No. 2: Caterpillar
Current Return: +26%
Investor: Dan Burrows
If you’re looking for a broad-based recovery play, it’s hard to get better than Caterpillar (NYSE:CAT). The world’s largest maker of construction and mining equipment has its fingers in a lot of pies, and will benefit nicely from any sustained economic growth.
Judging by recent earnings, Caterpillar looks to be on the way up. The company saw increased global demand that boosted profit 60% in the most recent quarter on record sales.
“The 2011 increase in sales and revenues was the largest percentage increase in any year since 1947, and much of it was driven by demand for Caterpillar products and services outside of the United States,” CEO Doug Oberhelman said in a statement. “As a result, 2011 was a record-breaking year for U.S. exports at nearly $20 billion.”
So have you missed your ride on the CAT? Maybe not. Dan recently wrote a Caterpillar stock update that notes, “the stock trades at very compelling valuations, even at current levels.”
In short, there might be continued growth ahead for Caterpillar in 2012 even after these market-beating gains.