CAT Will Land on Its Feet

I've received quite a few calls and emails about Caterpillar (CAT), which is getting crushed after a disappointing earnings report. Just Tuesday, the stock ripped higher to reach a five-month high. Why did CAT turn around in such dramatic fashion, and is the stock a buy or a sell right now?

The company reported that third-quarter earnings fell 44%, blaming weakness in demand for mining equipment, and then lowered full-year earnings guidance to $5.50 from $6.50 per share. CEO Doug Oberhelman said that order rates "haven't picked up much" despite strength in global commodity production. The company projects 2014 sales to be flat compared to this year, plus or minus 5%....302 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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