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Bollard Group LLC increased its stake in shares of Caterpillar Inc. (NYSE: CAT) by 14.2% in the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 229,052 shares of the industrial products company's stock after buying an additional 28,562 shares during the period. Caterpillar comprises about

Caterpillar (CAT +0.59%) is known for its dependable dividend, having raised its payout for more than 30 years. The renowned income investment recently approved another substantial increase. So why is Caterpillar's dividend yield the lowest in its history?

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The construction and heavy machinery manufacturer has seen its stock surge faster than its dividend growth, resulting in a lower yield. Shares of Caterpillar have skyrocketed more than 55% so far this year, and over 110% in the past 12 months as of this writing.

As AI infrastructure build-outs accelerate, so does the demand for construction equipment. The increase in Caterpillar's share price has now left potential investors with a conundrum. The stock is trading at a hefty premium, particularly compared to its historical averages. The 0.75% yield means new investors aren't necessarily buying for the high income as much as for the potential of continued growth.

Image source: Getty Images.

Caterpillar currently pays a quarterly dividend of $1.51 per share. The stock's forward price-to-earnings (P/E) ratio is in the mid-30s, while the trailing P/E sits above 40. New investors will need to be patient over a longer period of time to justify paying a higher price. With that said, Caterpillar is in excellent shape to keep the dividend raises coming for the foreseeable future.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.

Alamar Capital Management LLC purchased a new position in shares of Caterpillar Inc. (NYSE:CAT – Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,000 shares of the industrial products company’s stock, valued at approximately $708,000.

A number of other institutional investors also recently added to or reduced their stakes in CAT. Diamant Asset Management Inc. grew its position in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock worth $2,224,992,000 after buying an additional 3,136,020 shares during the period. Capital International Investors purchased a new stake in shares of Caterpillar during the 4th quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Caterpillar by 573.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock worth $861,947,000 after acquiring an additional 1,281,087 shares during the period. Bank of America Corp DE increased its stake in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after purchasing an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC increased its stake in Caterpillar by 8,359.6% in the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company’s stock valued at $294,314,000 after purchasing an additional 507,681 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Insider Transactions at Caterpillar In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Lange Bob De sold 24,222 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares of the company’s stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,773 shares of company stock worth $87,642,635 in the last three months. 0.33% of the stock is currently owned by company insiders.

Caterpillar News Roundup Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Analysts have been raising their outlook on Caterpillar, with one report saying the stock’s fair value estimate was lifted to $970.37 as investors continue to focus on strong demand in construction, energy, data centers, and infrastructure. Caterpillar Stock Fair Value Edges Higher After Analysts Lift Targets Positive Sentiment: Caterpillar was highlighted in several pieces as a stock with AI exposure and reliable dividend growth, which can attract investors looking for both growth and defensive characteristics. These Stocks Offer AI Exposure and Dividend Payouts Positive Sentiment: The company is also being discussed as a “solid defensive play” thanks to its long dividend-increase streak and stable yield, which may help support the stock during uncertain markets. A Boring Dividend Growth Strategy Becomes a Solid Defensive Play (CAT) Positive Sentiment: Caterpillar also announced it will release second-quarter 2026 results on August 4, keeping attention on upcoming earnings that could provide another catalyst for the shares. Caterpillar Inc. to Announce Second-Quarter 2026 Financial Results on August 4 Neutral Sentiment: A local article noted Caterpillar is renovating a recently purchased Texas property, which appears to be a routine real-estate and facilities update rather than a major stock-moving event. Caterpillar embarks on renovations after purchasing property in Texas Analyst Upgrades and Downgrades A number of analysts have commented on CAT shares. Barclays boosted their target price on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Oppenheimer lifted their price target on Caterpillar from $980.00 to $1,105.00 and gave the stock an “outperform” rating in a research note on Monday, July 13th. Argus boosted their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Evercore reissued an “outperform” rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Finally, Rothschild & Co Redburn lifted their target price on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Fifteen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $980.57.

Read Our Latest Report on CAT

Caterpillar Stock Down 0.0% Shares of NYSE:CAT opened at $889.79 on Thursday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The company has a market capitalization of $409.83 billion, a P/E ratio of 44.29, a P/E/G ratio of 1.74 and a beta of 1.57. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46. The stock’s fifty day simple moving average is $929.39 and its 200-day simple moving average is $801.45.

Caterpillar (NYSE:CAT – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter last year, the business posted $4.25 EPS. As a group, equities research analysts forecast that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is 32.45%.

Caterpillar Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

See Also Five stocks we like better than Caterpillar Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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In the latest trading session, Caterpillar (CAT - Free Report) closed at $889.97, marking a +2.97% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.89%. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.

Coming into today, shares of the construction equipment company had lost 15.45% in the past month. In that same time, the Industrial Products sector lost 5.7%, while the S&P 500 lost 0.63%.

Analysts and investors alike will be keeping a close eye on the performance of Caterpillar in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.25, showcasing a 32.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.31 billion, indicating a 16.56% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $24.87 per share and a revenue of $77.17 billion, signifying shifts of +30.48% and +14.18%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.91% rise in the Zacks Consensus EPS estimate. Right now, Caterpillar possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Caterpillar is currently exchanging hands at a Forward P/E ratio of 34.76. For comparison, its industry has an average Forward P/E of 15.02, which means Caterpillar is trading at a premium to the group.

Meanwhile, CAT's PEG ratio is currently 1.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.52 as trading concluded yesterday.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Posted by Defense World Staff on Jul 21st, 2026

Amova Asset Management Americas Inc. grew its holdings in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 11.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 10,416 shares of the industrial products company’s stock after buying an additional 1,110 shares during the quarter. Amova Asset Management Americas Inc.’s holdings in Caterpillar were worth $7,375,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in CAT. Lam Group Inc. purchased a new position in shares of Caterpillar during the first quarter worth approximately $26,000. Torren Management LLC bought a new position in shares of Caterpillar during the 4th quarter worth $27,000. Frazier Financial Advisors LLC increased its stake in shares of Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after buying an additional 33 shares during the period. IFS Advisors LLC bought a new stake in shares of Caterpillar in the fourth quarter valued at about $31,000. Finally, Rialto Wealth Management LLC raised its holdings in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock valued at $32,000 after acquiring an additional 18 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Trading Down 1.8% Shares of NYSE:CAT opened at $864.72 on Tuesday. The business’s 50-day moving average is $930.07 and its 200 day moving average is $796.99. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. Caterpillar Inc. has a 1 year low of $405.46 and a 1 year high of $1,073.46. The firm has a market capitalization of $398.28 billion, a P/E ratio of 43.04, a P/E/G ratio of 1.72 and a beta of 1.57.

Caterpillar (NYSE:CAT – Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the prior year, the firm earned $4.25 EPS. The firm’s revenue was up 22.2% on a year-over-year basis. On average, research analysts predict that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, July 20th. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is 30.06%.

Analyst Upgrades and Downgrades CAT has been the topic of several recent research reports. DA Davidson increased their target price on shares of Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a report on Monday, May 4th. Citigroup upped their price target on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Jefferies Financial Group increased their price objective on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Zacks Research downgraded shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Finally, Sanford C. Bernstein upped their target price on Caterpillar from $769.00 to $879.00 and gave the stock a “market perform” rating in a report on Friday, May 1st. Fifteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $980.57.

Get Our Latest Stock Analysis on Caterpillar

Insiders Place Their Bets In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider owned 49,825 shares of the company’s stock, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is currently owned by company insiders.

Caterpillar Company Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

Further Reading Five stocks we like better than Caterpillar The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT – Free Report).

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Posted by Defense World Staff on Jul 20th, 2026

Dimensional Fund Advisors LP cut its holdings in Caterpillar Inc. (NYSE:CAT – Free Report) by 0.9% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,746,073 shares of the industrial products company’s stock after selling 26,228 shares during the quarter. Caterpillar comprises approximately 0.4% of Dimensional Fund Advisors LP’s portfolio, making the stock its 21st largest holding. Dimensional Fund Advisors LP owned about 0.60% of Caterpillar worth $1,944,685,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in CAT. Lam Group Inc. acquired a new stake in Caterpillar during the 1st quarter worth approximately $26,000. Torren Management LLC acquired a new position in shares of Caterpillar in the fourth quarter valued at approximately $27,000. Frazier Financial Advisors LLC increased its holdings in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares during the period. IFS Advisors LLC purchased a new stake in shares of Caterpillar during the fourth quarter worth approximately $31,000. Finally, Rialto Wealth Management LLC lifted its holdings in shares of Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 18 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Caterpillar In related news, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the transaction, the chief accounting officer directly owned 530 shares of the company’s stock, valued at approximately $480,180. The trade was a 40.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Anthony D. Fassino sold 16,283 shares of the business’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider owned 46,041 shares in the company, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 95,773 shares of company stock worth $87,642,635. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Stock Performance NYSE:CAT opened at $881.26 on Monday. The firm’s fifty day simple moving average is $931.29 and its 200-day simple moving average is $794.97. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The stock has a market cap of $405.90 billion, a PE ratio of 43.87, a price-to-earnings-growth ratio of 1.72 and a beta of 1.57. Caterpillar Inc. has a fifty-two week low of $405.46 and a fifty-two week high of $1,073.46.

Caterpillar (NYSE:CAT – Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating the consensus estimate of $4.65 by $0.89. The firm had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business’s revenue for the quarter was up 22.2% compared to the same quarter last year. During the same quarter last year, the business earned $4.25 earnings per share. Analysts expect that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is 30.06%.

Trending Headlines about Caterpillar Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Multiple analyst updates turned incrementally more optimistic on Caterpillar’s earnings outlook, with Erste Group Bank and Zacks Research lifting FY2026, FY2027, FY2028 and several quarterly EPS estimates. Higher profit expectations can support the stock by reinforcing the view that CAT’s long-term demand and pricing power remain solid. Positive Sentiment: Several commentary pieces highlighted Caterpillar as a leading industrial and equipment name versus peers like Volvo, citing stronger earnings momentum, rising estimates, and long-term growth tied to infrastructure, electrification, automation, and AI data-center buildout demand. Neutral Sentiment: Pre-earnings coverage noted Wall Street is expecting Caterpillar’s upcoming Q2 2026 report to show another double-digit profit increase, which keeps investor attention focused on whether results can justify the stock’s premium valuation. Neutral Sentiment: Several articles framed Caterpillar as a high-quality company with a strong brand and global dealer network, but also warned that the valuation looks rich. That limits near-term upside unless earnings growth continues to outpace expectations. Negative Sentiment: Caterpillar was also mentioned in broader market weakness and “AI selloff” coverage, and Zacks Research downgraded the stock from strong-buy to hold. That suggests some investors are becoming more cautious after the recent run-up. Wall Street Analysts Forecast Growth CAT has been the topic of several recent research reports. Truist Financial boosted their price objective on shares of Caterpillar from $1,043.00 to $1,218.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Wells Fargo & Company raised their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 23rd. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. Robert W. Baird boosted their price target on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Friday, June 26th. Finally, Barclays increased their price target on shares of Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. Fifteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, Caterpillar presently has a consensus rating of “Moderate Buy” and an average target price of $980.57.

Check Out Our Latest Report on CAT

About Caterpillar (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

Recommended Stories Five stocks we like better than Caterpillar Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT – Free Report).

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In October 2025, Mark Zuckerberg's Meta (META 2.79%) announced plans to build a 2-gigawatt data center. By July 2026, that data center's capacity had been upgraded to 5 gigawatts. Meta isn't the only company building huge data centers; Space Exploration Corporation (SPCX 5.41%) is leasing out AI computing power from what it calls Colossus I and Colossus II. Building these giant facilities is creating a huge tailwind for some far less technologically driven stocks, including Caterpillar (CAT +0.35%) and Eaton (ETN +0.94%).

Caterpillar's backlog is up by 79%! Caterpillar makes earth-moving equipment and provides on-site power generators. Both are important for building artificial intelligence data centers. They are massive structures, so Cat's construction equipment is in high demand. And the electricity these buildings use is an increasingly contentious issue, making on-site power that doesn't drain the grid a huge opportunity, as well. Cat is already benefiting, with revenues up 22% in the first quarter of 2026 and adjusted earnings higher by 30%.

Image source: Getty Images.

However, the really big number is Cat's backlog, which stands at a record $63 billion. That figure is up 79% compared to the first quarter of 2025. This is basically future revenue for the company. It may be a boring industrial stock, but Cat is benefiting mightily from the high-tech AI sector.

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Eaton's AI backlog is ramping up Eaton makes electrical products for power management. It sells the infrastructure that, basically, forms the foundation of an AI data center. The company's business has been benefiting for years from the shift toward electrification, but AI has been a huge new opportunity.

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For example, the company's Americas business division has seen its backlog grow by over 40% year over year, driven by demand for AI. Notably, order growth has expanded at a 60% clip. Eaton has been shedding older businesses to streamline its operations, which complicates the story somewhat. However, a strong backlog provides a fairly clear line of sight for future revenues and earnings. And given the benefits it is seeing from AI demand, Eaton looks well-positioned for future success.

There's one problem to consider Wall Street is so focused on AI today that companies like Caterpillar and Eaton aren't flying under the radar. Cat's price-to-earnings ratio is a lofty 45x, while Eaton's is 38x. Value investors won't be interested. Still, the race to build AI data centers doesn't look anywhere near over, so the good news could easily keep going for these industrial giants. If you think AI will continue to grow, you may want to take a deeper look at each one.

Caterpillar (CAT +0.47%) is up 265% in the last three years, largely thanks to the artificial intelligence (AI) boom. Its earth-moving equipment is being used for AI data center construction. Caterpillar also has a massive mining business that is benefiting from resource demand.

Perhaps most importantly, Caterpillar's Power & Energy segment is perfectly positioned to capitalize on surging power generation demand as AI data centers look to go behind the meter by producing their own electricity and avoid lengthy interconnection delays associated with grid power. With the AI energy bottleneck intensifying and hyperscalers continuing to pour record capital expenditures into AI, demand for Caterpillar's products should continue to outpace supply for the foreseeable future.

Now, with Caterpillar's stock price knocking on the door of $1,000 per share, some investors may be wondering if the industrial giant could issue a stock split -- especially with Caterpillar now making up a staggering 10.6% of the Dow Jones Industrial Average.

Here's why a stock split could be on deck, and the biggest obstacle standing in its way.

Image source: Getty Images.

There's an even better stock split candidate than Caterpillar Because of its price-weighted nature, stock splits have a major impact on the Dow. Amazon and Alphabet issued stock splits in 2022, which brought their stock prices closer to the median of the Dow and paved the way for their entry into the index. Similarly, stocks that run up in price and don't split can quickly tilt the index out of balance.

Caterpillar's surging stock price has propelled it to the second-highest-weighted company in the Dow behind Goldman Sachs. Combined, both stocks make up 23.5% of the Dow. In contrast, the two largest stocks in the S&P 500 make up 14.4% of the index.

But even with Caterpillar's massive weighting, the industrial sector only makes up 17.3% of the index compared to 28.6% for financials. So, despite what the name implies, the Dow isn't the industrially focused index it used to be.

Therefore, there's a much stronger case for Goldman Sachs to issue a stock split and reduce its individual and sector weightings. What's more, Meta Platforms has a compelling case for inclusion in the Dow, given its consistently high free cash flow, industry-leading position, and recently implemented dividend. Goldman Sachs splitting its stock would provide the catalyst needed to add Meta to the index, most likely replacing Nike.

Caterpillar

Today's Change

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0.47

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4.12

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$

881.29

The Dow can rebalance naturally The Dow has gone through many periods when stocks temporarily accounted for a large share of the index, only for market cycles to even out the weights over time.

In 2019, Boeing made up over 11% of the Dow, driven by a rapid price surge. But the COVID-19 pandemic, along with other issues, has made Boeing a major laggard since. And without even issuing a stock split, Boeing's underperformance, paired with outperformance by other components and index shake-ups, has pushed Boeing down to just 2.5% of the Dow.

That's not to say that Caterpillar is destined for the same fate, but it is a cyclical company. So it wouldn't be surprising if Caterpillar waited to see how the AI infrastructure market evolves instead of rushing to issue a split.

Daniel Foelber has positions in Nike. The Motley Fool has positions in and recommends Alphabet, Amazon, Boeing, Caterpillar, Goldman Sachs Group, Meta Platforms, and Nike. The Motley Fool has a disclosure policy.

Key Takeaways Caterpillar posted strong Q1 2026 revenue and EPS growth despite significant tariff-related costs.CAT targets 6-9% revenue CAGR through 2030, backed by infrastructure, mining and automation demand.Volvo is advancing electrification and expansion, but earnings estimates have weakened and costs remain high. Caterpillar Inc. (CAT - Free Report) and Volvo (VLVLY - Free Report) are global leaders in the heavy machinery and construction equipment industry, offering a wide range of products, including trucks, excavators and industrial engines. Both companies are also investing heavily in electrification, automation and digital technologies to position themselves for the next phase of infrastructure and transportation growth.

Caterpillar commands a market capitalization of roughly $404 billion, significantly larger than Volvo's $72 billion. As industry bellwethers, their performance often reflects broader trends in global manufacturing, mining and infrastructure spending. But which stock looks more compelling for investors today? Let's compare their fundamentals, growth outlook and valuation.

The Case for CaterpillarCaterpillar is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

The company has reported revenue growth in each of the past three quarters and earnings growth over the past two. In the first quarter of 2026, revenues increased 22% year over year to approximately $17.4 billion, driven by higher sales volumes across all business segments. Backlog reached a record $63 billion. Adjusted earnings per share jumped 30.4% to $5.54, a sharp acceleration from the modest 0.4% growth recorded in fourth-quarter 2025. The results were particularly impressive considering the estimated $600 million tariff-related headwind during the quarter.

For 2026, Caterpillar expects revenue growth in the low double digits compared with 2025. Adjusted operating margin is, however, projected toward the lower end of its range, due to continued tariff pressures, which are expected to create a full-year headwind of approximately $2.2-$2.4 billion.

At an annual revenue base of roughly $60 billion, Caterpillar expects adjusted operating margins between 15% and 19%. If revenues reach $72 billion, margins could improve to 18-22%, while a stronger scenario with $100 billion in revenues could support margins of 21-25%.

Caterpillar is targeting a revenue CAGR of 6-9% through 2030. Key growth catalysts include U.S. infrastructure spending, mining demand tied to the energy transition, increased automation adoption and expanding investments in data centers and sustainability initiatives. Caterpillar recently strengthened its mining technology capabilities by acquiring Skycatch, Inc., a provider of spatial data capture, processing and analytics solutions for the mining industry. 

Management aims to increase Construction Industries sales to users by 25% from 2024 levels by 2030, triple the number of autonomous trucks operating in Resource Industries and expand Power Generation sales to more than three times their current level. 

Connected assets are expected to rise from more than 1.6 million to 2 million, while e-commerce sales per business day are projected to jump from 4% to more than 50% by 2030. Services revenues are targeted to rise from $24 billion in 2025 to $30 billion by 2030.

Caterpillar’s growth is expected to be driven by U.S. infrastructure spending, mining demand linked to energy transition, automation adoption and rising data center and sustainability-related investments.

The Case for VolvoVolvo is one of the leading manufacturers of trucks, buses and construction equipment, as well as marine and industrial engines. Its subsidiary, Volvo Construction Equipment (Volvo CE), produces a wide range of machinery for the construction, extraction, waste processing and materials handling sectors. It manufactures haulers, wheel loaders, excavators, road construction machines and compact equipment.

Volvo Group’s net sales were up 3% in the recently reported second quarter of fiscal 2026 to SEK 126.3 billion ($13.1 billion). The Group has returned to revenue growth after nine quarters of declines. Organic sales growth was 7%.  

Adjusted operating income rose 10% year over year to SEK 14.8 billion, lifting adjusted operating margin to 11.7% from 11.0% in the year-ago quarter. Strong service revenues, favorable product mix and lower net R&D expenses more than offset higher U.S. tariff costs along with rising freight and material expenses.  Vehicle sales grew 6% and service sales 7% organically. Deliveries of new trucks increased 6%.

Earnings per share grew 40% to SEK 5.10 (53 cents) in the second quarter. This marks an improvement from the 16% decline witnessed in the first quarter. 

Volvo CE, however, reported net sales decline of 6% to SEK 21.6 billion ($2.24 billion), largely due to the divestment of SDLG in September 2025. Organic sales growth was reported at 13%, of which net sales of machines increased 14% and service sales increased 9%

Total deliveries fell 48% because of the SDLG divestment, although deliveries under the Volvo brand increased 14%. Growth was led by North and South America, Europe and Asia, partly offset by weaker demand in Africa and Oceania. North America remained resilient, supported by investments in data centers, energy infrastructure and reshoring of manufacturing. South America benefited from stronger mining and infrastructure activity, while Europe saw healthy replacement demand and ongoing infrastructure investment.

Adjusted operating income at Volvo CE increased 4% to SEK 3.1 billion ($320 million), while adjusted operating margin improved to 14.4% from 13.1%. Better product mix and stronger service performance more than offset lower volumes and tariff-related costs. In the first quarter, adjusted operating income had dipped 2% owing to the impact of tariffs.

Strategically, Volvo continues to invest in innovation and capacity expansion. Volvo CE has delivered the world's first electric articulated haulers, Volvo A30 Electric, to LNS in Norway for use on a hydropower project, marking a key milestone in the electrification of heavy equipment.

Volvo CE recently began construction of its new crawler excavator assembly factory in Eskilstuna. The 30,000-square-meter plant, expected to be completed in 2028, will expand production capacity to meet growing European demand. The move is also in sync with Volvo CE’s goals to solidify its position in the key excavator market.  Volvo CE completed its acquisition of Swecon in January 2026, strengthening its retail and service presence across Sweden, Germany and the Baltic region. The company also divested its loss-making Rokbak business to sharpen its focus on its core hauling solutions. 

While these initiatives position Volvo for long-term growth, near-term performance remains impacted by higher costs owing to tariffs, restructuring actions and weakness in some regions.

How do Estimates Compare for CAT & VLVLY?The Zacks Consensus Estimate for Caterpillar’s 2026 earnings is $24.86 per share, indicating year-over-year growth of 30.4%. The estimate for 2027 of $31.11 suggests a rise of 25.1%. 

The consensus estimate for Volvo’s 2026 earnings is $2.19 per share, indicating year-over-year growth of 26.6%. The 2027 estimate of $2.70 implies growth of 23.1%.

Image Source: Zacks Investment Research

EPS estimates for Caterpillar for both 2026 and 2027 have been trending north over the past 60 days. The estimates for Volvo for both years have moved down over the past 60 days. 

Image Source: Zacks Investment Research

Caterpillar & Volvo: Price Performance, Valuation & Other ComparisonsIn a year, CAT stock has surged 112.1%, whereas VLVLY has gained 32.6%.

Image Source: Zacks Investment Research

Caterpillar is currently trading at a forward 12-month earnings multiple of 31.27X. Volvo’s stock is trading at a forward 12-month earnings multiple of 13.93X.

Image Source: Zacks Investment Research

CAT’s return on equity of 48.21% is way higher than VLVLY’s 22.17%. This reflects Caterpillar’s efficient use of shareholder funds in generating profits.

Image Source: Zacks Investment Research

CAT or VLVLY: Which Stock is Better for Your Portfolio?Both Caterpillar and Volvo offer investors exposure to long-term infrastructure, mining and industrial equipment demand. However, Caterpillar stands out for its scale, consistent performance, strong backlog and improving earnings outlook, even as it navigates cost pressures. Volvo is making meaningful progress through electrification, acquisitions and capacity expansion, but its construction equipment business continues to face revenue pressure and analysts have become more cautious about its earnings outlook.

Despite a higher valuation, Caterpillar's stronger execution, superior returns on equity and improving earnings estimates make it a better investment opportunity at present.  Caterpillar currently carries a Zacks Rank #3 (Hold) while Volvo carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Caterpillar (CAT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this construction equipment company have returned -0.3%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Manufacturing - Construction and Mining industry, which Caterpillar falls in, has gained 2.3%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Caterpillar is expected to post earnings of $6.21 per share for the current quarter, representing a year-over-year change of +31.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

For the current fiscal year, the consensus earnings estimate of $24.71 points to a change of +29.6% from the prior year. Over the last 30 days, this estimate has changed +0.3%.

For the next fiscal year, the consensus earnings estimate of $30.88 indicates a change of +25% from what Caterpillar is expected to report a year ago. Over the past month, the estimate has changed +0.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Caterpillar.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Caterpillar, the consensus sales estimate for the current quarter of $19.08 billion indicates a year-over-year change of +15.2%. For the current and next fiscal years, $76.56 billion and $84.47 billion estimates indicate +13.3% and +10.3% changes, respectively.

Last Reported Results and Surprise HistoryCaterpillar reported revenues of $17.42 billion in the last reported quarter, representing a year-over-year change of +22.2%. EPS of $5.54 for the same period compares with $4.25 a year ago.

Compared to the Zacks Consensus Estimate of $16.44 billion, the reported revenues represent a surprise of +5.95%. The EPS surprise was +21.76%.

Over the last four quarters, Caterpillar surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Caterpillar is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Caterpillar. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

On July 10, 2026, Caterpillar Inc (CAT) shares rose 1.5% today, trading at $952.41. Over the past year, the stock has experienced significant volatility, with a

Caterpillar (CAT) has become tied to the AI trade in recent months, with Jonathan Sakraida pointing out it has outperformed Nvidia (NVDA) and the overall tech sector in the last 12 months. He points to Caterpillar's ever-growing demand for AI data center construction as a reason key reason backing his bullish view on the stock.

Caterpillar (NYSE:CAT | CAT Price Prediction) spent much of the past decade being labeled a cyclical industrial bellwether tied to construction, mining, and commodity prices.

 Near-real-time spatial data and AI capabilities strengthen mine planning and execution

, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) has acquired Skycatch, Inc. (Skycatch), a leading provider of spatial data capture, processing and analysis solutions for the mining industry, further enhancing its capabilities following the recent acquisition of RPMGlobal (RPM). The acquisition expands Caterpillar's portfolio of data-driven mining technology solutions that help customers optimize material movement.

Caterpillar is expanding its portfolio of data-driven mining technology with the acquisition of Skycatch. "Acquiring Skycatch aligns with our strategy to solve our customers' toughest challenges," said Denise Johnson, group president, Caterpillar Resource Industries. "By integrating near-real-time, high-resolution spatial data into both RPM and MineStar solutions, we can help customers improve mine site performance by enhancing safety, productivity and predictability across their operations using both staffed and autonomous fleets."

Skycatch's technology captures high-frequency, high-precision, large-scale spatial data and pairs it with a suite of AI capabilities that identify, measure and interact with the data to deliver improved operational performance. This gives mining customers a more up-to-date view of their operations, improving the speed, accuracy and precision of decision-making.

"Skycatch's ability to process large volumes of spatial data at dramatically improved speeds opens up a fundamentally different way of operating," said Richard Mathews, CEO of RPMGlobal. "With a near real-time spatial view of the operation, miners can adjust plans as conditions change, improve alignment between planning and execution, and deliver more predictable outcomes."

By generating a near-real-time digital twin of the mining site and integrating it directly into existing software solutions, customers can incorporate accurate, current data into their planning and execution workflows. The result is improved decision-making, reduced delays and greater confidence in daily operations. 

"We're incredibly proud of what Skycatch has built over the past decade and excited for this next chapter with Caterpillar," said Christian Sanz, Skycatch Founder & CEO. "This next step strengthens our ability to support our customers while increasing the value we can deliver."

About Caterpillar
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at www.caterpillar.com. 

About RPMGlobal 
RPMGlobal [RPM®] is a global leader in the provision and development of mining software solutions to the mining industry. RPM has been advancing the global mining industry through the provision of innovative software solutions and deep domain expertise for almost 50 years. The company's innovative technology solutions support mining clients to extract more value at every stage of the mining lifecycle. In partnership with the industry, RPM has delivered safer, cleaner and more efficient operations in over 125 countries. Learn more at www.rpmglobal.com. 

About Skycatch 
Skycatch is a provider of spatial data capture, processing and analytics solutions for mining and industrial operations. The company's technology enables the rapid generation of high-precision 3D data and insights, supporting more accurate, timely and data-driven decision-making across site operations. Skycatch's solutions are used by global customers to improve visibility, consistency and efficiency in complex operating environments. Learn more at www.skycatch.com. 

SOURCE Caterpillar Inc.

Woods is no stranger to highlighting the AI opportunity for large-cap tech names, like those in the Magnificent Seven. When it comes to other sectors, Caterpillar could be one of the most underrated names connected to AI.

"When we talk about the AI story and the infrastructure behind it, Caterpillar to me is the gold standard of that bill," Woods tells Benzinga in an exclusive interview.

The market expert highlighted an interview with OpenAI CEO Sam Altman and CNBC co-host David Faber that featured Caterpillar vehicles in the backdrop related to building data centers. Woods said this could be Caterpillar passing "the eye test alone."

Woods said it may not be all smooth sailing for Caterpillar and the building of data centers with some politicians against these new builds. There are also some areas of the country that don’t want data centers in their backyards, but Woods says the build is necessary and that opinions may change in the future.

Outside of data centers, Woods also said that Caterpillar is benefiting from areas like HVAC, which has a backlog of three to five years. The market expert says Caterpillar is benefiting from the infrastructure bill and build-out.

"Caterpillar is your gold standard."

Woods says Caterpillar stock has a "tremendous runway on a valuation basis" and on a "technical basis."

"It just checks all the boxes and then you put the big story behind it, the growth story and the infrastructure bill."

Woods calls Caterpillar "the picks and shovels story" that is not going away.

Other Industrial Stocks to WatchDuring the interview, Woods also offered up some other industrial stocks that warrant attention.

"There are so many great stories in the picks and shovels. If we are still in early innings in AI, we are still in the early innings of the data build," Woods tells Benzinga.

Woods said backlogs remain strong and pricing power is also strong for industrials and companies connected to AI right now.

"They’re crushing in all metrics and the stocks are just picking up on that now."

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Caterpillar (CAT - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Caterpillar currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if CAT is a promising momentum pick, let's examine some Momentum Style elements to see if this construction equipment company holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For CAT, shares are up 1.18% over the past week while the Zacks Manufacturing - Construction and Mining industry is up 0.59% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 2.45% compares favorably with the industry's 0.28% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Caterpillar have increased 22.42% over the past quarter, and have gained 142.18% in the last year. On the other hand, the S&P 500 has only moved 13.88% and 21.37%, respectively.

Investors should also take note of CAT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CAT is averaging 3,803,630 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CAT.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CAT's consensus estimate, increasing from $23.84 to $24.71 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that CAT is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Caterpillar on your short list.

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.

It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.

Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?

That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.

One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.

The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.

Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.

Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.

Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.

Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."

The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.

Focus List Spotlight: Caterpillar (CAT - Free Report) Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.

Since being added to the Focus List on April 18, 2017 at $94.14 per share, shares of CAT have increased 923.51% to $963.53. The stock is currently a #1 (Strong Buy) on the Zacks Rank.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.87 to $24.71. CAT also boasts an average earnings surprise of 9.6%.

Moreover, analysts are expecting CAT's earnings to grow 29.6% for the current fiscal year.

Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>

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Stock Market Skids As Trump Makes This Trade Call; Jobs Report Due Caterpillar (CAT) dropped 6.9% on the first day of the third quarter 2026, but Caterpillar stock is still on a solid uptrend and is one of the best-performing stocks on the Dow Jones Industrial Average this year. The heavy equipment maker is benefiting from strong demand in construction and power‑generation markets, including a growing backlog tied to the energy needs…

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Shares of Caterpillar (CAT) have surged more than 150% year-over-year as investors see the industrials giant as a key player in the AI buildout. Rick Ducat takes traders through the stock's bull run and highlights key support and resistance levels to watch.

CAT hits 52-week high, backed by Russell Top 50 Index inclusion, strong Q1 growth, record backlog and upbeat 2026 outlook.

CAT Stock Has The AI PremiumThe valuation gap isn’t being driven by traditional construction demand.

Instead, investors have increasingly viewed Caterpillar as one of the biggest beneficiaries of the AI infrastructure buildout. Before a single GPU powers a large language model, data centers must be excavated, power systems installed and semiconductor fabrication plants constructed—all jobs that require Caterpillar’s equipment.

The company has become an indirect way to invest in the AI boom, benefiting from the billions of dollars hyperscalers and governments continue to pour into new data centers, power infrastructure and semiconductor manufacturing capacity.

That shift has fueled an extraordinary rally.

Caterpillar shares have surged more than 23% over the past month, nearly 78% year to date and roughly 390% over the past five years, recently climbing to fresh all-time highs. The stock remains well above its key moving averages, with momentum indicators continuing to point higher.

Why Michael Burry Is WatchingThat remarkable re-rating may also explain why Caterpillar has landed on Michael Burry‘s radar.

Unlike those names, however, Caterpillar isn’t a tech or an AI company in the traditional sense.

Burry’s bet suggests he may not be questioning demand for bulldozers. Instead, he could be questioning how much of today’s AI-driven construction boom has already been priced into the stock.

As AI enthusiasm spreads beyond chipmakers to companies supplying the infrastructure behind the industry, investors have begun assigning premium multiples to businesses that historically traded like cyclical industrials.

More Than MachineryCaterpillar’s valuation tells a broader story about the evolution of the AI trade.

The market has already rewarded chip designers, semiconductor equipment makers and networking companies. Now, investors appear to be extending that enthusiasm to the companies laying the physical foundations of the AI economy.

Whether that premium proves justified will likely depend on one question: Can today’s unprecedented wave of data center and semiconductor investment continue long enough to support valuations that increasingly resemble those of technology companies?

For now, Wall Street appears to believe the answer is yes.

Burry, on the other hand, seems to be betting that when a century-old maker of bulldozers starts trading richer than Nvidia, the AI trade may have reached one of its most unexpected extremes.

Photo: DennisF via Shutterstock

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It doesn't matter if you're a growth, value, income, or momentum-focused investor -- building a successful investment portfolio takes skill, research, and a little bit of luck.

But how do you find the right combination of stocks? Funding your retirement, your kids' college tuition, or your short- and long-term savings goals certainly requires significant returns.

Enter the Zacks Rank.

What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.

There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.

Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.

Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.

Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.

Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.

Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.

The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.

Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.

In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.

With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.

Since it can often take weeks, if not months, for an institutional investor to build a position (given their size), retail investors who get in at the first sign of upward earnings estimate revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.

Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.

How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.94%.

Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.

Let's take a look at Caterpillar (CAT - Free Report) , which was added to the Zacks Rank #1 list on June 11, 2026. Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.82 to $24.66 per share. CAT boasts an average earnings surprise of 9.6%.

Earnings are forecasted to see growth of 29.4% for the current fiscal year, and sales are expected to increase 13.2%.

Even more impressive, CAT has gained in value over the past four weeks, up 17.1% compared to the S&P 500's loss of 1.2%.

Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Caterpillar should be on investors' shortlist.

If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.

Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>

Aquiles Larrea, Jr. walks us through today's Big 3. He names Caterpillar (CAT) as a high-quality company with a decent dividend, sees SpaceX (SPCX) as a highly favorable name with quick growth, and JPMorgan Chase's (JPM) recent “bounce” as opportunities.

Pre-market futures are down at this hour, following another global-led tech selloff. This is perhaps best illustrated by another -6% drop in the South Korean KOSPI index, which has halted AI-trade enthusiasm with the investment concentration into local stocks SK Hynix and Samsung, two recently anointed trillion-dollar companies.

In any case, this week of trading had so far been established early on: sinking on the Nasdaq and, by consequence, the S&P 500, while staying in the green for the blue-chip Dow and small-cap Russell 2000. Trading 101 brings us to the notion that a rotation in thre market is afoot — taking profits from the massive gains in the AI space and putting them into more pragmatic companies, especially those demonstrating success but getting less love from the investment community until recently. Caterpillar (CAT - Free Report) , for instance, is up +16% in the past month.

Trade & Inventory Numbers Bring a Couple SurprisesWe’ve survived a week chock full of economic prints — PCE for May, Service & Manufacturing PMI, New Home Sales — and have stayed mostly on-trend throughout. The market remains agnostic (with a positive bias) of the future of the Strait of Hormuz, and the Asian hangover to the AI party has demonstrated its influence.

Advance Trade in Goods for May dropped significantly from expectations: -$105.8 billion — well off the revised -$83.0 billion reported a month ago. This is the deepest deficit since the record-low -$158 billion (from the month prior to “Liberation Day” tariffs, which wound up lasting one week in April of 2025) in March of last year. Total Exports reached -$11.8 billion, while Imports rose +$10.9 billion.

Advance Retail Inventories for May dipped 10 basis points (bps) month over month to +0.6%. Advance Wholesale Inventories last month dropped to +0.3%, half of April’s +0.6% and lower than the +0.4% expected. Historically, it’s a good sign for the economy for wholesale inventories to fall faster than the retail side. But it’s also important to understand that the closing of the Strait of Hormuz — considered a temporary condition by most analysts — has spoken loudly on inventory levels on a global scale in recent months, and they have been less than complimentary to economies around the world.

What to Expect from the Market Today and Next WeekFinal June Consumer Sentiment numbers from the University of Michigan survey are due after the open today, expected to revise upward to 49.0 from 48.9 reported mid-month and 44.9 in the May tally. We started calendar 2026 in the mid-50s, but are wallowing at 10-year lows currently. Again, citing the real circumstances of the world economy — and multitudes of projections forward, including the “affordability crisis,” AI’s potential takeover and events ongoing in the Middle East — we can perhaps understand where consumers have been coming from.

Next week is Jobs Week — shortened by next Friday’s observance of Independence Day — with the modest rebound in employment data expected to continue. JOLTS for May, ADP private sector and Friday’s non-farm payrolls for June will help spell out where we are in the labor market. Based on previous accounts, we’ve gotten up from the mat of a year or so ago, where job losses per month had become commonplace.

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Caterpillar (CAT - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Caterpillar is a member of the Industrial Products sector. This group includes 181 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CAT's full-year earnings has moved 8.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CAT has returned about 73.6% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of 21% on a year-to-date basis. As we can see, Caterpillar is performing better than its sector in the calendar year.

Kaiser Aluminum (KALU - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.3%.

In Kaiser Aluminum's case, the consensus EPS estimate for the current year increased 18.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Caterpillar belongs to the Manufacturing - Construction and Mining industry, a group that includes 6 individual stocks and currently sits at #186 in the Zacks Industry Rank. On average, stocks in this group have gained 65.1% this year, meaning that CAT is performing better in terms of year-to-date returns.

In contrast, Kaiser Aluminum falls under the Metal Products - Procurement and Fabrication industry. Currently, this industry has 6 stocks and is ranked #52. Since the beginning of the year, the industry has moved +10.1%.

Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Caterpillar and Kaiser Aluminum as they could maintain their solid performance.