CAT - Caterpillar: A Free Cash Flow Focus With Growth Through The Out-Year

2024-03-14 14:46:36 ET

Summary

• Caterpillar has outperformed in the last 12 months, with a 52% increase in stock price as the broad market has worked off SVB-related lows.
• CAT sports strong earnings growth and a reasonable P/E ratio with optimism seen over the coming year and beyond.
• With decent EPS growth ahead and solid share-price momentum, I see continued upside ahead.
• I outline key price levels to monitor on the chart ahead of earnings due out next month.

Remember that little old regional banking crisis in March 2023? The S&P 500 bottomed out precisely a year ago as of this writing. March 13 th of last year was a period of systemic problems across cyclical areas of the market. While banks were the focus, many Industrials sector firms were seen as susceptible to a global economic slowdown, too. Alas, the crisis was short-lived, and the SPX has returned 36% in the last 52 weeks. Among the outperformers over the past 12 months has been Caterpillar (CAT). ...

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