Caterpillar reported its fourth quarter earnings that surpassed analysts’ expectations, on the back of a rebound in construction equipment sales and increasing commodity prices.
The agricultural equipment maker's adjusted earnings for the three months ending in December rose +27% from the year-ago period to $2.69 per share, exceeding the Street consensus expectations of $2.26 per share.
Revenues climbed +23% year-over-year to $13.8 billion, beating analysts' estimates of $13.15 billion.
Caterpillar’s operating profit margin fell to 111.7% from 13.4% in the previous quarter. The company’s cash as of the quarter-end was $9.3 billion vs. $19.4 billon after the three months ending in September.
The company paid out more that $5 billion to shareholders through buybacks and dividends over 2021.
The Aroon Indicator for CAT entered a downward trend on May 08, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 142 similar instances where the Aroon Indicator formed such a pattern. In of the 142 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 30, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CAT as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CAT turned negative on May 31, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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.
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 74, 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 (5.841) is very high in comparison to the industry average of (1.950). P/E Ratio (15.221) is within average values for comparable stocks, (39.674). Projected Growth (PEG Ratio) (1.283) is also within normal values, averaging (1.671). Dividend Yield (0.023) settles around the average of (0.036) among similar stocks. P/S Ratio (1.753) is also within normal values, averaging (110.611).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CAT’s price grows at a lower 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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of mining equipment, diesel and natural gas engines and industrial gas turbines
A.I.dvisor indicates that over the last year, CAT has been closely correlated with AGCO. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if CAT jumps, then AGCO could also see price increases.
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