Why Caterpillar and Deere Outpaced the Market on Tuesday
Shares of heavy machinery makers (NYSE: CAT) and Deere Company (NYSE: DE) were up 3.2% and 3.0%, respectively, as of 3:44 p.m. ET Tuesday versus the S 500's (SNPINDEX: ^GSPC) more modest gain of only 0.65%. While no company-specific news surfaced for either name, the economic backdrop increasingly favors both stocks.
It's complicated, sort of.
While farming equipment outfit Deere and mining/construction equipment company Caterpillar are both sensitive to economic strength or weakness, both are also subject to other factors. Chief among these factors is the price of the materials needed to build their wares -- steel, namely. High steel prices can undermine results that would otherwise be robust due to economic strength. Conversely, low steel prices can salvage weak results stemming from a tepid economy.
Source Fool.com
Caterpillar Inc. Stock
We see a rather positive sentiment for Caterpillar Inc. with 14 Buy predictions and 2 Sell predictions.
As a result the target price of 314 € shows a slightly positive potential of 2.95% compared to the current price of 305.0 € for Caterpillar Inc..
