From Nasdaq: 2024-04-30 22:20:03

Caterpillar (NYSE: CAT) reported Q1 results with revenues below estimates but earnings exceeding expectations. Revenue was $15.8 billion, earnings per share $5.60, adjusted basis. Stock priced around $345 seems fairly valued. Stock performance over three years saw gains of 90%, underperforming the S&P 500 in 2021 and 2023.

Caterpillar’s revenue in Q1 decreased by 0.4% y-o-y. Construction Industries revenue down 5%, Resource Industries sales down 7%, Energy & Transportation revenue up 7%. Adjusted operating margin expanded to 22.2%. Stock valuation around $345, estimated $334 per share. Company expects stable dealer inventory in 2024.

Compare Caterpillar’s performance with Trefis HQ Portfolio, which has outperformed the S&P 500 consistently. Valuation of CAT stock appears appropriate. Revenue is stable, with pricing gains bolstering total sales. CAT stock seen steady returns over the past three years. Peer comparisons could offer valuable insights for investors.



Read more at Nasdaq: What Should You Do With Caterpillar Stock After A Mixed Q1?