Caterpillar Buy Hold or Sell Recommendation

CAT -- USA Stock  

USD 135.92  0.90  0.67%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding Caterpillar is 'Hold'. Macroaxis provides Caterpillar buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CAT positions. The advice algorithm takes into account all of Caterpillar available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from CAT buy-and-hold prospective. Check also Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus.

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Sell CaterpillarBuy Caterpillar
Hold

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon Caterpillar has a risk adjusted performance of 0.039826, jensen alpha of 0.19, total risk alpha of 0.31, sortino ratio of 0.0 and treynor ratio of 4.81
Macroaxis provides buy, hold, or sell suggestion on Caterpillar to complement and cross-verify current analyst consensus on Caterpillar. Our buy, hold, or sell recommendation engine determines the organization potential to grow exclusively from the prospective of investors current risk tolerance and investing horizon. To make sure Caterpillar is not overpriced, please confirm all Caterpillar fundamentals including its Revenue, Cash Flow from Operations, Current Asset, as well as the relationship between Cash per Share and Beta . Given that Caterpillar has Price to Earning of 26.26 times, we suggest you validate Caterpillar market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Caterpillar Thematic Classifications

Macroaxis Picks IdeaMacroaxis Picks
Macroaxis daily picks
Machinery IdeaMachinery
USA Equities from Machinery industry as classified by Fama & French

Returns Distribution Density

Mean Return0.18Value At Risk1.97
Potential Upside2.08Standard Deviation1.65
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Blackrock IncCommon Shares35.6 M4.8 B
Jennison Associates LlcCommon Shares6.4 M874.1 M
Bank Of New York Mellon CorpCommon Shares5.1 M695.6 M
Wells Fargo CompanyCommon Shares2.6 M359.5 M
Schwab Charles Investment Management IncCommon Shares2.4 M320.6 M
Sumitomo Mitsui Trust Holdings IncCommon Shares2.2 M303.8 M
Swiss National BankCommon Shares2 M268.1 M
Bnp Paribas Arbitrage SaPut Options6 K81.9 M

Caterpillar Greeks

α
Alpha over DOW
=0.19
β
Beta against DOW=0.0386
σ
Overall volatility
=1.60
Ir
Information ratio =0.13

Caterpillar Volatility Alert

Caterpillar exhibits very low volatility with skewness of -0.08 and kurtosis of -0.5. However, we advise investors to further study Caterpillar technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare Caterpillar to competition

Caterpillar Fundamental Vs Peers

FundamentalsCaterpillarPeer Average
Return On Equity21.60 % (15.17) %
Return On Asset6.03 % (15.64) %
Profit Margin6.12 % (5.50) %
Operating Margin20.33 % (10.91) %
Current Valuation111.42 B152.14 B
Shares Outstanding594.32 M1.43 B
Shares Owned by Insiders0.18 % 6.91 %
Shares Owned by Institutions68.72 % 18.37 %
Number of Shares Shorted6.93 M3.24 M
Price to Earning26.26 times40.69 times
Price to Book5.45 times14.44 times
Price to Sales1.58 times17.81 times
Revenue51.18 B9.85 B
Gross Profit12.04 B21.75 B
EBITDA10.41 B1.41 B
Net Income3.13 B517.71 M
Cash and Equivalents7.79 B3.89 B
Cash per Share13.10 times5.17 times
Total Debt36.17 B7.36 B
Debt to Equity242.00 % 0.72 %
Current Ratio1.37 times3.30 times
Book Value Per Share24.96 times13.64 times
Cash Flow from Operations2.06 B1.25 B
Short Ratio1.52 times2.09 times
Earnings Per Share5.18 times2.30 times
Price to Earnings To Growth0.49 times1.22 times
Number of Employees101.6 K10.67 K
Beta1.570.34
Market Capitalization80.78 B29.78 B
Total Asset78.5 B126.86 B
Retained Earnings27.38 B38.24 B
Working Capital8.12 B3.58 B
Current Asset34.42 B36.8 B
   Exercise or conversion by Mayo William D of 9392 shares of Caterpillar subject to Rule 16b-3 [view details]

Caterpillar Alerts

Trading Alerts and Improvement Suggestions
Caterpillar generates negative expected return over the last 30 days
Caterpillar has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
About 69.0% of the company shares are held by institutions such as insurance companies
On July 19, 2018 Caterpillar paid $ 0.86 per share dividend to its current shareholders
Latest headline from stocknewsgazette.com: A Comparison of Top Movers Caterpillar Inc. , Dominion Energy, Inc.
Check also Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.