Bull Of The Day: Caterpillar Inc.
The Zacks Industrial Products sector has performed relatively well in 2022, down roughly 12% and outpacing the S&P 500.
A behemoth in the realm, Caterpillar (CAT - Free Report) has seen its near-term earnings outlook improve over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
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Caterpillar is the world’s largest construction-equipment manufacturer. We see its iconic yellow machines at nearly every construction site.
Let’s take a closer look at how the company currently stacks up.
Strong Share Performance
CAT shares have been notably strong in 2022, up more than 15% and crushing the S&P 500’s performance.
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Undoubtedly a major positive, shares are inching toward all-time highs. Stocks making new highs tend to make even higher highs, especially when positive earnings estimate revisions roll in from analysts.
Solid Growth Outlook & Quarterly Performance
Caterpillar has a strong growth profile, with earnings and revenue forecasted to soar 28% and 15.2% in FY22, respectively.
In addition, the company has been on a strong earnings streak, exceeding the Zacks Consensus EPS Estimate in ten consecutive quarters.
Just in its latest release, the company registered a 24% bottom-line beat paired with a 4.5% sales surprise.
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Consistent Dividends
For the cherry on top, Caterpillar is a Dividend Aristocrat; 2022 marked the company’s 29th consecutive year of increased dividend payouts.
Caterpillar’s annual dividend currently yields 2%, modestly higher than its Zacks sector average. Impressively, CAT has grown its payout by 9% over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provide a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Caterpillar (CAT - Free Report) would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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