Solid News

Shares of Caterpillar Inc., a global manufacturer of construction and mining equipment, are trading in an uptrend around 185.00.

At the end of last week, the company published a report for Q2, which significantly exceeded analysts' expectations. Revenue amounted to 14.2B dollars, which was 11% higher than the same period a year earlier, as well as 13.59B dollars shown in the previous quarter. Earnings per share reached 3.13 dollars compared to 2.56 dollars a year earlier, 2.88 dollars in the previous quarter and analysts' forecast of 3.01 dollars. The key point in the report was the funds returned to investors as dividends and buyback programs, which amounted to more than 1.7B dollars.

After a successful start to the year, Caterpillar Inc. management decided to increase payments to 1.2 dollars per share, which exceeds last year's figure of 1.11 dollars. The next dividend is scheduled for August 19, and the estimated yield may increase to 2.77% from 1.91% demonstrated in May.

The shares are trading within the global Broadening Formation pattern, starting a new wave of growth after reaching the support line. Technical indicators continue to hold a stable buy signal: fast EMAS on the alligator indicator are above the signal line, and the histogram of the AO oscillator is trading in the buy zone.      

Support levels: 180.60, 167.00. | Resistance levels: 192.00, 215.00.