Shares of construction, mining, and energy equipment company Caterpillar (NYSE: CAT) fell 17.2% in June, according to data provided by S&P Global market Intelligence . The move comes in concert with a general sell-off in stocks the market thinks are exposed to cyclicality in the economy. Caterpillar is one of them. So whether it's construction , mining, aggregate (mainly used for road building), energy, or transportation equipment, Caterpillar's end markets will ebb and flow with the economy.
You can see that in the chart below showing long-term revenue and earnings before interest, depreciation, and amortization ( EBITDA ). In particular, note the decline a few years after 2014. This reflects the slump in mining and energy spending in response to the fall in energy and mining commodity prices.
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Why Shares of Caterpillar Slumped in June