Caterpilliar Great Opportunity on Price Conformation

Investors with a one- to two-year time horizon would be well-advised to buy shares of Caterpillar Inc. (NYSE:CAT), the world's largest maker of mining and construction equipment, thanks to a share buyback, a reviving U.S. economy, more fiscal stimulus by non-U.S. governments and the stock's relatively low price, financial magazine Barron's said.

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On April 22, CEO Doug Oberhelman said the recent decline in the Caterpillar stock price combined with balance sheet strength and positive cash flow has provided an opportune time to resume the stock repurchase program. The Peoria, Ill., company plans to buy back $1 billion of its stock during Q2. The 9 percent gain beats the 4 percent gain for the whole S&P 500 over the same period.

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Barron's also said Caterpillar has made progress cutting costs and noted that its inventories are declining.
Caterpillar shares, which were $87.40 in afternoon trading, are up 9 percent since mid-April when it dipped close to its 52-week low ahead reporting disappointing Q1 earnings and lower expectations for 2013.

1hr time frame

Caterpillar rose 1.8% to lead the Dow components, while UnitedHealth and Pfizer gained 1% and 0.9% respectively.