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How to Buy Caterpillar Stock

Caterpillar Inc

Caterpillar is a agriculture company located in Illinois, United States, which is part of the Industrials sector, and is traded under the ticker CAT on the NYSE exchange.

Caterpillar stock last closed at $273.06, up 0.38% from the previous day, and has increased 60.11% in one year. It has overperformed other stocks in the Farm & Heavy Construction Machinery industry by 0.41 percentage points. Caterpillar stock is currently +70.02% from its 52-week low of $160.60, and -7.08% from its 52-week high of $293.88.

There are currently 510.14M shares of CAT outstanding. The market capitalization of CAT is $139.30B. In the past 24 hours, 1.71M CAT shares were traded.

How to Buy Caterpillar Stock

Not sure how to invest in Caterpillar stock? Here's how.
  1. Figure out where to buy Caterpillar stock: You need to decide on a stock brokerage, but don't worry - we've sifted through dozens of online brokerages and apps to help you choose where to buy Caterpillar stock.
  2. Sign up for a brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've found.
  3. Deposit money your brokerage account: Pick your payment method and add your info.
  4. Research Caterpillar stock: The Caterpillar ticker symbol is CAT. Is Caterpillar stock a good investment? Should you buy shares of CAT? How do CAT's underlying business fundamentals look? Do top analysts think Caterpillar is a good buy? Why has CAT's stock price moved recently? (Hint: Our stock market research website can help you evaluate if CAT is a good stock to buy).
  5. Place your CAT trade: Decide if you will purchase CAT shares at the current market price or use a limit order to buy CAT stock at a particular price.
  6. Keep an eye on your CAT investment: Create a watchlist to get live updates on your position in Caterpillar shares.

Step 1: Figure out where to buy Caterpillar stock

You will need an online brokerage account to access the NYSE market and buy CAT stock.

A brokerage account is an investment account that allows you to buy and sell a number of investments, including stocks, bonds, mutual funds, and ETFs.

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Step 2: Sign up for a brokerage account

Now that you've picked your brokerage, you'll need to fill out some personal information so you are able to buy CAT stock today.

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Step 3: Deposit money your brokerage account

Now that you have finished signing up on the highest rated stock app, you need to deposit funds:

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Step 4: Research Caterpillar stock

After you have identified the best place to buy Caterpillar stock, it's crucial to analyze their stock prior to buying, so you truly understand the risk and opportunity.

Overview of key CAT info

CAT Price
$273.06
1w %
-2.18%
1y %
60.11%
5y %
77.31%
P/E
16.91x
P/B
7.63x
P/S
2.16x
PEG
1.23x
Revenue
$64.77B
Earnings
$8.36B
Fore. Rev. Growth
3.18%
Fore. Earn. Growth
15.31%
Market Cap
$139.30B
Next Earnings
Oct 25, 2023
Next Dividend
N/A

Caterpillar Overview

WallStreetZen was designed to help average investors do more in-depth fundamental analysis quickly.

You can see all of the due diligence checks on CAT's stock page.

Is CAT stock undervalued or overvalued?

Analysts use many financial metrics, analyses, models, and charts to gauge CAT's intrinsic value.

Using relative valuations ratios:

  • CAT may be overvalued based on its P/E ratio of 16.91x, relative to Farm & Heavy Construction Machinery industry P/E ratio of 13.49x
  • CAT could be overvalued based on its P/B ratio of 7.63x, relative to Farm & Heavy Construction Machinery industry P/B ratio of 4.32x
  • CAT may be overvalued based on its PEG ratio of 1.23x

You can access more valuation research on CAT's stock here.

A quick look at CAT Financials

Signs that CAT is financially healthy:

  • There are more short-term assets than long-term liabilities on the CAT balance sheet.
  • There are more short-term assets than short-term liabilities on the CAT balance sheet.
  • CAT profit margin has gone up from 12.5% to 12.9% in the past year.
  • CAT earnings of $11.47B is not sufficient to cover its interest payments.
  • CAT's operating cash flow of $10.04B allows it to safely service it's debt of $37.70B.
  • Total CAT debt is lower than 5 years ago, relative to shareholder equity.

Signs that CAT is not financially healthy:

  • CAT has a relatively high debt to equity ratio of 3.68.

Do Wall Street analysts think it's a good time to buy CAT stock

Out of 15 Equities analysts who research CAT, the consensus analyst rating on CAT is a Buy

It's important to keep in mind that analyst ratings are not recommendations, nor are they financial advice.

Most Recent CAT Analyst Recommendations

Stanley Elliott, a top 5% analyst from Stifel Nicolaus maintains CAT with a strong buy rating and raises their CAT price target from $275.00 to $300.00, on Aug 2, 2023.

Tami Zakaria, a top 6% analyst from JP Morgan maintains CAT with a strong buy rating and raises their CAT price target from $275.00 to $315.00, on Aug 2, 2023.

Matt Elkott, a top 17% analyst from TD Cowen maintains CAT with a buy rating and raises their CAT price target from $287.00 to $320.00, on Aug 2, 2023.

Seth Weber, a top 25% analyst from Wells Fargo maintains CAT with a hold rating and raises their CAT price target from $240.00 to $285.00, on Aug 2, 2023.

Michael Feniger, a bottom 22% analyst from Bank of America maintains CAT with a strong buy rating and raises their CAT price target from $283.00 to $323.00, on Aug 2, 2023.

You can dig deeper into what analysts are projecting on the Caterpillar stock forecast page.

CAT Trading Indicators

SMA10
278.58
SMA20
279.56
SMA50
274.72
SMA100
251.5
SMA200
243.84
MACD
0.59
MACD Signal
2.03
MACD Histogram
-1.44
RSI
44.51
Stochastic %K
14.89
Stochastic %D
27.18
StochRSI %K
7.83
StochRSI %D
14.91

CAT Revenue

Last year, CAT earnings were $8.36B. In the past 5 year, CAT's earnings have grown by 25.34% per year. This was slower than the Farm & Heavy Construction Machinery industry average of 27.48%.

Last year, CAT revenue was $64.77B. During the last five year, CAT's revenue has increased by 4.82% per year. This was slower than the Farm & Heavy Construction Machinery industry average of 7.84%.

Dive into CAT's earnings and revenue performance here.

Latest Insiders Trades at CAT

Over the last 12 months, executives and large shareholders at CAT have bought more shares than they have sold.

William E. Schaupp, Chief Accounting Officer of CAT, was the latest CAT insider to sell. They sold $69,913.20 worth of CAT stock on Sep 1, 2023.

Dig into more about who owns CAT stock here.

Can I get consistent income from CAT stock?

Caterpillar pays a dividend of 1.79%, compared to the Farm & Heavy Construction Machinery industry's average dividend yield of 1.93%. If you owned $1,000 of CAT stock, you would have been paid $17.94 last year.

Caterpillar dividend payments have consistently grown over the past decade and have remained stable.

Get more info about Caterpillar dividend yield and history here.

What do other investors have to say about CAT?

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Step 5: Place your CAT trade

There are two main types of orders:

  • Market order: A market order is an order to buy or sell a stock at the best price on the market.
    Market orders are mostly sufficient.
  • Limit order: A limit order is an order to buy or sell a security at a specific price (or better).
    If you want to be certain you're buying or selling at a specific price, use a limit order.

Hit the Open button and your broker will execute the order.

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Step 6: Keep an eye on your CAT investment

Now that you own some CAT stock, you'll want to stay up-to-date on your stock purchase.

Put CAT on a watchlist to keep track of your CAT stock.

CAT Feed

How to Buy Stock in Caterpillar

To reiterate, here are the 6 steps to buy Caterpillar stock:

  1. Figure out where to buy Caterpillar stock
  2. Sign up for a brokerage account
  3. Deposit money your brokerage account
  4. Research Caterpillar stock
  5. Place your CAT trade
  6. Keep an eye on your CAT investment

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If you would like to get the latest news on your investment in Caterpillar, create your watchlist below.

NYSE: CAT
$273.06+1.03 (+0.38%)
Updated Sep 22, 2023
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NYSE: CAT
$273.06+1.03 (+0.38%)
Updated Sep 22, 2023
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FAQ

How much does it cost to buy one Caterpillar share?

As of Sep 22, 2023, it costs $273.06 to buy one share of Caterpillar stock.

Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Even if you only have $100, you can buy 0.366 shares of CAT.

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Is now a good time to buy Caterpillar stock?

According to 15 Wall Street analysts who monitor Caterpillar, their consensus recommendation is to buy Caterpillar stock.

What is the best way to buy Caterpillar stock?

One way to place an order for Caterpillar stock is with a brokerage account.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.