Caterpillar (CAT) Offering Possible 13.9% Return Over the Next 27 Calendar Days

Caterpillar's most recent trend suggests a bearish bias. One trading opportunity on Caterpillar is a Bear Call Spread using a strike $145.00 short call and a strike $155.00 long call offers a potential 13.9% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $145.00 by expiration. The full premium credit of $1.22 would be kept by the premium seller. The risk of $8.78 would be incurred if the stock rose above the $155.00 long call strike price.

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

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

The RSI indicator is at 62.33 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Caterpillar

Deere Reports Earnings Tomorrow. Here’s What to Expect.
Thu, 20 Aug 2020 12:01:00 +0000
Deere has had a good year—relatively speaking. But crop prices are down a little creating some concern for investors in the ag-equipment giant.

Caterpillar (CAT) Reports Retail Sales Decline of 20% in July
Mon, 17 Aug 2020 13:30:01 +0000
Caterpillar's (CAT) global retail sales have been in the negative territory for eight straight months amid a coronavirus-induced crisis.

Caterpillar Reports 20% Retail Machine Sales Drop; RBC Cautious
Sun, 16 Aug 2020 14:03:14 +0000
Caterpillar Inc (CAT) has reported worldwide rolling three-month retail machine sales -20% y/y from -23% in June, with declines softening in Construction and Resource.As was the case in June, all regions were in minus- the one exception being the Asia/ Pacific region (+10% versus +14% in June). Declines did moderate though, with North America down 35% from -38% in June, Latin America -5% from -25% in June and EAME -11% from -18%.Meanwhile three-month rolling energy and transportation (E&T) sales to retail users and OEMs declined 16% y/y in July versus an 18% decrease in June.The moderation was driven by Power Gen, up 8% in July versus flat in June and Transportation, down 26% vs a 47% June. The decline in Oil & Gas came in at 19% in July from -18% in June with Industrial at -43% from -40% in June.“Rolling three-month retail sales for July remained under pressure (as expected), albeit with moderating declines in Machines and E&T” commented RBC Capital’s Seth Weber on the news.“Whereas we believe CAT is better positioned relative to prior cycles, we expect NT end user demand/margin trends to remain relatively subdued” he concluded.And as visibility to a quick upward turn in end market demand remains limited, the analyst maintained his hold rating on the stock with a $130 price target. (See CAT stock analysis on TipRanks)Shares in Caterpillar are down 5% year-to-date, and analysts have a cautiously optimistic Moderate Buy consensus on the stock’s outlook. That’s with a $141 average analyst price target– indicating shares will stay flat at current levels.Related News: Buffett Builds Position In Barrick Gold, Says Goodbye To US Banks DraftKings Sinks As IRS Tax Threat Hits; Street Stays Bullish Vale Approves $1.5B Serra Sul Iron Ore Project; RBC Bullish More recent articles from Smarter Analyst: * Vale Approves $1.5B Serra Sul Iron Ore Project; RBC Bullish * Facebook Barks At Apple For Refusing to Waive 30% Fee On New Online Tool * China’s Pinduoduo To Join Nasdaq-100, Pushing Out NetApp * Walgreens vs CVS: Which Healthcare Stock Is Ready For A Rebound?

Apple Inc., Travelers share losses lead the way, but Dow flat
Fri, 14 Aug 2020 19:01:00 +0000
DOW UPDATE Shares of Apple Inc. and Travelers are trading lower Friday afternoon, dragging the Dow Jones Industrial Average into negative territory. The Dow (DJIA) was most recently trading 13 points lower (0.

Dow Jones Little Changed as Apple Bans Fortnite, Caterpillar Reports Rough July Sales
Fri, 14 Aug 2020 18:02:00 +0000
Apple is coming under increasing pressure over its App Store fees, and Caterpillar is still seeing double-digit sales declines.

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