1 Wall Street Analyst Thinks Caterpillar Stock Is Going to $350. Is It a Buy?

Motley Fool05-02

The company's recent reiteration of its full-year outlook probably wasn't enough to satisfy the bulls. The valuation looks full, but Caterpillar could easily outperform earnings expectations ...

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Is It a Buy?","media":"Motley Fool","content":"<div>\n<p>The company's recent reiteration of its full-year outlook probably wasn't enough to satisfy the bulls. \n\n\n\n\n\n\n\nThe valuation looks full, but Caterpillar could easily outperform earnings expectations ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/05/02/1-wall-street-analyst-thinks-caterpillart-stock-is/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>1 Wall Street Analyst Thinks Caterpillar Stock Is Going to $350. 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Is It a Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-02 20:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/05/02/1-wall-street-analyst-thinks-caterpillart-stock-is/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The company's recent reiteration of its full-year outlook probably wasn't enough to satisfy the bulls. \n\n\n\n\n\n\n\nThe valuation looks full, but Caterpillar could easily outperform earnings expectations ...</p>\n\n<a href=\"https://www.fool.com/investing/2024/05/02/1-wall-street-analyst-thinks-caterpillart-stock-is/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2237438978.USD","symbol_name":"Amundi Funds US Pioneer A2 (C) USD","start_time":0,"source_url":"https://www.fool.com/investing/2024/05/02/1-wall-street-analyst-thinks-caterpillart-stock-is/","article_id":"2432670173","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F774830%2Fbest-mining-stocks-to-buy-in-2024.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432670173","pubTimestamp":1714653000,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Wall Street is divided over where Caterpillar stock is heading.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","BK4588":"碎股","FCF":"第一联邦金融","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","BK4099":"汽车制造商","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU1917777945.USD":"安联专题基金Cl AT Acc","BK4516":"特朗普概念","BK4532":"文艺复兴科技持仓","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","BK4520":"美国基建股","CAT":"卡特彼勒","TTM":"塔塔汽车","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","BK4585":"ETF&股票定投概念","BK4523":"印度概念","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","BK4211":"区域性银行","BK4149":"建筑机械与重型卡车","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC"},"translate_title":"一位华尔街分析师认为卡特彼勒的股票将达到350美元。这是买吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TTM":1,"CAT":1,"FCF":1},"content_text":"The company's recent reiteration of its full-year outlook probably wasn't enough to satisfy the bulls. \n\n\n\n\n\n\n\nThe valuation looks full, but Caterpillar could easily outperform earnings expectations in an improving economy. \n\nWall Street gave a mixed reaction to Caterpillar's (CAT -1.05%) latest earnings report, and it's about as nuanced as you might expect from a highly cyclical stock. For example, Stifel raised its price target to $350 from $293 previously but lowered the rating on the stock from \"buy\" to \"hold.\" Meanwhile, TD Cowen raised its price target to $340 from $338 and retained a \"buy\" rating.Caterpillar stock is a battlegroundThe bull-and-bear debate over the stock continues. As mentioned, Wall Street analysts differ significantly on what to expect from Caterpillar, and a large part of that debate boils down to its end-market outlook.The chart demonstrates that Caterpillar's revenue and profit margin are highly cyclical. If revenue grows more than expected, investors will start pricing in bumper profit growth, and vice versa.CAT Revenue (TTM) data by YChartsIn addition, there's an upward drift in Caterpillar's profit margins and free cash flow (FCF). For example, on its investor day presentation in 2022, management said its FCF through the cycle would be $4 billion to $8 billion, only to upgrade this estimate to $5 billion to $10 billion at the end of 2023. The bulls take heart from this and point out the upside potential for margin expansion and FCF from ongoing strength in non-residential construction, infrastructure spending, energy, mining, and power industries. Meanwhile, the bears point out that the current valuation puts Caterpillar at more than 23 times the midpoint of the FCF range through the cycle.Image source: Getty Images.Given that the recent results merely saw Caterpillar reiterating its full-year 2024 guidance for sales to be similar to 2023 and FCF to be in the $7.5 billion to $10 billion range, it's fair to argue that there hasn't been any improvement in its end markets overall in the last three months. As such, some caution is needed before buying into the stock at this level.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432670173"}