Why This Year's Worst Dow Stock Is a Buy

Caterpillar has performed badly in the past, but what does the future hold? In this video, Brendan Byrnes lays out his case for investing in the company. Most compelling, he says, is that Caterpillar has entered the mining equipment business, which should mesh well with the growing demand for coal in China. The company also generates more than 60% of its revenues outside the U.S., so as emerging markets grow, Caterpillar's revenues should get a boost. Best of all, the company is trading at less than 10 times earnings, putting it at a fair entry price.

Check out the video for more details.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand-new report. Just click here to access it now.

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  • Report this Comment On April 07, 2013, at 9:33 PM, jamesdan567 wrote:

    CAT is a cyclical. The time to buy CAT is when the global economy is totally tanking and everyone knows it. Its a buy around $40 or below. However, for a growth investor its best to avoid it at any price.

  • Report this Comment On April 08, 2013, at 10:01 AM, chaimyfromwilli wrote:

    Pile up CAT shares as soon it gets to $78 that should be the brakes

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