Caterpillar (Cat, Known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Caterpillar’s revenue and earnings have grown year over year for 10 consecutive quarters, thanks to its cost-savings actions, strong end-market demand and pricing actions that have been offset by this. Impact of supply-chain disruptions and cost pressures. We expect the company’s adjusted earnings per share to grow 37% for 2023 and revenue is projected to grow 11%. The construction industry segment is expected to benefit from increasing construction activities in the United States and other parts of the world. Supported by demand for commodities driven by the energy-transition trend, a thriving mining sector will support the resources industry segment. Its dividend yield and payout ratio are higher than its competitors. Strong liquidity position, investment in expanding services and digital initiatives will help Caterpillar deliver better returns. This stock has been one of the most searched for on Zacks.com recently.
Nvidia Corporation (NVDA, A worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. NVIDIA is benefiting from strong growth in artificial intelligence, high-performance computing and accelerated computing, which is boosting its compute and networking revenues. The increase in hyperscale demand and solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to increase its presence in the autonomous vehicles and other automotive electronics sector. The company recently reported strong Q2 FY2024 results, in which the top and bottom lines beat the respective Zacks Consensus Estimate and posted significant year-over-year improvements. NVIDIA is a cash rich company with a strong balance sheet. The company boasts of strong cash-flow generating capacity. We expect its revenue to grow at a CAGR of 30.3% over FY 2023-2025.
Want the latest recommendations from Zacks Investment Research? Today, you can download the 7 Best Stocks for the Next 30 Days. Click to get this free report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Nvidia Corporation (NVDA): Free Stock Analysis Report
Click here to read this article on Zacks.com.
Zacks Investment Research