Yahoo Finance Here's Why Caterpillar (CAT) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Caterpillar (CAT)
Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.
CAT boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Caterpillar are trading at a forward earnings multiple of 15.3X, as well as a PEG Ratio of 1.4, a Price/Cash Flow ratio of 12.9X, and a Price/Sales ratio of 2.4X.
A company's earnings performance is important for value investors as well. For fiscal 2024, nine analysts revised their earnings estimate higher in the last 60 days for CAT, while the Zacks Consensus Estimate has increased $0.44 to $21.67 per share. CAT also holds an average earnings surprise of 14.6%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CAT to their portfolios.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
