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Caterpillar Inc. : StockCall Study on Caterpillar and 3M: Conglomerate Stocks Look Towards Improved Economy

02/27/2013 | 08:05am US/Eastern

LONDON, February 27, 2013 /PRNewswire/ --

While U.S. economy is recovering, emerging economies are also in good growth mode. The situation creates a positive environment for big conglomerate stocks to perform well. 3M Company (NYSE: MMM) offered higher dividend and steady capital growth to its investors. The company also focused on better marketing of its products. The efforts are expected to provide fillip to the stock and push the prices up. Caterpillar Inc.'s (NYSE: CAT) stock lagged behind broad index last year and lost value. However, it is showing good signs of recovery. However, both these companies are also dealing with legal issues, which may put a strain on their operations. StockCall free coverage on Caterpillar and 3M is available upon registration at

http://www.stockcall.com/register

3M Company Announces Dividend

3M Co. received a reprieve when Department of Justice and SEC decided to drop their bribery probe against the company. The probe was started in 2009 as the company was accused of dodging Foreign Corrupt Practices Act provisions. The stock responded well to the news and touched its new 52-week high. Register now and get access to the free analysis on 3M Co. at

http://www.StockCall.com/MMM022713.pdf

3M's stock is up 10 percent so far this year. It also offers 2.54 percent dividend yield, making it an ideal stock for income investors. The company recently announced 8 percent higher dividend and it has 55 years track record of continuous dividend increase. 3M also returns investors value by buying back its shares. The company authorized the buyback plan worth $7.5 billion. The plan has indefinite validity and replaces the company's existing buyback plan.

3M Co. is expected to perform better as the economy picks up. In the fourth quarter, the company reported 4.2 percent increase in its revenue and 3.9 percent increase in its net income. It also plans for aggressive marketing of its products as the company laid out $10 million for Post-it campaign. The campaign is expected to boost profits and revenue, leading to the increase in stock price.

Caterpillar Inc. Reports Q4 Results

Caterpillar Inc. (NYSE: CAT) also has its fair share of regulatory issues. The company had to take $580 million worth of charge for fraudulent accounting practices in connection to Siwei. The company had acquired Siwei to boost its presence in China. On the positive side, it had $300 million worth of windfall on account of U.S. tax return settlement. Download the free technical research on Caterpillar Inc. by signing up at

http://www.StockCall.com/CAT022713.pdf

Caterpillar also reported its fourth quarter results. The company suffered 55 percent decline in its profits. However, it sales showed overall encouraging trend. Caterpillar reported its net profit at $697 million, down from $1.5 billion it had earned a year earlier.

Caterpillar's stock lost 22 percent of its value in the past 12 months and gained less than a percent so far in 2013. However, its dividend yield ratio stands at 2.31 percent, offering some value to its investors. The company is expected to perform well as the economic condition in the U.S. improves. It also stands to benefit from the emerging markets, as it has good exposure in China. The current price level provides a good entry point for value investors. The stock is likely to provide good returns in medium- to long-term period.

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SOURCE StockCall.com

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