10.06.2019 18:39:00

Why Caterpillar Shares Fell 14.1% in May

Shares of construction equipment manufacturer Caterpillar (NYSE: CAT) tumbled 14.1% in the month of May, according to data provided by S&P Global Market Intelligence. The drop wiped out the company's gains for 2019. Although shares have rebounded somewhat since, they're still down 1.7% for the year.Caterpillar released solid Q1 2019 earnings and a decent outlook on April 24. However, the outperformance was limited to its smallest business segment, resource industries (read: mining). Quarterly revenues in the segment were up 18% over the prior-year quarter, and the segment's quarterly profits were up an impressive 52% year over year. Those results powered the overall company to post record first-quarter per-share profits.Although Caterpillar's mining industry sales are booming, its top market -- construction -- may be slowing down. Image source: Getty Images.Continue reading
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