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

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

PR Newswire

LONDON, February 27, 2013

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

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 

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

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 

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

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