Blue Chip Drags Dow with Dismal Outlook, Withheld Guidance

CAT is up over 55% year-over-year, though

Digital Content Manager
Jul 30, 2021 at 10:06 AM
facebook X logo linkedin


The shares Caterpillar Inc. (NYSE:CAT) are down 2.3% at $207.60 at last check, the worst Dow stock today, despite the machinery company reporting better-than-expected second-quarter profits of $2.60 per share, as opposed to the $2.40 per share analysts anticipated. A recovery in global economic activity from pandemic lows contributed to the strong results, driving up sales across all regions and businesses. However, the blue chip noted it expects margin growth to moderate in the coming months, and chose to withhold its full-year guidance.

Over the last month, Caterpillar stock has pulled back nearly 16% from its June 4, all-time high of $246.58. The shares seem to have found a footing at the $205 mark, as well as their 200-day moving average, though. Year-over-year, CAT remains up 55.5%.

The brokerage bunch is rather pessimistic towards Caterpillar stock, despite its blue-chip status. Of the 14 analysts in coverage , nine call it a tepid "hold" or worse, while the 12-moth consensus target price of $238.45 is a 12.2% premium to current levels.

The options pits lean toward calls. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.66, which stands higher than just 16% of readings from the past year. This means  short-term options traders have rarely been more call-biased.  

Drilling down to today's activity, 6,023 calls and 3,366 puts have already crossed the tape, which is twice what is typically seen at this point. Most popular is the weekly 7/30 220-strike call, followed by the 202.50-strike put in the same series, both of which expire at the end of today's close.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI