In this video, Motley Fool industrials analyst Blake Bos outlines three areas investors need to watch at Caterpillar (NYSE:CAT). First, the integration of acquisitions: Caterpillar has made some historically large acquisitions. How these acquisitions are integrated into the company and how synergies are achieved will be important. Second, commodity prices: One of Caterpillar's acquisitions was Bucyrus, a mining equipment company. While this expanded Caterpillar's presence in the mining industry, that same business is highly sensitive to commodity prices. If commodities fall, so will revenues from this segment. Lastly, Caterpillar is looking to roll out a new manufacturing system to help reduce costs. This could be important for its future growth in China where Caterpillar competes with Komatsu. Right now, Komatsu has the largest market share in China -- Caterpillar will need all the help it can get to successfully compete.
Blake Bos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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
There Was More to Caterpillar Inc. Stock's 11.6% Jump in December Than You Might Know
One number that Caterpillar reported in December should make you bullish.
Caterpillar Stock Upgraded: What You Need to Know
JPMorgan sees a decade-long upcycle in the mining biz -- and says Caterpillar stock will benefit.
Dow 25,000: Chalk It Up to These 4 Stocks
It only took a few companies to do the lion's share of the work to move the Dow higher by 5,000 points in less than a year.