Dow Today: Caterpillar (CAT) Leads The Day Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) closed up 136 points (+1%) at 13,232. During the day, 702 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 566.7 million. The NYSE advances/declines ratio closed at 2,318 issues advancing vs. 700 declining with 96 unchanged.
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The Dow component that led the way higher today was Caterpillar (NYSE: CAT), which sported a $2.84 gain (+3.4%) bringing the stock to $87.65. This single gain lifted the Dow Jones Industrial Average by 21.49 points or roughly accounting for 15.8% of the Dow's overall gain. Volume for Caterpillar ended the day at 8.5 million shares traded vs. an average daily trading volume of 7.3 million shares.

Caterpillar has a market cap of $55.04 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 7% year to date as of Wednesday's close. The stock's dividend yield sits at 2.5%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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