Is Caterpillar Stock a Buy?
's (NYSE: CAT) stock trades close to its recent all-time high, and the company is firing on all cylinders right now. Revenue and profit came in at record levels in 2023, demonstrating excellent pricing power throughout the year as its equipment resonates with customers.
And management upgraded its medium-term targets for cash flow and profit margin. There's a lot to like about Caterpillar, but is it enough to make the stock a buy?
Management's guidance implicitly recognizes the inherent cyclicality in Caterpillar's sales, earnings, and cash flow. The chart below shows how volatile its revenue and operating profit margin (and by extension, its profit) have been over the years.
Source Fool.com
Caterpillar Inc. Stock
€318.00
-0.470%
We see a rather positive sentiment for Caterpillar Inc. with 14 Buy predictions and 2 Sell predictions.
As a result the target price of 324 € shows a slightly positive potential of 1.89% compared to the current price of 318.0 € for Caterpillar Inc..
