NYSE:CAT

Caterpillar (CAT)

904.28
-36.20 (3.85%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 31 opinions in the last 12 months.

Caterpillar Inc. (CAT) is currently viewed as a strong player in the infrastructure and data center sectors, driven by significant tailwinds in oil, gas, and construction. While some analysts express concerns about its high valuation with a forward PE ratio ranging from 28x to 36x, others believe it has the potential to grow into its valuation. The company's robust backlog of $60 billion and substantial revenue growth of over 20% demonstrate its operational strength. However, investors are advised to take some profits due to the stock's rapid ascent of 140% since May and the increasing uncertainty surrounding valuations in the industrial space. Overall, CAT maintains a steady appeal for those anticipating ongoing infrastructure buildout and data center expansions, while significant caution surrounding its current price level is evident among experts.

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Consensus
Cautious
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Valuation
Overvalued
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Similar
Deere,DE
BUY
Likes it for its brand and size and where they are in the world. Lots of business from emerging markets. Near term it is getting hit by Europe and China questions.
COMMENT
Chart shows a long upward run from early 2009 to early 2011. If you own, Sell if it goes below $79. Its resistance point is going to be around $92. Today's action was good but volume wasn't great.
HOLD
It didn’t break down too far below its trend line. There are negative signals right now, though. Put in a stop loss so it doesn’t go any further down.
BUY
As your investment appreciates you have to make sure it does not overweight everything else. A great company. One of the nice things is that 2/3rds if revenue comes from outside of US. Benefit from emerging markets and China boom. They say they will grow earnings 15% this cycle.
DON'T BUY
A cyclical stock tied into resources. Will trade with resources and resource prices have come off quite a bit and this has followed. He doesn't expect resource prices to turn around.
BUY
Got hit hard in the last few weeks with the market sell off. Looking at 15%-20% earnings growth. Now trading at less than 10X next year’s earnings. Doesn't feel the global economy is going to come to a screeching hope so there is plenty of room for them in both the building and mining sides.
COMMENT
A number of Dow industrial stocks, including this one, Had an intraday reversal. (Early weakness followed by strength during the day.)
TOP PICK
(A Top Pick Aug 18/10. Up 46.78%.) In the sweet spot in terms of emerging markets. A lot of activity in the commodities space. Looking to grow earnings 15%-20% annually. Very cheap.
COMMENT
Likes it long term but would like to see it come down to the $70s or $80s.
DON'T BUY
Weaker US$ has helped them a lot. A commodity related cyclical stock. Has peaked for now and has some downside here. Commodities are in a seasonally weak period so this stock looks horrible here.
DON'T BUY
Cyclical stock, not a growth stock that has been riding the commodity boom. As long as commodities are doing well and mining companies are going to need more equipment, the stock will continue to do well. Expensive here. He would rather own Kubota (KUB-N) of Japan, which will benefit more from reconstruction in Japan.
WAIT
When you look at their numbers and guidance, they think they will grow until 2015 at 20% per year. Al lot of growth in the minding side, plus they made an acquisition. They are seeing a lot of growth in all their areas. Are expanding internationally. It’s hard to buy here, but if they meet their forecast, then they will go higher. Buy it on weakness/pull back.
TOP PICK
A great global brand that is a great global play in industries where they have money to spend. It’s also a play on new tax incentives in the US. They are sold out of product. There are drivers that could go on for some time.
BUY
In the right space. Liked their acquisition of Bucyrus, which strengthened their mining equipment area. Fully involved of the urbanization and infrastructure of India/China.
BUY
Acquired Bucyrus, which is a good fit. Still in the early stages. Dealers still replenishing inventory, which is an early stage sign. Management think they can grow earnings 15%-20% a year. Reasonable multiple of around 14-15.
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