#2 - Caterpillar (NYSE:CAT)
Caterpillar (NYSE: CAT) - Caterpillar faces a double whammy in the words China and commodity prices. Both are geopolitical issues that are largely out of the company's hands but can spook investors in 2019. In their fourth-quarter earnings report, CAT acknowledged that they are expecting sales in China to be flat for 2019. However, that may be an issue that's already baked into the price of their stock. And, if the U.S. and China can come to an agreement, the stock could have a large upside. Caterpillar is also cautiously optimistic about a possible resurgence in the U.S. housing market. However, Caterpillar is more than just big yellow machines. They also compete in the energy and transportation segment as well as the resource industries segment. Resource industries are the smallest segment of their business, but it is a cyclical sector that is dependent on the price of metals and minerals, which have been tumbling. If those prices don't recover, it will be hard for Caterpillar to meet its guidance for 2019. Their energy and transportation sector is also likely to be impacted by the volatility in oil prices. As of this writing, CAT stock was trading in a tight range for 2019.
About Caterpillar
Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.
Read More - Current Price
- $405.65
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $365.33 (9.9% Downside)
