Caterpillar (NYSE: CAT) stock price has been accelerating the upside momentum despite poor sales reports. The upside momentum is supported by investor’s confidence in improving fundamentals for the following quarters of 2020. The trade deal between the two largest economies is among the biggest catalyst for CAT share price.
The trade deal shows that Beijing is now bound to purchase an additional $5bn of US agricultural products over the next two years. The growth in agriculture activities means additional sales for machinery makers in the coming years. Mr. Trump said, “That will result in greater prosperity for farmers all across the land.”
Credit Suisse Expects More Upside for Caterpillar Stock
Credit Suisse is among the bulls. The firm anticipates CAT share price to crawl higher in the coming days amid trade deal and the potential growth in buying from U.S. dealers. The firm lifted the CAT share price target to $173, indicating upside compared to the current price of $150.
Credit Suisse analyst Jamie Cook said, “Dealers are viewing 2020 as a short and shallow correction and – more importantly – manageable.” The firm believes CAT is committed to dividend increases and share repurchases. On the other hand, J.P. Morgan analyst Ann Duignan predicted that CAT is among the U.S. Machinery stocks that are likely to benefit from an improving global economy.
Sales Growth Trend is Likely to Improve
The company has been witnessing a steady decline in sales over the past few months. Its last month’s machine sales stood at the lowest level in fiscal 2019. According to Form 8-K, resources industries sales declined 3% for November while construction industries grew 2%.
Fortunately, the market analysts are expecting an improvement in sales trends in the coming days. This is because of the potential growth in the global economy following the trade deal between the two largest economies. In addition, the company’s cash returns are likely to enhance the investor’s sentiments. CAT plans to increase the quarterly dividend by a single-digit rate in 2020. Overall, Caterpillar stock is likely to receive support from future fundamentals.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
Siraj Sarwar
