Caterpillar Stock Alpha and Beta Analysis

CAT
 Stock
  

USD 194.00  3.28  1.72%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Caterpillar. It also helps investors analyze the systematic and unsystematic risks associated with investing in Caterpillar over a specified time horizon. Remember, high Caterpillar's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Continue to Caterpillar Backtesting, Caterpillar Valuation, Caterpillar Correlation, Caterpillar Hype Analysis, Caterpillar Volatility, Caterpillar History and analyze Caterpillar Performance.
  
Please note that although Caterpillar alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Caterpillar did 0.13  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Caterpillar stock's relative risk over its benchmark. Caterpillar has a beta of 1.26  . Let's try to break down what Caterpillar's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Caterpillar will likely underperform.
Caterpillar Book Value per Share is comparatively stable at the moment as compared to the past year. Caterpillar reported Book Value per Share of 30.36 in 2021. Enterprise Value over EBIT is likely to gain to 24.89 in 2022, whereas Tangible Asset Value is likely to drop slightly above 69.9 B in 2022.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Caterpillar Quarterly Book Value per Share

29.695

Caterpillar Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Caterpillar market risk premium is the additional return an investor will receive from holding Caterpillar long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Caterpillar. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Caterpillar's performance over market.
α-0.13   β1.26
90 days against DJI

Caterpillar expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Caterpillar's Buy-and-hold return. Our buy-and-hold chart shows how Caterpillar performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Caterpillar Market Price Analysis

Market price analysis indicators help investors to evaluate how Caterpillar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Caterpillar shares will generate the highest return on investment. By understating and applying Caterpillar stock market price indicators, traders can identify Caterpillar position entry and exit signals to maximize returns.

Caterpillar Return and Market Media

The median price of Caterpillar for the period between Sat, May 14, 2022 and Fri, Aug 12, 2022 is 191.31 with a coefficient of variation of 8.21. The daily time series for the period is distributed with a sample standard deviation of 15.91, arithmetic mean of 193.8, and mean deviation of 13.76. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Caterpillar exotic insider transaction detected05/23/2022
2
Acquisition by Denise Johnson of tradable shares of Caterpil...05/27/2022
3
Acquisition by Kelly Ayotte of 816 shares of Caterpillar sub...06/09/2022
4
Acquisition by Gerald Johnson of 816 shares of Caterpillar s...06/10/2022
5
Financial Statements06/14/2022
6
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7
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8
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9
EPS Estimate06/30/2022
10
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11
Is Caterpillar a Good Pick for Value Investors - Zacks Inves...07/19/2022
12
Caterpillar Reports Next Week Wall Street Expects Earnings G...07/26/2022
13
Acquisition by Joseph Creed of tradable shares of Caterpilla...07/28/2022
14
EPS Reported08/02/2022
15
EPS Estimate08/08/2022

About Caterpillar Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Caterpillar has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2022 (projected)
Long Term Debt to Equity1.81.82
Interest Coverage7.76.39

Caterpillar Upcoming Company Events

As portrayed in its financial statements, the presentation of Caterpillar's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Caterpillar's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Caterpillar's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Caterpillar. Please utilize our Beneish M Score to check the likelihood of Caterpillar's management manipulating its earnings.
Upcoming Quarterly Report28th of January 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End28th of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

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Continue to Caterpillar Backtesting, Caterpillar Valuation, Caterpillar Correlation, Caterpillar Hype Analysis, Caterpillar Volatility, Caterpillar History and analyze Caterpillar Performance. 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Caterpillar technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Caterpillar technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Caterpillar trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...