Caterpillar Stock Buy Hold or Sell Recommendation
| CAT Stock | USD 433.70 5.01 1.17% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Caterpillar is 'Buy'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Caterpillar given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Caterpillar, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide. Note, we conduct extensive research on individual companies such as Caterpillar and provide practical buy, sell, or hold advice based on investors' constraints. Caterpillar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
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Execute Caterpillar Buy or Sell Advice
The Caterpillar recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Caterpillar. Macroaxis does not own or have any residual interests in Caterpillar or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Caterpillar's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Strong | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Tiny | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Caterpillar Trading Alerts and Improvement Suggestions
| 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 72.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Caterpillar Dips More Than Broader Market What You Should Know |
Caterpillar Returns Distribution Density
The distribution of Caterpillar's historical returns is an attempt to chart the uncertainty of Caterpillar's future price movements. The chart of the probability distribution of Caterpillar daily returns describes the distribution of returns around its average expected value. We use Caterpillar price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Caterpillar returns is essential to provide solid investment advice for Caterpillar.
| Mean Return | 0.53 | Value At Risk | -1.32 | Potential Upside | 2.77 | Standard Deviation | 1.33 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Caterpillar historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Caterpillar Stock Institutional Investors
The Caterpillar's institutional investors refer to entities that pool money to purchase Caterpillar's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Ubs Asset Mgmt Americas Inc | 2025-03-31 | 4.2 M | Capital Research Global Investors | 2025-03-31 | 3.7 M | Jpmorgan Chase & Co | 2025-03-31 | 3.6 M | Charles Schwab Investment Management Inc | 2025-03-31 | 3.3 M | Goldman Sachs Group Inc | 2025-03-31 | 3.2 M | Bank Of New York Mellon Corp | 2025-03-31 | 3.2 M | Amvescap Plc. | 2025-03-31 | 3.1 M | Dimensional Fund Advisors, Inc. | 2025-03-31 | 3.1 M | Legal & General Group Plc | 2025-03-31 | 2.6 M | Vanguard Group Inc | 2025-03-31 | 46.2 M | State Street Corp | 2025-03-31 | 36.2 M |
Caterpillar Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (34M) | (2.6B) | (2.6B) | (364M) | (414M) | (434.7M) | |
| Change In Cash | 1.1B | (103M) | (2.3B) | (26M) | (89M) | (84.6M) | |
| Free Cash Flow | 4.2B | 4.7B | 5.2B | 9.8B | 8.8B | 9.3B | |
| Depreciation | 2.4B | 2.4B | 2.2B | 2.1B | 2.2B | 1.9B | |
| Other Non Cash Items | 1B | 216M | 1.0B | 850M | 574M | 498.6M | |
| Dividends Paid | 2.2B | 2.3B | 2.4B | 2.6B | 2.6B | 2.8B | |
| Capital Expenditures | 2.1B | 2.5B | 2.6B | 3.1B | 3.2B | 2.5B | |
| Net Income | 3.0B | 6.5B | 6.7B | 10.3B | 10.8B | 11.3B | |
| End Period Cash Flow | 9.4B | 9.3B | 7.0B | 7.0B | 6.9B | 3.6B | |
| Investments | 10M | (1.5B) | (2.5B) | (5.9B) | (2.5B) | (2.6B) | |
| Change Receivables | 171M | 1.4B | (1.3B) | (220M) | (198M) | (188.1M) | |
| Net Borrowings | (8.4B) | (11.0B) | 681M | (652M) | (586.8M) | (616.1M) | |
| Change To Netincome | 1.2B | 1.3B | (996M) | 643M | 739.5M | 964.5M |
Caterpillar Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Caterpillar or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Caterpillar's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Caterpillar stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.53 | |
β | Beta against Dow Jones | -0.12 | |
σ | Overall volatility | 1.31 | |
Ir | Information ratio | 0.30 |
Caterpillar Volatility Alert
Caterpillar has low volatility with Treynor Ratio of -4.48, Maximum Drawdown of 7.33 and kurtosis of 1.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Caterpillar's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Caterpillar's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Caterpillar Fundamentals Vs Peers
Comparing Caterpillar's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Caterpillar's direct or indirect competition across all of the common fundamentals between Caterpillar and the related equities. This way, we can detect undervalued stocks with similar characteristics as Caterpillar or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Caterpillar's fundamental indicators could also be used in its relative valuation, which is a method of valuing Caterpillar by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Caterpillar to competition |
| Fundamentals | Caterpillar | Peer Average |
| Return On Equity | 0.56 | -0.31 |
| Return On Asset | 0.094 | -0.14 |
| Profit Margin | 0.16 % | (1.27) % |
| Operating Margin | 0.18 % | (5.51) % |
| Current Valuation | 236.65 B | 16.62 B |
| Shares Outstanding | 470.32 M | 571.82 M |
| Shares Owned By Insiders | 0.20 % | 10.09 % |
| Shares Owned By Institutions | 72.23 % | 39.21 % |
| Number Of Shares Shorted | 5.78 M | 4.71 M |
| Price To Earning | 17.15 X | 28.72 X |
| Price To Book | 11.16 X | 9.51 X |
| Price To Sales | 3.22 X | 11.42 X |
| Revenue | 64.81 B | 9.43 B |
| Gross Profit | 20.14 B | 27.38 B |
| EBITDA | 16.04 B | 3.9 B |
| Net Income | 10.79 B | 570.98 M |
| Cash And Equivalents | 6.89 B | 2.7 B |
| Cash Per Share | 14.27 X | 5.01 X |
| Total Debt | 38.41 B | 5.32 B |
| Debt To Equity | 2.34 % | 48.70 % |
| Current Ratio | 1.41 X | 2.16 X |
| Book Value Per Share | 38.35 X | 1.93 K |
| Cash Flow From Operations | 12.04 B | 971.22 M |
| Short Ratio | 2.11 X | 4.00 X |
| Earnings Per Share | 20.49 X | 3.12 X |
| Price To Earnings To Growth | 2.26 X | 4.89 X |
| Target Price | 403.13 | |
| Number Of Employees | 112.9 K | 18.84 K |
| Beta | 1.4 | -0.15 |
| Market Capitalization | 203.98 B | 19.03 B |
| Total Asset | 87.76 B | 29.47 B |
| Retained Earnings | 59.35 B | 9.33 B |
| Working Capital | 13.41 B | 1.48 B |
Note: Disposition of 452 shares by Denise Johnson of Caterpillar at 357.5 subject to Rule 16b-3 [view details]
Caterpillar Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Caterpillar . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Caterpillar Buy or Sell Advice
When is the right time to buy or sell Caterpillar? Buying financial instruments such as Caterpillar Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional 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.