Caterpillar Climbs Amid Tariffs
Caterpillar Inc. surpassed expectations on profit and upped its outlook for the full year, even as it might have to grapple with ‘trade war’ effects.
The machine manufacturing behemoth's Q2 2018 earnings of $2.82 per share were more than double compared to the year-ago period.
While acknowledging the potential $100-200 million in additional costs due to tariffs on materials, the company still hopes to rake in earnings in the range of $11-12 dollars per share– revising its previous forecasts upwards. The firm is expected to tackle higher costs by raising product prices.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CAT's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for CAT turned positive on September 04, 2026. Looking at past instances where CAT's MACD turned positive, the stock continued to rise in 33 of 44 cases over the following month. The odds of a continued upward trend are 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAT advanced for three days, in 278 of 376 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 31 of 59 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 53%.
The Momentum Indicator moved below the 0 level on September 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CAT as a result. In 45 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 62%.
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 56%.
The Aroon Indicator for CAT entered a downward trend on September 14, 2026. 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 PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding 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 SMR rating for this company is 19 (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 Profit vs. Risk Rating rating for this company is 20 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 43 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 87 (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 (18.587) is very high in comparison to the industry average of (2.666). P/E Ratio (33.764) is within average values for comparable stocks, (36.777). Projected Growth (PEG Ratio) (1.372) is also within normal values, averaging (1.593). Dividend Yield (0.008) settles around the average of (0.014) among similar stocks. CAT's P/S Ratio (4.902) is very high in comparison to the industry average of (1.138).
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General Information
a manufacturer of mining equipment, diesel and natural gas engines and industrial gas turbines
Industry TrucksConstructionFarmMachinery
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