7 Manufacturing Stocks That Will Overcome Current Difficulties - 1 of 7

#1 - Caterpillar (NYSE:CAT)

Caterpillar (NYSE:CAT) stock is up 17% in the last 12 months which is easily outperforming the Industrials sector. However, the stock is 12% below its 52-week high and analysts give CAT stock a consensus price target of $235 which is an 8% increase and suggests that the stock is undervalued at this time.

Caterpillar was an unquestioned winner as construction activity picked up in 2021. That may remain a catalyst in 2022. And analysts also anticipate that Caterpillar may benefit from oil prices remaining at elevated levels. On the other hand, Caterpillar has made no secret that it has been affected by supply chain disruption as well as rising materials and commodities cost due to inflation.

Weighing all those factors may have some investors concerned about growth. However, one reason that investors buy CAT stock is for the dividend. The company is a member of the Dividend Aristocrat club having increased its dividend in each of the last 28 years.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools. Read More 

Current Price

$354.84

Consensus Rating

Hold

Ratings Breakdown

8 Buy Ratings, 9 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$307.56 (13.3% Downside)