Why Is Everyone Talking About Caterpillar Stock?
Caterpillar (NYSE: CAT) undoubtedly faces headwinds in 2022, and some of them could get worse going into 2023. On the other hand, management is making excellent progress on its strategic objectives, and investors can feel more confident in its long-term prospects. It's a classic investment puzzle, and the bull and bear debate over the stock is likely to be fierce. So, should you buy a stock with near-term risk, even if it has a long-term opportunity?
The answer to the question lies in understanding what's happened to Caterpillar this year, what to expect going forward, and how it's relevant to the company's strategic objectives.
In a nutshell, Caterpillar's volatile stock price this year (up firmly in the spring, down in the summer) reflects the changing sentiment in its end markets. Within machinery, Caterpillar is best known for its construction equipment (key end markets include non-residential, residential, and infrastructure). However, it also has a large resource industries segment (mining and aggregates mainly used in roads), and investors shouldn't overlook its energy and transportation equipment (oil & gas, power generation, industrial gas turbines, locomotive engines) segment either.
Source Fool.com
