Caterpillar’s Current Position

Caterpillar an American company that designs, markets and sells machinery hit a 52 week high on intraday trading on 26 March this year. CAT shares have appreciated around 8% since the start of 2014 and are expected to grow at a nominal rate of 0.2% in the upcoming12 months. Even though the company had beaten revenue and earnings estimates for the 4QFY13, it has issued weak guidance for the rest of the year due to the slowdown in China’s economic growth which is a major market for caterpillar. The mining industry has shown somewhat depressed results which will affect CAT’s performance in the coming months.
Caterpillar stock is rated as a hold since it depends on the recovery of the mining industry and China’s economic stimulus. The product line of CAT includes more than 300 machines that are made and customized according to the needs of the customer.
CAT has announced new equipment recently in several Categories. Some of them include: Articulated Trucks, Asphalt Pavers, Backhoe Loaders and Cold planers.
Under each of these categories, they have introduced at least four new models. Within those models, they have provided further options in terms of capacity, Bhp, gross power, net power etc.

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