Caterpillar Stock Performance

CAT Stock  USD 364.65  8.26  2.32%   
On a scale of 0 to 100, Caterpillar holds a performance score of 20. The firm shows a Beta (market volatility) of 1.68, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Caterpillar will likely underperform. Please check Caterpillar's value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether Caterpillar's price patterns will revert.

Risk-Adjusted Performance

20 of 100

 
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Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Caterpillar are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Caterpillar unveiled solid returns over the last few months and may actually be approaching a breakup point. ...more

Actual Historical Performance (%)

One Day Return
2.32
Five Day Return
0.0137
Year To Date Return
24.58
Ten Year Return
266.89
All Time Return
22.7 K
Forward Dividend Yield
0.0146
Payout Ratio
0.2405
Last Split Factor
2:1
Forward Dividend Rate
5.2
Dividend Date
2024-02-20
 
Caterpillar dividend paid on 20th of February 2024
02/20/2024
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Begin Period Cash FlowB
  

Caterpillar Relative Risk vs. Return Landscape

If you would invest  29,431  in Caterpillar on December 29, 2023 and sell it today you would earn a total of  7,034  from holding Caterpillar or generate 23.9% return on investment over 90 days. Caterpillar is generating 0.3612% of daily returns assuming volatility of 1.3683% on return distribution over 90 days investment horizon. In other words, 12% of stocks are less volatile than Caterpillar, and above 93% of all equities are expected to generate higher returns over the next 90 days.
  Expected Return   
       Risk  
Considering the 90-day investment horizon Caterpillar is expected to generate 2.39 times more return on investment than the market. However, the company is 2.39 times more volatile than its market benchmark. It trades about 0.26 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.23 per unit of risk.

Caterpillar Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Caterpillar's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Caterpillar, and traders can use it to determine the average amount a Caterpillar's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.264

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Estimated Market Risk

 1.37
  actual daily
12
88% of assets are more volatile

Expected Return

 0.36
  actual daily
7
93% of assets have higher returns

Risk-Adjusted Return

 0.26
  actual daily
20
80% of assets perform better
Based on monthly moving average Caterpillar is performing at about 20% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Caterpillar by adding it to a well-diversified portfolio.

Caterpillar Fundamentals Growth

Caterpillar Stock prices reflect investors' perceptions of the future prospects and financial health of Caterpillar, and Caterpillar fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Caterpillar Stock performance.

About Caterpillar Performance

To evaluate Caterpillar Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Caterpillar generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Caterpillar Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Caterpillar market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Caterpillar's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2024
Return On Capital Employed 0.26  0.28 
Return On Assets 0.12  0.12 
Return On Equity 0.53  0.56 

Things to note about Caterpillar performance evaluation

Checking the ongoing alerts about Caterpillar for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Caterpillar help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Caterpillar is unlikely to experience financial distress in the next 2 years
Caterpillar has a strong financial position based on the latest SEC filings
About 73.0% of the company shares are held by institutions such as insurance companies
On 20th of February 2024 Caterpillar paid $ 1.3 per share dividend to its current shareholders
Latest headline from zacks.com: Caterpillar Ascends While Market Falls Some Facts to Note
Evaluating Caterpillar's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Caterpillar's stock performance include:
  • Analyzing Caterpillar's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Caterpillar's stock is overvalued or undervalued compared to its peers.
  • Examining Caterpillar's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating Caterpillar's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Caterpillar's management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of Caterpillar's stock. These opinions can provide insight into Caterpillar's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Caterpillar's stock performance is not an exact science, and many factors can impact Caterpillar's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
When determining whether Caterpillar is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Caterpillar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Caterpillar Stock. Highlighted below are key reports to facilitate an investment decision about Caterpillar Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Caterpillar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.
Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Complementary Tools for Caterpillar Stock analysis

When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.893
Dividend Share
5.1
Earnings Share
20.14
Revenue Per Share
131.336
Quarterly Revenue Growth
0.029
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Caterpillar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.