Factors to Consider
Barchart technical indicators:
- The short- and mid-term technical indicators are all strengthening.
- The stock has a 24% Barchart technical buy signal.
- The stock has a Trend Spotter buy signal.
- Shares are trading above their 20- and 50-day moving averages and are within $5 of crossing their 100-day moving average.
- There are six new highs, and the stock is up 3.1% in the last month.
- The relative strength index is at 59.56%.
- Barchart.com computes a technical support level at $85.62
- Shares recently traded at $87.22 with a 50-day moving average of $84.44.
- Solid following on Wall Street, where 18 firms have assigned 22 analysts to make projections about the stock for clients.
- Analysts project revenue will increase by 14.4% this year and another 6.5% next year
- Earnings are estimated to increase by 29.9% this year, 9.40% next year and continue to increase by an annual rate of 17.5% for the next five years.
- The consensus numbers lead analysts to issue five strong buy, 10 buy, 7 hold and no underperform or sell recommendations to clients.
- If the numbers hold, analysts predict investors should see a total annual return in the 16% to 20% range over the next five years.
- The balance sheet gets an A+ rating.
- TheStreet Ratings gives the stock a B rating.
- The price-to-earnings ratio of 9.52 is a discount to the market P/E of 14.8.
- The dividend rate of 2.38% is about 15% of projected earnings and almost the same as the market dividend rate of 2.40%.
- The company is grounded in the production of power production equipment, all types of heavy construction equipment and the heavy equipment used in mining.
- Acquisitions in all three of these sectors in the U.S., Germany and China give CAT added production capacity.
- The company's marketing plan is targeting the growing economies of China and Brazil, and when those countries restart building their power grids and infrastructures CAT will benefit directly.
- Most brokerages have a hold or better on this stock, and there are favorable recommendations from Bank of America Securities, Goldman Sachs, Barclays Capital Management, Jefferies, UBS and RBC.
- Since Jim Cramer gave it a thumbs-up in July, the stock is up about 5.59%
- Other positive comments came from Tobin Smith, Gary B. Smith and Tom Gayner.
- I look for individual investor sentiment from the readers of Motley Fool, where 5,922 readers gave the stock a 94% vote of confidence to beat the market
- TheStreet Ratings rates its A-.
- Revenue is projected to increase by 16.5% this year and 3.7% next year.
- Earnings estimated to be up 23.8% this year and 4.9% next year.
- TheStreet Ratings rates it A-.
- Revenue is projected to increase by 0.5% this year and 7.2% next year.
- Earnings are expected to increase by 5.7% this year and 10.8% next year.
- TheStreet Ratings rates it B.
- Revenue is projected to increase by 8.1% this year and 5.9% next year.
- Earnings are expected to be up 14.3% this year and 11.0% next year.