Caterpillar stock: buy or sell
Updated on:
Jun 22nd, 2021
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Caterpillar stock brief
- Caterpillar closed on Monday at $213.21 after climbing a 2.08% and broke a streak of 3 sessions in red.
- 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?
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 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 doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $CAT will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Caterpillar stock?
When you own stock shares with some profit, it's really hard to decide the good moment to sell and get your profits. Trading strategies help us to avoid impulsive decisions based on our personal feelings or the buzz that surrounds the market. When selling, as well as buying, detailed setups are very easy to use but are only valid for selling stocks in your porfolio, not for selling short $CAT stock
As a rule of thumb, you must never mantain an open trade that shows a greater losses than those expected at the time of the buy. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Caterpillar stock?
Currently, Caterpillar stock doesn't match any of our preferred sell setups, so if you own Caterpillar stock and your operation is in profit probably is not time to sell now
Caterpillar ratings
In the last 30 days, 2 brokerage ratings were published for Caterpillar. General sentiment is bullish, with 2 out of 2 publishing optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| May 27th, 2021 | |
| The Goldman Sachs Group | |
| Jun 4th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Buy → |
Caterpillar stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
Since the price broke down the lower band last Friday, the price has bounced up by 3.75%. The price is trading very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a bullish indicator, as price can move in these levels for many days and weeks
Relative strength index
Crossed down the oversold line Monday, marking a value of 29.9. Contrary to what many investors may think, the fact that the value is below the level of 30 does not in any way imply a buy signal, as stock price can drop during several weeks being under 30
Caterpillar stock price history
Caterpillar started trading priced at an adjusted price1 of $0.51 on Jan 1962. Since then, CAT stock surged by 41,705.88%, with an average of 706.88% per year. If you had invested $1,000USD in Caterpillar stock on Jan 1962, it would be valued $418,058.82 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Caterpillar stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
The following table shows the price predictions posted by brokerage institutions in the last month. Again, these targets are not direct recommendations for individual investors and should not be trusted blindly.
Averaging all price targets exposed below, the estimated price for Caterpillar stock is $268.50. Caterpillar closed at $213.21 on Monday, that is a 20.59% than the target price.
| Brokerage firm | Price target |
|---|---|
| May 27th, 2021 | |
| The Goldman Sachs Group | $264.00 |
| Jun 4th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $259.00 → $273.00 |
Earnings and financials
Last April, Caterpillar Inc. ($CAT) reported adjusted EPS for that strongly improved analysts' expectations. Quarterly EPS was $2.87 per share from an estimated $1.94. This Q1 report represents an earnings surprise of 47.94%. Sales resulted of $11.9 billion in contrast to $11.1 billion forecasted by market consensus.
This compares to Earnings of $1.60 per share a year ago, so current EPS means an increase of 79.38%. Turnover climbed a 11.77% on an annualized basis in the , from $106.4B to $118.9B last quarter.Caterpillar ($CAT) releases Q2 financial report late next July. Market analysts analysts expect of $2.38, that is a 17.07% less than Q1.
Caterpillar performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Caterpillar ($CAT) | -9.90% | -3.60% | 19.60% |
Important note:
The viewpoints given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the particular conditions of the reader, his or her own finances 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 Viewpoints are published for learning motives onlyCaterpillar summary
| Monday, June 21st, 2021 | |
|---|---|
| Open | $211.55 |
| Close | $213.21 |
| Day range | $211.4 - $215.23 |
| Previous close | $208.86 |
| Session gain | 2.08% |
| Average true range | $7.93 |
| 50d mov avg | $233.21 |
| 100d mov avg | $223.66 |
| 200d mov avg | $195.43 |
| Earnings date | July 30th, 2021 |