Smith Collection / Gado / Getty Images
Key Takeaways
-
Shares of Caterpillar hit an all-time high on Thursday and are up more than 30% this year.
-
Reports of new Chinese stimulus measures sparked a broad market rally.
-
Caterpillar could benefit from a recovery in China’s housing market, which has struggled in recent years.
Caterpillar (CAT) shares rose more than 3% to a record high on Thursday as reports of new Chinese stimulus efforts sparked a broader market rally.
China’s government said on Thursday it would make “necessary budget expenditures” and stabilize the country’s struggling real estate sector, the state-owned company said. Xinhua News Agency. Bloomberg also reported that Beijing plans to inject about $140 billion into its largest state lenders to support the economy.
Shares of Caterpillar rose 4% on Tuesday as China issued a major monetary stimulus package to stimulate the economy.
Caterpillar would likely benefit from the recovery in the Chinese housing market
Caterpillar will benefit from the expansion in the Chinese housing market. The construction equipment company is considered a leading stock as a benchmark for domestic and global economic expansion or contraction.
Shares of Caterpillar were recently up 3.2% at $390.49, after previously hitting a high of $397.22. The stock is up about 32% this year.
Last month, the company reported lower second-quarter revenue than analysts expected, but slightly better-than-expected profit.
Read the original article on Investopedia.
