If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns.

Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.

Why You Should Pay Attention to 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 was added to the Zacks Focus List on April 18, 2017 at $94.14 per share. Since then, shares have increased 91.78% to $180.54.

For fiscal 2022, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $12.73. CAT boasts an average earnings surprise of 13.2%.

Additionally, Caterpillar's earnings are expected to grow 17.8% for the current fiscal year.

It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding a Focus List stock like CAT, there's a great chance you'll be getting into a company whose future earnings estimates will be raised, which can lead to price momentum.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research