Peeling Back The Layers: Exploring Caterpillar Through Analyst Insights
Across the recent three months, 6 analysts have shared their insights on Caterpillar (NYSE:CAT), expressing a variety of opinions spanning from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 1 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 2 | 1 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $378.83, a high estimate of $435.00, and a low estimate of $340.00. This upward trend is apparent, with the current average reflecting a 11.22% increase from the previous average price target of $340.60.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Caterpillar by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Kyle Menges | Citigroup | Announces | Buy | $380.00 | - |
| Helen Fang | HSBC | Raises | Hold | $360.00 | $330.00 |
| Matt Elkott | TD Cowen | Raises | Buy | $340.00 | $338.00 |
| Stanley Elliott | Stifel | Raises | Hold | $350.00 | $293.00 |
| Tami Zakaria | JP Morgan | Raises | Overweight | $435.00 | $385.00 |
| Jerry Revich | Goldman Sachs | Raises | Buy | $408.00 | $357.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Caterpillar. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Caterpillar compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Caterpillar's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Caterpillar analyst ratings.
Discovering Caterpillar: A Closer Look
Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Financial Milestones: Caterpillar's Journey
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Caterpillar's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.4%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: Caterpillar's net margin excels beyond industry benchmarks, reaching 18.08%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Caterpillar's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 15.38%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Caterpillar's ROA stands out, surpassing industry averages. With an impressive ROA of 3.34%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Caterpillar's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.