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.
Heavy equipment company Caterpillar has agreed to pay $800,000 to resolve allegations of systemic hiring discrimination against Black applicants at an Illinois plant, the U.S. Labor Department said on Tuesday.
Despite a recent slowdown, the future of the U.S. economy appears promising. Economists remain optimistic, citing resilient consumer activity as a driving force for continued growth.
Caterpillar's revenue growth is expected to recover next year due to strength in the Energy & Transportation business and a rebound in the Construction business. The company's E&T business is experiencing strong demand for reciprocating engines, particularly from data centers, which is driving revenue growth. Despite concerns about high dealer inventories, the situation is manageable, and the stock is trading at a discount, making it a good buying opportunity.
Caterpillar has outperformed the S&P 500 with a ten-year total return of over 330%. The company's stock price has diverged from economic indicators, indicating resilience in the face of weakness. Caterpillar reported strong earnings, deployed record amounts for share repurchases and dividends, and has a favorable dividend scorecard.
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Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.