Caterpillar (CAT) Suffers Stock Plummet After Disappointing Q4 Results
In the pre-market session, construction equipment behemoth Caterpillar (NYSE: CAT) saw a 5.9% plunge in its stock price on the heels of underwhelming fourth-quarter earnings. Revenue and EBITDA both fell short of analysts' expectations. Management attributed the decline to "lower sales volume primarily driven by lower sales of equipment to end users."
Wall Street's Reaction
Despite Caterpillar's historically low volatility, today's significant drop suggests the market views the news as impactful. However, it's unlikely to alter the market's fundamental outlook on the company.
Long-Term Performance
Since the start of the year, Caterpillar has gained 4.3%, but at $375.37 per share, it remains 10% below its 52-week high of $416.88 from November 2024. Investors who invested $1,000 in Caterpillar five years ago would currently hold an investment worth $2,773.
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