Best Undervalued Companies To Watch In Right Now

Best Undervalued Companies To Watch In Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illi! nois.

Advisors' Opinion:

• [By Matt Thalman]

  Another big loser was Caterpillar (NYSE: CAT  ) , which lost 0.76% of its value today. One reason shares may have moved lower was the report that the U.S. trade deficit widened more than expected in May. Economists had expected the deficit to hit $40.1 billion, but it came in much higher at $45 billion. The report indicated that exports decayed, which reflects slow or stagnant growth in major markets such as China and Europe. While Caterpillar does derive a large portion of its revenue from the U.S., the company needs other economies to be performing well, or it will suffer.

• [By Travis Hoium]

  Another Dow stock sinking is Caterpillar (NYSE: CAT  ) , also down 1.9% after it was put on notice by short-seller James S. Chanos, who said he was shorting the stock because Caterpillar faces a lot of headwinds relating to the commodities market, where miners generate demand. If commodities demand drops in China, it will hit Caterpillar's sales and profit. The stock still pays a considerable 2.8% dividend yield and trades at just 12 times trailing earnings, but demand can swing wildly, and eventually China will have to stop its stimulus-fueled growth, which could have a big impact on demand. A short-seller's call isn't reason to dump the stock, but it may be a reminder to look at the macro picture and re-evaluate Caterpillar's prospects.

• [By Dan Carroll]

  That hasn't helped the industrial sector one bit, and the economically reliant industry has fallen on the day. Caterpillar (NYSE: CAT  ) shares are down 1% so far today, while Alcoa (NYSE: AA  ) has lost 1.1%. All is not lost for Caterpillar, as the company is still the leader in the downbeat manufacturing industry. The company's heavy focus on China and the Pacific recently will help Caterpillar withstand the worst of Europe's drain on industrial giants. Don't expect Caterpillar to turn it! s Europea! n operations around quickly, however -- particularly in the mining industry, which has particularly hurt this company's fortunes.

• [By Lauren Pollock]

  Among the companies with shares expected to actively trade in Wednesday’s session are Caterpillar Inc.(CAT), Boeing Co.(BA) and Motorola Solutions Inc.(MSI)

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-undervalued-companies-to-watch-in-right-now-2.html