Caterpillar (CAT) closed at $407.63 in the latest trading session, marking a +0.3% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

Shares of the construction equipment company witnessed a gain of 10.7% over the previous month, beating the performance of the Industrial Products sector with its gain of 5.98% and the S&P 500's gain of 2.52%.

The upcoming earnings release of Caterpillar will be of great interest to investors. The company's earnings report is expected on January 30, 2025. In that report, analysts expect Caterpillar to post earnings of $5 per share. This would mark a year-over-year decline of 4.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 2.51% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.86% lower. As of now, Caterpillar holds a Zacks Rank of #3 (Hold).

In terms of valuation, Caterpillar is currently trading at a Forward P/E ratio of 18.78. This valuation marks a premium compared to its industry's average Forward P/E of 11.23.

Investors should also note that CAT has a PEG ratio of 2.01 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Manufacturing - Construction and Mining industry had an average PEG ratio of 4.52.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 234, positioning it in the bottom 7% of all 250+ industries.