Here's Why Caterpillar Is a Buy Before Earnings

The artificial intelligence (AI) trade can be a gift and a curse. Just look at Caterpillar (NYSE: CAT). Previously a non-tech darling of AI enthusiasts, this industrial stock is slumping ahead of its second-quarter earnings report, due on Tuesday, Aug. 4. With investors perhaps temporarily cooling on the AI trade, Caterpillar stock is off 16.4% over the past month and, as of July 28, was laboring 22.3% below its 52-week high. That's a bear market. To be sure, those are ominous data points, and they imply no margin for error on estimates calling for earnings per share of $6.25 on sales of $19.31 billion. Caterpillar's pullback may be an opportunity to buy the stock ahead of earnings. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool