> 2015 performance: −23%
Being a great company and an old iconic brand won’t help Caterpillar Inc. (NYSE: CAT) when the commodities and mining markets are in the toilet, and as China, Brazil and other growth markets have little growth. Those monthly sales figures have looked so bad in 2015 that a global turnaround just seems quite a ways off. Caterpillar was once projected to rise to well over $100 per share, but those days are now a distant memory. Earnings per share in 2016 are expected to be down by almost half from 2014 — and what if things get even worse? Caterpillar also suffers from the strong dollar, on top of everything else.
Shares of Caterpillar landed at $67.96 to end 2015. Year to date, the stock fell by 23%, on a dividend adjusted basis. The market cap of roughly $40 billion, and the dividend yield is 4.5%. The stock has a consensus price target of $68.19 and a 52-week range of $62.99 to $92.37. Compared to 2016 expected earnings, shares trade at a multiple near 19.
> 2015 performance: −16.2%
Chevron Corp. (NYSE: CVX) was once the king of dividends for big oil, but the softness in the oil patch has made people forget about the yield of 4.75%, when they consider that earnings are expected to be down about 70% in 2015 on close to a 40% drop in revenues. Being integrated helps here, but Chevron bore a more negative year than rival Exxon Mobil. If Chevron investors want a better year ahead, they will have to pray for higher oil prices. Chevron’s dividend is now higher than its expected 2015 and 2016 earnings per share, a troubling sign.
Chevron ended the year at $89.96 per share. Over the course of the year, the stock fell by 16.2%, on a dividend adjusted basis. The consensus price target is $99.55, versus a 52-week trading range of $69.58 to $113.00. The market cap is roughly $169 billion, and the dividend yield is 4.7%. Compared to 2016 expected earnings, shares trade at a multiple of 26.
> 2015 performance:
The worst performing of the three Dow conglomerates was United Technologies Corp. (NYSE: UTX). A portfolio change might to blame here, or it could be that even after a drop of this magnitude its shares just are not screening out to be all that cheap at more than 15 times expected earnings — and that is on a drop in earnings to boot. Hopefully the company guides its numbers lower to make the analysts investors happy, if they can beat those lower numbers next year.
Shares closed out 2015 at $96.07. Over the past year, United Technologies fell by 14.5%, on a dividend adjusted basis. The consensus price target is $108.47. The 52-week trading range is $85.50 to $124.45. The company has a market cap of roughly $85 billion and a dividend yield of 2.7%. Compared to 2016 expected earnings, shares trade at a multiple of just below 15.
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