Caterpillar, Inc. Might Not See Better Days In 2016
The heavy machinery maker is trying its best to get back in the game, but it might not work out too well for it.
The past few years have been rough for Caterpillar Inc. and its various segments including have suffered during the time mainly because of the setbacks from construction, mining, infrastructure and other energy industries. In 2015, the Caterpillar stock has fallen by 25% as the customers of the heavy-equipment maker have pulled back on capital spending.
In hopes of bringing its share back up, the heavy machinery maker is working on turning its manufacturing around for the year, as least for its major market items. One of the major factors through which the company will be able to regain its position is by driving commodity markets which include crude oil, copper, silver and natural gas will jump back. At this point, analysts are fairly optimistic about the improvement of these products.
However in the first quarter of 2016 analysts believe that gold is likely to remain under pressure but by the end of the current year it will bounce back. 2016 could bring the yellow metal back from the slumps after about 4 years. As for crude oil, it will be at $30 per barrel but by the last month of 2016 it will be selling at $40 or above. On the other hand, natural gas has jumped by nearly a third. Since the financial crisis, 2015 has been the worst year for Caterpillar Inc. but even at this point analysts are saying that the worst might not be over for the organization.
For the first time ever, the heavy machinery manufacturer will be facing its fourth consecutive down year in terms of sales and he made no comments on whether the company will be able to get back on its feet in 2016. A minor turnaround could bring better days for the organization as the stock has been down for over five years.
In the near future, it will be faced by tough competition from its competitors which include General Electric, as the company will work on capitalizing so that it can gain the market share of the manufacturing giant as well. Shareholders of the business are now getting impatient. Currently the stock is being traded at $67.26 which a decrease of 1.09% from its previous stock price. The earnings per share and the price to earnings ratio reported were 4.82 and 13.95 respectively.
The highest level at which the shares of the heavy equipment organization was witnessed at $68.44 and at a lowest level of $66.42. The 52-week high is of $90.42 and 12 months low is at $62.99. The current market cap is 39.59 billion.
