In this video, Motley Fool analyst Brendan Byrnes gives us three reasons why Caterpillar (NYS: CAT) is the kind of company investors love to be a part of. Each one is a fundamental of good investing. The company is big enough to make use of its better supply chain and superior products to bully even fierce competitors with its prices. It looks great financially with an attractive dividend and a historically low P/E ratio at only nine times earnings. And a couple of recent major acquisitions are looking very positive for long-term growth for the company in new high-margin sectors.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in our brand new report. Just click here to access it now.


The article 3 Reasons Why Caterpillar Is a Buy Today originally appeared on Fool.com.

Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of Joy Global. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Finding Stock Ideas

Learn to do your research and find investments.

View Course »

Add a Comment

*0 / 3000 Character Maximum