For two months, the company had been bulldozing to new records, up 22% in that time period. The blame for the turnaround is being placed with the transportation sector, as the iShares Dow Jones Transportation Average (IYT) fell 2.2%, reports Tomi Kilgore for Thomson Financial.
Caterpillar remains interesting, because it has so far been bucking the trend of the overall U.S. economic downturn. It’s predicting record sales and profits for 2008, up 5% to 10% from 2007, reports Tony Reid for the Herald-Review.
Major construction projects in the United States, coupled with growing economies overseas, will be major contributors to the company’s growth. Growth in markets such as energy and mining, in particular, will call for more of Caterpillar’s equipment.
Caterpillar is also a component of the Industrial Select Sector SPDR (XLI), with 3.5% of its holdings.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.