In this video, Motley Fool industrials analyst Blake Bos outlines two reasons to buy, and one compelling reason to sell, 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.
A couple more reasons to consider buying Caterpillar today, and one reason to think about selling.
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A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.