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Sunday, October 23, 2011

Catepillar (CAT) stock outlook october 24 2011

Catepillar (CAT) stock outlook october 24 2011 : Catepillar (CAT) is expected to announce an EPS of $1.59 per share on Monday before the market opens. The stock has gained more than 20% since October 4 but is trading 22% lower during the last three months. I believe the stock is well positioned for both long and short term gains at its current price. The stock is remarkably low, considering its level of growth which includes a 43% gain in income year-over-year during its last quarter along with revenue that consistently grows by billions of dollars year-over-year.

The $1.59 is a hefty premium of more than 30% higher than Q3 in 2010. I believe that CAT will easily exceed expectations with a strong global presence in emerging markets that are each performing incredibly well. The estimates have been lowered from $1.80 over the last six months and the stock is now trading with a price to earnings under 15. Therefore, the stage is set with lowered guidance and a position for much higher upside than its downside. I will invest $10,440 in CAT because the company has given no indication that it will miss earnings yet the stock and expectations are much lower which I believe presents the perfect combination for value in this fast growing company.Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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