Archive for March 29th, 2011

Caterpillar’s stock is hitting new highs. That fact, by itself, is not worrisome. But what about its valuation? Is that getting too high? Certainly this comparison makes it look so: Price/estimated earnings ratios: 2011 – Caterpillar = 17.8x; DJIA = 12.6x 2012 – Caterpillar = 13.7x; DJIA = 11.3x So, should we avoid Caterpillar... »

Caterpillar’s good fortunes have increased its stock’s popularity and price. Does this mean the stock is near its top? I believe there are three reasons (besides fundamentals) not to worry. Today’s “high” price could look low tomorrow. This article is on SeekingAlpha.com »