Caterpillar To See Margin Gains As Inventory Levels Normalize: Goldman Sachs
Portfolio Pulse from Lekha Gupta
Caterpillar, Inc. (NYSE:CAT) shares are trading higher after reporting second-quarter FY24 results. Goldman Sachs maintained a Buy rating with a $408 price target. Despite a 4% year-over-year decline in total sales and revenue, Caterpillar beat consensus estimates. Adjusted earnings were $5.99 per share, above the consensus of $5.54. The company anticipates slightly lower sales and revenues in 2024 compared to 2023. The analyst expects margin gains due to price increases, lower manufacturing costs, and reduced dealer inventory. Investors can gain exposure via Global X Funds Global X Dow 30 Covered Call ETF (NYSE:DJIA) and Global X Funds Global X Dow 30 Covered Call & Growth ETF (NYSE:DYLG).
August 06, 2024 | 6:15 pm
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POSITIVE IMPACT
Caterpillar shares are trading higher after reporting Q2 FY24 results. Goldman Sachs maintained a Buy rating with a $408 price target. Despite a 4% decline in sales and revenue, Caterpillar beat consensus estimates. Adjusted earnings were $5.99 per share, above the consensus of $5.54. The company anticipates slightly lower sales and revenues in 2024 compared to 2023. The analyst expects margin gains due to price increases, lower manufacturing costs, and reduced dealer inventory.
Caterpillar's Q2 FY24 results exceeded expectations, leading to a positive market reaction. The company's ability to beat earnings estimates and the analyst's positive outlook contribute to the stock's upward momentum.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Caterpillar's stock via Global X Funds Global X Dow 30 Covered Call ETF (NYSE:DJIA). The ETF may see a positive impact due to Caterpillar's strong Q2 FY24 results and the maintained Buy rating from Goldman Sachs.
Caterpillar's strong performance and positive outlook are likely to benefit ETFs that include the stock, such as DJIA. The ETF may see a positive impact as a result.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Caterpillar's stock via Global X Funds Global X Dow 30 Covered Call & Growth ETF (NYSE:DYLG). The ETF may see a positive impact due to Caterpillar's strong Q2 FY24 results and the maintained Buy rating from Goldman Sachs.
Caterpillar's strong performance and positive outlook are likely to benefit ETFs that include the stock, such as DYLG. The ETF may see a positive impact as a result.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50