4-Star Stocks Poised to Pop: Caterpillar

Updated

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

Industry

Farm and construction machinery

Trailing-12-Month Revenue

$60.1 billion

Management

Chairman/CEO Douglas Oberhelman
CFO Edward Rapp

Return on Equity (average, past 3 years)

25.8%

Cash/Debt

$1.8 billion / $34.6 billion

Dividend Yield

1.7%

Competitors

CNH 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.

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At the time thisarticle 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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