Caterpillar (CAT) Offering Possible 35.14% Return Over the Next 16 Calendar Days

Caterpillar's most recent trend suggests a bullish bias. One trading opportunity on Caterpillar is a Bull Put Spread using a strike $114.00 short put and a strike $109.00 long put offers a potential 35.14% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $114.00 by expiration. The full premium credit of $1.30 would be kept by the premium seller. The risk of $3.70 would be incurred if the stock dropped below the $109.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Caterpillar is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Caterpillar is bullish.

The RSI indicator is at 44.07 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Caterpillar

Caterpillar Reports Earnings Today. Here’s What to Expect.
Tue, 28 Apr 2020 09:00:00 +0000
Caterpillar reports first-quarter earnings on Tuesday and Wall Street isn’t sure what to do with the stock.

Caterpillar Shares Could Weaken in the Short Run
Mon, 27 Apr 2020 19:25:00 +0000
In Friday's Mad Money program Jim Cramer highlighted a few stocks that are due to report earnings. For example, he mentioned that we'll hear from Caterpillar Inc. on Tuesday. It is struggling from Covid-19 Cramer noted.

Morgan Stanley On Caterpillar And United Rental's Stock: 'Time To Leave'
Mon, 27 Apr 2020 17:43:09 +0000
Construction-focused companies Caterpillar Inc. (NYSE: CAT) and United Rentals, Inc. (NYSE: URI) have some of the highest exposure rates to U.S. non-residential construction, which is likely to enter a multi-year downturn cycle due to the coronavirus, according to Morgan Stanley.The Analyst Courtney Yakavonis downgraded Caterpillar's stock rating from Equal-Weight to Underweight with a price target lowered from $107 to $93.The analyst also downgraded United Rentals from Overweight to Equal-Weight with a price target lowered from $154 to $110.The Thesis The U.S. non-residential construction cycle is likely to be more protracted than previously expected, driven by declines across Commercial, Office, Amusement/Recreation and Lodging construction in addition to state and local budget cuts, Yakavonis wrote in the notes. United Rentals' exposure to the segment stands at 44% while Caterpillar's exposure is at 22%.Yakavonis said Public and Private non-residential construction spends are likely to fall 10% year-over-year in 2020 and another 7% in 2021. The math behind these estimates points to a $400 billion shortfall over three years. But even if an infrastructure stimulus project is announced and/or incremental state and local aid, it will likely still fall short of offsetting the $400 billion shortfalls.Meanwhile, consensus estimates factors in a "robust" 6% to 9% sales recovery in both companies in 2021 but the research firm's estimates point to a different outlook. Specifically, the research firm's 2021 EPS estimates for Caterpillar are 35% below the consensus estimate while its 2021 EBITDA estimates are 14% below estimates for United Rentals.Price Action Shares of Caterpillar were trading around $113.61 while shares of United Rentals were higher by 3.6% at $109.29.Related Links:Apple And Amazon Earnings, Fed Meeting Among Highlights In Busy Week AheadFed President Warns Of 'Long Hard Road' Ahead, Suggests 18-Month StrategyLatest Ratings for CAT DateFirmActionFromTo Apr 2020Morgan StanleyDowngradesEqual-WeightUnderweight Apr 2020Morgan StanleyMaintainsEqual-Weight Apr 2020B of A SecuritiesDowngradesNeutralUnderperform View More Analyst Ratings for CAT View the Latest Analyst Ratings See more from Benzinga * Despite 'Once In A Lifetime Opportunity,' Investors Still Need To Do Their Homework * 2 Dow Stocks Surviving The Coronavirus Carnage(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Want to Buy Caterpillar? Check Out the Chart Ahead of Earnings
Mon, 27 Apr 2020 15:59:00 +0000
Caterpillar is a controversial stock between bulls and bears and the charts reflect that sentiment. Here's a look at the stock ahead of earnings.

Industrial Stocks' Apr 28 Earnings Roster: CAT, ROP & More
Mon, 27 Apr 2020 14:03:02 +0000
A peak at how Caterpillar (CAT), Roper Technologies (ROP), Rockwell Automation (ROK) and other industrials are expected to fare this earnings season amid the coronavirus impact.

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