Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, heavy equipment giant Caterpillar (CAT 1.59%) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Caterpillar and see what CAPS investors are saying about the stock right now.
Caterpillar facts
|
Headquarters (founded) |
Peoria, Ill. (1925) |
|
Market Cap |
$53.0 billion |
|
Industry |
Construction and farm machinery |
|
Trailing-12-Month Revenue |
$67.0 billion |
|
Management |
Chairman/CEO Douglas Oberhelman CFO Edward Rapp |
|
Return on Equity (average, past 3 years) |
32.2% |
|
Cash/Debt |
$3.4 billion / $39.9 billion |
|
Dividend Yield |
2.4% |
|
Competitors |
CNH Global (NYSE: CNH) Deere (DE -0.18%) Terex (TEX -0.52%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 6,024 members who have rated Caterpillar believe the stock will outperform the S&P 500 going forward.
Earlier this week, one of those Fools, adamlevy, touched on the tailwinds working in Caterpillar's favor:
China's economy looks to be moving back on track. Increased lending and approval of infrastructure projects will help the company going forward.
Also, U.S. construction outlook is good. 1 million net new house constructions are expected in 2013. Education, highway, and energy construction projects that were delayed in 2012 are expected to move forward in 2013 and 2014. The [Panama Canal] expansion is expected to be completed by 2015. There are a lot of prospects for Caterpillar in the US and abroad.
~$85 looks to be a new support level, and I expect shares to climb back to $115 levels.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Caterpillar may not be your top choice.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
