Goldman Sachs Fools Small Investors Again?

Caterpillar Inc. (NYSE:CAT) was another industrial goods stock that Goldman added to its Conviction Buy List in January. On top of strong operating leverage, Goldman analysts predicted Caterpillar would benefit greatly from the changes in the US tax code and the company’s efforts to increase productivity and reduce costs. Goldman projected Caterpillar Inc. (NYSE:CAT) stock to appreciate by approximately 21% in 2018.

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As with the other stocks discussed so far, things have not yet gone according to Goldman’s plan. Caterpillar Inc. (NYSE:CAT) entered a downtrend amid the broader market selloff in February and has been heading south ever since. Even its better-than-expected earnings report for the 2018 first quarter and an improved outlook failed to push the stock higher, now approximately 15% in the red since Goldman’s recommendation.