There's No Stopping This King of the Jungle

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

In the past few months, Caterpillar (NYSE: CAT  ) , the Illinois-based construction and mining-equipment giant, has grabbed headlines with hints of the expansion plans it has up its sleeves.

Here's the lowdown on what's cooking.

Strengthening ties
Caterpillar's tie-in with Navistar International (NYSE: NAV  ) has been a successful story ever since they began their 2008 alliance, and it appears their bond is strengthening further. The two companies are making some structural changes to their joint venture to create a business model that will help increase the global reach of their products. They're also about to complete the terms of a new business venture for developing new lines of on-highway and heavy-duty vocational trucks to be sold globally.  

Growing markets, here I come!
Speaking of global reach, Caterpillar has its eyes set on emerging markets. A few weeks back, it joined forces with APR Energy to develop temporary power solutions targeting international power projects, especially in emerging markets. Caterpillar has massive plans in particular to gain a leadership position in China. In line with that goal, it recently announced a big R&D expansion in China catering to its global customer needs.

From increasing capacity to setting up several new facilities, Caterpillar isn't shying away from putting more and more of its money into emerging markets -- something other players in this segment are looking at, too. In fact, Caterpillar sees its acquisition of mining-equipment manufacturer Bucyrus as a crucial step toward gaining a stronger foothold in growing markets. One of the biggest feathers in Caterpillar's cap today, the Bucyrus purchase gives Caterpillar an excellent opportunity to lead from the front in the mining industry, capitalizing on the wide range of products Bucyrus has added to Cat's portfolio.

With the Asia-Pacific area becoming its second-largest revenue-generating market, it's no wonder that Caterpillar is so fond of the region!

Looking good on all fronts
So the plans look good, but how about performance? Well, I've written about how solidly the company's top and bottom lines have grown over the years. Caterpillar has more than $9 billion in cash and equivalents on hand, renders a superb return on equity of 35% even for its moderately high debt load, and offers a solid dividend yield of 2.3%.

Caterpillar's last quarter, during which it raised its full-year guidance, was terrific. More importantly, its latest global sales figures -- a robust 34% growth in August -- show the company's power to weather the economic slowdown.

The Foolish bottom line
This company looks poised to grow bigger, and I sure am falling in love with this Big Cat. How about you? Don't forget to add Caterpillar to your Watchlist, our free, personalized stock-tracking service.

Fool contributor Neha Chamaria owns no shares of any of the companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (23)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1568055, ~/Articles/ArticleHandler.aspx, 10/23/2016 5:56:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:01 PM
CAT $86.33 Down -0.30 -0.35%
Caterpillar CAPS Rating: ***
NAV $23.03 Up +0.03 +0.13%
Navistar Internati… CAPS Rating: **