I reiterate my buy rating on Caterpillar, citing its recent dividend hike and resilient shareholder-friendly actions amid macro uncertainty. Despite weak Q1 results and EPS downgrades, CAT's robust profitability, strong free cash flow, and reasonable valuation support a positive long-term outlook. Key risks include tariff headwinds, global macroeconomic weakness, and China exposure, but CAT's balance sheet and GARP profile remain attractive.
Recently, Zacks.com users have been paying close attention to Caterpillar (CAT). This makes it worthwhile to examine what the stock has in store.
Caterpillar (CAT) concluded the recent trading session at $357.68, signifying a -1.31% move from its prior day's close.
Caterpillar lifts its quarterly dividend by 7% to $1.51, marking 31 straight years of hikes despite recent revenue softness.
CAT and VLVLY face near-term headwinds, but Caterpillar's stronger ROE and U.S. tailwinds may give it an edge.
In the latest trading session, Caterpillar (CAT) closed at $363.14, marking a +1.27% move from the previous day.
Steve Weiss, founder and managing partner of Short Hills Capital Partners, joins CNBC's “Halftime Report” to detail his latest buys.
There are times in the economic cycle when a particular group of stocks makes more sense than others, and today's market presents investors with one extreme in the economic cycle and the capital and sentiment cycle. Every player in the stock market's game seems crowded in one area, and that is the exciting technology sector, leaving behind some of the better (if not best) risk-to-reward ratios in other industries.
CAT sees sixth straight quarter of volume declines as demand weakens across key segments and macro pressures intensify.
Caterpillar (NYSE:CAT) stock has lagged behind the S&P 500 index over the previous six months, falling by 12% in contrast to the S&P 500's 2% drop. This underachievement corresponds with low dealer inventory levels, which signal weak overall demand for Caterpillar's offerings.
Zacks.com users have recently been watching Caterpillar (CAT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Dividend growth remains robust for select companies, with Casey's, Oil-Dri, and Matson poised for double-digit increases based on strong earnings and expansion. Caterpillar and Kroger are expected to deliver mid-to-high single-digit dividend hikes, reflecting solid but moderating earnings and macroeconomic headwinds. Target and John Wiley will likely announce minimal dividend increases, as flat sales and earnings pressure payout growth, but their long streaks of increases remain intact.