Need a Value Stock for Your January Purchases? Try Caterpillar!

Over the course of the month, the Nasdaq Composite Index has been moving on either side of the scale by intervals of about 1.38%. This has been occurring on a daily basis ever since the trading year started. 

This effect is known in the stock market as volatility. And in this particular case, some investors see these rates as something capable of risking their other investments.

It should be within your best interests to find a stable investment option and one that’s also capable of large growth regardless of the surrounding context, like the following value stock: Caterpillar (NYSE:CAT).

Even With a Lackluster Performance, Caterpillar Still Delivers

Caterpillar’s management had lots of expectations for 2021. Sadly, not all of them were met. This was due to the company struggling with supply chain issues and the slow rate at which the economy has been reopening.

But that is not to say that 2021 was a bad year for the company since it still generated remarkable profits and free cash flow rates. 

How did Caterpillar do such a thing? Easy. Even if the pandemic has hit some sensitive spots, other aspects of the company remain as strong as ever. To name a few:

• Current oil and gas prices are as high as possible.
• The residential construction market is as steady as it can be.
• The commercial construction market is growing big time.
• There’s high demand for raw materials that Caterpillar can provide.

Nowadays, the company’s stock prices are 10% on top of their 2020 figures. Its price-to-earnings ratio stands at 24.5, and its price-to-free-cash-flow is 22.7.

See? Even during a so-so year, Caterpillar had proper returns. With these figures, they’re more than capable of supporting the whole company and its investors’ needs. And that’s for the long term, mind you.