3 Reasons to Sell Caterpillar

Updated

In this video, Motley Fool analyst Brendan Byrnes takes a look at some of Caterpillar's (NYS: CAT) biggest growth goals for the short and long term. He discusses some of the signs he'll be looking for that it isn't meeting expectations, and ponder when it might be time to sell. With the largest acquisition it has made moving Caterpillar deeper into the mining sector, the company will now be more susceptible to influence from the volatile changes that can happen in the commodities market. Having completed so many major acquisitions in such a short amount of time, it might also be tricky for CAT to meet all the earnings and synergies goals it has set with so much integration to work through. Byrnes also invites us to keep an eye on Caterpillar in China, a market that could be a huge growth opportunity, but only if it is as competitive as it thinks it is.

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The article 3 Reasons to Sell Caterpillar originally appeared on Fool.com.

Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of General Electric Company and Joy Global. 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.

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