Should You Buy Caterpillar Inc. (CAT) Stock After it Has Fallen 6.44% in a Week?

Overall market sentiment has been down on Caterpillar Inc. (CAT) stock lately. CAT receives a Bearish rating from InvestorsObserver Stock Sentiment Indicator.

Caterpillar Inc. has a Bearish sentiment reading. Find out what this means for you and get the rest of the rankings on CAT!

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What is Stock Sentiment?

When making investment decisions, sentiment gives a good overview of what stocks investors currently favor. Sentiment incorporates short-term technical analysis into its score and does not encompass any fundamental analysis such as profitability of the company. This means that earnings updates and other news can greatly impact overall sentiment. Changes in price are generally the best indicator of sentiment for a particular stock. At its core, a stock's trend indicates whether current market sentiment is bullish or bearish. Investors must be bullish if a stock is trending upward, and are bearish if a stock is moving down. InvestorsObserver's Sentiment Indicator factors in both price changes and variations in volume. An increase in volume usually means a current trend is stengthening, while a drop in volume tends to signal a reversal to the ongoing trend. Our system also uses the options market in order to receive additional signals on current sentiments. We take into account the ratio of calls and puts for a stock since options allow an investor to bet on future changes in price.

What's Happening With CAT Stock Today?

Caterpillar Inc. (CAT) stock has gained 0.35% while the S&P 500 has fallen -1% as of 1:58 PM on Tuesday, Jan 25. CAT has gained $0.74 from the previous closing price of $214.33 on volume of 1,878,339 shares. Over the past year the S&P 500 has gained 13.25% while CAT has gained 14.80%. CAT earned $9.35 a per share in the over the last 12 months, giving it a price-to-earnings ratio of 22.99. To see InvestorsObserver's Sentiment Score for Caterpillar Inc. click here.

More About Caterpillar Inc.

Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 15% market share in 2020. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with over 2,000 branches maintained by 168 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales. Click Here to get the full Stock Report for Caterpillar Inc. stock.