Bullsu
- Increased infrastructure spending in the US and emerging markets will lead to more construction equipment purchases, substantially boosting Caterpillar's sales growth.
- Higher fixed-asset investment growth in China strengthens support for increased investment in mining capital expenditures, benefiting Caterpillar.
- Oil price gains will lead to increased oil and gas capital expenditures, leading to more engine, transmission, and pump sales for Caterpillar. Bear
- Nonresidential spending normalizing in the short term could pressure Caterpillar ’ s sales and margin growth.
- Commodity prices softening globally would force mining and oil-well-servicing customers to cut back on capital expenditures until demand recovers.
- Caterpillar faces stiff competition from foreign competitors across end markets. Growing competition could pressure its market share.
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Disclaimer
The user julio holds no position in NYSE:CAT. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.