On Friday, the S&P 500 rose by 1.45%, driven up by Caterpillar (CAT) and 3M’s (MMM) strong performances. These companies are significant components of the benchmark, with both stocks rising by over 8%.
Caterpillar, which is benefiting from a strong business industry, is expected to see further growth in its shares following a favorable job market report. The world’s largest construction and mining equipment manufacturer has a Zacks Rank #1 (Strong Buy) and has demonstrated expansive bottom-line growth. Its EPS is expected to increase from $13.84 in 2022 to $17.64 by 27% this year, with further growth of 3% in fiscal 2024. Caterpillar’s Manufacturing-Construction and Mining Industry is currently in the top 2% of over 250 Zacks industries, with a significant rise in earnings estimate revisions over the past 60 days.
3M, with a Zacks Rank #3 (Hold), saw an increase in its stock price on Friday. Although its Diversified Operations Industry is currently in the bottom tier of Zacks industries, the company has a wide variety of product lines that should suffice for sustained revenue. The company’s EPS is expected to rebound and rise by 10% in FY24 at $9.50 per share, overshadowing the dip of -14% projected this year.
The rally exhibited by Caterpillar and 3M indicates their promising prospects in terms of stock value. Caterpillar, in particular, has high earnings estimate revisions that make it an attractive option for investment, even as the market rally declines. Meanwhile, holding on to 3M stocks could also be rewarding.
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Disclaimer: The opinions and views expressed in the article are solely those of the author’s and do not reflect those of Nasdaq, Inc.
