Caterpillar (CAT, $139.73) disappoints on Q3 results, on dealers' inventory reduction and lower-than-expected end-user demand

CAT's MACD Histogram crosses above signal line

The Moving Average Convergence Divergence (MACD) for CAT turned positive on May 18, 2023. Looking at past instances where CAT's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on CAT as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CAT advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .

CAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The 50-day moving average for CAT moved below the 200-day moving average on May 26, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for CAT entered a downward trend on May 08, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CAT's P/B Ratio (6.013) is very high in comparison to the industry average of (1.980). P/E Ratio (15.674) is within average values for comparable stocks, (40.125). Projected Growth (PEG Ratio) (1.321) is also within normal values, averaging (1.695). Dividend Yield (0.023) settles around the average of (0.038) among similar stocks. P/S Ratio (1.804) is also within normal values, averaging (110.618).

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.