4-Star Stocks Poised to Pop: Caterpillar

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, heavy equipment giant Caterpillar (NYS: CAT) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Caterpillar's business and see what CAPS investors are saying about the stock right now.

Caterpillar facts

Headquarters (founded)Peoria, Ill. (1925)
Market Cap$71.5 billion
IndustryFarm and construction machinery
Trailing-12-Month Revenue$60.1 billion
ManagementChairman/CEO Douglas Oberhelman
CFO Edward Rapp
Return on Equity (average, past 3 years)25.8%
Cash/Debt$1.8 billion / $34.6 billion
Dividend Yield1.7%
CompetitorsCNH Global
Komatsu
Volvo

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 5,727 members who have rated Caterpillar believe the stock will outperform the S&P 500 going forward.  

Earlier this month, one of those Fools, goldengems, highlighted the stock as a solid long-term selection:

My father urged me to invest in CAT a decade ago, an investment which has paid handsomely. Today, CAT is stronger than it was then; less dependent on the US market and positioned to reap benefits around the world as crumbling infrastructure is replaced and new infrastructure created.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Caterpillar may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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