Caterpillar stock: buy or sell

CAT stock price: $220.16 3.47% At close on Mar 5th, 2021

Updated on:
Mar 7th, 2021

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Caterpillar stock brief

  • Caterpillar closed on Friday at $220.16 after exploding a 3.47% and broke a streak of 3 sessions in red.
  • Daiwa Capital Markets posted a hold rating for Caterpillar on Friday
  • Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.

Should I buy Caterpillar stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $CAT stock a buy?

Currently, Caterpillar stock matches one trading strategy:

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Caterpillar can break to all-time highs any time soon, as it only needs to go up a 2.96%. Setup your buy order at $226.67 if you want to trade with this strategy. Arm your stop-loss at $204.00

Buy setupBuy pointStop lossRisk
ATH buy setup$226.67$204.0010.00%

Should I sell Caterpillar stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Similarly to when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must use our own trading strategy. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for shorting $CAT stock

As a rule of thumb, you must never keep an investment that generates losses greater than those expected at the time of purchase. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell Caterpillar stock?

In the current situation of Caterpillar there is not any eligible sell setup, so Caterpillar stock holders with operations in profit can keep their positions

Caterpillar ratings

In the last month, 3 brokerage ratings were published for Caterpillar. General sentiment is bullish, with 2 out of 3 publishing positive outlooks

Caterpillar analysts' ratings - Last month
Brokerage firmRating
Feb 25th, 2021
JPMorgan Chase & Co. Buy
Mar 3rd, 2021
JPMorgan Chase & Co. Buy
Mar 5th, 2021
Daiwa Capital Markets BuyNeutral

Caterpillar stock analysis

Since in May 2020, Caterpillar has been drawing an uptrend that so far marked an amazing 123.85%. During this uptrend, the price provided some entry points on the breakouts. Latest pullback was last January, when price bounced at $179.34. Caterpillar broke out above $199.11 (its last top) in mid-February. That breakout was a good entry point that resulted in a 10.57% profit

SMAs overview

CAT stock SMAs chart

Supports and resistances

Price is at highs and there are not upper resistances.

The current supports are:

  • S1: $199.11 (-9.56% below)
  • S2: $182.84 (-16.95% below)
  • S3: $179.34 (-18.54% below)
  • Bollinger bands

    Since the price surpassed the upper band on February 25, the price corrected downwards by 1.89%

    CAT stock Bollinger Bands chart

    Relative strength index

    The RSI dropped below the overbought level of 70 last Tuesday after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Friday was 66.58. Caterpillar price merely moved a 0.18% since then

    CAT stock RSI chart

    Caterpillar stock price history

    Caterpillar started trading on Jan 2nd, 1962 at $0.51 per share1. Since then, CAT stock has risen by 43,068.63%, with an average of 729.98% per year. If you had invested thousand dollars in Caterpillar stock on Jan 1962, it would worth $431,686.27 today.

    1: Adjusted price after possible price splits or reverse-splits

    CAT stock price history chart

    Price target for Caterpillar stock

    How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.

    The following table shows the price forecasts released by brokerage institutions over the last 30 days. Again, these targets are not direct recommendations for individual investors and should not be trusted blindly.

    There are 2 price forecasts posted for Caterpillar that average $237.00. That is a 7.65% than the current price ($220.16).

    Caterpillar stock price predictions
    Brokerage firmPrice target
    Feb 25th, 2021
    JPMorgan Chase & Co. $205.00$237.00
    Mar 3rd, 2021
    JPMorgan Chase & Co. $205.00$237.00
    Mar 5th, 2021
    Daiwa Capital Markets Not available

    Earnings and financials

    Last January, Caterpillar Inc. ($CAT) reported adjusted EPS for that highly beat analysts' expectations. Quarterly EPS was $2.12 per share vs the estimates of $1.49. This Q4 report means an earnings surprise of 42.28%. On the contrary, the company reported turnover for this quarter was $11.2 billion in line with analysts' estimates.

    Compared to the same quarter last year, EPS was $2.63, so current EPS means a decrease of -19.39%. Looking at revenue, figures tanked a -14.52% compared to $131.4B year over year.

    Caterpillar ($CAT) presents financial report late next April. Expected for this quarter is $1.88, compared to $2.12 that was reported for Q4.

    Caterpillar performance

    CAT performance compared
    Company1m3m6m
    Caterpillar ($CAT) 14.70% 27.30% 49.90%

    Please read:
    The viewpoints published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the specific circumstances of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for educative reasons only

    Caterpillar summary

    Friday, March 5th, 2021
    Open$214.34
    Close$220.16
    Day range$211.5 - $220.78
    Previous close$212.77
    Session gain3.47%
    Average true range$7.61
    50d mov avg$195.38
    100d mov avg$182.31
    200d mov avg$158.47
    Earnings dateApril 27th, 2021

    Frequently asked questions

    What is Caterpillar stock symbol?

    Caterpillar Inc. is a public company trading in the US stock market with the CAT symbol

    Is Caterpillar stock a buy or sell?

    Caterpillar received 3 ratings in the last 30 days: 2 bullish, 0 bearish and 1 neutral.

    Will CAT go up?

    Caterpillar had different price predictions published by market analysts in the last 30 days setting the target price to $237.00. That is a 7.65% than the last price ($220.16).