Why Caterpillar Stock Slumped in the First Half of 2020
Shares in machinery equipment company Caterpillar (NYSE: CAT) fell 14.3% in the first half of 2020 according to data provided by S&P Global Market Intelligence. The move comes as a consequence of a significant deterioration in its end market prospects.
It hasn't been an easy year for the company. Caterpillar started the year with its retail sales growth in negative territory. However, there were hopes for a cyclical bounce in the industrial economy that would aid its construction machinery sales. Meanwhile, an ongoing recovery in mining commodity and energy prices was seen as supporting a long-cycle recovery in Caterpillar's sales of mining and oil and gas equipment.
Caterpillar needs global construction activity to improve. Image source: Getty Images.
Source Fool.com
