Caterpillar Stock Target Price and Analyst Consensus

CAT
 Stock
  

USD 178.81  0.43  0.24%   

The current analyst and expert consensus on Caterpillar is Hold with 8 hold recommendations. The current projected Caterpillar target price consensus is 237.57 with 14 analyst opinions. One of the most common ways Caterpillar analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to Caterpillar vendors, executives, and/or customers. Caterpillar recommendation module provides expert sentiment on the projected Caterpillar target price to derive its highest and lowest estimates based on target price standard deviation of 28.212. Continue to Macroaxis Advice on Caterpillar to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  

Caterpillar Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Caterpillar target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts performance other than comparing it to the past results via a very sophisticated attribution analysis. Caterpillar target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions17
Lowered Outlook0
Raized Outlook0
Hold
Most Caterpillar analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Caterpillar stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Caterpillar, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Caterpillar Target Price Projection

Caterpillar's current and average target prices are 178.81 and 237.57, respectively. The current price of Caterpillar is the price at which Caterpillar is currently trading. On the other hand, Caterpillar's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Caterpillar Market Quote on 6th of October 2022

Low Price176.89Odds
High Price180.98Odds

178.81

Target Price

Analyst Consensus On Caterpillar Target Price

Low Estimate164.0Odds
High Estimate270.0Odds
Number of Analysts14
Standard Deviation28.212

237.571

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Caterpillar and the information provided on this page.

Caterpillar Analyst Ratings

Caterpillar's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Caterpillar stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Caterpillar's financials, market performance, and future outlook by experienced professionals. Caterpillar's historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Caterpillar Target Price Projections

Caterpillar's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Caterpillar and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Caterpillar depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Caterpillar including analysis of its current option contracts.
Caterpillar's latest option contracts expiring on 2022-10-07 are carrying combined implied volatility of 53.03 with a put-to-call open interest ratio of 1.0 over 133 outstanding agreements suggesting . The current put volume is at 3686, with calls trading at the volume of 2676. This yields a 1.38 put-to-call volume ratio. The Caterpillar option chain provides detailed quote and price information for the current Caterpillar option contracts. It shows all of Caterpillar's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-10-07 Option Contracts

Caterpillar option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Caterpillar's lending market. For example, when Caterpillar's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Caterpillar, he or she must hedge the risk by shorting Caterpillar stock over its option's life.
The chart above shows Caterpillar's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Caterpillar's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Caterpillar's option, there is no secondary market available for investors to trade.

Caterpillar Maximum Pain Price across 2022-10-07 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Caterpillar close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Caterpillar's stock options are financial instruments that give investors the right to buy or sell shares of Caterpillar common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Caterpillar stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Caterpillar's stock price goes up or down, the stock options follow.
Continue to Macroaxis Advice on Caterpillar to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Caterpillar In The Money Call Balance

When Caterpillar's strike price is surpassing the current stock price, the option contract against Caterpillar stock is said to be in the money. When it comes to buying Caterpillar's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Caterpillar are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Caterpillar Current Options Market Mood

Caterpillar's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Caterpillar Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Caterpillar's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Caterpillar's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Caterpillar's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Caterpillar Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Caterpillar is a key component of Caterpillar valuation and have some predictive power on the future returns of a Caterpillar.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Caterpillar's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Caterpillar in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
176.66178.82180.98
Details
Intrinsic
Valuation
LowReal ValueHigh
161.07208.67210.83
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Caterpillar. Your research has to be compared to or analyzed against Caterpillar's peers to derive any actionable benefits. When done correctly, Caterpillar's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Caterpillar.

Additional Caterpillar Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Caterpillar is a key component of Caterpillar valuation and have some predictive power on the future returns of a Caterpillar.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Caterpillar's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Caterpillar in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
176.66178.82180.98
Details
Intrinsic
Valuation
LowReal ValueHigh
161.07208.67210.83
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Caterpillar. Your research has to be compared to or analyzed against Caterpillar's peers to derive any actionable benefits. When done correctly, Caterpillar's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Caterpillar.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Investing
Invested over 90 shares
Macroaxis Index
Invested over 90 shares
Continue to Macroaxis Advice on Caterpillar to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. Note that the Caterpillar information on this page should be used as a complementary analysis to other Caterpillar's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try CEO Directory module to screen CEOs from public companies around the world.

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The data published in Caterpillar's official financial statements usually reflect Caterpillar's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Caterpillar. For example, before you start analyzing numbers published by Caterpillar accountants, it's critical to develop an understanding of what Caterpillar's liquidity, profitability, and earnings quality are in the context of the Industrials space in which it operates.
Please note, the presentation of Caterpillar's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Caterpillar's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Caterpillar's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Caterpillar. Please utilize our Beneish M Score to check the likelihood of Caterpillar's management to manipulate its earnings.