Caterpillar (CAT) looks to be a major beneficiary of the lower tax rates in the Tax Cuts & Jobs Act and for a lower U.S. dollar. (See today’s encouragement of a weaker dollar from Treasury Secretary Steve Mnuchin at Davos today.)
Not that Caterpillar sales are exactly struggling. The company reported today a 34% pick up in total machine sales in December from November with big gains in export markets in Asia and Latin America
I’m setting a target price of $195 a share in my Jubak Picks portfolio. The company reports December quarter earnings tomorrow before the open.
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