What is going on with the Caterpillar stocks?

Caterpillar is based in Illinois which is the largest manufacturer of construction and mining machineries, diesel engines, and updated technology. The company was founded in 1925 and it has been covering and making its name in the international market. The connections of the company are extensive as it helps out various dealers and distributors. Basically, the growth of the company is dependent on the investments done in the developing markets.
On Friday, June 13, 2014 the CAT shares were lower as predicted prior to the market trading as the company is facing about 15 lawsuits which have declined its status in the market. The lawsuits are over the allegations the distributed engines were used to breakdown regularly as well as caught fire on some occasions. These flaws have put a tag of “embarrassment” on the company as they were having blind trust on their products.
However, many analysts have rated the CAT stock as a BUY. They believe that the strength the company possesses will have a positive impact which will let the investors to invest more because of its better performance than other stocks in the market. The company has diversified strengthened areas which include growth revenue, return on equity, better shares performance, and a higher growth in earnings per share as well.
Recently, the revenue growth of the company is sub-par the industry average standing at 6.6%. This has further resulted in increased earnings per share. Moreover, investors feel content and are getting to know about the positive components of the company. Therefore, the CAT share prices have increased by 26.69% which has also surpassed the S&P 500 index. Analysts believe that the company will be moving higher and higher regardless the gain company enjoyed last year.
The company has also improved its earnings per share by about 9.9% in the last quarter. The company has shown that there is instability in the earnings. However, it is expected that the company will be accelerating its earnings per share growth in the upcoming year. In the last fiscal year, the company posted lower earnings of $5.75. But the analysts expect that there will be an improvement this year in earning as the company will improve it to $6.20.
Hence in a nutshell, the company is looking forward to improve its infrastructure in order to maintain its market position after the allegations of faulty engines distributed by the company. The CEO of the company believes that he is satisfied with the performance of his company as compared to its competitors.