NYSE:CAT

Caterpillar (CAT)

876.54
+46.51 (5.60%)
as of Aug 4, 2026, 8:00:00 pm Market Open.
182 watching
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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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BUY
Inventories are about 60% lower than last year, so you could see some re-stocking by the dealers. This is a company that is going to see earnings revisions higher.
DON'T BUY
Very cyclical. Great company. A lot of global infrastructure projects will benefit them but is already priced in. With the 50% run-up on the market he would want a better price, possibly low $40's. 3.25% yield.
COMMENT
A lot of exposure to residential construction. Had some issues because of their finance arm but they managed to get through it okay but the ability of their customers to buy have had difficulty getting financing. Would prefer the dealership companies such as Toromont (TIH-T) or Finning (FTT-T). If you have a 5 or 10-year view it could be a good entry point.
BUY
Had the worst year in 50 and is a play on the global expansion. Thinks there is a lot more room for this company to grow in this expansion.
DON'T BUY
Not a fan of Caterpillar (CAT-N) or Deere (DE-N) because of balance sheet leverages but are also tied to global construction demand, a cyclical recovery. Both of gotten ahead of themselves recently.
HOLD
Had higher lows, which is positive. $47 seems to be a resistance point. Moving averages have righted themselves with the 50-day being above the 200-day. Could come back and test the $40 level.
SELL
Over the balance of 12 months, earnings should be pretty strong. Earnings revisions have been moving up. Some of the estimates have been lowered for the next quarter. Probably not a bad move to Sell and move onto something else in the industrial space such as 3M (MMM-N).
HOLD
This is a play on a recovery and we are starting to see some signs of that. Global operator with a very large presence in China, which will probably lead the global recovery.
DON'T BUY
Great company but he is concerned about the stock and its dividend. There is also concern about the cash flow. Pension is under funded. A lot of the growth is tied to international and because it is a global recession that has been a decline for their equipment.
DON'T BUY
Good company. Has more debt than he is comfortable with, especially for this kind of company. The economy is probably going to have some kind of rebound but if it's tepid or doesn't happen, large ticket items volumes may remain at levels that approximate zero. Too expensive.
COMMENT
(Market Call Minute.) If you own, he would probably buy more but he prefers Toromont (TIH-T) as a longer-term play.
WAIT
(Market Call Minute) Excellent company and could come back in the long term. Will benefit as we come out of current economic cycle.
DON'T BUY
Tough market right now. 30-60% decline in demand expected. Lots of used equipment out there and price has come down. Avoid buying or hold if 5 years or more horizon.
BUY
Will benefit from the infrastructure plan. Nothing immediate is going to happen. 5% yield. Trading at only 11X earnings.
COMMENT
Their global business is now falling apart and the domestic business is not doing well. Did well in the resource boom and construction boom in Asia. We are in a much worse recession than people think. In the long run, the stimulus packages will help companies like this but it may move sideways for a while.
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