The IBD SmartSelect Composite Rating for Caterpillar rose from 94 to 96 Thursday.
The new score means the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Caterpillar is trading within a buy range from a 239.95 entry from a flat base. It did give back all gains before rebounding higher. It seems to be following the general market moves, but always be careful when a stock falls below 7% of the breakout price, as it adds another level of risk.
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The stock sports an 86 EPS Rating, which means its recent quarterly and longer-term annual earnings growth is outpacing 86% of all stocks.
Its Accumulation/Distribution Rating of D shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
Earnings Update
The company posted a 43% EPS gain for Q4. Top line growth came in at 20%, down from 21% in the previous quarter.
Caterpillar holds the No. 4 rank among its peers in the Machinery-Construction/Mining industry group. Manitowoc is the No. 1-ranked stock within the group.
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