We focus today on Industrials, in particular on Heavy Machinery and Vehicles, with two articles: this one on Caterpillar, Inc. CAT and an Earnings Analysis on Deere & Company DE. In July, Caterpillar, Inc. CAT cut its revenue and earnings guidance. Yesterday, rival Joy Global JOY discussed its earnings for Q3 2013, reporting net sales of $1.3 billion compared to $1.4 billion a year ago. Deere & Company came out with its F3 Q2013 earnings in mid-August and announced quarterly dividends of $.51 a share yesterday.
Let's take a closer look at Caterpillar, Inc. one of the largest companies in its peer group. We analyze the company's growth expectations and capital investment strategy relative to its peers (full peer set at the end of this post).
Get performance characteristics and key ratios for Caterpillar and peers with this full report!
Share Price Performance
Relative underperformance over the last year and the last month suggest a lagging position.
Caterpillar's share price performance of -4.1% for the last 12 months is below its peer median. The 30-day trend in its share price performance of 0.5% is also below the peer median implying that the company's stock performance is lagging its peers. (See report for chart)
Growth Expectations
The market likely has some questions about the company's long-term strategy.
Capital Investment Strategy
Peer List for Caterpillar, Inc.
Deere & Company(DE), Cummins Inc.(CMI), Komatsu Ltd. Sponsored ADR(KMTUY), Fiat Industrial SpA(FI), CNH Global NV(CNH), Sany Heavy Industry Co., Ltd. Class A(600031), Zoomlion Heavy Industry Science & Technology Co. Ltd. Class A(000157), and Joy Global Inc.(JOY).
Sector: Producer Manufacturing. Industry Group: Trucks/Construction/Farm Machinery
Are Caterpillar's returns sustainable? What are its drivers of margin? Answer these and other questions with our Fundamental Analysis.
This article was first published on the CapitalCube Blog, Disclaimer
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