However, when dealers replenish inventory, and end-market sales start to naturally slow, then Caterpillar's sales will moderate. Moreover, the bears are concerned about the state of governments' finances in the wake of the pandemic -- something that might constrain infrastructure spending.
In contrast, the optimist sees Caterpillar in the early innings of a multi-year recovery in mining-capital spending -- not least because mining-commodity prices are improving and the industry is coming out of a period of relatively low investment. Throw in the possibility of an infrastructure bill in the U. All told, the stock looks fairly valued, so the investment decision boils down to your level of confidence in the bullish recovery scenario.
If you believe Caterpillar is set for an extended period of growth, then the stock doesn't look like a great value. After all, based on the calculations above, Caterpillar is fairly priced right now, so there's no value gap to close. Discounted offers are only available to new members.
Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception. Cost basis and return based on previous market day close. Investing Best Accounts. Stock Market Basics. Stock Market. That said, if the company reports upbeat results, with recovery in sales faster than our estimates, and the guidance for the full-year is revised upward, it will result in CAT stock seeing higher levels.
While CAT stock may have only a little room left for growth in the near term, has created many pricing discontinuities which can offer attractive trading opportunities. This is a BETA experience. You may opt-out by clicking here. More From Forbes. Multiples may be expanding across the market, but betting on further expansion in multiples for a company that isn't growing long-term is speculative at best.
I don't think Caterpillar's stock is a buy today because it could have two factors working against it. Operations could suffer if there's a recession or if commodity prices fall. But the market could also rethink the multiples Caterpillar's stock deserves, sending shares even further from their all-time highs.
Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception. Cost basis and return based on previous market day close. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. So, we recommended this real estate stock to our monthly premium newsletter subscribers.
We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can.
We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Disclosure: None. This article is originally published at Insider Monkey. The Danish sculptor of a statue that commemorates pro-democracy protesters killed during China's Tiananmen Square crackdown in has asked Hong Kong authorities for immunity from a national security law so he come and take it back to Denmark.
Jens Galschiot loaned the eight-metre high, two-tonne copper sculpture called "Pillar of Shame" to a local civil society group, the Hong Kong Alliance in Support of Patriotic Democratic Movements in China, in perpetuity.
The statue, depicting dozens of torn and twisted bodies, has been on display at the University of Hong Kong for more than two decades.
Brain involves an Inception-like plot where people are able to download others' memories into their brains. Brazil is the first South American team to qualify for the World Cup in Qatar — with several matches in hand and more than a year before the tournament begins in Qatar. Sixth-place Uruguay can still total Brazil's 34 points, but it will face Chile in the last round of qualifying, which makes it mathematically impossible for both of them to overtake the leader.
Gary Trent Jr.
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