Caterpillar (Germany) Buy Hold or Sell Recommendation
| CAT1 Stock | 386.00 8.00 2.12% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Caterpillar is 'Buy'. Macroaxis provides Caterpillar buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CAT1 positions.
Check out Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Caterpillar Stock refer to our How to Trade Caterpillar Stock guide. Note, we conduct extensive research on individual companies such as Caterpillar and provide practical buy, sell, or hold advice based on investors' constraints. Caterpillar. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Caterpillar |
Execute Caterpillar Buy or Sell Advice
The Caterpillar recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Caterpillar. Macroaxis does not own or have any residual interests in Caterpillar or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Caterpillar's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Caterpillar Trading Alerts and Improvement Suggestions
| About 72.0% of the company shares are held by institutions such as insurance companies |
Caterpillar Returns Distribution Density
The distribution of Caterpillar's historical returns is an attempt to chart the uncertainty of Caterpillar's future price movements. The chart of the probability distribution of Caterpillar daily returns describes the distribution of returns around its average expected value. We use Caterpillar price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Caterpillar returns is essential to provide solid investment advice for Caterpillar.
| Mean Return | 0.32 | Value At Risk | -2.04 | Potential Upside | 2.90 | Standard Deviation | 1.94 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Caterpillar historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Caterpillar Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Caterpillar or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Caterpillar's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Caterpillar stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.1 | |
β | Beta against Dow Jones | 1.75 | |
σ | Overall volatility | 1.99 | |
Ir | Information ratio | 0.1 |
Caterpillar Volatility Alert
Caterpillar has relatively low volatility with skewness of 1.66 and kurtosis of 7.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Caterpillar's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Caterpillar's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Caterpillar Fundamentals Vs Peers
Comparing Caterpillar's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Caterpillar's direct or indirect competition across all of the common fundamentals between Caterpillar and the related equities. This way, we can detect undervalued stocks with similar characteristics as Caterpillar or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Caterpillar's fundamental indicators could also be used in its relative valuation, which is a method of valuing Caterpillar by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Caterpillar to competition |
| Fundamentals | Caterpillar | Peer Average |
| Return On Equity | 0.41 | -0.31 |
| Return On Asset | 0.074 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.16 % | (5.51) % |
| Current Valuation | 144.41 B | 16.62 B |
| Shares Outstanding | 516.35 M | 571.82 M |
| Shares Owned By Insiders | 0.14 % | 10.09 % |
| Shares Owned By Institutions | 72.03 % | 39.21 % |
| Price To Book | 7.85 X | 9.51 X |
| Price To Sales | 1.97 X | 11.42 X |
| Revenue | 59.43 B | 9.43 B |
| Gross Profit | 15.56 B | 27.38 B |
| EBITDA | 11.43 B | 3.9 B |
| Net Income | 6.7 B | 570.98 M |
| Total Debt | 9.5 B | 5.32 B |
| Book Value Per Share | 30.73 X | 1.93 K |
| Cash Flow From Operations | 7.77 B | 971.22 M |
| Earnings Per Share | 11.92 X | 3.12 X |
| Price To Earnings To Growth | 1.56 X | 4.89 X |
| Number Of Employees | 109.1 K | 18.84 K |
| Beta | 1.1 | -0.15 |
| Market Capitalization | 119.79 B | 19.03 B |
| Total Asset | 81.94 B | 29.47 B |
| Z Score | 7.2 | 8.72 |
| Annual Yield | 0.02 % | |
| Net Asset | 81.94 B | |
| Last Dividend Paid | 4.71 |
Caterpillar Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Caterpillar . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Caterpillar Buy or Sell Advice
When is the right time to buy or sell Caterpillar? Buying financial instruments such as Caterpillar Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Caterpillar in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Developed Markets Basket ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Caterpillar Stock
When determining whether Caterpillar is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Caterpillar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Caterpillar Stock. Highlighted below are key reports to facilitate an investment decision about Caterpillar Stock:Check out Caterpillar Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Caterpillar Stock refer to our How to Trade Caterpillar Stock guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.