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Wednesday, November 17, 2021 1:41:12 PM
Checking In On This Infrastructure Caterpillar (CAT) Stock
By: Schaeffer's Investment Research | November 17, 2021
• CAT is up 11% in 2021
• Caterpillar stock has shed 3% since the infrastructure bill was passed
A little over a week ago, we profiled Caterpillar Inc. (NYSE:CAT) stock as a beneficiary to the newly-passed infrastructure bill. However, the immediate effects of those tailwinds have worn off, with CAT sporting a 3.2% deficit this week.
The shares' 200-day moving average kept a lid on the breakout last week. CAT is a far cry from its June 4 all-time high of $246.69, but thanks to its 11% year-to-date lead, is also a ways off its November 2020 annual low around $170.
From a fundamental point of view, Caterpillar stock has strong potential as a recovery play with a forward dividend of $4.44 with a dividend yield of 2.12%. CAT currently trades at a somewhat high price-earnings ratio of 22.22. However, Caterpillar stock's forward price-earnings ratio of 16.86 indicates a significant expected increase in earnings and represents a much better valuation for the construction company.
Additionally, CAT's revenues and net income are still down 12% and 16%, respectively, since fiscal 2018. This is despite growing Caterpillar's revenues and net income 16% and 72%, respectively, since fiscal 2020.
Read Full Story »»»
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By: Schaeffer's Investment Research | November 17, 2021
• CAT is up 11% in 2021
• Caterpillar stock has shed 3% since the infrastructure bill was passed
A little over a week ago, we profiled Caterpillar Inc. (NYSE:CAT) stock as a beneficiary to the newly-passed infrastructure bill. However, the immediate effects of those tailwinds have worn off, with CAT sporting a 3.2% deficit this week.
The shares' 200-day moving average kept a lid on the breakout last week. CAT is a far cry from its June 4 all-time high of $246.69, but thanks to its 11% year-to-date lead, is also a ways off its November 2020 annual low around $170.
From a fundamental point of view, Caterpillar stock has strong potential as a recovery play with a forward dividend of $4.44 with a dividend yield of 2.12%. CAT currently trades at a somewhat high price-earnings ratio of 22.22. However, Caterpillar stock's forward price-earnings ratio of 16.86 indicates a significant expected increase in earnings and represents a much better valuation for the construction company.
Additionally, CAT's revenues and net income are still down 12% and 16%, respectively, since fiscal 2018. This is despite growing Caterpillar's revenues and net income 16% and 72%, respectively, since fiscal 2020.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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