- Caterpillar stock (NYSE: CAT) is near an all-time high.
- Caterpillar and Albermarle collaboration on zero-emissions lithium mining.
- The CAT stock trades at 272.71 with a gain of 1.18% during the intraday session.
With the slowdown of the pandemic, the global construction industry has boomed rapidly. New development projects around the world, like the Neom of Saudi Arabia, Qatar FIFA World Cup, and several other projects in the Middle East and Indian subcontinent, raised the demand for construction equipment.
However, Caterpillar is the market leader in construction equipment and heavy machinery. Thus, the company naturally benefits from the ongoing boom in global construction. Hence, the CAT stock price is witnessing an all-time high currently.
This company’s recent financial performance depicts the vigorous surge in the stock price. Year-to-date and three-month returns show a positive growth of 14.77% and 12.03%, respectively. Moreover, the CAT stock price has been experiencing an uptrend since June and surged about 40% within 2 months. Yet, the price got stuck in a consolidation between the $293.88 and $268.80.
Recently, the bulls and bears have been in a power struggle to escape the consolidation. However, the consistent dominance of bulls favors further hikes after a short-term pullback. If the participation of bulls rises, then the price might test the $300 mark. On the contrary, if bears escape the consolidation, the price might melt and retest the previous resistance of $265.
Q2-2023 Consensus of Caterpillar Inc.
The 2nd quarter financial report outperformed the results of the past 4 years. It unveiled the results on August 1, 2023, where the reported earnings of 5.55 per share defeated the Zacks Consensus Estimate of $4.51 by a vast surprise of 21.33%.
Caterpillar sales increased across all segments, aided by higher volume portraying high demand in its markets and pragmatic pricing impact. It has boosted CAT’s overall sales performance. The Q2 consensus reported total sales of 17.31 Billion while surpassing the estimated $16.46 Billion by 5.19%.
Caterpillar And Albermarle Collaboration On Lithium Batteries.
Albermarle Corp. signed collaboration agreements with Caterpillar to mine lithium from Kings Mountain using CAT battery-powered mining equipment. The Charlotte, N.C.-based lithium and other alkali metals supplier said this initiative would be the first zero-emission mine in North America.
Who Will Escape the Consolidation?
With constant surges from the past few months, the CAT stock price has positioned itself above the significant EMAs. However, recent consolidation shows the stock price hovered at 50, 100, and 200-day EMAs, but rejected the 20-day EMA. That indicates prior bullish momentum has slowed down.
The RSI is at the 50.17 neutral mark, and CMF is trading below 0.00, indicating a rise in sellers’ participation in the market. However, indicators suggest the price will bounce back after a short-term pullback.
Conclusion
The sudden boom in the construction industry elevated the Caterpillar (CAT) stock price to an all-time high. Investors and traders should look for buying opportunities after the break and close above the $289 resistance level.
Technical Levels
Major resistance: $289.41 and $293.88
Major support: $204.04 and $205.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.