New to Investing? This 1 Industrial Products Stock Could Be the Perfect Starting Point

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If you’re a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That’s why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that’s been proven to generate strong returns.

Now, let’s take a deep dive into a great stock that could be just the right addition to your portfolio.

Why You Should Pay Attention to Caterpillar (CAT)

Caterpillar, known for its iconic yellow machines, is the largest global manufacturer of construction and mining equipment. Given that it serves a gamut of sectors – infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.

CAT was added to the Zacks Focus List on April 18, 2017 at $94.14 per share. Since then, shares have increased 130.66% to $217.14.

For fiscal 2022, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.32 to $12.60. CAT boasts an average earnings surprise of 14%.

Earnings for Caterpillar are forecasted to see growth of 16.6% for the current fiscal year as well.

Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks like CAT offer investors a great opportunity to get into a company whose future earnings estimates will be raised, potentially leading to price momentum.

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