Company Of The Day: Caterpillar

+26.69%
Upside
185
Market
235
Trefis
CAT: Caterpillar logo
CAT
Caterpillar

What?

Caterpillar (NYSE:CAT) indicated that it expects a long healthy upcycle in the mining sector, which is a key end market for the company.

Why?

Relevant Articles
  1. What A Recession Would Mean For Caterpillar Stock?
  2. Will Caterpillar Stock Rise After Its Q1 Earnings?
  3. Strong Revenue Trends And Better Prospects Make Caterpillar Stock A Good Pick
  4. Up 19% In A Month, Will Caterpillar Stock Continue To See Higher Levels?
  5. Will Caterpillar Stock Continue To See Lower Levels Or Is A Rise Imminent?
  6. Should You Buy Caterpillar Stock After Its Upbeat Q4 Results?

The metals market is seeing strong demand and rising prices, as economies re-open following Covid. Moreover, countries such as the U.S. are planning significant infrastructure spending, which will also bode well for commodities demand.

So What?

Caterpillar is one of the larger suppliers of underground and surface mining equipment in the world. The company’s Resources segment accounted for about 17% of sales last year. However, we think that much of the potential gains are likely priced in, as CAT stock has rallied by about 35% year-to-date.

See Our Complete Analysis For Caterpillar

While we think Caterpillar stock looks slightly overvalued, it is helpful to know how its peers stack up. Caterpillar Stock Comparison With Peers summarizes how CAT compares against peers on metrics that matter. You can find more useful comparisons on Peer Comparisons.

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams