Caterpillar (CAT 3.56%) came in only just slightly below analyst estimates this quarter, but in the video below, Motley Fool industrials analyst Blake Bos tells investors why short-term quarterly earnings are far from the real story. Blake gives investors a clear picture of Caterpillar's continuing problem with high inventory levels, and he shines a light on the inventory mismanagement that has led to Caterpillar's awful days inventory outstanding numbers. The stock has ticked up recently due to the expectation that these inventory issues should be clearing up – Blake tells investors exactly where to look to know if that narrative is really playing out.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Sure, Caterpillar came very close to analysts' estimates this quarter. But if that's what you're paying attention to with this stock, you're missing the real story.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.