This comes after the company hosted an analyst meeting on Monday at the Mine Expo, discussing vital strategies and highlighting the softer macroeconomic outlook. Following this string of events, reputable analytical firms have compiled reports related to Caterpillar’s reduced 2015 guidance.
A report compiled and published by Goldman Sachs Group, Inc. (NYSE:GS) sheds light on the cyclic nature of Caterpillar’s Inc. (NYSE:CAT) stock, by sharing highlights from the 2008 performance dip and the subsequent improvement.
The ACAP Strategic Fund's managers see a "significant scarcity of attractive asset allocation choices globally," but also a strong environment for fundamental stock picking. Q2 2021 hedge fund letters, conferences and more According to a copy of the fund's second-quarter investor update, which ValueWalk has been able to review, its managers currently hold a balanced Read More
In the same breath, the report suggests that the company’s cyclic nature extends a compelling cyclic risk reward, which in turn merits the buy recommendation. Another report from Morgan Stanley (NYSE:MS), similarly rallies a bullish theme. The report, which also shares insights on the thinning global economic growth, maintains its overweight stand on the shares; underscoring recommendations to buy.
From the look of things, it is evident that the reduced profit outlook cuts across the entire industry. Caterpillar Inc. (NYSE:CAT) may not be the only machinery maker that will suffer from a not so rosy bottom line come 2015. In fact, it is better placed because of its positioning in emerging markets.
During the Monday afternoon meeting, Doug Oberhelman -the chief executive and chairperson- shared positive insights on emerging markets. “Construction activity in emerging markets will probably show modest improvements,” he remarked. Like analysts, Oberhelman also gave a lengthy talk about the uncertain economic outlook. Caterpillar Inc. (NYSE:CAT) however views the $8.6 billion Bucyrus International Inc acquisition, that happened last year, as a chance to overhaul its international operations, and perhaps prolong the growth in commodity demand among potent markets.
Caterpillar’s Inc. (NYSE:CAT) shares have been rather stagnant this fiscal year, dipping only 1.4 percent throughout the year.