Is Caterpillar Stock a Buy?
It's never easy to value a cyclical company like Caterpillar (NYSE: CAT). It's easy to get caught up buying stocks when everything is going great only to find out you overpaid when their end markets start to turn down. Often, the best time to buy them is when everything looks grim, and the valuation (based on current earnings) is very high. That said, let's try and take a balanced look at Caterpillar stock. Here's what you need to know before buying the stock.
Investment articles usually end with valuation appraisals rather than starting with them. However, bear with me because the following chart is critical to understanding the investment case for Caterpillar.
Image source: Getty Images.
Source Fool.com
