3 Risks for Caterpillar

Updated

Caterpillar (NYSE: CAT) is an industry leader with a strong balance sheet and big plans for growth at home and abroad, so would anyone call it a risky bet? Let's look. In this video, Motley Fool analyst Brendan Byrnes highlights why a company like Caterpillar is so closely tied to the economy as a whole and why that may be what's driving its multiple down at the moment, and he discusses how the company will now be much more vulnerable to commodity prices as it moves much more into the mining sector. Brendan also tells us how crucial it will be for the company moving forward to maintain its market share in China against aggressive competition, as it eyes considerable growth prospects in that emerging market.

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. Read all about Caterpillar's strengths and weaknesses in our brand-new report. Just click here to access it now.


The article 3 Risks for Caterpillar originally appeared on Fool.com.

Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of General Electric and Joy Global. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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