Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, heavy equipment giant Caterpillar (NYSE: CAT ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Caterpillar's business and see what CAPS investors are saying about the stock right now.
Caterpillar facts
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Headquarters (Founded)
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Peoria, Ill. (1925)
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Market Cap
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$28.15 billion
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Industry
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Construction and farm machinery and heavy trucks
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Trailing-12-Month Revenue
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$43.1 billion
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Management
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Chairman/CEO Dr. James Owens (since 2004)
CFO David Burritt (since 2005)
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Return on Equity (Average, Past Three Years)
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35.6%
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Cash / Debt
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$1.7 billion / $33.3 billion
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Dividend Yield
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3.6%
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Competitors
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Deere (NYSE: DE )
Terex (NYSE: TEX )
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CAPS Members Bullish on CAT Also Bullish on
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General Electric (NYSE: GE )
Johnson & Johnson (NYSE: JNJ )
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CAPS Members Bearish on CAT Also Bearish on
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Bank of America (NYSE: BAC )
Starbucks (Nasdaq: SBUX )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 4,977 members who have rated Caterpillar believe the stock will outperform the S&P 500 going forward. These bulls include kidwolf908 and Gmoney91.
Just last month, kidwolf908 tapped Caterpillar as a great bet to crawl back:
With the global economy showing some signs of rejuvenation, I find [Caterpillar] to be in a wonderful place to do business. As development both at home and abroad pick back up, machinery will be in high demand and the number one pick in machinery is definitely Caterpillar.
In an earlier pitch, Gmoney91 expands on the stock as a steady income opportunity:
Caterpillar is a great company that has been hammered by the economic downturn. However, the company's management made great moves to enable the payment of a very nice dividend even with lower sales. As overseas countries start to boom again, Caterpillar will only get more and more business. The company predicts that 2008 sales will be attainable again with the next five years. The increased sales, along with the lucrative dividend, make Caterpillar a great buy for the long run.
What do you think about Caterpillar, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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