Caterpillar Inc. (NYSE: CAT) has outperformed the broader market over the past five years, delivering an average annual return of 33.78%.
According to the report, the company’s performance has exceeded the market by 21.4% on an annualized basis. As of the time of writing, Caterpillar has a market capitalization of $383.89 billion.
The article illustrates the impact of compounded returns by analyzing a hypothetical investment. If an investor had purchased $100 worth of Caterpillar stock five years ago, that investment would be worth $421.91 today, based on a current stock price of $816.25.
