Digging Into Caterpillar Inc. (CAT), Sunstone Hotel Investors, Inc. (SHO) Revenue Targets

15 analysts out of 28 Wall Street brokerage firms rate Caterpillar Inc. (NYSE:CAT) as a Buy, while 2 see it as a Sell. The rest 11 describe it as a Hold. CAT stock traded higher to an intra-day high of $128.4. At one point in session, its potential discontinued and the price was down to lows at $126.76. Analysts have set CAT’s consensus price at $149.96, effectively giving it a 17.92% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $211 (up 65.92% from current price levels). CAT has a 42.3% ROE, higher than the 14.05% average for the industry. The average ROE for the sector is 12.57%.

It is expected that in Jun 2019 quarter CAT will have an EPS of $3.12, suggesting a 5.05% growth. For Sep 2019 is projected at $3.1. It means that there could be a 8.39% growth in the quarter. Yearly earnings are expected to rise by 9.09% to about $12.24. As for the coming year, growth will be about 5.64%, lifting earnings to $12.93. RSI after the last trading period was 51.6. CAT recorded a change of 3.06% over the past week and returned -4.88% over the last three months while the CAT stock’s monthly performance revealed a shift in price of -0.24%. The year to date (YTD) performance stands at 0.08%, and the bi-yearly performance specified an activity trend of 3.19% while the shares have moved -19.25% for the past 12 months.

Caterpillar Inc. (CAT) currently trades at $127.17, which is higher by 0.06% its previous price. It has a total of 572.4 million outstanding shares, with an ATR of around 2.59. The company’s stock volume dropped to 3.49 million, worse than 4.23 million that represents its 50-day average. A 5-day increase of about 3.06% in its price means CAT is now 0.08% higher on year-to-date. The shares have surrendered $43274.83 since its $159.37 52-week high price recorded on 3rd of October 2018. Overall, it has seen a growth rate of -19.25 over the last 12 months. The current price per share is $15.11 above the 52 week low of $112.06 set on 29th of October 2018.

Caterpillar Inc. (NYSE:CAT)’s EPS was $2.94 as reported for the March quarter. In comparison, the same quarter a year ago had an EPS of $2.82. That means that its growth in general now stands at 4%. Therefore, a prediction of $2.85 given by the analysts brought a positive surprise of 3%. CAT March quarter revenue was $13.47 billion, compared to $12.86 billion recorded in same quarter last year, giving it a 5% growth rate. The company’s $0.61 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Sunstone Hotel Investors, Inc. (NYSE:SHO) shares appreciated 0.07% over the last trading period, taking overall 5-day performance up to 2.91%. SHO’s price now at $13.81 is weaker than the 50-day average of $14.25. Getting the trading period increased to 200 days, the stock price was seen at $14.72 on average. The general public currently hold control of a total of 226.27 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 227.22 million. The company’s management holds a total of 1%, while institutional investors hold about 0% of the remaining shares. SHO share price finished last trade -0.38% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -6.24%, while closing the session with -3.21% distance from 50 day simple moving average.

Sunstone Hotel Investors, Inc. (SHO) shares were last observed trading -19.17% down since July 09, 2018 when the peak of $17.08 was hit. Last month’s price growth of -3.49% puts SHO performance for the year now at 6.15%. Consequently, the shares price is trending higher by 8.74%, a 52-week worst price since Jan. 02, 2019. However, it is losing value with -3.56% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $13.66 and $13.73. The immediate resistance area is now $13.87 Williams’s %R (14) for SHO moved to 30.65 while the stochastic %K points at 65.11.

SHO’s beta is 1.17; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $0.95 per share from its yearly profit to its outstanding shares. Its last reported revenue is $257.68 million, which was -5% versus $271.45 million in the corresponding quarter last year. The EPS for Mar 19 quarter came in at $0.21 compared to $0.2 in the year-ago quarter and had represented 5% year-over-year earnings per share growth. SHO’s ROA is 0%, lower than the 6.85% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 2.82%.

Estimated quarterly earnings for Sunstone Hotel Investors, Inc. (NYSE:SHO) are around $0.33 per share in three months through June with $0.28 also the estimate for September quarter of the fiscal year. It means the growth is estimated at -10.81% and -6.67%, respectively. Analysts estimate full-year growth to be -7.69%, the target being $1.08 a share. The upcoming year will see an increase in growth by percentage to 1.85%, more likely to see it hit the $1.1 per share. The firm’s current profit margin over the past 12 months is 0%. SHO ranks lower in comparison to an average of 20.14% for industry peers; while the average for the sector is 32.42%.