Caterpillar Inc (CAT) Survived Pandemic So Far And Anticipates Better Current Quarter Results

Caterpillar Inc (CAT) on Monday surged by 5.91%, thanks to the coronavirus vaccine news announced earlier on the day as the persistence of macroeconomic instability hurt the company’s business much. But company’s shares, despite adverse situation, have gained +62.69% over the past six months while the Construction and Mining industry rose by  +54.2%.

Although, shares of producer of heavy machinery were struck by COVID-19, but damages have already been recovered. But the coronavirus pandemic is still a strong negative factor for Caterpillar as its customers face a freeze in operations and uncertainty, even in the medium term. For businesses and dealers which incur substantial amounts associated with the procurement of costly construction, mining, utilities, oil and gas and industrial machinery, these are essential factors. Thus, stability and predictability of market conditions are of great importance for targeted caterpillar markets, which is not possible in the presence of COVID-19.

Caterpillar sells most of its goods to distributors who tend to limit sales of new equipment in such situations, selling off inventory. Thus, the sector of Caterpillar is cyclical that slows down rapidly in a recession and increases quickly in a recovery period as inventory is replenished by dealers.

For some investors, however, Caterpillar is not losing its appeal. The reality is that Caterpillar is a so-called dividend aristocrat, that is, for several years in a row, it pays dividends. Caterpillar does not plan to break this 27-year trend and a rise in dividend payments has recently been announced.

In the current situation, especially after vaccine announcement, analysts are in believes that a recovering manufacturing sector, improved North American residential construction, strong construction demand in China, and resumption of spending at miners hold promise for the company.

A Backdoor Way To Profit From Today’s Crypto Bull Market

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free. .


For the Q3 2020, Caterpillar posted analysts-beating earnings per share and revenues but both were on downtrend compared to year over year indicators as overall demand remained weak amid the COVID-19 pandemic. For the fourth quarter the company anticipates demand to remain weak but at improved levels than the third quarter. Company’s cost reduction efforts will sustain margins in this scenario with further support of strong liquidity position, investments in expanded offerings and services and digital initiatives which will be fueling the growth up.

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

Recent Articles

The Facts You Need to Know about Itron Inc. (ITRI) Moving Forward

Itron, Inc. (NASDAQ: ITRI) released a positive update for the fourth quarter and full-year 2020. This quarter was highlighted by a record portfolio of...

One stock you can’t skip: Bionano Genomics Inc. [BNGO]

Bionano Genomics Inc. (BNGO) stock prices have grown nearly 1,000% in the past 12 months. Despite this, some analysts feel that the shares have...

What the sentiment indicator is Signaling: CEVA Inc (CEVA)

CEVA, Inc. (NASDAQ: CEVA) reported its fourth-quarter report on Tuesday, February 16; the company signed 21 new agreements generating record revenues. CEVA provides OEMs with...

A Stock Check: Which direction Pinterest Inc (PINS) will move from here?

The social networking company Pinterest Inc (PINS) rose 226% in the past year. If the price has increased significantly, is it worthwhile to acquire...

Why Should Synaptics Incorporated (SYNA) Be On Your Radar?

Growing demand for laptops has allowed Synaptics Inc. (NASDAQ: SYNA) to expand its touchpad sales. The company becomes a technology leader in its narrow...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

We do not sell or share your information with anyone.