Caterpillar remains on the Top 15 brokers list
According to ETF Channel, the Illinois-based company is the #9 broker’s pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average.
The world’s biggest maker of earthmoving equipment also came in above the median of analyst picks among the broader S&P 500 index components, claiming the #121 spot out of 500.
The news come only a day after Hedge fund guru, Jim Chanos, announced he was shorting the stock, causing CAT to dropped 2.3% to $86.14 Wednesday.
Chanos, who is the founder of New York-based Kynikos Associates, said at the Delivering Alpha investor conference that Caterpillar’s growth projections are overblown, adding that even though the American economy is in recovery mode, the firm is still exposed to commodity price fluctuations.
In April the company cut 40% of its South Milwaukee factory workers and 460 workers at its Decatur, Illinois factory. And in May, it added 330 workers to the list of lay-offs by closing its tunnel-boring machine factory in Ontario, Canada.