Caterpillar: What Trade War Fears?
Caterpillar Inc. (NYSE: CAT) is the largest heavy machinery equipment colossus of them all, and the pullback in its shares to $142 has created a value of $85 billion. There is barely a 17% gain needed for the company to reach the $100 billion club, and the 52-week high of $173.24 a share is 22% higher than the current price. While Caterpillar’s stock buybacks could slow down that $100 billion ambition if the shares are retired rapidly, at least one analyst expects that its share price could rise to $200 or more. Meanwhile, Caterpillar is valued at less than 12.5 times current year earnings estimates, and it is expected to have earnings growth in 2019.
Lowe’s: Having Home Depot Envy
Lowe’s Companies Inc. (NYSE: LOW) is valued at roughly $80 billion, and its shares would have to rise 25%, without considering any share buyback drag, to hit a $100 billion market cap. That said, its value of 18 times current year expected earnings won’t scare investors away. If a rerating occurs in its favor, Lowe’s could be a huge winner because its valuation is just 1.1 times trailing revenues — roughly half what investors are paying for the larger rival Home Depot and its valuation of more than 2.2 times revenues.
BlackRock: King of the ETFs
BlackRock Inc. (NYSE: BLK) must be scratching its head over the $79 billion valuation, considering its top position in the world of exchange traded funds, mutual funds and managed accounts. With its shares trading at $490 on last look, the stock would have to rally more than 20% to hit a 52-week high of $594.52, and that would get it within $5 billion of the $100 billion market cap club. The consensus target price is still closer to $589 a share, and some analysts think it should be worth even higher than its 17-times earnings multiple today.
Kraft Heinz: Low Growth, Big Dividend
Kraft Heinz Co. (NASDAQ: KHC) may look and feel like a long-shot to get to $100 billion in market cap considering the $76 billion value based on a current $61.25 share price. It’s a very low growth position now, but it is valued at less than 17 times earnings and with almost a 4% dividend yield. That said, its 52-week high is $87.29, and this was worth over $90 in early 2017. It’s going to probably take a while, and the catalyst remains elusive, but hitting the $100 billion mark simply requires for the packaged food giant to get back to where it used to be.
Please note: Valuation metrics have been taken from Reuters, Finviz, Google Finance and Yahoo! Finance, and these sources may all show slight variations and may have different times at which they update their numbers. Consensus analyst price target information comes from Thomson Reuters.
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