13.05.2019 12:00:00

Is Caterpillar Stock a Buy?

What to do with Caterpillar (NYSE: CAT) stock after its recent first-quarter earnings presentations? The results and outlook were solid enough, but cyclical and competitive risks remain. Let's take a look at what you need to know before deciding whether to buy the stock.Caterpillar is a cyclical stock and its prospects will vary in line with conditions in its end markets. That said, with cyclicals, it's often the case that the variance in its earnings from a relatively small part of revenue can be the swing factor in determining the company's prospects. Confused? I'll explain.Let's start by looking at Caterpillar generated its profit in the first quarter -- the financial products segment profit of $211 million has been excluded from the analysis for ease of comparison.Continue reading
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