NEW YORK (TheStreet) --Shares of Caterpillar Inc. are down by 1.72% to $90.30 in pre-market trading on Monday, following a ratings downgrade to "underweight" from "neutral" at J.P. Morgan. The firm said it reduced its rating on the company, which manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives, based on Caterpillar's direct exposure to oil and gas, and its indirect exposure to mining markets. J.P. Morgan said that U.S. construction as well as emerging markets is "where economic growth is likely to be under pressure as a result of lower oil prices." Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The firm cut its price target on Caterpillar stock to $80 from $95. Separately, TheStreet Ratings team rates CATERPILLAR INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate CATERPILLAR INC (CAT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, reasonable valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 7.5% when compared to the same quarter one year prior, going from $946.00 million to $1,017.00 million. Despite its growing revenue, the company underperformed as compared with the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 0.9%. Growth in the company's revenue appears to have helped boost the earnings per share. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, CATERPILLAR INC's return on equity exceeds that of both the industry average and the S&P 500. CATERPILLAR INC has improved earnings per share by 12.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CATERPILLAR INC reported lower earnings of $5.75 versus $8.49 in the prior year. This year, the market expects an improvement in earnings ($6.55 versus $5.75). You can view the full analysis from the report here: CAT Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Click to view a price quote on CAT. Click to research the Industrial industry.
from Latest TSC Headlines http://ift.tt/1AfJoIG
No comments:
Post a Comment