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Should This Make Caterpillar Inc. (NYSE: CAT) Investors Worry?

The trading price of Caterpillar Inc. (NYSE:CAT) floating lower at last check on Wednesday, May 24, closing at $209.85, -1.35% lower than its previous close.

Traders who pay close attention to intraday price movement should know that it has been fluctuating between $211.35 and $215.26. The company’s P/E ratio in the trailing 12-month period was 15.72. In examining the 52-week price action we see that the stock hit a 52-week high of $266.04 and a 52-week low of $160.60. Over the past month, the stock has lost -4.02% in value.

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Caterpillar Inc., whose market valuation is $109.59 billion at the time of this writing, is expected to release its quarterly earnings report Jul 31, 2023 – Aug 04, 2023. The dividend yield on the company stock is 2.26%, while its Forward Dividend ratio is 4.80. Investors’ optimism about the company‚Äôs current quarter earnings report is understandable. Analysts have predicted the quarterly earnings per share to grow by $4.56 per share this quarter, however they have predicted annual earnings per share of $17.89 for 2023 and $18.16 for 2024. It means analysts are expecting annual earnings per share growth of 25.60% this year and 1.50% next year.

Analysts have forecast the company to bring in revenue of $16.57 billion for the current quarter, with the likely lows of $16.12 billion and highs of $17.27 billion. The average estimate suggests sales will likely up by 16.30% this quarter compared to what was recorded in the comparable quarter last year. From the analysts’ viewpoint, the consensus estimate for the company‚Äôs annual revenue in 2023 is $65.02 billion. The company‚Äôs revenue is forecast to grow by 9.40% over what it did in 2023.

A company’s earnings reviews provide a brief indication of a stock’s direction in the short term, where in the case of Caterpillar Inc. No upward and no downward comments were posted in the last 7 days. On the technical side, indicators suggest CAT has a 100% Sell on average for the short term. According to the data of the stock’s medium term indicators, the stock is currently averaging as a 100% Sell, while an average of long term indicators suggests that the stock is currently 50% Sell.

Here is the average analyst rating on the stock as represented by 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock should be considered as either strong buy or strong sell respectively. The number of analysts that have assigned CAT a recommendation rating is 26. Out of them, 11 rate it a Hold, while 12 recommend Buy, whereas 0 assign an Overweight rating. 1 analyst(s) have tagged Caterpillar Inc. (CAT) as Underweight, while 2 advise Sell. Analysts have rated the stock Overweight, likely urging investors to take advantage of the opportunity to add to their holdings of the company’s shares.

If we dig deeper into the stock’s outlook, we see that the stock’s PEG is 1.22, which symbolizes a positive outlook. A quick review shows that CAT’s price is currently -1.73% off the SMA20 and -3.70% off the SMA50. The RSI metric on the 14-day chart is currently showing 41.34, and weekly volatility stands at 2.53%. When measured over the past 30 days, the indicator reaches 2.49%. Caterpillar Inc. (NYSE:CAT)’s beta value is currently sitting at 1.08, while the Average True Range indicator is currently displaying 5.21. With analysts defining $180.00-$345.00 as the low and high price targets, we arrive at a consensus price target of $246.86 for the trailing 12-month period. The current price is about 14.22% off the estimated low and -64.4% off the forecast high, based on this estimate. Investors will be thrilled if CAT’s share price rises to $240.00, which is the median consensus price. At that level, CAT’s share price would be -14.37% below current price.

To see how Caterpillar Inc. stock has been performing today in comparison to its peers in the industry, here are the numbers: CAT stock‚Äôs performance was -1.35% at last check in today’s session, and 2.79% in the past year, while Deere & Company (DE) has been trading -1.23% in recent session and positioned 6.17% higher than it was a year ago. Caterpillar Inc. has a P/E ratio of 15.72. Also during today’s trading, the S&P 500 Index has plunged -0.75%, while the Dow Jones Industrial also saw a negative session, down -0.62% today.

An evaluation of the daily trading volume of Caterpillar Inc. (NYSE:CAT) indicates that the 3-month average is 3.14 million. However, this figure has increased over the past 10 days to an average of 2.74 million.

Currently, records show that 516.20 million of the company‚Äôs shares remain outstanding. The institutions hold 70.90%. However, since the stock‚Äôs price has seen -12.40% year-to-date, investors’ interest is likely to be reignited due to its potential to move even lower.

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