New Trade for February 17th, 2021

Stocks were mixed in early trading this morning, however Wall Street remains on track for its best monthly performance since November.  Let’s see if there’s enough gas in the tank to keep the motor purring.  

A key plank of President Biden’s platform is his “Build Back Better” plan, which includes pledges to “mobilize American manufacturing” and “build a modern infrastructure.”

Rodney Johnson, president of economic research firm HS Dent publishing recently noted, “Infrastructure spending, green energy and healthcare are all democratic priorities and should do well under a Biden presidency, which will create attractive opportunities.”  

Today’s trade alert features an infrastructure stock that will likely continue to do well under the Biden administration.  

If a boom in infrastructure spending is on the horizon, then it’s hard to avoid Caterpillar (CAT), the world’s leading maker of construction and mining equipment.  The company also makes diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

You probably wouldn’t want Caterpillar‘s equipment in your backyard.  What would the neighbors say, after all?  But if you’re looking to start a major construction project, you’re going to order from Caterpillar.

Caterpillar has traded in a range for the past few years, unable to get much traction.  Weakness in emerging markets really took the wind out of the stock’s sails.

Something interesting happened in 2020, however.  Yes, Caterpillar tanked along with the rest of the market in February and March.  But it not only recouped its losses in the rally that followed, it actually broke out of a three-year trading range.

Caterpillar is not purely a play on American infrastructure, of course.  The company has a global presence and should benefit from a recovery in emerging markets as well.

Of 24 analysts offering recommendations 11 rate the stock a Buy.  There are also 10 Hold ratings and 3 Sell ratings for CAT stock.  The stock currently trades with a trailing twelve month price to earnings ratio of 32.5 and sports a 2.04% dividend yield.  

Where to invest $1,000 right now...

Before you consider buying Caterpillar, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not Caterpillar.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...


Get Free Stock Picks via SMS by Signing Up Below!

I would like to receive timely trade ideas and stock watchlists from Wall Street Watchdogs at the phone number provided. Message frequency varies. Message and data rates may apply. Reply HELP for help or STOP to cancel.(Watchdogs SMS Terms of Service & Privacy Policy)