Caterpillar Inc Stock Buy Recommendation Reiterated (CAT)
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- CAT's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 4.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CATERPILLAR INC has improved earnings per share by 48.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CATERPILLAR INC increased its bottom line by earning $7.39 versus $4.14 in the prior year. This year, the market expects an improvement in earnings ($9.15 versus $7.39).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 48.9% when compared to the same quarter one year prior, rising from $1,141.00 million to $1,699.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Machinery industry and the overall market, CATERPILLAR INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CATERPILLAR INC is currently lower than what is desirable, coming in at 33.60%. Regardless of CAT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CAT's net profit margin of 10.33% compares favorably to the industry average.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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