What to Watch When Caterpillar Reports Friday

Caterpillar Inc. (NYSE: CAT) is set to report its fourth-quarter results before the markets open on Friday. Analysts are calling for $2.37 in earnings per share (EPS) and $13.41 billion in revenue. In the same period of last year, it posted $2.55 in EPS and $14.34 billion in revenue.

This large-cap leader was hit by trade worries in 2019 and is offering a very solid entry point. Caterpillar is the largest manufacturer and marketer of construction equipment worldwide, and it is also a leading manufacturer of diesel engines and turbines for transport and industrial applications.

While the stock only has a small gain over the past year, it has yet to feel any serious recovery in its key growth market of Asia and South America. Any sign of optimism could send its shares higher as most of the Dow Jones industrials have been outpacing it.

Overall, Caterpillar stock has underperformed the broad markets with a gain of only 7% in the past 52 weeks. In the past quarter alone, the share price is actually 3% lower.

A few analysts weighed in on Caterpillar ahead of the report:

• Daiwa Capital Markets rates it Outperform with a $165 price target.
• RBC’s Hold rating comes with a $152 target price.
• Citigroup has a Buy rating with a $170 price target.
• Credit Suisse has an Outperform rating and a $173 target.
• Wells Fargo has an Equal Weight rating and a $160 target.
• JPMorgan has an Overweight rating with a $178 price target.

Caterpillar stock traded at $134.95 a share on Thursday, in a 52-week range of $111.75 to $150.55. The consensus price target is $149.91.

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