#1 - Caterpillar, Inc. (NYSE:CAT)
A few years ago, Caterpillar (NYSE:CAT) had been set aside as a company whose best days were behind it. Investors looked at declining global growth and saw weaker demand for bulldozers, backhoes and other heavy construction equipment for years to come. They couldn't look past slowing demand in China and other developing countries and thought Caterpillar's sales would suffer for many years.
Global growth has now turned along and Caterpillar's fortunes have turned around with it. The global economic is now growing quickly and spending has increased dramatically in major construction projects. Higher prices in precious metals and basic materials have also pushed mines to expand causing increased demand for mining equipment such as backhoes and dump trucks made by Caterpillar.
As the leading provider of these machines, Caterpillar's fortunes have returned and its share price has almost tripled over the last year. Caterpillar saw significant earnings growth in 2017 over 2016 and its 2018 numbers look to surpass those of 2017. Analysts are forecasting the company will post earnings per share of $7.73 in 2018, well above their earnings of $5.55 per share between Q4 2016 and Q3 2017.
Global growth shows no near-term signs of slowing down, which will continue to push Caterpillar's revenue, earnings and dividend payment upward. Without a doubt, Caterpillar is one of the best Dow Jones stocks to own this year.
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
- $388.25
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $365.33 (5.9% Downside)
