Caterpillar Stock Alpha and Beta Analysis
| CAT Stock | USD 335.44 4.37 1.32% |
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. Key technical indicators related to Caterpillar's market risk premium analysis include:
Beta 1.55 | Alpha 0.0848 | Risk 1.65 | Sharpe Ratio 0.0537 | Expected Return 0.0885 |
Caterpillar Quarterly Cash And Equivalents |
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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 |
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 | 0.08 | β | 1.55 |
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, Feb 3, 2024 and Fri, May 3, 2024 is 338.98 with a coefficient of variation of 5.98. The daily time series for the period is distributed with a sample standard deviation of 20.42, arithmetic mean of 341.36, and mean deviation of 17.69. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
| Caterpillar dividend paid on 20th of February 2024 | 02/20/2024 |
1 | Caterpillar Inc. Is a Trending Stock Facts to Know Before Betting on It | 04/10/2024 |
2 | Caterpillar Options Trading A Deep Dive into Market Sentiment | 04/16/2024 |
3 | Dow Jones Futures Rise Microsoft Pops, Google Soars After Market Rally Shows Resilience | 04/25/2024 |
4 | Today, Investors Focus Is On The PCE Price Index Inflation Report | 04/26/2024 |
5 | Caterpillar to delist shares from two European exchanges | 04/29/2024 |
6 | Automotive careers highlighted at Canton High School auto show, job fair | 04/30/2024 |
7 | Acquisition by Daniel Dickinson of 3736 shares of Caterpillar subject to Rule 16b-3 | 05/01/2024 |
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 financial instruments including Caterpillar or other stocks. 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.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0207 | 0.0193 | 0.017 | 0.0177 | Price To Sales Ratio | 2.21 | 2.12 | 2.25 | 2.36 |
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.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 6th of August 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 3rd of February 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Build Portfolio with Caterpillar
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Caterpillar Backtesting, Caterpillar Valuation, Caterpillar Correlation, Caterpillar Hype Analysis, Caterpillar Volatility, Caterpillar History and analyze Caterpillar Performance. For more information on how to buy Caterpillar Stock please use our How to Invest in Caterpillar guide.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 the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for Caterpillar Stock analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.
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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.