Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Caterpillar Stock: Outlook Remains Bullish

By Anna CoullingStock MarketsOct 23, 2020 02:42PM ET
www.investing.com/analysis/caterpillar--a-complete-cycle-from-trump-in-to-trump-out-200542140
Caterpillar Stock: Outlook Remains Bullish
By Anna Coulling   |  Oct 23, 2020 02:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Caterpillar Weekly Chart
Caterpillar Weekly Chart

As we rush headlong towards the U.S. presidential election, I thought it would be appropriate to revisit one of my bellwether stocks which is Caterpillar (NYSE:CAT), and indeed one I wrote about a few weeks before the last election four years ago. At the time the stock was trading in the mid 80s dollar per share price area, and with the prospect of major construction whoever won, this would be one to watch and likely to be bullish longer-term which was indeed the case with the price climbing to a high of $173.24 by late 2017. So an excellent return.

Since then the stock has been on a roller coaster ride, returning to the levels of 2016 earlier this year, before the volatility in March triggered buying by the market makers, leading to a strong recovery, and we are now approaching the levels following the Trump victory and we are once again at $169.66 at the time of writing.  So we have come full circle and completed the cycle of one Presidential term.

And as we can see on the chart the stock is at a key technical level given the failure from this area in the past, but judging by the volume and price action of last week, which saw the stock rise strongly on good volume, the outlook for a break above this level looks promising.

For the stock, we have two key events in the next couple of weeks. First are earnings due on the Oct.27 with a forecast of $1.10 per share. This is significantly higher than for the last quarter at $0.66 EPS and reported at $1.03 which exceeded expectations by some distance but below those of 2019. So a modest target this time around which looks achievable.

Second of course is the election itself and as a bellwether of construction, should the Democrats win, much will depend on whether they gain control of both houses allowing them to drive through major infrastructure spending.  We will see, but from a technical perspective, the outlook for this stock remains bullish.

Caterpillar Stock: Outlook Remains Bullish
 

Related Articles

Craig Erlam
A Disappointing End To The Week By Craig Erlam - Jul 30, 2021 1

Stock markets have turned negative on the final trading day of the week, with Europe tracking Asia lower and U.S. markets expected to follow. Whether this is the start of a late...

Caterpillar Stock: Outlook Remains Bullish

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jay West
Jay West Oct 24, 2020 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How do you see Caterpillar earnings and guidance affecting the rest of the market?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email