Caterpillar Stock Performance

CAT
 Stock
  

USD 164.24  6.31  3.70%   

The firm shows a Beta (market volatility) of 1.363, which signifies a somewhat significant risk relative to the market. Let's try to break down what Caterpillar's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Caterpillar will likely underperform. Even though it is essential to pay attention to Caterpillar historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Caterpillar exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Caterpillar has an expected return of -0.17%. Please be advised to confirm Caterpillar value at risk, as well as the relationship between the skewness and day median price to decide if Caterpillar performance from the past will be repeated at some point in the near future.
  
Caterpillar Performance
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Over the last 90 days Caterpillar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors. ...more

Caterpillar Price Channel

Quick Ratio0.83
Fifty Two Week Low167.08
Target High Price260.00
Fifty Two Week High237.90
Payout Ratio35.55%
Trailing Annual Dividend Yield2.55%
Target Low Price142.00

Caterpillar Relative Risk vs. Return Landscape

If you would invest  18,629  in Caterpillar on June 27, 2022 and sell it today you would lose (2,205)  from holding Caterpillar or give up 11.84% of portfolio value over 90 days. Caterpillar is generating negative expected returns assuming volatility of 2.1049% on return distribution over 90 days investment horizon. In other words, 18% of stocks are less volatile than Caterpillar, and above 99% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Caterpillar is expected to under-perform the market. In addition to that, the company is 1.9 times more volatile than its market benchmark. It trades about -0.08 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.08 per unit of volatility.

Caterpillar Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Caterpillar's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Caterpillar, and traders can use it to determine the average amount a Caterpillar's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0831

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Estimated Market Risk
 2.1
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 18 %
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Expected Return
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Based on monthly moving average Caterpillar is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Caterpillar by adding it to a well-diversified portfolio.

About Caterpillar Performance

To evaluate Caterpillar Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Caterpillar generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Caterpillar Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Caterpillar market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Caterpillar's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. The company was founded in 1925 and is headquartered in Deerfield, Illinois. Caterpillar operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 107700 people.

Things to note about Caterpillar

Checking the ongoing alerts about Caterpillar for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Caterpillar help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Caterpillar Alerts

Equity Alerts and Improvement Suggestions

Caterpillar generated a negative expected return over the last 90 days
About 71.0% of the company shares are held by institutions such as insurance companies
On 19th of August 2022 Caterpillar paid $ 1.2 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Should You Be Adding Caterpillar To Your Watchlist Today - Nasdaq
Continue to Trending Equities. Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for Caterpillar Stock analysis

When running Caterpillar price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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Is Caterpillar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Caterpillar. If investors know Caterpillar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Caterpillar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Caterpillar is measured differently than its book value, which is the value of Caterpillar that is recorded on the company's balance sheet. Investors also form their own opinion of Caterpillar's value that differs from its market value or its book value, called intrinsic value, which is Caterpillar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Caterpillar's market value can be influenced by many factors that don't directly affect Caterpillar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Caterpillar's value and its price as these two are different measures arrived at by different means. Investors typically determine Caterpillar value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Caterpillar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.