Though you may not think construction is booming and heavy equipment sales would be brisk, Caterpillar Inc. (NYSE: CAT) had a nice run in April where it pushed up against a new 52-week high. Of course, now that the market has gotten a bit bumpy those gains have rolled back. But it begs the question: Is CAT stock a good investment right now?

Let’s take a look by examining the numbers – specifically, Caterpillar Inc. sales, earnings and stock buying pressure:

• CAT stock fundamentals: CAT stock performance has been making headlines as of late. During Monday’s incredible 400-point run-up of the Dow, CAT was one of the market’s leaders. Taking a closer look and CAT’s 3-month chart is eye-catching with the stock moving up nearly 20% compared with a mere 7% move for the Dow & S&P. All the while, CAT has garnered some mixed reviews from Wall Street analysts–with a nearly dead-even split of bullish and bearish ratings.
• Caterpillar sales: CAT stock faces some distinct challenges as a result of the fluctuating dollar, sovereign debt crises in Europe and a Chinese economy that appears to be cooling. The industrial giant’s sales prospects rise and fall on the strength (or weakness) of the dollar relative to where it is doing business and on the economies in those nations that have an appetite to build and purchase large earth-moving equipment. So it’s no surprise that CAT’s sales for the first quarter fell 11% to $8.23 billion, led by a 28% decline in its engine and turbine business. My fundamental stock analysis show that sales growth is going to continue to lag for Caterpillar Inc.
• Caterpillar earnings: My analysis of CAT earnings growth shows that the construction giant appears to be stuck in the mud. The stock showed first-quarter profit of $233 million in its earnings report, or $0.36 cents per share, compared with a loss of $112 million, or $0.19 cents per share last year. Excluding the write down to pay for future health care costs, the manufacturer said that it earned $0.50 cents per share in the quarter. Caterpillar raised its outlook for 2010 and said it now expects to earn a full-year profit of $2.50 to $3.25 per share on sales of between $38 billion to $42 billion. It previously forecasted earnings of $2.50 a share on sales of between $35.6 billion and $40.5 billion, which is in line with analysts’ expectations. (See how CAT helped show corporate earnings are on a record pace)
• CAT stock buying pressure: Given the turbulent financial markets worldwide, and slowing or shaky economies in China, Greece, Portugal, Spain, and even in Ireland, my screens show that the sales pressure behind this stock just isn’t sufficient to merit a grade above C. Certainly the U.S. economic stimulus spending effort has had a positive effect on CAT stock. U.S.-based customers, but, long term, this company will need to feel increased buying pressure from its foreign customer base in order to raise its Quant. score. Until then, I remain a bit uncertain on CAT stock.
• The verdict: Though there isn’t exactly data here to find a ringing endorsement of CAT, there’s no reason to run screaming either. Sorry to be anticlimactic, but I would prefer to take a wait and see approach to Caterpillar for another month or so to see how trends play out.

Caterpillar, which has a market cap of $41.51 billion, is not your run-of-the-mill construction company. It is the super titan within its sector. Still, CAT is dependent on a resurgent global economic recovery to propel it forward and to deliver solid returns to its investors. And in today’s economic climate, those are some long odds.

Tell us what you think here.

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