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- 1 CAT Stock rallied 22.14% in the last three months and 40.16% in a year.
- 2 Caterpillar Inc. beat or met the estimates for the previous 12 quarters except 1.
Before the opening bell, Caterpillar Inc. (NYSE: CAT) will release Q2 earnings on August 1, 2023, investors made CAT stock surge 4.74% pre-market. Caterpillar stock’s bulls would love to see the construction and mining equipment maker surpass the estimation. They also hope the earnings will provide guidance and a way forward for the next quarter.
Caterpillar Inc. (CAT) Stock: Earnings Expectations and Financial Analysis
So far, this has been a great earnings season for the United States stock market. The Dow Jones Industrial Average gained 0.28% to 35,560.19, while S&P500 jumped 0.15% to 4,589.15. At the same time, the NASDAQ composite swelled 0.21% to 14,346.02. Investors hope that Caterpillar stock will report earnings with a 44% year-over-year gain and revenue with a jump of 15.7% compared to the yesteryear quarter.
Looking at the past track record, NASDAQ: CAT only missed the earnings per share (EPS) estimates in Q1 2020 due to COVID-19. Otherwise, the company has beaten or come close to the estimations consecutively for the last 12 quarters. On June 14, 2023, Caterpillar Inc. raised the quarterly dividend by 8%.
Caterpillar Inc. (NASDAQ: CAT): Technical Analysis
At press time, CAT stock is trading at $265.17 with a jump of 1.82%; previous close and open were at $260.43 and $262.75, respectively. The 52-week range is from $160.60 to $266.04, foreshadowing the possibility that if earnings are good, new highs can be seen. With a volume of 3.57 Million shares, the market cap is $136.919 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 19.61, indicating a slightly undervalued stock price. Analysts placed a 2.19 rating for HOLD and estimated a price target at $241.47 with an 8.9% downside.
Caterpillar stock announced its last earnings on April 27, 2023, where the reported earnings of $4.91 per share surpassed the expected value of $3.803 per share by 29.12%. When compared to the previous quarter, EPS jumped by 70.49%.
At the same time, the reported revenue of $15.862 Billion exceeded the estimations of $15.101 Billion by 5.04%.
Compared with the previous quarter, revenue gained 16.73%; also, these positive earnings caused the CAT share price to jump around 8%. The subsequent earnings will be reported on August 1 before the market opens, where the earnings estimate is $4.574 per share, while revenue shall be around $16.463 Billion.
With the (TTM) gross profit of $15.56 Billion, CAT stock rallied 7.54% in a month, 5.33% in six months, and 40.16% in a year.
Caterpillar Inc. (CAT) Stock: Candle Exploration
The rally started in June 2023 and made the CAT stock price brush the 52-week high. Positive earnings could make the price action cross R1 at 266.78, but to cross R2 at $280.00 would require a push. Additionally, an evident bullish momentum could be attained after the price sustains above R2.
Even if the price drops, it should not go below the ascending 50EMA. If it does, it should bounce off immediate resistance at $238.95. The upward trajectory of 200EMA hints at a rally, but RSI at 68.16, nearly touching the overbought zone, foreshadows a drop. Things will be clearer after the earnings announcement is made.
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The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
