Chipotle (CMG) climbs higher late Tuesday on Q2 earnings beat >>> READ MORE

10 Worst Stocks So Far in 2012

The worst Dow Jones and S&P 500 stocks at the midway point

      View All  

#3 Worst Dow Stock: Caterpillar

Caterpillar Inc. (NYSE:CAT)Sector: Manufacturing

In 2011, Caterpillar (NYSE:CAT) posted lackluster losses of 5% compared with 5% gains for the broader Dow Jones Industrial Average. And so far in 2012, CAT is one of the Dow’s worst performers.

The move makes sense at a casual glance — after all, Caterpillar makes heavy machinery for construction and mining. It’s not like there’s booming demand for commercial structures or big spending on infrastructure projects amid debt debates in Washington. As for mining, the low prices for copper and other base metals amid the economic downturn shows that demand just isn’t there.

This is apparently what investors are thinking, and why CAT stock has been held back. However, consider that Caterpillar’s revenue has soared from $32 billion in fiscal 2009 to more than $60 billion in 2011 — with projections of over $70 billion in 2012! Earnings per share also have soared, from a mere $1.43 in 2009 to $7.40 last year and projections of $9.75 in 2012.

Caterpillar might be down, but there’s a reason why Dan Burrows has named this pick his Best Stock to Buy in 2012. This pullback could be a nice buying opportunity.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC