Why Shares in Caterpillar Tracked Lower Again Today
Shares in (NYSE: CAT) were down by about 7.5% at 11 a.m. ET today as the market continued to sell off equities in the wake of tariff measures imposed on U.S. trade partners. The sell-off in the machinery equipment company's stock is understandable given its exposure to global growth and the possibility that tariff actions will negatively impact its supply chain, making products more expensive and possibly unavailable.
A weaker global economy isn't good for sales of Caterpillar's construction machinery, and it's definitely not good for its competitive positioning if tariff actions drive up its costs.
In addition, there's a secondary impact whereby commodities like oil, metals, and minerals are also being sold off heavily. That's likely to impact energy and mining companies' capital spending plans, given that Caterpillar is a major player in mining machinery and the energy markets. Furthermore, its construction and infrastructure machinery is also used in the energy and infrastructure industries.
Source Fool.com
Caterpillar Inc. Stock
The stock is one of the favorites of our community with 52 Buy predictions and 4 Sell predictions.
However, we have a potential of -2.76% for Caterpillar Inc. as the target price of 655 € is below the current price of 673.6 €.
