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
CAT in upward trend: 10-day moving average broke above 50-day moving average on September 19, 2024
The 10-day moving average for CAT crossed bullishly above the 50-day moving average on September 19, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 17, 2024. You may want to consider a long position or call options on CAT as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CAT just turned positive on September 16, 2024. Looking at past instances where CAT's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
CAT moved above its 50-day moving average on September 12, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CAT advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 276 cases where CAT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CAT moved out of overbought territory on October 08, 2024. 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 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where CAT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
CAT broke above its upper Bollinger Band on September 24, 2024. 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.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 80%.
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (9.320) is very high in comparison to the industry average of (2.095). P/E Ratio (18.079) is within average values for comparable stocks, (25.104). Projected Growth (PEG Ratio) (2.089) is also within normal values, averaging (2.737). Dividend Yield (0.014) settles around the average of (0.055) among similar stocks. P/S Ratio (2.786) is also within normal values, averaging (121.053).
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General Information
a manufacturer of mining equipment, diesel and natural gas engines and industrial gas turbines
Industry TrucksConstructionFarmMachinery