Caterpillar Inc. (NYSE:CAT) a Hold: Longbow Research

In a research note issued to investors, Eli Lustgarten at Longbow Research Reiterated their Hold rating on Caterpillar Inc. (NYSECAT). In the year following Eli’s ratings, the stocks covered yield an average return of 10.9% according to In the past year 8 out of 10 recommendations or 80% were successful.

There are 13 research firms in total that have issued ratings on Caterpillar, Inc. (NYSE:CAT) within the past year. The consensus, or mean target price of the Wall Street analysts covering the firm is $87.769. The most recent revision to the consensus target was on 2015-05-20. Analysts are predicting that Caterpillar, Inc. (NYSE:CAT) will report $1.22 earnings per share when they next issue their quarterly earnings release on or around 2015-07-23.

The consensus mean estimate is the calculated mean of all brokerage sell-side analysts that issue earnings estimates for the company. In the most recent quarter the company reported earnings of $1.86 that ended on 2015-03-31. Caterpillar, Inc. (NYSE:CAT) has a 2.56 consensus analyst rating on the stock based on an arithmetical average of the 13 ratings given by the brokerage analysts covering the company. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell. The highest estimate of the 13 covering analysts sees the stock climbing to $117 within the next year while the lowest estimate places the 12-month target price at $71.

Looking ahead to full year estimates, analysts have placed the consensus earnings per share estimate for the current year at $4.24. The most bullish analyst sees the company reporting earnings per share of $5.1 while the most bearish analyst is predicting a current year EPS number of $3.28. Looking further ahead to the next three to five years, the long term EPS growth rate on a consensus basis is 10.2%, based on the 5 analysts providing longer term projections in their models.

Caterpillar Inc. (Caterpillar) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. It operates in two segments: Machinery and Power Systems, and Financial Products. Machinery and Power Systems represents a total of Construction Industries, Resource Industries, Power Systems and All Other segments and related corporate items and eliminations. Financial Products includes the Company’s Financial Products Segment. This category includes Cat Financial and Caterpillar Insurance Holdings Inc. Effective March 1, 2012, it announced that Caterpillar Japan Ltd. acquired Caterpillar Tohoku Ltd. In August 2012, Platinum Equity, LLC. acquired a majority interest in Caterpillar Logistics Services. Caterpillar will retain a 35% interest in the business. In October 2012, Finning International Inc acquired from Caterpillar of the former Bucyrus distribution and support business in its dealership territory.