Company Of The Day: Caterpillar

by Trefis Team
+16.17%
Upside
204
Market
237
Trefis
CAT
Caterpillar
Rate   |   votes   |   Share

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?

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

Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!