Caterpillar Stock Probability of Future Stock Price Finishing Over 405.0
| CAT Stock | USD 406.11 2.41 0.60% |
Closest to current price Caterpillar long CALL Option Payoff at Expiration
Caterpillar |
Caterpillar Target Price Odds to finish over 405.0
The tendency of Caterpillar Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to stay above $ 405.00 in 90 days |
| 406.11 | 90 days | 405.00 | about 12.17 |
Based on a normal probability distribution, the odds of Caterpillar to stay above $ 405.00 in 90 days from now is about 12.17 (This Caterpillar probability density function shows the probability of Caterpillar Stock to fall within a particular range of prices over 90 days) . Probability of Caterpillar price to stay between $ 405.00 and its current price of $406.11 at the end of the 90-day period is near 1 .
Considering the 90-day investment horizon the stock has the beta coefficient of 1.89 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Caterpillar will likely underperform. Additionally Caterpillar has an alpha of 0.0063, implying that it can generate a 0.006315 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Caterpillar Price Density |
| Price |
Predictive Modules for Caterpillar
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Caterpillar. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Caterpillar Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Caterpillar is not an exception. The market had few large corrections towards the Caterpillar's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Caterpillar, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Caterpillar within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 1.89 | |
σ | Overall volatility | 22.50 | |
Ir | Information ratio | 0.06 |
Caterpillar Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Caterpillar for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Caterpillar can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Caterpillar is unlikely to experience financial distress in the next 2 years | |
| Caterpillar has a strong financial position based on the latest SEC filings | |
| About 72.0% of the company shares are held by institutions such as insurance companies | |
| On 20th of November 2024 Caterpillar paid $ 1.41 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Caterpillar Up 7.3 percent Since Last Earnings Report Can It Continue |
Caterpillar Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Caterpillar Stock often depends not only on the future outlook of the current and potential Caterpillar's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Caterpillar's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 513.6 M | |
| Cash And Short Term Investments | 7 B |
Caterpillar Technical Analysis
Caterpillar's future price can be derived by breaking down and analyzing its technical indicators over time. Caterpillar Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Caterpillar. In general, you should focus on analyzing Caterpillar Stock price patterns and their correlations with different microeconomic environments and drivers.
Caterpillar Predictive Forecast Models
Caterpillar's time-series forecasting models is one of many Caterpillar's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Caterpillar's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Caterpillar
Checking the ongoing alerts about Caterpillar for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Caterpillar help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Caterpillar is unlikely to experience financial distress in the next 2 years | |
| Caterpillar has a strong financial position based on the latest SEC filings | |
| About 72.0% of the company shares are held by institutions such as insurance companies | |
| On 20th of November 2024 Caterpillar paid $ 1.41 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Caterpillar Up 7.3 percent Since Last Earnings Report Can It Continue |
Additional Tools for Caterpillar Stock Analysis
When running Caterpillar's price analysis, check to measure Caterpillar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Caterpillar is operating at the current time. Most of Caterpillar's value examination focuses on studying past and present price action to predict the probability of Caterpillar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Caterpillar's price. Additionally, you may evaluate how the addition of Caterpillar to your portfolios can decrease your overall portfolio volatility.