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Caterpillar Inc. (CAT), headquartered in Irving, Texas, is a prominent player in the industrial goods sector. With a market capitalization of $175.3 billion, the company specializes in manufacturing construction and mining equipment, diesel and natural gas engines, and diesel-electric locomotives. The company is expected to announce its Q4 earnings on Tuesday, Feb. 3.
Ahead of the event, analysts expect the industrial company to report a profit of $5 per share, a decrease of 4.4% from $5.23 per share reported in the year-ago quarter. The company has surpassed the consensus estimates in three of the past four quarters, while missing on another occasion.
In fiscal 2024, analysts expect Caterpillar to report an EPS of $21.68, up 2.2% from $21.21 in fiscal 2023.
CAT stock has climbed 23.6% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 24.2% gains, but has outpaced the Industrial Select Sector SPDR Fund’s (XLI) 18.4% returns over the same time frame.
On Dec. 9. Caterpillar shares rose 1.8% after JPMorgan Chase & Co. (JPM) increased its price target to $515. The analyst highlighted Caterpillar's role in supplying backup power for data centers supporting AI services.
However, Caterpillar’s stock dropped 2% on Oct. 30 after posting its Q3 earnings. It missed both its EPS and revenue expectations.
The consensus opinion on Caterpillar stock is cautious, with a “Hold” rating overall. Out of the 20 analysts covering the stock, seven recommend a “Strong Buy,” one advises a “Moderate Buy,” eight suggest a “Hold” rating, and four give a “Strong Sell” rating.
Further, CAT’s average target price of $391.61 indicates a potential upswing of 8.5% from current market prices.
