The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics across the investing world.
In today's edition, Brendan gives his opinion on whether Caterpillar is a buy, a sell, or a hold. The construction equipment giant was once the second-best performer on the Dow early in 2012, but it has fallen hard recently due to concerns about Europe and the macro economy. Brendan thinks Caterpillar is extremely attractive at its current price, and he rates the company as a buy. Caterpillar should continue to benefit from robust mining growth, especially after its acquisition of Bucyrus last year. Additionally, the company continues to be an innovator and is looking dirt cheap trading at just eight times forward earnings. Check out the video below for more reasons why Brendan rates Caterpillar as a buy.
Caterpillar looks like a solid outperformer in the long run, but we've come across a different stock that has us so excited we can hardly contain our investing enthusiasm. This pick has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.
Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of Westport Innovations. Motley Fool newsletter services recommend Cummins and Westport Innovations. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
More from The Motley Fool
Does a Strong Start Make 2018 a Sure Winner for Stocks?
Find out whether the so-called "January effect" is real.
Meet the 2018 Dogs of the Dow
Learn the basics of this simple dividend-investing strategy.
The Dow's Worst Day in 2017
Even with big gains, there were some scary times for the average.