1 Key Number That Could Send Caterpillar Stock Higher
Long-term investors in Caterpillar (NYSE: CAT) already know it's a cyclical company whose revenue and profit margins bounce around with its end markets. That knowledge won't stop traders from trying to guess the timing of the cycle. That's fair enough, but longer-term investors will want to focus on the key things that can change Caterpillar's long-term value, so here's a look at one of them.
First, a graphical depiction of Caterpillar's cyclical revenue is useful. Note that its operating profit margin tends to follow revenue, leading to wild swings in its profits. When construction, mining, energy, and transportation spending on machinery is booming in response to strong construction activity, relatively high mining commodity and energy prices, and transportation spending, Caterpillar's profits boom; and they slump when these markets reverse.
Source Fool.com
Caterpillar Inc. Stock
With 17 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
With a target price of 344 € there is a slightly positive potential of 6.67% for Caterpillar Inc. compared to the current price of 322.5 €.
