In a welcome move, Caterpillar stock saw its Relative Strength Rating rise from 65 to 74 on Friday.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners typically have an 80 or better RS Rating in the early stages of their moves. See if Caterpillar can continue to rebound and clear that threshold.
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Is Caterpillar Stock A Buy?
Caterpillar stock is working on a consolidation with a 246.79 buy point. See if the stock can break out in volume at least 40% higher than normal. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The machinery company showed 27% EPS growth in the latest quarterly report, while sales growth came in at 23%.
Caterpillar stock holds the No. 1 rank among its peers in the Machinery-Construction/Mining industry group.
