Caterpillar Still Has Room To Run After Early 2012 Rally
By Ray Merola:
Caterpillar, Inc. (CAT) trades at about $110 a share after a 22 percent pop thus far in 2012. Is this stock washed out, or is it just getting into high gear? Let’s analyze this bellwether equity to see if there’s additional upside.
We will review some fundamentals benchmarks, the current charts, recent news, and project a reasonable valuation.
Business Brief
Caterpillar is the world’s leading manufacturer of construction and mining equipment. The company was founded in 1925 and is headquartered in Peoria, Illinois. In July 2011, CAT completed the acquisition of Bucyrus International, a leading mining equipment manufacturer.
Fundamental Highlights and Analysis
Caterpillar shareholders have enjoyed solid return fundamentals of late. I like to check return metrics, EPS growth, and margins to screen company performance.
Management has lead the company to register a TTM 38 percent return-on-equity and a 6 percent return-on-assets. The RoE figure is far ahead of their
Investing, Long Term Investment, stock market | admin February 3, 2012
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