Caterpillar Strike Over: What It Means for Investors

Before you go, we thought you'd like these...
Before you go close icon

In today's edition, industrials editor/analyst Brendan Byrnes discusses Caterpillar and the recent end of a strike at its Joliet, Ill., plant. Workers agreed to reduced health care and pension benefits and wage freezes for experienced workers. Caterpillar has historically been tough on unions, and the company certainly played hard ball in this case. It's one of the reasons Caterpillar has been able to improve its margins of late. Check out the video below for more on how the resolution of the strike impacts the company going forward.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. But it's also a cyclical stock, prone to macroeconomic slowdowns and uncertainty. That's why it's crucial to know when to invest in this cyclical company, and when to wait on the sidelines for a better opportunity. One of our top equity analysts answers these question and more in our brand-new research report on Caterpillar. Just click here to access it now.

Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Caterpillar. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

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

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners