No. 8: Caterpillar
Q2 Return: -20%
YTD Return: -6%
Investor: Dan 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.