Caterpillar Stock: A Deep Dive Into Analyst Perspectives (6 Ratings)

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Caterpillar CAT in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $349.33, along with a high estimate of $399.00 and a low estimate of $285.00. Surpassing the previous average price target of $339.60, the current average has increased by 2.87%.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Caterpillar. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Caterpillar. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Caterpillar compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Caterpillar's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Caterpillar's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Caterpillar analyst ratings.

Get to Know Caterpillar Better

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

Financial Insights: Caterpillar

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Challenges: Caterpillar's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -3.63%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Caterpillar's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.06%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Caterpillar's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 15.42%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Caterpillar's ROA excels beyond industry benchmarks, reaching 3.21%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.18, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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