Caterpillar Stock: A Deep Dive Into Analyst Perspectives (5 Ratings)

In the latest quarter, 5 analysts provided ratings for Caterpillar CAT, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $283.0, a high estimate of $357.00, and a low estimate of $245.00. This current average has increased by 9.55% from the previous average price target of $258.33.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Caterpillar is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Caterpillar. This information offers 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.

Capture valuable insights into Caterpillar's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Caterpillar analyst ratings.

All You Need to Know About Caterpillar

Caterpillar is the premier manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services 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.

Caterpillar: A Financial Overview

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Caterpillar's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 12.11%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.62%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Caterpillar's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.43% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Caterpillar's ROA excels beyond industry benchmarks, reaching 3.24%. This signifies efficient management of assets and strong financial health.

Debt Management: Caterpillar's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.81, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.