Caterpillar & Home Depot Are Two Stocks To Consider

Why Caterpillar Is A Now-Or-Never Long-Term Investment

Summary

1. CAT had declining operating profit and weak sales in the recent quarter.
2. CAT has a history of strong growth, however, and has potential for solid returns going forward.
3. The Resource Industries segment should reverse in the coming quarters.
4. The number of smart money investors actually increased from the prior quarter.

Caterpillar (NYSE:CAT), the global leader in the construction and mining equipment industry, has been facing challenges in 2015 in all of its three main segments - Construction Industries, Resource Industries, and Energy & Transportation - due to the strong U.S. dollar, which weakened sales in the overseas markets. On the upside, as the company serves highly cyclical industries, the fluctuations in its earnings can create strong buying opportunities. In addition, CAT is a dividend-growth stock, currently yielding 4.68%. For value investors, this may be the time to place a long-term bet on the stock... READ MORE
Home Depot's Winning Strategy Continues To Add Significant Value For The Retailer

Summary

1. Home Depot’s successful business strategy is significantly fueling value growth for the firm.
2. The three pillars of its business strategy include customer service, product authority and disciplined capital allocation, as well as productivity and efficiency.
3. The company’s recent acquisition of Interline was guided by its three core initiatives.
4. The firm continues to post revenue and profitability results that far exceed its peers.
5. Now is an opportune time to buy the stock at a discount with significant long-term upside potential.

Home Depot (NYSE:HD) is outperforming the broader market year-to-date with a stock return of 7.55% vs. -9.97% for the Dow Jones Industrial Average and -8.49% for the S&P 500. Over the last two months it also has weathered the market's turmoil with much less dramatic losses. For the two-month period through September 29, Home Depot's stock is down only 1.68% vs. -8.99% for the Dow Jones Industrial Average and -8.88% for the S&P 500...READ MORE