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Ranking InvestorPlace’s 10 Best Stocks for 2012 Through Q2

See how our picks have panned out for the first half of the year

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No. 8: Caterpillar

Caterpillar Inc. (NYSE:CAT)Q2 Return: -20%
YTD Return: -6%
InvestorDan Burrows

Caterpillar (NYSE:CAT) cruised through the first quarter, coming in at No. 4 on the list after almost 18% gains for the period.

The past few months haven’t been as kind — at least to the stock.

The world’s largest maker of construction and mining equipment was thought to have fears of a global economic slowdown more than baked into its cheap share price, but important emerging markets — China in particular — slowed down too quickly and lower exports to recession-plagued Europe also took a toll. All that has led to a 20% second-quarter return that has dragged CAT shares 6% into the red year-to-date.

Still, there’s reasons for optimism.

Global slowdown and the selloff that came with it didn’t stop CAT from logging record earnings and having a record order backlog in the first quarter. The company also threw a bone to long-term shareholders, hiking its dividend 13%.

And while China really hurt the company in Q2, the country’s new stimulus program could help it get back on track for the rest of the year.

Article printed from InvestorPlace Media,

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