Latest news with #StevenFisher
Yahoo
08-05-2025
- Business
- Yahoo
Is Caterpillar Inc. (CAT) the Best Dow Stock?
We recently published a list of . In this article, we are going to take a look at where Caterpillar Inc. (NYSE:CAT) stands against other Dow stocks. The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well. It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends. We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year. In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest. We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A construction crew operating a hydraulic shovel during a nighttime Interest as of Apr 30, 2025: 1.66% Caterpillar Inc. is a manufacturer and seller of mining and construction equipment, industrial gas turbines, off-highway diesel and natural gas engines, and diesel-electric locomotives. Citing concerns over economic risks from increasing macro uncertainty and recent tariffs, UBS analyst Steven Fisher downgraded some major building materials and machinery stocks recently, including CAT. He downgraded the company from Neutral to Sell and mentioned that tariffs might lead to margin compression by potentially increasing costs and reducing demand. The analyst highlighted the risk by saying: 'We think there's more earnings downside for machinery companies related to macroeconomic headwinds that is not yet priced in, despite the pullbacks in the stocks to date.' As per the guidance, the management anticipates a slight decline in revenues and sales in 2025. Tariffs could add as much as $350 million to the company's costs. CAT is known as an industry leader in profitability, with EBITDA margins maintaining around 15% even during downturns. The management has already stated in the Q1 earnings call that it is considering measures to reduce the impact of tariffs and maintain profitability. Overall, CAT ranks 27th on our list of best and worst Dow stocks. While we acknowledge the potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-04-2025
- Business
- Yahoo
Why Heavy Equipment Stocks Are Under Pressure Today
Wall Street is running the numbers on the tariffs, and the impact is not good for heavy equipment manufacturers. Shares of Caterpillar (NYSE: CAT) fell by as much as 7% and Deere (NYSE: DE) by 4% after both companies were hit by downgrades, and Toro (NYSE: TTC) fell as much as 5% in sympathy. The stocks all rallied into the close and were all down about 2% as of 3:30 p.m. ET. Heavy equipment manufacturers figure to get hit by tariffs both on the supply and demand sides. The massive tractors, construction, and agricultural equipment they make requires a lot of steel and other raw materials that are subject to tariffs, and their high-priced finished goods sell best when customers are flush with cash. On Monday, UBS analyst Steven Fisher cut Caterpillar to a sell from neutral and lowered his price target to $243, from $385. Deere was kept at a neutral, but its price target was cut to $440 from $462. The downgrades are based on concerns that the macroeconomic impact of tariffs, and the uncertainty surrounding trade policy, will erode demand. Toro is more focused on consumer and industrial-grade lawn care, but could end up pinched by some of the same pressures that are likely to impact the makers of larger equipment. Deere could be especially vulnerable if "reciprocal tariffs" target agricultural exports, leaving farmers with less cash to invest in new equipment. In theory, onshoring could work out fine for these companies. If the tariffs are successful in bringing economic activity to the United States, new factories and facilities will be required, creating demand for heavy equipment. But that payoff is likely to be well into the future, and the downsides could hit almost immediately. These are three best-of-breed operators with a history of surviving in what are highly cyclical industries. Existing investors need not panic about any of these companies failing due to a trade war, but for now, there is little concrete reason to get excited about buying these stocks. Before you buy stock in Caterpillar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Caterpillar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deere & Company. The Motley Fool recommends Toro. The Motley Fool has a disclosure policy. Why Heavy Equipment Stocks Are Under Pressure Today was originally published by The Motley Fool Sign in to access your portfolio
BBC News
07-04-2025
- Climate
- BBC News
Public asked not to use barbecues on moors after Somerset wildfire
A firefighter has urged the public not to use barbecues on moorland following a serious blaze. Steven Fisher, from Devon and Somerset Fire and Rescue Service, said it can take 200 firefighters around three days to put out week, a section of heathland on the Quantock Hills in Somerset set alight, with fire crews working through the night. A rare Met Office amber alert for wildfires is in place across most of the UK, including the South West, following a dry spell that is expected to continue into the Easter holidays. The wildfire alert follows the sunniest March on Devon and Somerset fire service has asked that the public remain "extremely vigilant" to reduce the risk of uncontrolled moorland Fisher said: "We can have extremely large areas alight and, for us as fire crews, keeping up with that is a real challenge. "We want to reduce them happening in the first place."One thing is the use of barbecues, particularly the disposable barbecues which aren't well insulated."We like to say sandwiches are safer, they're unlikely to start a fire. But make sure you pack everything up and take it with you. "Things like glasses and jars can magnify the sun in the grass and start a fire. And things like cigarettes can start a fire very quickly." 'More frequent and severe' Philip Evans, Greenpeace UK senior climate campaigner, said experts have warned that wildfires are going to become "more frequent and severe" because of the climate crisis."The growing costs of extreme weather will only exacerbate the demands on our emergency services and over-stretched councils," Mr Evans 286 wildfires were recorded between 1 January and 4 April 2025 – more than 100 above the number in the same period in 2022, according to the National Fire Chiefs Council (NFCC).Record-breaking temperatures and unprecedented wildfire activity were seen in Garrigan from the NFCC said: "There is no getting away from the fact that climate change is driving increases in extreme weather events, such as wildfires. "We are seeing more wildfires for this time of year than we were in 2022, which was a record year for wildfires and that is deeply concerning."Wildfires are not a seasonal threat – they are becoming a persistent and growing risk to life, property, and the environment. "We must adapt and invest now to ensure our services are equipped to meet this challenge."
