Stock Research Report for CAT as of 7/8/11 - Chaikin Power Tools

Page 1

CATERPILLAR INC (CAT)

Price: $111.64

Industry: Machinery Chaikin Power Gauge Report | Generated: Fri Jul 08 09:32 EDT 2011 CAT CATERPILLAR INC

$111.64

Power Gauge Rating

CAT - Neutral TM

The Chaikin Power Gauge Rating for CAT is neutral with very poor financial metrics, strong earnings performance, bullish price/volume activity and very positive expert opinions.

Financial Metrics

Expert opinions about CAT are very positive which is evidenced by analysts revising earnings estimates upward.

Earnings Performance

CAT's financial metrics are very poor due to a high long term debt to equity ratio.

Price/Volume Activity

Expert Opinions

Despite these bullish factors, Chaikin Power Tools has identified a negative trend resulting in a neutral rating.

News Sentiment Rating

Neutral CAT CATERPILLAR I..

July 06, 2011

TM

Chaikin Sentiment Gauge for CAT is neutral. Stories concerning CAT have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Very Bearish

LT Debt/Equity Ratio

CAT's financial metrics are very poor. The company is carrying too much long term debt and may be overvalued.

Price to Book Value

The rank is based on a high long term debt to equity ratio, high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

1.50

Price/Book

5.63

Return on Invest

11.6%

LT Debt/Equity

1.88

Price/Sales

1.69

Return on Equity

34.0%

Earnings Performance

TTM

Earnings Performance Rating

Bullish

Earnings Growth

CAT's earnings performance has been strong. The company has outperformed analysts' earnings estimates and experienced superior earnings growth in the past 12 months.

Earnings Surprise

Earnings Trend

The rank is based on poor EPS growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/06

12/07

12/08

12/09

12/10

41,517.00

44,958.00

51,324.00

32,396.00

42,588.00

14.37%

8.29%

14.16%

-36.88%

31.46%

$5.37

$5.55

$5.83

$1.46

$4.28

32.92%

3.35%

5.05%

-74.96%

193.15%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$1.25

$1.69

+0.44

Quarterly EPS Yearly EPS Factor

$4.28

$6.94

+2.66

Actual EPS Growth

Est EPS Growth

Change

6.28%

13.00%

+6.72

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

Latest Qtr

$1.31

$1.84

$0.53

40.46

1 Qtr Ago

$1.28

$1.47

$0.19

14.84

2 Qtr Ago

$1.09

$1.22

$0.13

3 Qtr Ago

$0.85

$0.99

$0.14

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

12/09

$-0.19

$0.61

$0.65

$0.37

$1.44

12/10

$0.37

$1.12

$1.25

$1.52

$4.26

11.93

12/11

$1.91

-

-

-

-

16.47

Fiscal Year End Month is December.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for CAT is bullish. CAT has outperformed the S&P 500 over 26 weeks and is experiencing sustained buying.

Price Trend

The rank for CAT is based on its price strength versus the market and positive Chaikin money flow.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether CAT is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Factor

Volume Activity Value

Factor

Value

52 Week High

115.41

% Change Price - 4 Weeks

12.46%

Average Volume 20 Days

7,990,085

52 Week Low

59.81

% Change Price - 24 Weeks

19.25%

Average Volume 90 Days

7,738,038

% Change YTD Rel S&P 500

8.87%

Expert Opinions

% Change Price - 4 Wks Rel to S&P

7.13%

% Change Price - 24 Wks Rel to S&P

12.82%

Chaikin Money Flow Persistency

68%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about CAT are very positive. Analysts are raising their EPS estimates for CAT and insiders are net buyers of CAT's stock.

Short Interest

Insider Activity

The rank for CAT is based on analysts revising earnings estimates upward, a low short interest ratio, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Machinery industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

1.73 1.69 Current

Current FY

6.94

Analyst Recommendations

7 Days Ago % Change 1.73 1.69

0.00% 0.00%

30 Days Ago % Change 6.94

0.00

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

1

0

Curr Yr

0

0

1

0

Next Qtr

0

0

0

2

Next Yr

0

0

0

0

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for CAT

CAT's Competitors in Machinery Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

DOJ clears Caterpillar acquisition of Bucyrus May 20, 2011

CAT

6.28%

13.00%

7.81%

1.24

20.22

42,588

ASTE

6.00%

15.00%

4.18%

1.49

26.61

771

Joy Global buys LeTourneau Technologies for $1.1 billion - May 16, 2011

JOYG

13.61%

17.10%

13.46%

1.00

19.78

3,524

BUCY

49.15%

16.05%

8.53%

1.09

20.59

3,651

TEX

-0.45%

16.25%

-3.55%

2.45

-

4,418

MTW

9.23%

22.50%

-3.04%

1.80

129.14

3,142

Company

Power Gauge

Caterpillar Surpasses Earnings Expectations and Raises Its Outlook for the Year - Apr 29, 2011 New Caterpillar CEO's compensation quadruples - Apr 15, 2011 IBM Introduces Software to Help Clients Reach New Mobile and Social Networks - Apr 11, 2011

Company Details

Company Profile

CATERPILLAR INC 100 NE ADAMS ST PEORIA, IL 61629 USA Phone: 3096751000 Fax: 309-675-6155 Website: http://http://www.cat.com Full Time Employees: 104,490 Sector: Industrial Products

Caterpillar Inc is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is one of only a handful of U.S. companies that leads its industry while competing globally from a principally domestic manufacturing base. The company records more than half of its sales to overseas customers. Their products are used in the construction, road building, mining, forestry, energy, transportation and material-handling industries.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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