In this video, Motley Fool industrials analyst Blake Bos outlines two reasons to buy, and one compelling reason to sell,Â Caterpillar. One reason to buy is that the company sells at a low multiple and has the potential of a macroeconomic slowdown built into the stock price. That is, downside risk is limited. Another reason to buy is that Caterpillar has made a series of acquisitions expanding its market reach. However, this is also the reason to sell since integration of these acquisitions has not always gone smoothly. Caterpillar needs to gain synergies from its acquisitions and expand its international presence to do well in the future.
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 bran-new report. Just click here to access it now.