Why Caterpillar Is Ready to Rebound

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 has earned a respected four-star ranking.

With that in mind, let's take a closer look at Caterpillar and see what CAPS investors are saying about the stock right now.

Caterpillar facts

Headquarters (founded)

Peoria, Ill. (1925)

Market Cap

$58.9 billion

Industry

Construction and farm machinery

Trailing-12-Month Revenue

$65.9 billion

Management

Chairman/CEO Douglas Oberhelman

CFO Bradley Halverson

Return on Equity (average, past 3 years)

34.6%

Cash/Debt

$3.3 billion / $40.2 billion

Dividend Yield

2.3%

Competitors

CNH Global

Deere

Terex


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

On CAPS, 94% of the 6,026 members who have rated Caterpillar believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, lepera347, succinctly summed up the Caterpillar bull case for our community:

India needs infrastructure. China's priority is urbanization. The US will have 4 more years of Obama, who believes in stimulus spending for infrastructure. Ultimately solid financials. Seems undervalued.

Of course, that short pitch doesn't even come close to telling the entire story for Caterpillar. You're in luck, though. The Fool's brand-new premium report on Caterpillar looks at all sides of one of the most compelling industrial plays in the market. You can grab your copy here, which comes with free updates for 12 months.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Caterpillar Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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