When most people think of Caterpillar (CAT -2.42%), they think of the iconic yellow tractors, harvesters, and other farm equipment that have powered American agriculture for over a century. And of course, the company is also known for its construction equipment, including backhoes, bulldozers, and excavators (also yellow), among many other types of heavy equipment.
But recently, a new narrative has emerged about Caterpillar: It's an artificial intelligence (AI) stock, and one that investors optimistic about the AI revolution should absolutely consider, as a way to diversify away from core AI stocks like Nvidia, Alphabet, and Micron Technology, but still benefit from the massive AI infrastructure build-out now taking place.
How do I know this? Well, just look at the company's most recent quarterly results.
In the second quarter, Caterpillar's total revenue grew an impressive 24% over the same quarter in 2025. And earnings per share soared 73% from a year ago.
Power equipment sales are driving revenue growth
But you only need to dig a little deeper to uncover which segment is really exploding at the company: power generation. Total retail sales for the power and energy segment rose 33% in the quarter. And what drove that? Retail sales of power generation equipment, which climbed an incredible 72%.
In the earnings call after the Q2 results were released on Aug. 4, CEO Joseph Creed said the increase was due to "very strong demand for large gen[erator] sets and turbines used in data center applications."
AI data centers have a nearly insatiable thirst for power, so sales of power-supplying equipment are going gangbusters. In 2025, data centers consumed about 4.9% of the U.S. electricity supply. In some states, that was more than 10%; in data center-heavy Virginia, it's more than one-quarter. Electricity consumption by U.S. data centers is projected to more than double by 2030. And from there, who knows?
Better still, customers for Caterpillar's power and energy equipment are now placing orders through 2030. As a result, the company's backlog, now at a record $72 billion, has expanded 92% over the past year.
$687.00-$17.05 (-2.42%)
NYSE · As of 4:00 PM ET 10/23/26
So, a large portion of Caterpillar's revenue growth right now is driven by data center construction and power needs. And that looks to increase in the coming months and years. Caterpillar calls its power and energy its "Largest and Fastest Growing Segment."
Image source: Getty Images.
Caterpillar will report its third-quarter earnings on Oct. 29. Wall Street expects revenue growth of 17% over the same quarter last year and earnings of $7.03 per share, up 42% from a year ago. I wouldn't be surprised if the company beats those estimates.
For investors who believe, as I do, that the AI spending juggernaut will continue for years to come, investing in Caterpillar is a good way to profit from it while diversifying a bit from the core AI stocks.
Cadinha & Co. LLC cut its holdings in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 8.1% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 20,443 shares of the industrial products company’s stock after selling 1,808 shares during the quarter. Caterpillar accounts for 2.7% of Cadinha & Co. LLC’s investment portfolio, making the stock its 16th largest position. Cadinha & Co. LLC’s holdings in Caterpillar were worth $16,575,000 as of its most recent SEC filing.
Several other institutional investors have also modified their holdings of CAT. BlackRock Inc. purchased a new position in Caterpillar in the second quarter valued at $40,457,153,000. State Street Corp increased its holdings in Caterpillar by 4.0% during the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock worth $37,120,529,000 after purchasing an additional 1,396,356 shares during the period. Bank of America Corp DE acquired a new stake in Caterpillar in the 2nd quarter valued at about $5,818,150,000. Bank of New York Mellon Corp acquired a new stake in Caterpillar in the 2nd quarter valued at about $3,192,710,000. Finally, Legal & General Group Plc purchased a new position in shares of Caterpillar in the 2nd quarter valued at about $2,783,451,000. Institutional investors and hedge funds own 70.98% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts have recently commented on the company. President Capital initiated coverage on Caterpillar in a research report on Friday, September 18th. They set a “buy” rating and a $999.00 price objective for the company. Royal Bank Of Canada boosted their price target on shares of Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 5th. Erste Group Bank downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. Oppenheimer reduced their price objective on shares of Caterpillar from $1,118.00 to $1,009.00 and set an “outperform” rating on the stock in a report on Wednesday, October 14th. Finally, UBS Group lifted their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Caterpillar has a consensus rating of “Moderate Buy” and an average price target of $967.83.
Read Our Latest Stock Report on CAT Insider Activity at Caterpillar In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.33% of the company’s stock.
Trending Headlines about Caterpillar Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Analysts have been raising their earnings estimates, while Caterpillar’s history of positive earnings surprises and favorable Earnings ESP point to potential upside if the company exceeds expectations next week. Caterpillar Reports Next Week: Wall Street Expects Earnings Growth Positive Sentiment: A recent hammer chart pattern suggests CAT may have found technical support following its decline. The article also highlights broad Wall Street agreement on higher earnings estimates, strengthening the case for a near-term recovery. Bears Are Losing Control Over Caterpillar Positive Sentiment: Caterpillar is maintaining its dividend while benefiting from strong cash generation, a reported record $72 billion backlog and a higher 2026 sales-growth outlook. These factors support earnings visibility and the potential for future dividend increases. CAT Keeps Dividend Unchanged Neutral Sentiment: Brokerages’ reported consensus price target of $967.83 implies substantial long-term upside, although target prices are estimates rather than guarantees. Caterpillar Consensus Target Price Negative Sentiment: Some investors remain concerned about how far CAT could fall after its recent rally, and reported ETF net selling may add short-term technical pressure. How Big Could Caterpillar Stock’s Next Fall Be? Caterpillar Stock Down 5.0% Shares of NYSE:CAT opened at $703.30 on Friday. The firm has a 50 day simple moving average of $802.23 and a 200-day simple moving average of $856.84. Caterpillar Inc. has a twelve month low of $513.01 and a twelve month high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $323.28 billion, a PE ratio of 30.26, a P/E/G ratio of 1.27 and a beta of 1.58.
Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same period last year, the firm posted $4.72 EPS. The company’s revenue was up 23.7% on a year-over-year basis. On average, equities analysts predict that Caterpillar Inc. will post 27.74 EPS for the current fiscal year.
Caterpillar Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is presently 28.06%.
About Caterpillar (Free Report)
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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CMH Wealth Management LLC reduced its holdings in shares of Caterpillar Inc. (NYSE: CAT) by 21.2% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,753 shares of the industrial products company's stock after selling 740 shares during the quarter.
Brookstone Capital Management reduced its position in shares of Caterpillar Inc. (NYSE: CAT) by 5.3% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 36,276 shares of the industrial products company's stock after selling 2,020 shares during the period.
Shares of Caterpillar (CAT - Free Report) have been struggling lately and have lost 9.1% over the past two weeks. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.
The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this construction equipment company enhances its prospects of a trend reversal.
What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'
In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.
When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.
Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.
Here's What Increases the Odds of a Turnaround for CATAn upward trend in earnings estimate revisions that CAT has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
The consensus EPS estimate for the current year has increased 1.3% over the last 30 days. This means that the Wall Street analysts covering CAT are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.
If this is not enough, you should note that CAT currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of Caterpillar, a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround.
Diversify Advisory Services LLC boosted its holdings in Caterpillar Inc. (NYSE:CAT – Free Report) by 34.8% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,289 shares of the industrial products company’s stock after purchasing an additional 2,138 shares during the period. Diversify Advisory Services LLC’s holdings in Caterpillar were worth $6,721,000 as of its most recent SEC filing.
A number of other institutional investors have also recently bought and sold shares of the business. Stonebridge Financial Group LLC grew its position in Caterpillar by 0.7% during the second quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company’s stock valued at $1,741,000 after buying an additional 11 shares during the period. Inspirion Wealth Advisors LLC increased its holdings in Caterpillar by 1.2% during the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company’s stock worth $936,000 after buying an additional 11 shares during the last quarter. Bell Bank increased its holdings in Caterpillar by 0.6% during the second quarter. Bell Bank now owns 1,865 shares of the industrial products company’s stock worth $1,986,000 after buying an additional 11 shares during the last quarter. Cornerstone Advisory LLC raised its position in Caterpillar by 0.7% in the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock worth $1,288,000 after acquiring an additional 12 shares during the period. Finally, Brandywine Oak Private Wealth LLC boosted its stake in Caterpillar by 2.6% in the first quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company’s stock valued at $358,000 after acquiring an additional 13 shares during the last quarter. Institutional investors own 70.98% of the company’s stock.
Key Headlines Impacting Caterpillar
Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Improving earnings outlook: Caterpillar has a strong history of exceeding quarterly estimates, and analysts see the company as having favorable conditions for another earnings beat. Its latest reported quarter also substantially exceeded consensus expectations for earnings and revenue. Will Caterpillar Beat Estimates Again
Positive Sentiment: Strong backlog and raised outlook: Caterpillar is supported by a record $72 billion backlog, strong cash flow and an increased 2026 sales-growth outlook. Although the dividend was held steady, these factors could support future dividend growth and capital returns. CAT Keeps Dividend Unchanged
Positive Sentiment: Rating and analyst support: Caterpillar was upgraded to Zacks Rank #2 (Buy), reflecting greater optimism about its earnings prospects. The average brokerage price target of approximately $967.83 is well above the recent trading level, although targets are not guarantees. Caterpillar Rating Upgrade
Neutral Sentiment: Dealer technology partnership: IronSight AI and Fast Iron announced a platform that helps Caterpillar, Komatsu and Volvo equipment dealers identify and sell used parts using smartphone images. The development may improve dealer efficiency, but it is not expected to have a material near-term effect on Caterpillar’s financial results. IronSight AI and Fast Iron Partnership
Negative Sentiment: Valuation and trading risks: Caterpillar’s elevated valuation leaves the stock vulnerable to a pullback if earnings momentum slows. ETFs were also reported as net sellers, while commentary cautioned that analyst optimism may already be reflected in the share price. Caterpillar Stock Pullback Risk
Analyst Upgrades and Downgrades
CAT has been the subject of a number of research reports. Royal Bank Of Canada increased their target price on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. DA Davidson lifted their price target on shares of Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. President Capital started coverage on Caterpillar in a research note on Friday, September 18th. They issued a “buy” rating and a $999.00 price objective on the stock. Finally, Citigroup reduced their price objective on Caterpillar from $1,100.00 to $950.00 and set a “buy” rating for the company in a report on Monday, October 12th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $967.83.
View Our Latest Analysis on Caterpillar
Insider Activity
In other news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.33% of the stock is currently owned by company insiders.
Caterpillar Trading Up 2.1%
Shares of CAT opened at $740.20 on Thursday. Caterpillar Inc. has a fifty-two week low of $510.21 and a fifty-two week high of $1,073.46. The business has a 50-day moving average of $805.28 and a 200 day moving average of $856.93. The firm has a market cap of $340.25 billion, a P/E ratio of 31.85, a price-to-earnings-growth ratio of 1.24 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.
Caterpillar (NYSE:CAT – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company’s revenue was up 23.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.72 earnings per share. As a group, research analysts forecast that Caterpillar Inc. will post 27.74 EPS for the current year.
Caterpillar Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be paid a $1.63 dividend. The ex-dividend date is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is presently 28.06%.
Caterpillar Profile
(Free Report)
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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Caterpillar (CAT - Free Report) closed the most recent trading day at $740.21, moving +2.06% from the previous trading session. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.
The stock of construction equipment company has fallen by 10.24% in the past month, lagging the Industrial Products sector's loss of 2.94% and the S&P 500's gain of 0.97%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. It is anticipated that the company will report an EPS of $7.12, marking a 43.84% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.58 billion, up 16.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $27.74 per share and a revenue of $80.19 billion, demonstrating changes of +45.54% and +18.65%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.34% higher within the past month. Currently, Caterpillar is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Caterpillar is at present trading with a Forward P/E ratio of 26.15. This expresses a premium compared to the average Forward P/E of 16.68 of its industry.
Also, we should mention that CAT has a PEG ratio of 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Caterpillar (CAT - Free Report) . This company, which is in the Zacks Manufacturing - Construction and Mining industry, shows potential for another earnings beat.
This construction equipment company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 26.24%.
For the last reported quarter, Caterpillar came out with earnings of $8.17 per share versus the Zacks Consensus Estimate of $6.25 per share, representing a surprise of 30.72%. For the previous quarter, the company was expected to post earnings of $4.55 per share and it actually produced earnings of $5.54 per share, delivering a surprise of 21.76%.
Price and EPS Surprise
For Caterpillar, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Caterpillar currently has an Earnings ESP of +2.98%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 29, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Caterpillar?The final step today is to look at a stock that meets our ESP qualifications. Caterpillar (CAT - Free Report) earns a #2 (Buy) eight days from its next quarterly earnings release on October 29, 2026, and its Most Accurate Estimate comes in at $7.33 a share.
Caterpillar's Earnings ESP sits at +2.98%, which, as explained above, is calculated by taking the percentage difference between the $7.33 Most Accurate Estimate and the Zacks Consensus Estimate of $7.12. CAT is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CAT is just one of a large group of Industrial Products stocks with a positive ESP figure. Amcor (AMCR - Free Report) is another qualifying stock you may want to consider.
Amcor is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on November 4, 2026. AMCR's Most Accurate Estimate sits at $0.97 a share 14 days from its next earnings release.
The Zacks Consensus Estimate for Amcor is $0.96, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.17%.
CAT and AMCR's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Focused Alpha LLC reduced its stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 65.3% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 393 shares of the industrial products company’s stock after selling 740 shares during the quarter. Focused Alpha LLC’s holdings in Caterpillar were worth $318,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors also recently made changes to their positions in CAT. Diversify Advisory Services LLC acquired a new position in Caterpillar in the 2nd quarter valued at $5,372,000. D.B. Root & Company LLC bought a new stake in Caterpillar during the 2nd quarter valued at approximately $850,000. Dearborn Partners LLC bought a new position in Caterpillar in the 2nd quarter worth approximately $20,293,000. B. Metzler seel. Sohn & Co. AG boosted its position in shares of Caterpillar by 4.3% in the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company’s stock valued at $66,802,000 after acquiring an additional 2,590 shares during the period. Finally, Van Hulzen Asset Management LLC raised its stake in Caterpillar by 85.3% during the 2nd quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company’s stock valued at $2,991,000 after purchasing an additional 1,293 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades Several analysts have recently weighed in on CAT shares. DA Davidson lifted their price objective on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Needham & Company LLC set a $980.00 target price on shares of Caterpillar in a report on Thursday, September 10th. President Capital assumed coverage on shares of Caterpillar in a research note on Friday, September 18th. They set a “buy” rating and a $999.00 price objective on the stock. Sanford C. Bernstein restated a “market perform” rating and set a $749.00 price target on shares of Caterpillar in a research report on Wednesday, October 14th. Finally, Citigroup lowered their price objective on shares of Caterpillar from $1,100.00 to $950.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $967.83.
View Our Latest Stock Analysis on Caterpillar Caterpillar Trading Down 0.1% CAT opened at $725.27 on Wednesday. Caterpillar Inc. has a twelve month low of $510.21 and a twelve month high of $1,073.46. The firm’s fifty day moving average is $807.63 and its two-hundred day moving average is $856.77. The firm has a market cap of $333.38 billion, a PE ratio of 31.21, a price-to-earnings-growth ratio of 1.25 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.
Caterpillar (NYSE:CAT – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the firm posted $4.72 earnings per share. The business’s revenue was up 23.7% on a year-over-year basis. Equities research analysts anticipate that Caterpillar Inc. will post 27.49 EPS for the current year.
Caterpillar Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be paid a $1.63 dividend. The ex-dividend date is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is currently 28.06%.
Insider Transactions at Caterpillar In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.33% of the company’s stock.
Caterpillar News Summary Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Caterpillar received a Zacks Rank upgrade to #2 (Buy), reflecting increased optimism about its earnings outlook. That could provide support to the shares, although the upgrade is based on a quantitative ranking rather than a major change in company fundamentals. Caterpillar rating upgrade article Positive Sentiment: Caterpillar is investing $10 million to expand its North Carolina workforce and manufacturing presence. The investment signals confidence in regional production demand and could support long-term growth, though it is unlikely to materially affect near-term earnings. Caterpillar North Carolina investment article Neutral Sentiment: Analyst coverage remains broadly favorable, with Wall Street’s average recommendation suggesting CAT is suitable for portfolios. However, the report cautions that sell-side recommendations can be overly optimistic, limiting the signal’s value for investors. Caterpillar analyst recommendation article Neutral Sentiment: A comparison with W.W. Grainger and other industrial-products companies provides context on CAT’s year-to-date performance, but does not introduce a new company-specific catalyst. Caterpillar peer performance article Negative Sentiment: Caterpillar formally objected to the unauthorized tokenized trading of its shares on the OKX-ICE venue, citing regulatory and reputational risks. The dispute may create headline risk and reinforces concerns about how CAT stock is represented in unregistered digital-asset markets. Caterpillar tokenized shares article About Caterpillar (Free Report)
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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Caterpillar (CAT - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Caterpillar basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Caterpillar imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for CaterpillarThis construction equipment company is expected to earn $27.49 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Caterpillar. Over the past three months, the Zacks Consensus Estimate for the company has increased 10.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Caterpillar to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Caterpillar (CAT - Free Report) .
Caterpillar currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 24 recommendations that derive the current ABR, 12 are Strong Buy, representing 50% of all recommendations.
Brokerage Recommendation Trends for CAT
Check price target & stock forecast for Caterpillar here>>>
The ABR suggests buying Caterpillar, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in CAT?In terms of earnings estimate revisions for Caterpillar, the Zacks Consensus Estimate for the current year has increased 0.4% over the past month to $27.49.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Caterpillar may serve as a useful guide for investors.
Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Caterpillar (CAT - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Caterpillar is a member of our Industrial Products group, which includes 188 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CAT's full-year earnings has moved 10.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CAT has returned 26.7% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 9.8% on average. This shows that Caterpillar is outperforming its peers so far this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is W.W. Grainger (GWW - Free Report) . The stock has returned 30.6% year-to-date.
The consensus estimate for W.W. Grainger's current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Caterpillar belongs to the Manufacturing - Construction and Mining industry, a group that includes 7 individual companies and currently sits at #41 in the Zacks Industry Rank. On average, stocks in this group have gained 20.5% this year, meaning that CAT is performing better in terms of year-to-date returns.
W.W. Grainger, however, belongs to the Industrial Services industry. Currently, this 17-stock industry is ranked #99. The industry has moved +9.4% so far this year.
Investors with an interest in Industrial Products stocks should continue to track Caterpillar and W.W. Grainger. These stocks will be looking to continue their solid performance.
Columbia Asset Management cut its holdings in Caterpillar Inc. (NYSE:CAT – Free Report) by 5.9% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 13,328 shares of the industrial products company’s stock after selling 839 shares during the quarter. Caterpillar comprises approximately 1.7% of Columbia Asset Management’s holdings, making the stock its 14th largest position. Columbia Asset Management’s holdings in Caterpillar were worth $10,806,000 at the end of the most recent quarter.
Other hedge funds also recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Caterpillar during the 2nd quarter worth about $40,457,153,000. State Street Corp lifted its stake in shares of Caterpillar by 4.0% in the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock valued at $37,120,529,000 after buying an additional 1,396,356 shares during the period. Bank of America Corp DE bought a new stake in shares of Caterpillar in the second quarter valued at about $5,818,150,000. 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 in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Caterpillar during the second quarter worth about $3,192,710,000. Institutional investors and hedge funds own 70.98% of the company’s stock.
Insiders Place Their Bets In other news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.33% of the company’s stock.
Wall Street Analyst Weigh In CAT has been the topic of several research reports. Needham & Company LLC set a $980.00 price target on Caterpillar in a research note on Thursday, September 10th. Citigroup lowered their price target on shares of Caterpillar from $1,100.00 to $950.00 and set a “buy” rating on the stock in a report on Monday, October 12th. UBS Group boosted their price target on shares of Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Freedom Broker upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price objective for the company in a research note on Thursday, September 10th. Finally, Robert W. Baird set a $970.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $967.83. Check Out Our Latest Research Report on Caterpillar
Caterpillar Price Performance Shares of CAT stock opened at $724.96 on Tuesday. Caterpillar Inc. has a 52-week low of $510.21 and a 52-week high of $1,073.46. The stock has a market cap of $333.24 billion, a PE ratio of 30.68, a PEG ratio of 1.26 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The firm’s 50 day moving average price is $810.02 and its two-hundred day moving average price is $856.81.
Caterpillar (NYSE:CAT – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm’s revenue was up 23.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.72 earnings per share. As a group, analysts forecast that Caterpillar Inc. will post 27.49 EPS for the current year.
Caterpillar Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be given a $1.63 dividend. This represents a $6.52 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s payout ratio is currently 28.06%.
Caterpillar Company Profile (Free Report)
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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Generali Investments Management Co LLC lessened its stake in Caterpillar Inc. (NYSE:CAT – Free Report) by 75.4% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 691 shares of the industrial products company’s stock after selling 2,123 shares during the period. Generali Investments Management Co LLC’s holdings in Caterpillar were worth $560,000 as of its most recent SEC filing.
Other hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Caterpillar in the second quarter valued at approximately $40,457,153,000. State Street Corp raised its stake in shares of Caterpillar by 4.0% during the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock worth $37,120,529,000 after purchasing an additional 1,396,356 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Caterpillar during the second quarter worth approximately $5,818,150,000. Diamant Asset Management Inc. lifted its holdings in shares of 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 purchasing an additional 3,136,020 shares during the period. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Caterpillar during the second quarter worth $3,192,710,000. 70.98% of the stock is owned by institutional investors and hedge funds.
Caterpillar News Summary Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Caterpillar will invest up to $10 million in North Carolina workforce training, supporting technicians and manufacturing workers as it expands its Sanford operations. The investment complements a previously announced roughly $1 billion facility investment intended to increase compact-equipment production. Caterpillar Invests in North Carolina’s Future Manufacturing Workforce Positive Sentiment: The acquisition of the Fabick CAT dealer network could strengthen Caterpillar’s distribution and customer-support footprint, although financial terms and the transaction’s earnings impact were not provided. Caterpillar acquires Fabick Cat dealer network Neutral Sentiment: Caterpillar scheduled its third-quarter 2026 results for October 29, giving investors a near-term catalyst to assess demand, margins and guidance. Caterpillar Third-Quarter 2026 Results Announcement Neutral Sentiment: Resource Industries President Denise Johnson will retire in February 2027, with Derrick York appointed as her successor effective November 1. Johnson will remain in an advisory role during the transition, limiting immediate disruption concerns. Caterpillar Announces Leadership Transition in Resource Industries Negative Sentiment: An analyst downgrade pressured the stock, while Oppenheimer issued a pessimistic forecast. These actions reinforce concerns about Caterpillar’s valuation and future earnings outlook. Caterpillar Shares Down on Analyst Downgrade Negative Sentiment: A broader unwind in the AI-related power trade also weighed on Caterpillar, as investors reassessed companies expected to benefit from data-center electricity demand. Comparisons with Generac highlighted differences in backlog, valuation and financial strength. AI Power Trade Unwinds Analysts Set New Price Targets CAT has been the topic of a number of analyst reports. Freedom Broker upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price objective on the stock in a research report on Thursday, September 10th. Needham & Company LLC set a $980.00 price objective on shares of Caterpillar in a research report on Thursday, September 10th. Weiss Ratings upgraded shares of Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday. DA Davidson lifted their target price on shares of Caterpillar from $845.00 to $882.00 and gave the company a “neutral” rating in a report on Thursday, August 6th. Finally, Erste Group Bank downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $967.83. Get Our Latest Analysis on Caterpillar
Caterpillar Trading Down 0.1% NYSE:CAT opened at $730.01 on Monday. The stock has a fifty day moving average price of $812.24 and a two-hundred day moving average price of $856.69. The stock has a market capitalization of $335.57 billion, a price-to-earnings ratio of 31.41, a PEG ratio of 1.26 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar Inc. has a 1 year low of $510.21 and a 1 year high of $1,073.46.
Caterpillar (NYSE:CAT – Get Free Report) last released its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. Caterpillar’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter last year, the company earned $4.72 earnings per share. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 27.49 earnings per share for the current fiscal year.
Caterpillar Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be paid a $1.63 dividend. The ex-dividend date is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is 28.06%.
Insider Activity at Caterpillar In related news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.33% of the stock is owned by company insiders.
Caterpillar Company Profile (Free Report)
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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Technology companies are investing massively in artificial intelligence (AI) infrastructure, and analysts expect AI capital expenditures to reach $800 billion this year. This is driving huge sales for computing, power, cooling, and other related infrastructure needs for these next-generation data centers.
Those investments don't seem likely to slow down anytime soon. According to Goldman Sachs, hyperscaler capital investments could reach $1.7 trillion by 2027 and $2.1 trillion by 2029. Demand for industrial companies offering power solutions has surged. As a result, GE Vernova (GEV -0.57%) and Caterpillar (CAT -0.66%) have been two standout stocks in recent years.
Both companies benefit from surging demand for power from hyperscalers. But in the AI power building boom, GE Vernova has greater exposure. This can be good or bad, depending on investors' expectations for future AI spending. Here are the key differences between the two businesses.
Image source: Getty Images.
GE Vernova is seeing incredible demand for its power and electrification equipment
GE Vernova supplies power infrastructure, and its equipment helps provide roughly 25% of the world's electricity. The company's equipment and services can be found across the electricity and power value chain, including generation, transmission, conversion, and storage. Its business is split into three distinct segments: power, electrification, and wind.
Specifically, it's seeing robust demand for its power-generation equipment, including heavy-duty gas turbines and aeroderivative gas turbines. The latter appeal to data center operators because they can be delivered in as little as six months and provide bridge power while operators wait for grid hookups or larger power-generating equipment.
The company is also seeing demand from utilities for its large-scale HA gas turbines, which can provide multiple gigawatts of power. Strong orders for its substation and transmission infrastructure have been driving earnings as well. In the first half of 2026, data center orders in its electrification segment doubled to $5 billion.
$921.20-$5.24 (-0.57%)
NYSE · As of 4:00 PM ET 10/16/26
In total, GE Vernova's backlog has surged to $176 billion, measured in remaining performance obligations. Its equipment backlog is nearly $112 billion in its power segment and $44 billion in electrification, split evenly between equipment and services. Roughly 20% of the company's 116 gigawatts in contracted gas equipment is for data center customers, with the remainder going to traditional utility customers.
Caterpillar has demand for backup power systems
Caterpillar's business is split between construction and mining equipment on one side, and power and energy on the other.
Data centers need large, redundant backup power equipment to keep AI training and inference workloads running; otherwise, downtime can cost hyperscalers huge amounts of dollars and lost time. Data center operators are driving strong demand for Caterpillar's standby and backup power systems. Diesel generator order backlogs stretch into 2028.
CAT Caterpillar$730.76-$4.88 (-0.66%)
NYSE · As of 4:00 PM ET 10/16/26
The company's backlog stands at $72 billion, with power-generation sales surging 72% from last year. Order backlogs for its gas turbine equipment stretch to 2030. Demand is so robust that management has also restarted production of its 10-megawatt medium-speed gas reciprocating engine platform, which it discontinued in 2022. Caterpillar is bringing 1.5 gigawatts of capacity online and will begin delivering equipment in the fourth quarter.
The company also benefits from the actual construction and site development for data centers. It provides the equipment needed to prepare construction sites, including excavation, grading, and foundation work.
GE Vernova offers greater exposure to the AI boom
Both companies are becoming closely tied to the AI-themed trade, and their stocks have become significantly more volatile as a result. Since the start of 2024, GE Vernova is up 596% while Caterpillar is up 149%. That volatility has cut both ways, as each stock is down 23% and 32%, respectively, from its 52-week high.
These are two pick-and-shovel stocks benefiting from huge hyperscaler spending. For those seeking more exposure to data center orders, GE Vernova's growth is driven largely by this, whereas Caterpillar's business is more diversified, with exposure to construction, mining, and other equipment.
Assenagon Asset Management S.A. lifted its stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 663.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 116,512 shares of the industrial products company’s stock after purchasing an additional 101,254 shares during the quarter. Assenagon Asset Management S.A.’s holdings in Caterpillar were worth $94,467,000 as of its most recent filing with the Securities and Exchange Commission.
Other hedge funds have also made changes to their positions in the company. Decker Retirement Planning Inc. lifted its stake in Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after buying an additional 22 shares during the last quarter. Matrix Trust Co grew its position in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after buying an additional 15 shares in the last quarter. Axiom Investment Management LLC bought a new stake in Caterpillar during the second quarter worth approximately $36,000. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter worth $26,000. Finally, Tacita Capital Inc acquired a new position in shares of Caterpillar in the 2nd quarter worth approximately $47,000. Institutional investors own 70.98% of the company’s stock.
Insider Buying and Selling In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 0.33% of the company’s stock.
Wall Street Analyst Weigh In Several research firms have recently weighed in on CAT. Citigroup dropped their target price on shares of Caterpillar from $1,100.00 to $950.00 and set a “buy” rating on the stock in a research report on Monday. President Capital initiated coverage on shares of Caterpillar in a research note on Friday, September 18th. They set a “buy” rating and a $999.00 price target on the stock. Truist Financial reduced their target price on Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a report on Monday, October 5th. Royal Bank Of Canada lifted their price objective on Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research note on Wednesday, August 5th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $749.00 target price on shares of Caterpillar in a research note on Wednesday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $967.83. Get Our Latest Research Report on CAT
Key Stories Impacting Caterpillar Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Caterpillar will invest up to $10 million in North Carolina workforce training, supporting technicians and manufacturing workers as it expands its Sanford operations. The investment complements a previously announced roughly $1 billion facility investment intended to increase compact-equipment production. Caterpillar Invests in North Carolina’s Future Manufacturing Workforce Positive Sentiment: The acquisition of the Fabick CAT dealer network could strengthen Caterpillar’s distribution and customer-support footprint, although financial terms and the transaction’s earnings impact were not provided. Caterpillar acquires Fabick Cat dealer network Neutral Sentiment: Caterpillar scheduled its third-quarter 2026 results for October 29, giving investors a near-term catalyst to assess demand, margins and guidance. Caterpillar Third-Quarter 2026 Results Announcement Neutral Sentiment: Resource Industries President Denise Johnson will retire in February 2027, with Derrick York appointed as her successor effective November 1. Johnson will remain in an advisory role during the transition, limiting immediate disruption concerns. Caterpillar Announces Leadership Transition in Resource Industries Negative Sentiment: An analyst downgrade pressured the stock, while Oppenheimer issued a pessimistic forecast. These actions reinforce concerns about Caterpillar’s valuation and future earnings outlook. Caterpillar Shares Down on Analyst Downgrade Negative Sentiment: A broader unwind in the AI-related power trade also weighed on Caterpillar, as investors reassessed companies expected to benefit from data-center electricity demand. Comparisons with Generac highlighted differences in backlog, valuation and financial strength. AI Power Trade Unwinds Caterpillar Stock Down 0.8% NYSE:CAT opened at $730.01 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a market capitalization of $335.57 billion, a P/E ratio of 31.41, a P/E/G ratio of 1.27 and a beta of 1.58. The stock’s fifty day simple moving average is $812.24 and its 200-day simple moving average is $855.37. Caterpillar Inc. has a 12-month low of $510.21 and a 12-month high of $1,073.46.
Caterpillar (NYSE:CAT – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The company’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the company earned $4.72 earnings per share. Equities research analysts expect that Caterpillar Inc. will post 27.49 earnings per share for the current year.
Caterpillar Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be paid a dividend of $1.63 per share. The ex-dividend date is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar’s payout ratio is currently 28.06%.
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 diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
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What happened
Caterpillar Inc. (NYSE: CAT) said Denise Johnson will retire from Resource Industries effective Feb. 1, 2027. Derrick York, who is now president of Solar Turbines and a Caterpillar senior vice president, will become group president of Resource Industries on Nov. 1, 2026. Johnson will move into an advisory role when York takes over, according to the filing.
Caterpillar said the handoff is meant to ensure a seamless leadership transition. Johnson has led Resource Industries since 2016, after joining the company in 2011. Caterpillar said she restored the unit to profitability and delivered its strongest financial performance in more than a decade.
Since 2023, York has led the global business unit that provides industrial gas turbines and compressors. The release says he has also served as senior vice president of Caterpillar's Oil Gas and Marine division and held leadership roles in finance and corporate development.
Earlier in his career, York worked in banking and public accounting. He has a bachelor's degree in finance from the University of Illinois at Urbana-Champaign and a master's degree in business administration from Northwestern University's Kellogg School of Management.
Key numbers
Metric
Latest
Change
Source
Denise Johnson retirement effective
Feb. 1, 2027
Press release
Derrick York appointment effective
Nov. 1, 2026
SEC 8-K
York tenure at Caterpillar
16 years
Press release
2025 sales and revenues
$67.6 billion
Press release
Read more: Caterpillar (CAT) stock analysis and investment case
Why it matters
OptimistFi's case is that Caterpillar turns cyclical equipment orders into durable cash through its global dealer network, aftermarket parts and services, and captive financing. This filing does not change that view because it shows an internal succession at Resource Industries.
York has spent 16 years with Caterpillar, and his work in a global business unit suggests continuity in a senior post. Caterpillar said 2025 sales and revenues were $67.6 billion, so investors will watch leadership at a segment Johnson helped return to profitability. The release also says York has worked in banking and public accounting.
Browse: stock research on every company OptimistFi covers
What's next
York becomes group president of Resource Industries on Nov. 1, 2026, and Johnson retires on Feb. 1, 2027. Johnson will stay in an advisory role during the handoff. Investors can watch whether Resource Industries keeps its profitability and mining autonomy and technology focus under York. A smooth handoff would support the unchanged case, while a break in that continuity would weaken it.
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CAT stock: the Caterpillar thesis, its status and the next test to watch
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Latest stock research and investment-case updates
OptimistFi: evidence-first equity research
Sources
Caterpillar press release, Exhibit 99.1 — Announced Denise Johnson's retirement and Derrick York's appointment on Oct. 15, 2026.
Caterpillar Form 8-K — Reported the Resource Industries leadership change and effective dates.
Read the full OptimistFi thesis on Caterpillar Inc.: https://optimistfi.com/stocks/CAT
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The full Caterpillar Inc. investment case, its status and the next test to watch live on the Caterpillar Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Key Takeaways CAT allocated $10 million to North Carolina, part of its "Building the Future Workforce" Initiative.CAT also has plans to invest around $1 billion in building a new manufacturing facility in Sanford, NC.CAT shares gained 36% in a year, while 2026 and 2027 earnings estimates have risen over the past 60 days.
Caterpillar Inc. (CAT - Free Report) expanded its workforce development commitment to North Carolina, allocating $10 million under its “Building the Future Workforce” Initiative. Launched in April 2025 with a $100 million commitment over five years, the initiative aims to equip current and future workers with the skills needed to support modern manufacturing and meet evolving global market demands amid rapid digital transformation.
The latest allocation builds on Caterpillar's earlier commitments under the workforce initiative. Indiana was the first state selected, receiving a commitment of up to $5 million in October 2025. In July 2026, Caterpillar allocated $5 million to Texas and $10 million to Illinois, followed by a $3 million commitment to Arkansas in August 2026. The North Carolina investment marks the program's sixth allocation.
North Carolina, which has the largest manufacturing workforce in the Southeast, is a strategic fit for the investment. Caterpillar employs more than 3,600 people in the region, has a strong dealer network and works with 325 suppliers statewide. The funding aims to prepare current and future workers for jobs in modern manufacturing and industry technician roles.
As part of the plan, Caterpillar intends to build a new manufacturing facility in Sanford, NC, to increase production of compact track loaders and telehandlers. These machines support material handling, jobsite management and other productivity-related applications across multiple end markets. The additional capacity should help Caterpillar serve customers more effectively while expanding its presence in the compact equipment market beyond its traditional heavy construction machinery portfolio.
The planned facility is also expected to incorporate advanced manufacturing technologies, automation, digital production systems and integrated logistics capabilities, supporting improvements in safety, product quality and operational efficiency.
The current initiative complements Caterpillar’s planned manufacturing expansion by helping develop the skilled workforce needed to support advanced production technologies. Together, the investments could strengthen Caterpillar’s manufacturing capabilities, improve its ability to meet customer demand and support sustainable growth. However, the benefits will depend on project execution, demand conditions and the returns generated by the additional capacity.
Peer Deere & Company (DE - Free Report) announced a three-year partnership in April 2026 with FIRST (For Inspiration and Recognition of Science and Technology), building on their fifteen-year partnership to continue expanding access to hands-on robotics programs that build the technical skills critical to careers in agriculture, manufacturing, construction and technology.
John Deere awarded FIRST a three-year grant totaling $2.7 million, expected to reach more than 9,000 youth in communities across the globe. This initiative could help build a future pipeline of workers equipped for increasingly automated industrial operations.
Komatsu Ltd. (KMTUY - Free Report) is also emphasizing workforce development to address skilled-labor shortages in the heavy equipment industry. In September 2026, Komatsu launched its “The future you build starts here” campaign to promote career opportunities, technical training and professional development across its U.S. operations and dealer network. The initiative targets prospective technicians and other workers, supporting the development of skills needed to maintain equipment and serve customers.
CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 36% in the past year, outperforming the industry's 27.6% growth.
Image Source: Zacks Investment Research
CAT is currently trading at a forward 12-month P/E of 22.98X compared with the industry’s 21.75X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 44.2%, while the 2027 estimate implies growth of 20.7%.
Image Source: Zacks Investment Research
Earnings estimates for both years have moved up over the past 60 days.
Image Source: Zacks Investment Research
Caterpillar stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the latest trading session, Caterpillar (CAT - Free Report) closed at $739.57, marking a -1.26% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.33% for the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.08%.
Shares of the construction equipment company have depreciated by 4.31% over the course of the past month, underperforming the Industrial Products sector's loss of 0.6%, and the S&P 500's gain of 1.41%.
Market participants will be closely following the financial results of Caterpillar in its upcoming release. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.17 billion, reflecting a 14.36% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.49 per share and a revenue of $79.4 billion, indicating changes of +44.23% and +17.47%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.42% rise in the Zacks Consensus EPS estimate. Caterpillar currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 27.25. This indicates a premium in contrast to its industry's Forward P/E of 17.16.
Meanwhile, CAT's PEG ratio is currently 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry had an average PEG ratio of 1.19 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 69, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) today announced Denise Johnson, group president of Resource Industries, has elected to retire effective Feb. 1, 2027. Derrick York, who currently serves as president of Solar Turbines and Caterpillar senior vice president, has been appointed group president of Resource Industries, effective Nov. 1, 2026, at which time Johnson will assume an advisory role to ensure a seamless leadership transition.
Denise Johnson, group president of Resource Industries, has elected to retire Feb. 1, 2027.
Derrick York has been appointed group president of Resource Industries effective Nov. 1, 2026. Since joining Caterpillar in 2011, Johnson has transformed Caterpillar's mining business and advanced the industry, championing technologies that define the modern mine site. She assumed leadership of Resource Industries in 2016 during a historic mining downturn. Her leadership strengthened operations and the portfolio while maintaining a clear focus on long-term growth, returning the segment to profitability and ultimately delivering its strongest financial performance in more than a decade.
"Denise took on a critical role during one of the mining industry's most challenging times," said Joe Creed, Caterpillar chairman and CEO. "Her disciplined leadership restored Resource Industries to profitability and positioned Caterpillar as an industry leader in mining autonomy and technology. We are deeply grateful for all she has done to strengthen our relationships with customers, develop our people and shape the future of our company. Her impact and influence will be remembered long after her retirement."
Throughout her career, Johnson has been a respected voice across the mining, manufacturing and engineering communities, serving on numerous industry and academic boards and helping advance the future of mining worldwide.
Since 2023, York has led the global business unit that provides industrial gas turbines and compressors for oil & gas and power generation applications. In his 16 years with the company, he has also served as senior vice president of Caterpillar's Oil & Gas and Marine division and held leadership roles in finance and corporate development. Earlier in his career, York worked in banking and public accounting.
York has a bachelor's degree in finance from the University of Illinois at Urbana-Champaign and a master's degree in business administration from Northwestern University's Kellogg School of Management.
"Derrick is a highly respected leader who understands our customers, our strategy and the industries we serve," said Creed. "He is well positioned to lead the team into its next chapter of innovation, growth and customer success."
Johnson expressed confidence in York and the future of Resource Industries.
"The greatest accomplishment of any leader is leaving an organization better positioned for the future. I'm proud of the foundation we've built, the people we've developed and the enduring impact this team will continue to make," said Johnson. "Derrick is the right leader to build on that foundation and move Resource Industries forward."
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.
Funding will expand access to workforce training, define skills needed for future jobs and connect more people to modern manufacturing careers
Sanford Area Growth Alliance and Central Carolina Community College launch statewide workforce initiative in Sanford
, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) expanded its workforce commitment to North Carolina, the most recent investment for its five-year, $100 million Building the Future Workforce Initiative. With an allocation of up to $10 million, the funding aims to prepare current and future workers for jobs in modern manufacturing and industry technician roles.
Caterpillar is allocating up to $10 million in North Carolina to prepare workers for manufacturing jobs of the future.
"Investing in people is essential to building the workforce advanced manufacturing will need for the future," said Christy Pambianchi, Caterpillar's chief human resources officer. "North Carolina's growth creates an opportunity to help more people build the skills they need for careers in manufacturing and strengthen the workforce that will support the industry for years to come."
Why North Carolina?
As a critical manufacturing hub, North Carolina is a natural fit for this investment. Caterpillar employs more than 3,600 people in North Carolina, has a strong dealer network and works with 325 suppliers across the state.
"North Carolina is home to the largest manufacturing workforce in the Southeast, and Caterpillar recognizes what our state brings to the table," said North Carolina Gov. Josh Stein. "I thank Caterpillar for its long-standing partnership and look forward to more economic opportunity coming to Sanford."
Caterpillar recently announced plans to invest approximately $1 billion in North Carolina to expand manufacturing capacity for products that support its growing Cat Compact™ business, which provides compact equipment solutions for small contractors and growing businesses. The investment includes plans for a new modern manufacturing facility in Sanford, designed to increase production of compact track loaders and telehandlers to meet customer demand. The project supports the company's Cat Compact approach, focused on making its equipment and solutions easier for customers to access.
Also in North Carolina, Caterpillar's Clayton facility manufactures small wheel loaders and supports the distribution of backhoe loaders. Together, these operations help Caterpillar serve customers while advancing manufacturing excellence, innovation, workforce development and economic growth across the state.
Caterpillar is collaborating with leading North Carolina organizations, like Central Carolina Community College and the Sanford Area Growth Alliance, to advance the Building the Future Workforce Initiative. The program aims to expand hands-on manufacturing pathways for students, mobilize employer engagement across the region and provide individuals with access to affordable, relevant training that leads to career advancement.
This marks the sixth allocation for this initiative, which includes launches in Indiana, Texas, Illinois and Arkansas, as well as an innovation challenge. For more information on how these funds are upskilling talent for modern manufacturing and industry technician roles, and to stay up to date with future announcements, visit the Caterpillar Building the Workforce Initiative.
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.
Essex LLC acquired a new stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 918 shares of the industrial products company’s stock, valued at approximately $744,000.
Other hedge funds have also recently modified their holdings of the company. Decker Retirement Planning Inc. grew its position in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after purchasing an additional 22 shares during the last quarter. Matrix Trust Co raised its holdings in shares of Caterpillar by 93.8% in the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after buying an additional 15 shares during the last quarter. Axiom Investment Management LLC purchased a new position in shares of Caterpillar in the second quarter worth $36,000. Lam Group Inc. purchased a new position in shares of Caterpillar in the first quarter worth $26,000. Finally, Tacita Capital Inc acquired a new stake in shares of Caterpillar during the second quarter worth $47,000. Institutional investors and hedge funds own 70.98% of the company’s stock.
More Caterpillar News Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Oppenheimer maintained an “outperform” rating and still sees substantial upside, although it lowered its price target to $1,009 from $1,118. Oppenheimer Caterpillar price-target update Positive Sentiment: Caterpillar maintained its quarterly dividend at $1.63 per share, payable November 19 to shareholders of record October 19. The company has paid annual cash dividends since its founding and quarterly dividends since 1933. Caterpillar Inc. Maintains Dividend Caterpillar Stock Down 3.3% NYSE:CAT opened at $747.18 on Thursday. The firm has a market capitalization of $343.46 billion, a P/E ratio of 32.44, a PEG ratio of 1.33 and a beta of 1.58. Caterpillar Inc. has a 1-year low of $510.21 and a 1-year high of $1,073.46. The company’s fifty day moving average price is $816.99 and its 200-day moving average price is $855.96. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period in the previous year, the firm posted $4.72 earnings per share. As a group, equities research analysts anticipate that Caterpillar Inc. will post 27.49 EPS for the current year.
Caterpillar Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 19th will be paid a dividend of $1.63 per share. The ex-dividend date is Monday, October 19th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is presently 28.06%.
Analyst Upgrades and Downgrades CAT has been the topic of a number of research analyst reports. Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Oppenheimer reduced their target price on Caterpillar from $1,118.00 to $1,009.00 and set an “outperform” rating for the company in a research note on Wednesday. Truist Financial reduced their target price on Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Zacks Research cut Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Finally, JPMorgan Chase & Co. boosted their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $967.83.
Read Our Latest Research Report on CAT
Insider Buying and Selling at Caterpillar In other news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.33% of the company’s stock.
Caterpillar Profile (Free Report)
Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
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, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) will release third-quarter financial results at 5:30 a.m. CDT on Thursday, Oct. 29. The full text of the release will be available at investors.caterpillar.com/financials/quarterly-results and on PR Newswire. The release will be furnished to the U.S. Securities and Exchange Commission (SEC) via a Current Report on Form 8-K in compliance with applicable SEC rules.
Teleconference and webcast access:
A real-time, listen-only teleconference and webcast of the quarterly results call that Caterpillar conducts with securities analysts and institutional investors will begin at 7:30 a.m. CDT on Thursday, Oct. 29. Supporting materials will be available before the webcast at investors.caterpillar.com/events-presentations.
In addition to the webcast, the one-hour conference call can also be accessed by telephone from both domestic and international locations, with a conference ID provided below:
The call can be accessed in real-time at investors.caterpillar.com/financials/quarterly-results. Listeners should go to the website before the live event to download and install any necessary audio software. The transcript from the conference call will be available at investors.caterpillar.com/financials/quarterly-results following the webcast.
For those unable to participate in the live broadcast, the replay will be available at investors.caterpillar.com/financials/quarterly-results shortly after the live event. There is no charge to access the webcast. A telephone replay will not be available.
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.
Caterpillar's latest financial results are also available online:
B. Riley Wealth Advisors Inc. raised its stake in shares of Caterpillar Inc. (NYSE: CAT) by 40.2% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 9,585 shares of the industrial products company's stock after acquiring an additional 2,750 shares during the quarter.
Allied Investment Advisors LLC reduced its position in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 3.8% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 19,317 shares of the industrial products company’s stock after selling 766 shares during the period. Caterpillar comprises about 1.4% of Allied Investment Advisors LLC’s holdings, making the stock its 25th largest holding. Allied Investment Advisors LLC’s holdings in Caterpillar were worth $15,662,000 at the end of the most recent reporting period.
A number of other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Caterpillar in the second quarter valued at approximately $40,457,153,000. State Street Corp boosted its position in Caterpillar by 4.0% in the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock valued at $37,120,529,000 after buying an additional 1,396,356 shares during the period. Bank of America Corp DE acquired a new position in shares of Caterpillar in the second quarter worth $5,818,150,000. Diamant Asset Management Inc. grew its stake in shares of Caterpillar by 68,427.2% in 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 acquiring an additional 3,136,020 shares in the last quarter. Finally, Invesco Ltd. raised its position in Caterpillar by 2.3% in the 4th quarter. Invesco Ltd. now owns 3,031,666 shares of the industrial products company’s stock valued at $1,736,750,000 after purchasing an additional 68,770 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.
Caterpillar Price Performance Shares of NYSE CAT opened at $772.42 on Wednesday. The stock’s 50-day simple moving average is $819.49 and its 200-day simple moving average is $855.64. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The firm has a market capitalization of $355.06 billion, a PE ratio of 33.24, a price-to-earnings-growth ratio of 1.38 and a beta of 1.58. Caterpillar Inc. has a fifty-two week low of $499.01 and a fifty-two week high of $1,073.46.
Caterpillar (NYSE:CAT – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter in the previous year, the firm earned $4.72 EPS. The company’s revenue was up 23.7% compared to the same quarter last year. As a group, equities research analysts forecast that Caterpillar Inc. will post 27.49 EPS for the current fiscal year. Analyst Ratings Changes Several brokerages have recently issued reports on CAT. Zacks Research cut Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Wall Street Zen upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a research note on Saturday. JPMorgan Chase & Co. raised their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Royal Bank Of Canada raised their target price on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a report on Wednesday, August 5th. Finally, UBS Group lifted their price target on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $982.92.
View Our Latest Research Report on CAT
Caterpillar News Roundup Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Caterpillar’s planned $1 billion U.S. investment in compact construction equipment could expand domestic production capacity and support longer-term growth. Caterpillar announces $1B US compact equipment investment Positive Sentiment: Investors continue to view CAT as a dividend-paying way to gain exposure to artificial-intelligence infrastructure, particularly through its power-generation equipment used in data-center projects. 3 Dividend Paying Stocks Offering AI Exposure Neutral Sentiment: Recent coverage highlights strong operating momentum: first-half 2026 revenue rose approximately 23%, helped by infrastructure and data-center demand. However, higher dealer inventories raise questions about whether future growth will depend on continued restocking. Caterpillar Can Earnings Keep Growing After Dealers Stop Restocking? Negative Sentiment: Analysts and investors are increasingly concerned that Caterpillar’s data-center power opportunity is concentrated in a single project category, making the growth outlook vulnerable if new projects slow or are delayed. CAT trades at roughly 30–34 times earnings, a sizable premium to the broader market, leaving less room for disappointment. What Could Derail Caterpillar Stock? Negative Sentiment: Caterpillar’s valuation is being challenged because a traditionally cyclical construction and mining-equipment maker is being priced more like a growth stock. Comparisons with Deere have also favored Deere in recent analyst narratives. Which Industrials Stock Do Analysts Like Better: Deere or Caterpillar? Negative Sentiment: Citi and Truist reduced their price targets, while CAT fell below a key technical support level after retreating from its June high near $1,070 to about $759. The target cuts and technical breakdown have reinforced bearish momentum. Caterpillar stock drops below key support as Citi and Truist slash target Insiders Place Their Bets In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.33% of the stock is currently owned by company insiders.
Caterpillar Profile (Free Report)
Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
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IRVING, Texas, Oct. 14, 2026 /PRNewswire/ -- The Board of Directors of Caterpillar Inc. (NYSE: CAT) voted to maintain the quarterly dividend of one dollar and sixty-three cents ($1.63) per share of common stock payable Nov. 19 to shareholders of record at the close of business Oct. 19. Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933.
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 -1.4%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Manufacturing - Construction and Mining industry, which Caterpillar falls in, has lost 6.1%. 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.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Caterpillar is expected to post earnings of $6.95 per share for the current quarter, representing a year-over-year change of +40.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The consensus earnings estimate of $27.49 for the current fiscal year indicates a year-over-year change of +44.2%. This estimate has changed +0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $33.17 indicates a change of +20.7% from what Caterpillar is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
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 #3 (Hold) for Caterpillar.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven 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 $20.17 billion indicates a year-over-year change of +14.4%. For the current and next fiscal years, $79.4 billion and $88.33 billion estimates indicate +17.5% and +11.2% changes, respectively.
Last Reported Results and Surprise HistoryCaterpillar reported revenues of $20.54 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $8.17 for the same period compares with $4.72 a year ago.
Compared to the Zacks Consensus Estimate of $19.31 billion, the reported revenues represent a surprise of +6.37%. The EPS surprise was +30.72%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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 D 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 #3 does suggest that it may perform in line with the broader market in the near term.
Caterpillar stock has suffered a big reversal in the past few months, moving from a high of $1,070 in June to the current $759, its lowest level since April 16. CAT has dropped by 30% from the year-to-date high of $1,070.
NorthCrest Asset Manangement LLC lifted its holdings in Caterpillar Inc. (NYSE: CAT) by 2.6% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 59,191 shares of the industrial products company's stock after buying an additional 1,509 shares during the period. Caterpillar makes
Key Takeaways Caterpillar added $5.4 billion in first-half 2026 revenues from volume growth.Construction Industries led volume gains with $3.21 billion, followed by Power & Energy at $1.58 billion.CAT raised 2026 sales growth forecast to the mid-to-high teens, driven by strength across all three segments. Caterpillar Inc. (CAT - Free Report) is witnessing strong sales volumes reflecting improving demand across its major businesses. After experiencing prolonged volume weakness, the construction and mining equipment giant has been delivering volume growth since the second quarter of 2025, supported by higher equipment sales to end users and favorable dealer inventory movements. With momentum strengthening across its three primary segments so far this year, the company has raised its full-year revenue outlook.
In the second quarter of 2026, higher sales volumes contributed $3.1 billion, accounting for 19.9% of revenue growth and pushing total sales and revenues to a record $20.5 billion. This followed a 17.3% volume contribution in the first quarter. Overall, volume gains added $5.4 billion to revenues in the first half of 2026.
The improvement marks a significant turnaround from 2025, when Caterpillar reported a modest $237 million increase in sales volume in the second quarter following six consecutive quarters of declines. The recovery was primarily driven by Power & Energy, while Construction Industries and Resource Industries continued to face volume declines. However, momentum broadened in the third quarter of 2025, with all three segments returning to positive volume growth and sustaining the trend since then.
Broad-Based Volume Strength Supports CAT's GrowthConstruction Industries emerged as the largest contributor, generating $3.21 billion in volume growth during the first half of 2026. Higher equipment sales to end users and favorable dealer inventory changes drove the improvement.
Power & Energy added approximately $1.58 billion in volume growth in the first half of 2026, benefiting from strong demand for large reciprocating engines, turbines and related services, particularly for data centers. Increased demand for gas-compression equipment, aftermarket parts and turbines also supported Oil & Gas.
Resource Industries contributed $724 million in volume growth for the period, primarily reflecting higher equipment sales to mining customers.
Encouraged by this momentum, Caterpillar raised its 2026 sales and revenue growth forecast to the mid-to-high teens from its earlier low-double-digit projection.
Looking ahead, Construction Industries should benefit from infrastructure spending, heavy construction activity and investments in data centers. Additional dealer rental fleet loading, including Major Projects activity, should further support volumes.
Resource Industries is positioned to gain from favorable commodity prices, mining fleet replacement demand and strength in Heavy Construction and Quarry and Aggregates.
Meanwhile, Power & Energy should continue benefiting from rising electricity requirements associated with Artificial Intelligence, cloud computing and data centers. Strong demand for prime-power solutions and gas compression, along with a healthy turbine backlog, should sustain growth.
How Are CAT's Peers Performing?Komatsu (KMTUY - Free Report) reported a 4% revenue increase to $6.54 billion in the fiscal fourth quarter of 2026 ended June 30, 2026. Construction, Mining & Utility Equipment sales rose 14.4%, while Industrial Machinery & Others sales increased 21.7%. For fiscal 2027 (ending March 31, 2027), Komatsu expects net sales to grow 4.1%, with gains of 4.3% in Construction, Mining & Utility Equipment and 5.5% in Industrial Machinery & Others.
Terex (TEX - Free Report) reported a 51% year-over-year sales increase to $2.24 billion in the second quarter of 2026. Supported by its backlog and business momentum, Terex expects approximately 7% pro forma sales growth in 2026, with revenues projected between $7.9 billion and $8.2 billion. By segment, Terex expects sales to rise low single digits in Environmental Solutions, low double digits in Materials Processing and Aerials, and high single digits in Specialty Vehicles compared with their respective prior-year baselines.
CAT’s Price Performance, Valuation & EstimatesCAT shares have gained 59.3% so far this year compared with the industry’s 48.9% growth.
Image Source: Zacks Investment Research
Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 25.10X compared with the industry average of 23.70X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 44.3%, while the 2027 estimate implies growth of 20.7%.
Image Source: Zacks Investment Research
Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
Caterpillar stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apella Capital LLC grew its stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 12.4% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 7,225 shares of the industrial products company’s stock after purchasing an additional 796 shares during the quarter. Apella Capital LLC’s holdings in Caterpillar were worth $5,880,000 at the end of the most recent quarter.
Other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Caterpillar in the 2nd quarter valued at about $40,457,153,000. Bank of America Corp DE purchased a new position in shares of Caterpillar during the second quarter worth approximately $5,818,150,000. Diamant Asset Management Inc. raised its stake in shares of 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 valued at $2,224,992,000 after acquiring an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Caterpillar in the second quarter valued at approximately $3,192,710,000. Finally, Legal & General Group Plc bought a new position in Caterpillar in the second quarter worth approximately $2,783,451,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.
Insider Activity at Caterpillar In other news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.33% of the company’s stock.
Caterpillar Stock Down 2.1% NYSE:CAT opened at $796.86 on Friday. The company’s 50-day simple moving average is $822.61 and its 200-day simple moving average is $853.98. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar Inc. has a fifty-two week low of $491.30 and a fifty-two week high of $1,073.46. The stock has a market capitalization of $366.29 billion, a P/E ratio of 34.29, a P/E/G ratio of 1.40 and a beta of 1.58. Caterpillar (NYSE:CAT – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the business posted $4.72 EPS. Caterpillar’s revenue was up 23.7% on a year-over-year basis. On average, equities analysts anticipate that Caterpillar Inc. will post 27.5 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades Several research analysts have commented on CAT shares. Royal Bank Of Canada raised their price objective on Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 5th. Wells Fargo & Company raised their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a research note on Tuesday, June 23rd. Truist Financial lowered their price objective on shares of Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a research note on Monday. Wall Street Zen downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Saturday, September 26th. Finally, Robert W. Baird set a $970.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $989.17.
Read Our Latest Stock Report on CAT
Caterpillar News Summary Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Higher earnings forecasts support the long-term outlook. Zacks Research raised its FY2026 EPS estimate to $27.36, FY2027 to $32.44 and FY2028 to $39.15, while also increasing estimates for several quarterly periods. Some Zacks reports maintain a “Strong Buy” view, although other updates list a “Hold” rating. MarketBeat Caterpillar analyst estimates Positive Sentiment: Caterpillar plans a $1 billion North Carolina expansion. The investment will expand Cat Compact manufacturing capacity and add advanced automation and digital systems, positioning the company to meet customer demand while supporting U.S. production and workforce development. Caterpillar North Carolina manufacturing investment Positive Sentiment: Potential growth in gas compression and data-center power markets provides additional upside. Analysts and commentators point to Caterpillar’s backlog and exposure to power-generation demand, including infrastructure supporting data centers. Caterpillar gas compression demand analysis Neutral Sentiment: The Caterpillar Foundation announced recovery support for flooding in Nepal. The initiative may enhance the company’s community profile but is unlikely to materially affect near-term financial results. Caterpillar Foundation Nepal flood support Negative Sentiment: Higher long-term interest rates are the main immediate pressure. Treasury yields reached their highest level in roughly two decades, weighing on capital-intensive industrial companies and potentially making equipment financing more expensive for customers. Industrial stocks and Treasury yields Negative Sentiment: Technical and regulatory concerns are adding to selling pressure. CAT fell below its 50-day moving average, while a lower Truist price target and an FTC/USDA information request involving the farm-equipment market add near-term uncertainty. Caterpillar and Deere regulatory inquiry 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 diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
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Caterpillar (CAT - Free Report) ended the recent trading session at $813.83, demonstrating a -5.75% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.22%.
Shares of the construction equipment company have appreciated by 4.98% over the course of the past month, outperforming the Industrial Products sector's gain of 0.98%, and the S&P 500's gain of 1.4%.
The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.19 billion, up 14.47% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $27.47 per share and a revenue of $79.37 billion, demonstrating changes of +44.12% and +17.43%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.61% higher. As of now, Caterpillar holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 31.43. This indicates a premium in contrast to its industry's Forward P/E of 18.24.
We can also see that CAT currently has a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Manufacturing - Construction and Mining industry was having an average PEG ratio of 1.31.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Caterpillar (CAT - Free Report) Caterpillar is the largest global construction and mining equipment manufacturer. Given that it serves diverse sectors, including infrastructure, construction, mining and oil and gas, the company is considered a bellwether of the global economy.
CAT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Industrial Products stock. CAT has a Momentum Style Score of A, and shares are up 5% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.91 to $27.47 per share. CAT boasts an average earnings surprise of +18.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CAT should be on investors' short list.
When your portfolio has to act as your employer, your emergency fund, and your inflation hedge all at once, picking a single strategy leaves two jobs undone. Here is how three ETFs can each take one role without stepping on…
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You retired with $500,000 and no pension. Social Security covers part of your bills. Everything above that has to come from one balance, and nobody else is sending you a check. Your portfolio takes on three jobs. It must pay you now, hold steady through bad markets, and grow enough to last for decades—the work a pension would normally handle.
Three ETFs can split that work. The Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) covers income. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) covers stability. The Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) covers growth.
Single Strategy Portfolios Leave Pension-Free Retirees Exposed Most retirees pick a single portfolio strategy and build everything around it: an all-income portfolio means dividend weakness hits your whole plan. All-bonds means inflation erodes your spending power. All-growth means a bear market can force you to sell at the bottom to pay bills. Splitting the three strategies keeps one weakness from bringing down everything. How you weight them depends on your expenses, health, taxes, and other assets.
DIVO Does the Income Job DIVO runs an actively managed portfolio of roughly 20-30 large U.S. dividend payers. On top of that, it sells covered calls on individual positions to collect extra premium. Caterpillar (NYSE:CAT | CAT Price Prediction) was its largest holding at about 7% of net assets as of June 30, 2026. The rest of the portfolio spreads across financials, healthcare, consumer, energy, and utilities. The fund launched on December 13, 2016, holds about $7.2 billion in net assets, and pays monthly, which matches how your bills arrive.
Know where that check comes from. Part of each distribution is option premium on top of dividends, and premium income rises and falls with market conditions. The September 2026 distribution was $0.18904 per share, compared with $0.19468 in August. A December 2025 payout of $0.95339676 was far larger than typical. The share price is up 11.88% over the past year. The 0.56% expense ratio covers active management, and covered calls can cap upside in strong rallies.
VCSH Does the Stability Job VCSH is the part of your portfolio you can draw from when stocks are down. The fund follows the Bloomberg U.S. 1-5 Year Corporate Bond Index, holding investment-grade corporate bonds that mature in one to five years. Short maturities keep interest-rate sensitivity modest. The 10-year Treasury yield was 5.24% on October 1, up from 4.79% on September 2. VCSH’s share price moved just 1.08% over the past year. Monthly distributions have stayed near $0.30 per share, most recently $0.2953.
The 0.03% expense ratio is about as low as fees go. Keep the credit exposure in mind. These are corporate bonds, so a recession that weakens company balance sheets can push prices down. Short-term bonds can still lose value.
SCHG Does the Growth Job A retiree without a pension needs growth to keep pace with inflation, since Social Security is your only guaranteed income that adjusts for inflation. Every other dollar must keep up with rising prices on its own, possibly for decades.
SCHG passively tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. It covers several hundred of the largest U.S. growth companies. NVIDIA (NASDAQ:NVDA) made up about 11% of net assets as of May 31, 2026, with other mega-cap tech names filling most top positions. The fund holds about $61.1 billion in net assets. Its share price rose 101.61% over five years and 15.07% over the past year. The quarterly dividend is small ($0.0371 in September), so this fund protects your future buying power.
Expect sharp drops. Heavy tech concentration means SCHG can fall hard, and rising yields tend to hit growth stocks, which is why VCSH sits next to it.
Social Security Sets How Hard Your Portfolio Works A 2018 episode of The Clark Howard Podcast boiled retirement down to one question: “What are you going to live on when you retire?” The caller replied, “Social Security and savings.” That’s your situation too. Social Security is the closest thing you have to a pension. When and how you claim it changes the gap between what you spend and what’s guaranteed, and that gap is what the funds must fill. Run your claiming scenarios before deciding how much to lean on the income and growth funds.
Trade-Offs to Weigh Before You Build This Mix Each fund can lose money. DIVO’s payouts will rise and fall, VCSH carries corporate credit risk, and SCHG can drop sharply. DIVO and SCHG own some of the same mega-cap tech names, so diversification is lower than three funds suggest. Whether your balance is enough and how to split it depends on your expenses, health, taxes, and other assets.
Without a pension, your portfolio has three jobs, and each of these funds takes one with a clear role. If you want a fuller framework for turning a lump sum into something that acts like a paycheck, we laid out the mix, the payment calendar, and the withdrawal order in a free guide here. Watch DIVO’s monthly payouts, corporate bond conditions, and how concentrated SCHG is in its top holdings.
Contact [email protected] for any questions or corrections.
SummaryCaterpillar is upgraded to Buy, with shares now undervalued relative to robust forward EPS growth and a favorable risk/reward profile.Q2 results were record-breaking: $8.17 EPS (vs. $7.20 consensus), $20.5B revenue (+23.5% YoY), and a $72.1B order backlog.CAT’s 2026 EPS forecast rose from $24.72 to $27.19, supporting a $930 intrinsic value using a 30x P/E and a reasonable PEG ratio.Technicals are mixed, but sustained support above $770 and an improving RSI favor a long position with a stop below $770. Jajang Komarudin/iStock Editorial via Getty Images
Caterpillar Inc. (CAT) shares bounced off critical support in September. Leading into its Q3 earnings report in a few weeks, the Dow component remains among the best of the 30 blue chips YTD. But the
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Park National Corp OH boosted its stake in Caterpillar Inc. (NYSE:CAT – Free Report) by 5.1% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 40,449 shares of the industrial products company’s stock after purchasing an additional 1,962 shares during the period. Park National Corp OH’s holdings in Caterpillar were worth $32,796,000 at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in Caterpillar during the 2nd quarter worth about $40,457,153,000. State Street Corp increased its holdings in Caterpillar by 4.0% in the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock worth $37,120,529,000 after purchasing an additional 1,396,356 shares in the last quarter. Bank of America Corp DE acquired a new position in Caterpillar in the second quarter valued at approximately $5,818,150,000. Bank of New York Mellon Corp acquired a new stake in shares of Caterpillar during the 2nd quarter worth approximately $3,192,710,000. Finally, Legal & General Group Plc bought a new stake in shares of Caterpillar in the 2nd quarter valued at $2,783,451,000. 70.98% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth CAT has been the topic of a number of research analyst reports. Wells Fargo & Company increased their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 23rd. UBS Group increased their target price on Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. Truist Financial decreased their price target on shares of Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a research note on Monday. JPMorgan Chase & Co. raised their price objective on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Finally, Erste Group Bank downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $989.17.
View Our Latest Report on Caterpillar Insider Buying and Selling at Caterpillar In other news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.33% of the stock is owned by insiders.
Caterpillar Stock Up 1.1% NYSE CAT traded up $9.07 on Monday, reaching $854.49. The company had a trading volume of 954,297 shares, compared to its average volume of 2,815,418. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company’s fifty day moving average is $822.30 and its 200 day moving average is $850.06. Caterpillar Inc. has a 52-week low of $483.55 and a 52-week high of $1,073.46. The stock has a market capitalization of $392.78 billion, a P/E ratio of 36.71, a P/E/G ratio of 1.47 and a beta of 1.58.
Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the prior year, the business posted $4.72 EPS. The business’s revenue was up 23.7% compared to the same quarter last year. Sell-side analysts anticipate that Caterpillar Inc. will post 27.37 earnings per share for the current fiscal year.
Caterpillar News Summary Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: AI data-center opportunity: CAT is identified as a potential fourth-quarter rebound candidate after lagging other AI infrastructure-related stocks in the third quarter. Demand for data-center power equipment, along with favorable guidance and analyst estimate revisions, could support future results. Buy Q3 AI Data Center Laggards CAT, GLW, JBL for a Rebound in Q4 Positive Sentiment: Industrial and infrastructure demand remain supportive: CAT is included among stocks that could benefit from steady factory orders, construction activity, mining demand and infrastructure spending. The company’s power systems may also gain from the rapid expansion of data centers. 4 Stocks to Boost Your Portfolio on Steady Growth in Factory Orders Positive Sentiment: Strong recent operating performance: Caterpillar’s latest reported quarter included record revenue of approximately $20.5 billion, 23.7% year-over-year growth and earnings of $8.17 per share, well above the $6.22 consensus estimate. Local leaders also highlighted the company’s planned $1 billion investment in Sanford, signaling continued expansion. Caterpillar is a Great Business. But is CAT Stock a Great Buy? 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 diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
Featured Articles Five stocks we like better than Caterpillar A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? 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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, the construction, mining and distributed-power equipment company, won Morgan Stanley's backing as strategists favored high-quality industrial names, lifting shares 0.5% to $849.54 at 11.45am ET on Oct. 5. The stock sits 83.52% above its $462.92 GF Value estimate, signaling that investors have already priced in plenty of future growth.
The operating engine is delivering. Caterpillar's second-quarter results showed revenue jumping 24% to a record $20.5 billion, while adjusted operating margin reached 21.9%. Its Helios platform adds another layer, powering analytics, machine learning and AI tools across connected equipment.
The AI angle cuts both ways—in a good sense. Caterpillar can sell power equipment into data centers while using software and autonomy to make customers more productive. But valuation is the pressure point. At such a steep premium to GF Value, backlog conversion and recurring digital revenue must keep climbing to justify the next leg higher.
Ferguson Wellman Capital Management Inc. reduced its stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 5.0% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 19,140 shares of the industrial products company’s stock after selling 1,006 shares during the quarter. Ferguson Wellman Capital Management Inc.’s holdings in Caterpillar were worth $15,518,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Caterpillar during the second quarter worth about $40,457,153,000. State Street Corp increased its stake in shares of Caterpillar by 4.0% during the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock worth $37,120,529,000 after purchasing an additional 1,396,356 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Caterpillar during the 2nd quarter worth approximately $5,818,150,000. Bank of New York Mellon Corp acquired a new position in shares of Caterpillar during the 2nd quarter worth approximately $3,192,710,000. Finally, Legal & General Group Plc purchased a new stake in Caterpillar in the 2nd quarter valued at approximately $2,783,451,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.
Caterpillar News Roundup Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: AI data-center opportunity: CAT is identified as a potential fourth-quarter rebound candidate after lagging other AI infrastructure-related stocks in the third quarter. Demand for data-center power equipment, along with favorable guidance and analyst estimate revisions, could support future results. Buy Q3 AI Data Center Laggards CAT, GLW, JBL for a Rebound in Q4 Positive Sentiment: Industrial and infrastructure demand remain supportive: CAT is included among stocks that could benefit from steady factory orders, construction activity, mining demand and infrastructure spending. The company’s power systems may also gain from the rapid expansion of data centers. 4 Stocks to Boost Your Portfolio on Steady Growth in Factory Orders Positive Sentiment: Strong recent operating performance: Caterpillar’s latest reported quarter included record revenue of approximately $20.5 billion, 23.7% year-over-year growth and earnings of $8.17 per share, well above the $6.22 consensus estimate. Local leaders also highlighted the company’s planned $1 billion investment in Sanford, signaling continued expansion. Caterpillar is a Great Business. But is CAT Stock a Great Buy? Insider Buying and Selling at Caterpillar In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.33% of the stock is currently owned by company insiders. Caterpillar Trading Up 1.0% CAT traded up $8.55 during midday trading on Monday, hitting $853.97. The company’s stock had a trading volume of 926,417 shares, compared to its average volume of 2,815,094. Caterpillar Inc. has a 52-week low of $483.55 and a 52-week high of $1,073.46. The firm has a 50-day moving average price of $822.30 and a two-hundred day moving average price of $850.06. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The firm has a market cap of $392.54 billion, a P/E ratio of 36.72, a PEG ratio of 1.47 and a beta of 1.58.
Caterpillar (NYSE:CAT – Get Free Report) last released its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. During the same period last year, the company earned $4.72 earnings per share. The company’s quarterly revenue was up 23.7% on a year-over-year basis. On average, research analysts anticipate that Caterpillar Inc. will post 27.37 earnings per share for the current year.
Wall Street Analyst Weigh In A number of equities analysts have recently weighed in on CAT shares. Wells Fargo & Company boosted their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a report on Tuesday, June 23rd. Zacks Research raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 12th. Truist Financial decreased their price target on shares of Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating on the stock in a research note on Monday. President Capital started coverage on shares of Caterpillar in a report on Friday, September 18th. They set a “buy” rating and a $999.00 price target for the company. Finally, Citigroup reissued a “buy” rating on shares of Caterpillar in a research note on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus target price of $989.17.
Read Our Latest Research Report on Caterpillar
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 diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
Read More Five stocks we like better than Caterpillar A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? 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).
Receive News & Ratings for Caterpillar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Caterpillar and related companies with MarketBeat.com's FREE daily email newsletter.
MassMutual Private Wealth & Trust FSB lowered its stake in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 6.1% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 39,941 shares of the industrial products company’s stock after selling 2,582 shares during the quarter. MassMutual Private Wealth & Trust FSB’s holdings in Caterpillar were worth $32,335,000 at the end of the most recent quarter.
Several other hedge funds have also modified their holdings of CAT. Decker Retirement Planning Inc. grew its position in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 22 shares during the period. Matrix Trust Co grew its holdings in shares of Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 15 shares during the period. Axiom Investment Management LLC purchased a new position in Caterpillar in the second quarter valued at approximately $36,000. Lam Group Inc. purchased a new stake in Caterpillar during the first quarter worth approximately $26,000. Finally, Tacita Capital Inc purchased a new position in shares of Caterpillar in the 2nd quarter valued at $47,000. 70.98% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several research analysts have commented on the company. UBS Group raised their price objective on Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $1,002.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. Robert W. Baird set a $970.00 target price on Caterpillar in a report on Wednesday, August 5th. Truist Financial set a $980.00 price target on Caterpillar in a research report on Wednesday, August 5th. Finally, Wells Fargo & Company increased their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a research report on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Caterpillar presently has a consensus rating of “Moderate Buy” and an average price target of $994.38.
Get Our Latest Stock Report on CAT Insider Buying and Selling In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.33% of the stock is owned by company insiders.
Key Headlines Impacting Caterpillar Here are the key news stories impacting Caterpillar this week:
Positive Sentiment: Market rally lifts CAT: Caterpillar was one of the notable contributors to a roughly 400-point Dow rally, benefiting from renewed demand for large-cap industrial stocks and gains in technology and manufacturing shares. Dow’s 400-point rally led by gains in Caterpillar, NVIDIA Corp. shares Positive Sentiment: $1 billion North Carolina expansion: Caterpillar plans a new Sanford, North Carolina, manufacturing facility expected to create more than 1,950 jobs. The site will expand production of compact track loaders and other compact construction equipment, supporting the company’s Cat Compact growth strategy and adding capacity in a growing product category. Caterpillar invests $1B in Sanford expansion Positive Sentiment: Broader investment and distribution strategy: Coverage indicates Caterpillar and Ultium Cells are making major facility investments, while CAT also plans to acquire Fabick Cat, a long-established dealership. These moves could strengthen manufacturing capacity, distribution and customer reach, though they require substantial capital. Caterpillar and Ultium Cells make $1B facility investments Neutral Sentiment: Analyst support is constructive but not decisive: Caterpillar’s average brokerage recommendation favors investment, but the report cautions that sell-side ratings can be overly optimistic. With CAT trading at a high earnings multiple, further upside likely depends on sustained earnings growth rather than ratings alone. Caterpillar Is Considered a Good Investment by Brokers Caterpillar Trading Down 0.0% NYSE:CAT opened at $845.38 on Monday. The stock has a market cap of $388.60 billion, a price-to-earnings ratio of 36.38, a price-to-earnings-growth ratio of 1.47 and a beta of 1.58. Caterpillar Inc. has a one year low of $483.55 and a one year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The business’s 50-day simple moving average is $822.30 and its 200 day simple moving average is $850.06.
Caterpillar (NYSE:CAT – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter last year, the firm earned $4.72 EPS. Caterpillar’s quarterly revenue was up 23.7% on a year-over-year basis. As a group, sell-side analysts predict that Caterpillar Inc. will post 27.37 earnings per share for the current fiscal year.
About Caterpillar (Free Report)
Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
See Also Five stocks we like better than Caterpillar Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?
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Key Takeaways CAT, ZBRA, AIT and HLIO are positioned to benefit from steady manufacturing demand.CAT expects 43.6% earnings growth, while ZBRA projects 28.2% growth this year.AIT expects 9.2% earnings growth, while HLIO projects 24.6% growth this year. The U.S. manufacturing sector is making a steady recovery amid inflationary pressures. New orders for U.S. factory goods rose in August, boosted by robust demand despite higher prices.
Oil prices have surged over the past six months owing to the ongoing crisis in the Middle East. This has seen prices of raw materials jump at an alarming pace. However, demand remained high for electrical equipment and appliances as well as their components in August, which drove new orders for factory goods.
Given this situation, it would be ideal to invest in four stocks from the manufacturing sector — Caterpillar Inc. (CAT - Free Report) , Zebra Technologies Corporation (ZBRA - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Helios Technologies, Inc. (HLIO - Free Report) — that we have detailed below.
Factory Orders JumpFactory orders rose 0.1% sequentially in August after jumping a revised 0.8% in the prior month, the Commerce Department said last week. The increase came in line with analysts’ expectations. Year over year, factory orders climbed 6.8% in August.
New orders in August were primarily driven by robust demand for electrical equipment and appliances, which jumped 1.1%. Orders ???for motor vehicle ???bodies, parts ???and trailers also climbed 0.8%.
New orders for machinery rose 1.1%, while computers and electronic products orders remained unchanged. However, computers and electronic products orders rose a robust 14.7% on a year-over-year basis in August.
Rapid expansion of AI infrastructure is also driving overall manufacturing activity. Businesses are rebuilding inventories to keep pace with solid domestic demand for factory goods.
Orders for non-defense capital goods excluding aircraft, a key gauge of planned business investment in equipment, advanced a solid 1.6% in August, unchanged from the previous month. Shipments of core capital goods climbed 0.5%.
Higher oil prices owing to the war between the United States and Iran have been weighing on several sectors, including manufacturing. Diesel prices are at a record high, posing a challenge for manufacturers. Also, higher tariffs have resulted in increased costs of goods.
Despite these headwinds, robust demand continued to propel manufacturing activity, which bodes well for the sector.
4 Industrial Products Stocks With UpsideCaterpillarCaterpillar Inc. is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors — infrastructure, construction, mining, oil & gas and transportation — CAT is considered a bellwether of the global economy. Caterpillar has more than 4 million products with an extensive dealer network of 165 dealers, spanning 191 countries.
Caterpillar’s expected earnings growth for the current year is 43.6%. The Zacks Consensus Estimate for current-year earnings has improved 10.1% over the past 60 days. CAT currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zebra TechnologiesZebra Technologies Corporation is the leading provider of enterprise asset intelligence solutions in the automatic identification and data capture solutions industry throughout the world. ZBRA has a diversified portfolio of products and solutions that includes cloud-based subscriptions and a full range of services like maintenance, repair, technical support, as well as managed and professional services.
Zebra Technologies’ expected earnings growth for the current year is 28.2%. The Zacks Consensus Estimate for current-year earnings has improved 9.4% over the past 60 days. ZBRA currently sports a Zacks Rank #1.
Applied Industrial TechnologiesApplied Industrial Technologies, Inc. is a distributor of value-added industrial products — including engineered fluid power components, bearings, specialty flow control solutions, power transmission products and miscellaneous industrial supplies. AIT’s products are mainly sold to original equipment manufacturers, and maintenance, repair and operations customers in Australia, North America, Singapore and New Zealand.
Applied Industrial Technologies’ expected earnings growth for the current year is 9.2%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. AIT currently has a Zacks Rank #2 (Buy).
Helios TechnologiesHelios Technologies, Inc. is an industrial technology company. HLIO develops and manufactures hydraulic and electronic control solutions. Helios Technologies’ operating subsidiaries include Sun Hydraulics, Enovation Controls and Faster Group.
Helios Technologies’ expected earnings growth for the current year is 24.6%. The Zacks Consensus Estimate for next year's earnings has improved 10% over the past 60 days. Currently, HLIO has a Zacks Rank #2.
For most families, China's "Golden Week" holiday is a time to relax, eat well, and visit the country's tourist hot spots.
But at a wildlife park in Beijing, some people have been spending their holiday hunting for fall webworm larvae, an invasive species of caterpillar the park has dubbed "the forest food monster".
Beijing Wildlife Park asked visitors to catch as many of the caterpillars as possible, rewarding those with the heaviest haul with prizes including as many as 10 park tickets. The caterpillar, native to North America, can damage more than 300 plant species including crops and fruit trees.
After a crash course on how to spot the larvae, participants spread out across the nearly 550-acre (223-hectare) park with disposable gloves, plastic containers and chopsticks.
"Call for warriors! Battle the 'forest food monster' and win grand prizes!" read a poster behind a table stacked with containers of crawling caterpillars.
More than 310,000 caterpillars with a combined weight of 47.65 kg (105.05 lbs) have been caught by some 2,077 people since the competition began on September 28.
The fall webworm is a major pest in China and produces three generations a year. Beijing is currently experiencing peak damage from this year's third generation of larvae, China's Xinhua news agency reported earlier this week, quoting the chief scientist at the Chinese Academy of Forestry.
"(We've) noticed there are a lot of fall webworm larvae around us," said a 35-year-old participant surnamed Cui. "I think the Beijing Wildlife Park activity is very meaningful. It sparks the interest of our children, and (we) can even win a prize at the same time."
Caterpillar (CAT +2.31%) is a leading maker of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
On Oct. 1, the industrial stock was trading at around $822 per share and was up more than 43% so far this year, though it's down notably from the 52-week high of $1,073.46 it reached on June 30.
In that context, it certainly isn't out of the realm of possibility that Caterpillar could be trading above $1,000 within the next three years, and here are three reasons why I think it will be.
Image source: Getty Images
Data center AI infrastructure and off-grid power needs The explosion in artificial intelligence (AI) and data center construction has created an acute power bottleneck. Hyperscalers cannot rely solely on local electrical grid interconnections to get access to the many megawatts their data centers need. In many places, there are multiyear interconnect queues for large electricity customers.
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Caterpillar's energy and transportation division has become a core supplier of primary and backup power for AI facilities -- specifically its reciprocating industrial engines and solar turbines. The company said it is tripling its production capacity of large reciprocating engines relative to its 2024 baseline. As hyperscalers sign multi-gigawatt power contracts, Caterpillar will be able to secure long-duration, high-margin equipment backlogs.
In the second quarter, the company reported record revenue of $20.5 billion, up 24% year over year. Its operating profit margin grew from 17.3% in the prior-year quarter to 20.9%, and earnings per share rose 68% to $7.77.
It is seeing more high-margin growth Traditionally, the market has valued Caterpillar as a cyclical manufacturing company, recognizing that its business would be subject to both uplifting booms and sharp declines based on macroeconomic factors. However, Caterpillar has been systematically lifting its valuation multiple by scaling up the share of revenue it books from predictable services businesses.
The company is on track toward its goal of $30 billion in annualized high-margin services revenue by 2030, up from $24 billion. Gas turbines and continuous-power generators running 24/7 generate up to 40 times as much lifecycle servicing and parts demand as standby diesel units. This shift in its revenue structure is smoothing out the cyclicality of its earnings, which is why the market is granting Caterpillar a higher structural price-to-earnings (P/E) multiple. It is trading at about 35 times earnings, well above its average over the past five years.
In the second quarter, the company reported cash flow of $6.14 billion, up from $5.72 billion in the prior-year period. That growth is enabling the company to invest more in new projects and reward shareholders. It increased its dividend by 8% this year, the 32nd consecutive year it has boosted its dividend.
Megaproject and infrastructure reshoring tailwinds Demand for heavy construction and mining equipment remains well supported by long-term government and private sector infrastructure commitments. Federal infrastructure spending, energy transition initiatives, semiconductor foundry projects, and manufacturing reshoring continue to drive domestic demand for earth-moving equipment.
In addition, high global demand for critical minerals such as copper, lithium, and rare-earth metals is driving mining operators to increase their capital expenditures. Caterpillar's proprietary autonomous haulage fleet technology gives it a competitive moat, locking in large mine site fleet refresh cycles.
Caterpillar has entered a new era The stock has often been praised for its steady, if unspectacular growth. That paradigm has shifted as the company's turbines and engines have come into greater demand as power sources for data centers.
Over the past five years, Caterpillar's quarterly revenue has increased by 54%, while in the five prior years, it grew by less than 25%. It is certainly reasonable that the stock could reach $1,000 a share by 2028, if not sooner.
Shares of Caterpillar Inc. (NYSE:CAT) are trading higher Friday afternoon as investors weigh fresh developments supporting the broader artificial intelligence infrastructure buildout, while a sharp pullback in expectations for another Federal Reserve interest-rate hike provides an additional tailwind for industrial stocks.
Here’s what investors need to know.
Caterpillar stock is building positive momentum. Why are CAT shares climbing? Broadcom Financing Drive Catalyzes AI Infrastructure RallyCaterpillar shares are rising alongside several AI infrastructure and semiconductor-related names as investors digest Broadcom Inc.’s reported plans to raise as much as $60 billion in financing that could help AI customers including Anthropic purchase chips and other computing infrastructure.
Tight HBM4 Memory Supply Signals Persistent AI Hardware DemandSeparately, Samsung Electronics reportedly offered 2027 pricing for its next-generation HBM4 memory at more than three times the current HBM3E price, highlighting tight supply and strong demand for the memory used in AI accelerators. The reported pricing remains subject to negotiations with customers.
Data Center Expansion Powers Caterpillar’s Power Generation GrowthCaterpillar is directly positioned to capture this demand as tech companies confront electrical grid bottlenecks. The company’s Power Generation segment continues to see rapid growth tied to data center applications, backed by major orders for natural-gas generator sets and turbines engineered for hyperscale campuses.
Strong Power & Energy Segment Performance Reflects AI DemandThis physical infrastructure cycle is already showing up on CAT’s bottom line. The company reported a 17% year-over-year surge in Power & Energy sales in the second quarter, establishing the segment as a core driver offsetting broader cyclical headwinds in traditional construction and mining equipment.
CAT Stock Rises Friday AfternoonCAT Price Action: Caterpillar shares were up 2.39% at $846.07 at the time of publication on Friday, according to Benzinga Pro data.
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Caterpillar (CAT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Caterpillar currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 13 are Strong Buy, representing 54.2% of all recommendations.
Brokerage Recommendation Trends for CAT
Check price target & stock forecast for Caterpillar here>>>
While the ABR calls for buying Caterpillar, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is CAT Worth Investing In?In terms of earnings estimate revisions for Caterpillar, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $27.37.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
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 #1 (Strong Buy) for Caterpillar. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Caterpillar may serve as a useful guide for investors.
Caterpillar (CAT - Free Report) closed the most recent trading day at $826.35, moving +1.92% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the construction equipment company had gained 2.34% over the past month, outpacing the Industrial Products sector's loss of 0.74% and the S&P 500's loss of 0.35%.
The investment community will be closely monitoring the performance of Caterpillar in its forthcoming earnings report. The company is predicted to post an EPS of $6.95, indicating a 40.4% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $20.19 billion, indicating a 14.47% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.37 per share and a revenue of $79.37 billion, signifying shifts of +43.6% and +17.43%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. Caterpillar is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Caterpillar's current valuation metrics, including its Forward P/E ratio of 29.62. This expresses a premium compared to the average Forward P/E of 17.81 of its industry.
It is also worth noting that CAT currently has a PEG ratio of 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Key Takeaways Caterpillar plans a $1 billion facility in Sanford, NC, to boost compact equipment production.CAT expects advanced manufacturing, automation and digital systems to improve capacity and efficiency.Cat Compact combines equipment sales, rentals and service to simplify access for contractors and businesses. Caterpillar Inc. (CAT - Free Report) is planning to invest around $1 billion to expand its compact construction equipment manufacturing capacity as demand for versatile machines used across construction, landscaping, agriculture and material handling continues to grow. The project supports Caterpillar's Cat Compact strategy, which aims to provide small contractors and growing businesses with a simpler and more convenient way to buy, rent and service compact equipment.
The investment includes plans for a new manufacturing facility in Sanford, NC, which will increase production of compact track loaders and telehandlers. These machines are used for material movement, jobsite management and productivity-related applications across several end markets. Expanding production capacity should enable CAT to better serve customers while increasing its exposure to the compact equipment market beyond its traditional heavy construction machinery portfolio.
The planned facility is expected to be equipped with advanced manufacturing technologies, automation, digital production systems and integrated logistics capabilities. Besides increasing production capacity, these investments are designed to improve safety, quality and operational efficiency.
Caterpillar introduced Cat Compact at CONEXPO in March 2026, which brings equipment sales, rentals and service together in one destination, combining digital product discovery and online research with the expertise of CAT dealers. By reducing complexity throughout the purchasing and ownership process, Caterpillar aims to make its compact equipment offerings more accessible while helping customers remain focused on productivity.
Compact track loaders and telehandlers are part of Caterpillar’s Construction Industries segment, which generated around $25.1 billion in sales in 2025, accounting for roughly 37% of CAT’s total revenues. Caterpillar is increasingly expanding the segment's value proposition through rental offerings, digital capabilities and advanced technology solutions.
The segment competes with Deere Construction & Forestry, a segment of Deere & Company (DE - Free Report) , and Komatsu Ltd. (KMTUY - Free Report) , among others. Deere is also investing heavily in digital workflows that improve jobsite efficiency, while also expanding aftermarket and technology-driven recurring revenues. Similar to Caterpillar, Deere views intelligent equipment, connected fleet and software integration as key long-term growth opportunities.
Komatsu is pursuing growth through automation, smart construction and electrification. Its Smart Construction platform, autonomous equipment portfolio and digital services are designed to improve equipment utilization and jobsite productivity. The company is also positioned to benefit from infrastructure development and continued investments in mining.
CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 68.6% in the past year, outperforming the industry's 57.8% growth.
Image Source: Zacks Investment Research
CAT is currently trading at a forward 12-month P/E of 25.67X compared with the industry’s 24.30X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 43.6%, while the 2027 estimate implies growth of 20.5%.
Image Source: Zacks Investment Research
Earnings estimates for both years have moved up over the past 60 days.
Image Source: Zacks Investment Research
Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
