Why Shares in Caterpillar Soared in November
Shares in Caterpillar (NYSE: CAT) rose 10.5% in November according to data provided by S&P Global Market Intelligence. Although the move comes pretty much in line with the S&P 500's gain in the month, there was some positive news on Caterpillar that could create a positive trajectory for the stock.
There were three positive catalysts for Caterpillar in November. First, the positive news on the coronavirus vaccine is obviously a good development for a highly cyclical stock like Caterpillar. Simply put, Caterpillar's end market customers are unlikely to order expensive equipment unless they feel confident in the economy.
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Source Fool.com
