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Caterpillar Inc.: In Anticipation of a Positive Quarterly Report

12/29/2022 2:30 PM

Shares of Caterpillar Inc., a global manufacturer of construction and mining equipment, are trading in a corrective trend around 239.00. Quotes in the last month rose by 3.41%, while the industrial goods sector lost 2.62%, and the S&P 500 – 4.77%.

Last week, the company announced that Lou Ballmer-Millar, currently serving as senior vice president of the Large Energy Systems Division, has been appointed Chief Sustainability and Strategy Officer. Management notes that new ways of doing business are an important part of Caterpillar Inc.'s long-term profitable growth strategy and expects personnel decisions to improve the promotion of existing products further.

The second event was signing a contract with the largest producer of crushed stone, sand, and graphite in the USA, the Luck Stone company. Under the agreement, Caterpillar will deploy a stand-alone solution at the Luck Stone Bull Run plant in Virginia and supply new trucks up to 100.0 tons, which are currently unmatched.

As for the company's financial condition, a quarterly report will be presented on January 26, from which analysts expect an increase in revenue to 15.8B dollars from 15.0B dollars earlier, while earnings per share are likely to reach 3.97 dollars. Also, the Board of Directors decided to continue paying dividends of 1.2 dollars per share, which translates into a yield of 2.01%. The closing of the registry is scheduled for January 19.

On the daily chart, the issuer's stock is within the global Expanding formation pattern, approaching the resistance line around 260.00.

Technical indicators fix a stable buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram is trading in the buy zone.

Support levels: 232.50, 219.30. | Resistance levels: 243.50, 256.00.

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