How Bellwether Companies Are Faring Now
When Caterpillar reported earnings at the start of 2019, it wasn’t pretty. Profits were the furthest below expectations for any quarter in the last 25 years, and the company’s projections for sales moving forward were mediocre at best — prompting a decline in the stock.
However, a closer examination of the data would show that profits were down with sales slipping internationally but sales remained strong in North America.
Not to mention, Caterpillar’s stock experienced significant declines in 2014 and 2015, even as the rest of the stock market kept roaring along — demonstrating that the company hardly marches lock step with the rest of the country.
