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Caterpillar (CAT, $206.89) beats Q2 earnings and revenue expectations
Caterpillar Inc. reported quarterly net earnings and revenue that crushed analysts’ expectations.
The construction and mining equipment company’s second-quarter net earnings came in at $2.60 –tripling from the year-ago quarter’s $1.27, and also exceeding the FactSet consensus of $2.41.
Total revenue climbed +28.9%year-over-year to $12.89 billion in the quarter, also beating the FactSet consensus of $12.51 billion.
Revenue from the company’s Construction Industries segment surged +40% from the year-ago quarter to $5.66 billion, but missed the FactSet consensus of $5.77 billion. Energy & Transportation business rose +20% to $4.98 billion, exceeding analysts’ expectations of $4.42 billion. Revenue from the Resource Industries segment increased +41% to $2.58 billion, beating expectations of $2.27 billion
Aroon Indicator for CAT shows an upward move is likely
CAT's Aroon Indicator triggered a bullish signal on April 21, 2022. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 299 similar instances where the Aroon Indicator showed a similar pattern. In 213 of the 299 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 71%.
Current price $204.41 crossed the support line at $215.02 and is trading between $215.02 support and $199.82 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -5% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -5%.
The Stochastic Indicator 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 +4.96% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAT advanced for three days, in 243 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
The 10-day RSI Indicator for CAT moved out of overbought territory on April 22, 2022. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 12 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 31%.
The Momentum Indicator moved below the 0 level on April 26, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on CAT as a result. In 47 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 53%.
The Moving Average Convergence Divergence Histogram (MACD) for CAT turned negative on April 25, 2022. 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 19 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 42%.
CAT moved below its 50-day Moving Average on May 09, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for CAT crossed bearishly below the 50-day moving average on May 09, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
CAT broke above its upper Bollinger Band on April 14, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 52%. During the last month, the daily ratio of advancing to declining volumes was 1.02 to 1.
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Valuation Rating of 31 (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 (6.386) is slightly higher than the industry average of (2.549). P/E Ratio (17.153) is within average values for comparable stocks, (61.377). Projected Growth (PEG Ratio) (1.628) is also within normal values, averaging (1.424). Dividend Yield (0.022) settles around the average of (0.039) among similar stocks. P/S Ratio (2.119) is also within normal values, averaging (166.960).
The Tickeron SMR rating for this company is 43 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally 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 Price Growth Rating for this company is 55 (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 82 (best 1 - 100 worst), pointing to worse than 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 industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
The average market capitalization across the Trucks/Construction/Farm Machinery Industry is 8.5B. The market cap for tickers in the group ranges from 223.3K to 112.5B. DE holds the highest valuation in this group at 112.5B. The lowest valued company is OSRS at 223.3K.
The average weekly price growth across all stocks in the Trucks/Construction/Farm Machinery Industry was -1.95%. For the same Industry, the average monthly price growth was -4.67%, and the average quarterly price growth was -12.02%. CYLC experienced the highest price growth at 31.26%, while AUSTF experienced the biggest fall at -37.5%.
- 5/12/22 5:38 AM: Caterpillar (CAT, $205.21) was a top loser this week, declining -7.81%. Expect a Downtrend reversal
- 4/26/22 5:09 AM: Caterpillar (CAT, $216.7) was a top loser this week, declining -5.3%
- 4/15/22 4:35 AM: Caterpillar (CAT, $227.81) was a top weekly gainer, with a +5.52% jump
The average weekly volume growth across all stocks in the Trucks/Construction/Farm Machinery Industry was 4.37%. For the same stocks of the Industry, the average monthly volume growth was 64.43% and the average quarterly volume growth was 38%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the 15 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 45%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.07.
19 stocks in the group of tickers exhibit a similar negative trend based on the MA50MA10 indicator with an average likelihood of 70%.
The most notable companies in this group are Deere & Company (NYSE:DE), Caterpillar (NYSE:CAT).
The average market capitalization across the group is 8.6B. The market cap for tickers in the group ranges from 676.8K to 112.5B. DE holds the highest valuation in this group at 112.5B. The lowest valued company is AIFM at 676.8K.
The average weekly price growth across all stocks in the group was -2.36%. For the same group, the average monthly price growth was -6.34%, and the average quarterly price growth was -18%. IOCJY experienced the highest price growth at 13.33%, while RAIL experienced the biggest fall at -27.86%.
- 5/12/22 5:38 AM: Cummins (CMI, $196.18) was a top loser this week, declining -6.02%
- 5/12/22 5:38 AM: PACCAR (PCAR, $82.61) was a top loser this week, declining -5.76%
- 5/12/22 5:38 AM: Caterpillar (CAT, $205.21) was a top loser this week, declining -7.81%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was 340.36%. For the same stocks of the group, the average monthly volume growth was 356.79% and the average quarterly volume growth was 145.01%
- 3/29/22 5:12 AM: The volume for FreightCar America stock increased for a consecutive 5 days, with an average daily gain of 476%
- 3/26/22 5:58 AM: The volume for Agrify stock increased for three consecutive days, resulting in a record-breaking daily growth of 263% of the 65-Day Volume Moving Average
- 3/25/22 6:04 AM: The volume for Agrify stock increased for two consecutive days, resulting in a record-breaking daily growth of 299% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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