From Nasdaq:

Caterpillar (CAT) is a stock that consistently beats earnings estimates. The company has a history of topping earnings, with an average surprise of 19.64% over the past two quarters. Caterpillar delivered earnings of $5.52 per share last quarter, surpassing the Zacks Consensus Estimate of $4.75 per share by 16.21%.

Recently, there has been a favorable change in earnings estimates for Caterpillar. The company has a positive Earnings ESP, which is a great indicator of an earnings beat when combined with its solid Zacks Rank.

Caterpillar’s Earnings ESP is currently +5.74%, suggesting that analysts are bullish on its near-term earnings potential. Combined with the stock’s Zacks Rank #3 (Hold), this points to the possibility of another earnings beat.

The Earnings ESP metric is a good indicator of a stock’s potential for an earnings beat, with a positive value indicating a predictive power. A negative Earnings ESP, on the other hand, does not necessarily indicate an earnings miss.

It’s important to note that beating the consensus EPS estimate may not be the sole basis for a stock’s movement. This is where Earnings ESP comes in handy. The Earnings ESP Filter can help determine the best stocks to buy or sell before they report their earnings.

Zacks experts have picked a little-known chemical company that’s up 65% over the last year and still considered cheap. This company has soaring 2022 earnings estimates and $1.5 billion for repurchasing shares, making it an attractive investment.

The recommended company is expected to rival or surpass other Zacks’ stocks that have doubled in value, such as Boston Beer Company and NVIDIA.

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Read more: Will Caterpillar (CAT) Beat Estimates Again in Its Next Earnings Report?