Caterpillar Stock Alpha and Beta Analysis
| CAT Stock | USD 389.59 8.09 2.12% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Caterpillar. It also helps investors analyze the systematic and unsystematic risks associated with investing in Caterpillar over a specified time horizon. Remember, high Caterpillar's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Caterpillar's market risk premium analysis include:
Beta 1.86 | Alpha 0.0218 | Risk 1.93 | Sharpe Ratio 0.0963 | Expected Return 0.19 |
Caterpillar Quarterly Cash And Equivalents |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Caterpillar |
Caterpillar Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Caterpillar market risk premium is the additional return an investor will receive from holding Caterpillar long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Caterpillar. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Caterpillar's performance over market.| α | 0.02 | β | 1.86 |
Caterpillar expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Caterpillar's Buy-and-hold return. Our buy-and-hold chart shows how Caterpillar performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Caterpillar Market Price Analysis
Market price analysis indicators help investors to evaluate how Caterpillar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Caterpillar shares will generate the highest return on investment. By understating and applying Caterpillar stock market price indicators, traders can identify Caterpillar position entry and exit signals to maximize returns.
Caterpillar Return and Market Media
The median price of Caterpillar for the period between Sat, Aug 24, 2024 and Fri, Nov 22, 2024 is 384.55 with a coefficient of variation of 6.09. The daily time series for the period is distributed with a sample standard deviation of 22.79, arithmetic mean of 374.35, and mean deviation of 19.65. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Logie winner finds family values in Kiwi cosy crime series | 11/06/2024 |
2 | Dow Jones Industrial Average climbs as consumer sentiment improves | 11/08/2024 |
3 | Caterpillar Inc.Sees Shifts in Institutional Holding | 11/13/2024 |
4 | Disposition of tradable shares by Susan Schwab of Caterpillar at 383.2 subject to Rule 16b-3 | 11/15/2024 |
5 | Caterpillar director Susan Schwab sells 766 in company stock | 11/18/2024 |
6 | Caterpillar Inc. Sees Large Decline in Short Interest | 11/19/2024 |
| Caterpillar dividend paid on 20th of November 2024 | 11/20/2024 |
7 | LARRY KUDLOW The Trump trade on Wall Street is predicting a blue-collar boom for the economy | 11/21/2024 |
About Caterpillar Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Caterpillar or other stocks. Alpha measures the amount that position in Caterpillar has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0207 | 0.0193 | 0.017 | 0.0178 | Price To Sales Ratio | 2.21 | 2.12 | 2.25 | 2.36 |
Caterpillar Upcoming Company Events
As portrayed in its financial statements, the presentation of Caterpillar's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Caterpillar's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Caterpillar's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Caterpillar. Please utilize our Beneish M Score to check the likelihood of Caterpillar's management manipulating its earnings.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 6th of August 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 3rd of February 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
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Additional Tools for Caterpillar Stock Analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.