No. 8: Caterpillar
Q3 Return: +1%
YTD Return: -5%
Investor: Dan Burrows
Caterpillar (NYSE:CAT) didn’t budge from its third-to-last spot at the end of Q3, as its 1% gains were hardly gains at all.
Such good news was overshadowed by general fears of a global slowdown — fear that was trumping fundamentals, as Dan Burrows put it.
Now, though, that fear seems pretty justified. Most recently, the company made headlines when it lowered its 2015 forecast because it expects “fairly anemic and modest growth” until then.
Still, Burrows remains convinced that the world’s largest maker of construction and mining equipment is still a good long-term buy (the next three to five years), thanks to its bargain valuation and the fact that demand just can’t stay low forever.
Unfortunately, the contest is called Top Stocks of 2012 — and CAT simply doesn’t seem to be one of them.