Caterpillar is a big company that makes heavy machinery and equipment. They have been doing very well for the past 13 quarters, which means they have been making more money than before. This is because they have been saving money, making their products better, and selling more of them. They make machines for building things, mining, and making electricity from different sources. They also sell parts and services for their machines, which brings them even more money.
Caterpillar has a lot of money and is making even more money, so they can give some of it back to the people who own the company. They do this by buying back their own shares and giving dividends, which are like small payments to the owners.
The company thinks that they will keep making money in the future, so they are not planning to change their guidance for this year. They also expect to grow even more in the next few years.
Caterpillar is a good company to invest in because they have been doing well for a long time and have many opportunities to make more money in the future. However, they are a bit expensive compared to other companies in the same industry, so it might be better to wait for a better time to buy their shares.
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- The article does not mention the current crisis affecting Caterpillar, such as supply chain disruptions and the contraction of the manufacturing sector since November 2022.
- The article does not provide any valuation analysis or comparison with peers or the sector, making it difficult to justify the premium valuation.
- The article uses outdated data for some charts and numbers, such as the EPS trend in the past three years and the 2025 EPS estimate.
- The article uses selective and exaggerated statements, such as "Caterpillar's EPS Trend in Past 3 Years" and "Strong Order Rates in Most Applications," without providing any evidence or context.
- The article has a promotional tone, using phrases like "Solid Liquidity & Attractive Dividend Yield & Payout," "Generating Returns Higher Than Broader Market," and "High-Margin Service Revenues Act as a Key Catalyst," without providing any critical evaluation or comparison with peers or the sector.
Caterpillar has demonstrated resilience and growth amid challenging industry conditions, with consistent EPS growth for 13 straight quarters. The company has a strong backlog, robust demand in its end markets, and a robust services business. CAT's dividend yield and payout ratio are attractive, and the company has a long-term EPS growth rate of 8.9%. However, the stock is trading at a premium compared to its peers and the industry, and new investors should consider waiting for a better entry point.