NYSE:CAT

Caterpillar (CAT)

876.54
+46.51 (5.60%)
as of Aug 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconAug 4, 2026, 12:00 am

This summary was created by AI, based on 38 opinions in the last 12 months.

Caterpillar (CAT) has garnered mixed opinions among experts, reflecting concerns over its high valuation despite strong growth prospects. While the company benefits from significant tailwinds in sectors such as infrastructure, power generation, and data centers, many analysts note that the stock is trading at elevated forward price-to-earnings (PE) ratios, leading to sentiments of overvaluation. Some experts highlight the impressive backlog of approximately $63 billion and the potential for 25% earnings growth in coming years, while others caution against buying at current prices, suggesting that a dip would be more favorable. Overall, CAT is perceived as a strong player in the industrial sector with solid global demand, but its valuation remains a critical concern in this cyclical landscape.

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Consensus
Neutral
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Valuation
Overvalued
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DE, DRE
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.
TOP PICK
Dominant player in mining, oil and gas. Dominant player in international markets. Very strong growth and price performance.
BUY
An incredible stock to own. Huge beneficiary if you are playing growth emerging markets and infrastructure. Will benefit from growth over the next 10, 20, 30 years.
TOP PICK
Great company. Expected to benefit from continued global urbanization and infrastructure. Likes their acquisition of Bucyrus (BUCY-Q) that gives them mining equipment. Trades at about 14X forward PE.
BUY
Caterpillar (CAT-N) or Deere (DE-N)? Caterpillar has about 70% foreign exposure and Deere has about 40%-45%. Deere relies on farmers to be able to afford equipment. Deere is good and trades at a good multiple, a couple of points higher than Caterpillar. (Prefers Caterpillar.)
SELL
Very. Very expensive. Model price $56.06. It certainly has momentum here.
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