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Caterpillar Is Part of the Dow Jones Sustainability Index

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Caterpillar included in the DJSI

A press release from Caterpillar (CAT) on September 14 said that the company was included in the 2018 DJSI (Dow Jones Sustainability Index)—the company’s 19th appearance in the index. The DJSI considers economic, climate change mitigation, environment, social performance, good labor practices, and other parameters.

Jim Umpleby, Caterpillar’s CEO said, “Caterpillar provides the solutions our customers use to build a better world. A better world includes sustainable practices and products. As a core value, we are focused on embedding sustainability into the design, manufacture and delivery of everything we do. We’re proud of the progress we’ve made, and we continually strive to improve.”

Caterpillar was included in the DJSI due to:

  • Caterpillar is committed to communities across the globe and focuses on poverty alleviation.
  • The company displays innovation in researching and developing new and improved products.
  • Caterpillar has good environmental management practices.
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Caterpillar’s stock price update

Caterpillar had a strong week with its stock prices gaining ~2.5%. The stock closed at $144.90 for the week ending September 14. The gain in the stock price helped Caterpillar in the trend reversal of its 100-day moving average price. Caterpillar trades 0.5% above the 100-day moving average price of $144.15. On a year-to-date basis, the stock has fallen ~7.75%.

Deere (DE), 3M (MMM), and Stanley Black & Decker (SWK) have declined 5.6%, 11.7%, and 12.6%, respectively. Analysts have recommended a target price of $166.5, which implies a return potential of 14.9% over the closing price on September 14. Caterpillar has a 14-day relative strength index of 61, which indicates that the stock isn’t overbought or oversold.

Investors could invest in Caterpillar indirectly through the Industrial Select Sector SPDR Fund (XLI). XLI has invested 3.6% of its portfolio in Caterpillar as of September 14.

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