Caterpillar (CAT, $219.21) tops Q3 earnings expectations
Caterpillar Inc. posted its third-quarter adjusted earnings per share, which rose +48.5% from the year-ago quarter to $3.95, and was well above the Zacks Consensus Estimate of $3.19 (as reported in Zacks Equity Research). Amidst higher material and freight costs, strong demand and favorable price realization boosted earnings in the quarter.
The construction equipment maker’s revenues jumped +21% year-over-year to $15 billion in the third quarter, exceeding the Zacks Consensus Estimate of $14.3 billion (as reported in Zacks Equity Research).
While the cost of sales rose +18% year over year to around $10 billion, gross profit climbed +27% year over year to $4.8 billion - thanks to higher sales volumes. Gross margin ticked up to 32% in the quarter (from 30.5% in the prior-year quarter).
CAT in upward trend: price rose above 50-day moving average on June 02, 2023
CAT moved above its 50-day moving average on June 02, 2023 date and that indicates a change from a downward trend to an upward trend. In of 41 similar past instances, the stock price increased further within 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 June 02, 2023. You may want to consider a long position or call options on CAT as a result. In of 86 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 June 02, 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 .
The 10-day moving average for CAT crossed bullishly above the 50-day moving average on June 08, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CAT advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
CAT broke above its upper Bollinger Band on June 07, 2023. 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.
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 fair valued 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 (6.689) is very high in comparison to the industry average of (2.018). P/E Ratio (17.422) is within average values for comparable stocks, (40.767). Projected Growth (PEG Ratio) (1.469) is also within normal values, averaging (1.802). Dividend Yield (0.020) settles around the average of (0.036) among similar stocks. P/S Ratio (2.007) is also within normal values, averaging (109.585).
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 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of mining equipment, diesel and natural gas engines and industrial gas turbines
Industry TrucksConstructionFarmMachinery
CAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAT has been closely correlated with AGCO. These tickers have moved in lockstep 78% 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.
| Ticker / NAME | Correlation To CAT | 1D Price Change % | ||
|---|---|---|---|---|
| CAT | 100% | -0.52% | ||
| AGCO - CAT | 78% Closely correlated | -0.11% | ||
| DE - CAT | 76% Closely correlated | -0.27% | ||
| TEX - CAT | 74% Closely correlated | -0.94% | ||
| CNHI - CAT | 74% Closely correlated | +1.17% | ||
| OSK - CAT | 68% Closely correlated | -0.62% | ||
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