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

Founded (founded)Peoria, Ill. (1925)
Market Cap$53.4 billion
IndustryFarm and construction machinery
Trailing-12-Month Revenue$63.2 billion
ManagementChairman/CEO Douglas Oberhelman
CFO Edward Rapp
Return on Equity (average, past 3 years)28.4%
Cash/Debt$1.7 billion / $36.0 billion
Dividend Yield2.5%
CompetitorsCNH Global
Komatsu
AB Volvo

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

On CAPS, 94% of the 5,884 members who have rated Caterpillar believe the stock will outperform the S&P 500 going forward.  

A few months ago, one of those Fools, TMFBoomer, succinctly summed up the bull case for our community: "Caterpillar generates 60% of sales overseas, realizes greater margins on these sales, has taken its supply chain and exported it to these markets and operates efficiently around the world. Long-term, I think it will continue to be a leader in its industry and can only benefit from a better housing market in the US in the near future."

If you want market-beating returns, 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 its four-star rating, Caterpillar may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around 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 theTrackPoisedToCAPS 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.

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