Groupn/aOutperform
2019-6-4UBS Groupn/aSell
2019-6-21Atlantic SecuritiesNeutralUnderweight
2019-4-3Deutsche BankBuyHold
2019-2-4BMO Capital Marketsn/aOutperform
2019-2-26UBS GroupBuySell
2019-2-15OTR Globaln/aPositive
2019-2-14Credit Suisse Groupn/aBuy

Caterpillar stock analysis

Daily outlook

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.

CAT stock chart (daily)

Weekly outlook

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.

CAT stock chart (weekly)

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 $149.80

Predicting 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:
CAT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9Bank of AmericaReiterates$150.00$145.00-3.3%
2019-7-25Robert W. BairdReiterates$161.00$155.00-3.7%
2019-7-25Morgan StanleyLowers Target$165.00$155.00-6.1%
2019-7-25Goldman Sachs GroupSet Price Targetn/a$156.00-
2019-7-17Credit Suisse GroupReiterates$172.00$164.00-4.7%
2019-6-4UBS GroupLowers Targetn/a$115.00-
2019-2-4BMO Capital MarketsLowers Targetn/a$160.00-
2019-2-26UBS GroupDowngrades$154.00$125.00-18.8%
2019-2-14Credit Suisse GroupReiteratesn/a$173.00-
(in average)$160.40$149.80-7.0%
Moving in a range from $173.00 and $115.00, the price prediction for CAT stock is $149.80. In average, analysts' outlook on CAT price target is negative, downgrading the prediction by a -7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Caterpillar published its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
CAT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.54n/a
2017-Q32017-10-241.271.9553.5%
2017-Q42018-01-251.792.1620.7%
2018-Q12018-04-242.112.8233.6%
2018-Q22018-07-302.662.9711.7%
2018-Q32018-10-232.832.861.1%
2018-Q42019-01-282.982.55-14.4%
2019-Q12019-04-242.85n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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%.

CAT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
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 M17.97%$754 M1.7%-1,225.37%
2018$54,722 M20.37%$6,147 M11.2%715.25%
TTM $55,329 M1.11%$6,363 M11.5%3.51%

Quarterly financial results

Caterpillar 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%.
CAT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$11,330 M-$802 M7.1%-
2017-Q3$11,410 M0.71%$1,060 M9.3%32.17%
2017-Q4$12,896 M13.02%$-1,299 M-10.1%-222.55%
2018-Q1$12,859 M-0.29%$1,665 M12.9%-228.18%
2018-Q2$14,011 M8.96%$1,707 M12.2%2.52%
2018-Q3$13,510 M-3.58%$1,727 M12.8%1.17%
2018-Q4$14,342 M6.16%$1,048 M7.3%-39.32%
2019-Q1$13,466 M-6.11%$1,881 M14.0%79.48%

Caterpillar ownership

When 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:

CATASTECMICNHIDE
Market cap$72.1 B$719.8 M$25.6 B$14.8 B$51.8 B
Total shares562.6 M22.5 M157.8 M1,350.0 M314.9 M
Float shares561.4 M22.1 M156.9 M1,340.0 M282.6 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 selling0.0%0.0%0.0%0.0%0.0%

Caterpillar summary

Friday, September 20th, 2019
Open$130.01
Close$128.20
Day range$127.87 - $130.99
Previous close$130.12
Session gain-1.48%
Average true range$2.98
50d mov avg$125.73
100d mov avg$127.03
200d mov avg$128.93
Daily patternlb02a
Weekly pattern lt02a

Caterpillar performance

Stocks 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.
Stock3m6m12m
CATCaterpillar-3.51%0.16%-15.82%
ASTEAstec Industries2.24%-11.89%-38.36%
CMICummins-3.80%5.79%10.70%
CNHICNH Industrial8.81%7.22%-11.23%
DEDeere0.56%6.45%9.69%
GEGeneral Electric-9.94%-5.42%-19.14%

Caterpillar competitors

One 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