/Caterpillar%20Inc_%20sign%20on%20building-by%20Jonathan%20Weiss%20via%20Shutterstock.jpg)
Caterpillar Inc. (CAT), headquartered in Irving, Texas, manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Valued at $167.7 billion by market cap, Caterpillar is the world’s leading manufacturer of construction and mining equipment, and also manufactures engines and other parts for its equipment, offering financing and insurance.
Shares of this machinery giant have underperformed the broader market slightly over the past year. CAT has gained 26.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024 alone, CAT stock rose 15.8%, compared to the SPX’s 16.8% rise on a YTD basis.
Narrowing the focus, CAT has surpassed the iShares U.S. Industrials ETF (IYJ). The exchange-traded fund has gained about 20.9% over the past year. Moreover, CAT’s gains on a YTD basis outshine the ETF’s 10.7% returns over the same time frame.
On Aug. 6, CAT shares rose more than 3% after reporting its Q2 earnings results. Its adjusted EPS of $5.99 surpassed the consensus of $5.53. The company’s revenue was $16.7 billion, which missed Wall Street’s estimates of $17.8 billion.
For the current fiscal year, ending in December, analysts expect CAT’s EPS to grow 3.1% to $21.87 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 18 analysts covering CAT stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and two “Strong Sells.”
The configuration has been stable over the past months.
On Aug. 7, Truist Financial Corporation (TFC) analyst Jamie Cook reiterated a “Buy” rating on CAT with a price target of $399, implying a potential upside of 16.5% from current levels.
The mean price target of $354.21 represents a 3.5% premium from CAT’s current price levels. The Street-high price target of $435 suggests an upside potential of 27.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
