Caterpillar (CAT) Relative Performance

Relative Performance Relative Stock Perforformance -CAT IYJ -S&P 500 250% 200% 150% 100% 50% -50% Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 US Industrials ETF (IYJ) is up 32.4% YTD CAT stock on the other hand is down 6.5% Joy Global is down 11% and Deere & Co. is down 4.2% over the same period. All the heavy machinery manufacturers have suffered heavily due to their exposure to the construction and mining industries. Construction has been suffering due to sluggish growth out of the emerging markets while mining is down globally due to excess capacity and over-supply, specifically for coal. YTD Performance 40% - CAT - DE-IYJ - JOY 30% 20% 10% 0% -10% -20% -30% Dec-12 Feb-13 Apr-13 Jun-13 Aug-130 ct-13 Caterpillar and the iShares Dow Jones US Industrial Index ETE (IYJ) trend together. The company has a higher beta of 1.76 compared to IYJ's 1.25 Caterpillar went down with the rest of the market in 2008, but rebounded faster as higher commodity prices drove greater investments in infrastructure. The company's exposure to emerging markets was an important factor that drove a faster rebound than the US equity market. Resources Industries was up 54% YoY in Asia/ Pacific in 2012 and generated almost 34% of company's overall revenues. However, the stock started trending downwards beginning mid-2011 after commodity prices peaked, and miners around the world subsequently slashed capex budgets. Caterpillar has risen 154% over the last five years, compared to a 100% increase in the S&P 500 over the same period. SOURCES: Company Data, SEC filings, Bloomberg Professional Services BIDNESS etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.