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Now it's my turn to present an analysis of Caterpillar (NYSE:CAT), which has played a key role in the construction industry not only in the US but also in remote parts of the world
Time To Take Profits On Caterpillar
Summary
- Caterpillar, one of the biggest manufacturers of construction equipment, will be the beneficiary of the ongoing recovery of the U.S. housing market.
- As a result, Caterpillar's stock price has risen 56% in less than 4 months, creating a significant divergence from its current financial results.
- Its Construction Industries segment's U.S. sales were $2.9 billion in Q1 2025, down 24.2% year over year.
- Meanwhile, Wall Street analysts expect its total revenue and EPS to decline year-on-year in the second quarter of 2025.
- In this article, youwill know why, according to my "ALLKA 4D Rating" model, I believethat Caterpillar's risk/reward profile has turned unfavorable.
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