This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Caterpillar Shares Rise On Upgrade, 4Q Report

BOSTON (AP) â¿¿ Shares of Caterpillar Inc. climbed on Tuesday after an analyst upgraded the stock, saying the company has clearly explained to investors the risks it faces, which could help lift the stock.

Other analysts who reviewed Caterpillar's fourth-quarter earnings offered mixed assessments of prospects for the largest maker of construction and mining equipment. Some cited risks for Caterpillar if the global mining outlook doesn't improve.

The company on Monday reported a sharply lower fourth-quarter profit, in part due to a deal in China that soured, and slower economic growth around most of the world.

Caterpillar said that its first quarter revenue and profits will be "significantly lower" than the same period last year. The Peoria, Ill.-based company also warned that its full-year profit could shrink if the global economy doesn't pick up in the second half of the year, as mining companies and builders remain cautious about buying new gear.

Shares of Caterpillar rose following Monday morning's earnings report, closing up 2 percent. The stock continued to rise on Tuesday, gaining $1.02, or about 1 percent, to $98.47 in afternoon trading. Shares of Caterpillar are up nearly 10 percent this year, topping the 5.6 percent gain in the Standard & Poor's 500 index.

One catalyst on Tuesday was an upgrade from BMO Capital Markets analyst Joel Tiss, who lifted his rating to "Outperform" from "Market Perform."

Tiss said in a note to clients that the stock could rise higher as a result of several factors, including increasing optimism among investors, and the desire of money managers to invest in construction-related industries and take advantage of pent-up demand in that segment of the global economy. He also said Caterpillar faces "well-defined headwinds."

Shares of Caterpillar rose on Monday because "investors now believe the bad news is out and are willing to look past the near-term obstacles," Tiss said.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs