Stay Updated!

Sign-up for free email updates!

Posted by EconMatters


With a team of analysts, we at EconMatters focus on identifying the fundamental theories of cause and effect in the financial markets that matters to your portfolio.

Caterpillar is The PosterChild for OverValued Market (Video)

by EconMatters on January 8, 2017

in Economy, Stocks, Videos

By EconMatters


We discuss China`s Credit Bubble, Real Estate Bubble, and Non Performing Loans Bubble in relation to CAT; a stock up $30 on a substantial decline in Earning`s and Revenue Growth. We think ultimately CAT will cut their dividend like a lot of E&Ps will also be forced to come to terms with. Current Institutional owners of this stock should be dumping this over-valued stock, not to mention any Retail Holders, as we think CAT is going to retest the $60 a share level over the next two years. CAT could very easily be a $20 stock in five years as the ZIRP Free Money Party comes to an end, taking stocks with declining revenues where they would otherwise trade without Central Bank excesses.

CAT 1-Year Performance Defies Fundamental Business Realities
Today’s Trading
Previous close
93.00
Today’s open
93.45
Day’s range
92.41 – 93.60
Volume
4,023,073
Average volume (3 months)
4,856,842
Market cap
$54.4B
Dividend yield
3.31%
Data as of 4:00pm ET, 01/06/2017
Growth & Valuation
Earnings growth (last year)
-40.48%
Earnings growth (this year)
-29.82%
Earnings growth (next 5 years)
+2.20%
Revenue growth (last year)
-14.81%
P/E ratio
87.0
Price/Sales
0.87
Price/Book
3.66

© EconMatters All Rights Reserved | Facebook | Twitter | YouTube | Email Digest | Kindle



Previous post:

Next post: