Caterpillar Inc. : Beats analysts estimates
Entry price | Target | Stop-loss | Potential |
---|
$81.43 |
$0 |
$78 |
-100% |
---|
Today before market Caterpillar has released its half year results. The world largest maker of construction and mining equipment, recorded 2Q profit that beat analysts estimates and raised its full-year earnings forecast. Its revenue increased 22% to $17.37, the earnings per share raised more than 65% to $2.54. The company based in Illinois now expects earnings per share for full year of $9.60 against a forecast in April of $9.50.
At current price the share is trading 8.5 times full year EPS, and gives a good point of entry.
Graphically the share in the past months has suffered the economic slowdown. From its historic high in February, the share has lost more than 30%. The bearish trend would be finish at contact with mid-term support of USD 79.6.
Investors with long-term strategy may enter on the stock with buy order in order to aim a return on historic highs. A stop loss will be placed at USD 78.
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