What 6 Analyst Ratings Have To Say About Caterpillar

Caterpillar CAT has been analyzed by 6 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over 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 $358.33, a high estimate of $434.00, and a low estimate of $285.00. Observing a 3.66% increase, the current average has risen from the previous average price target of $345.67.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into 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: 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: 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 explore the dynamics of price targets, providing estimates for the future value of Caterpillar's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Caterpillar's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Caterpillar analyst ratings.

All You Need to Know About Caterpillar

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.

Caterpillar: Financial Performance Dissected

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Negative Revenue Trend: Examining Caterpillar's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -3.63% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Caterpillar's net margin excels beyond industry benchmarks, reaching 16.06%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Caterpillar's ROE excels beyond industry benchmarks, reaching 15.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Caterpillar's ROA stands out, surpassing industry averages. With an impressive ROA of 3.21%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Caterpillar's debt-to-equity ratio surpasses industry norms, standing at 2.18. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of 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 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.

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