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NYSE:CAT

Caterpillar (CAT)

815.09
+4.07 (0.50%)
as of Aug 25, 2026, 1:55:59 pm Market Open.
184 watching
0
Investor Insights
star iconAug 25, 2026, 12:00 am

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

Caterpillar (CAT) is viewed positively by many experts, highlighting its strong position in construction, mining, power generation, and its growing connection to data center buildouts driven by AI demands. The company has reported impressive earnings and a significant backlog of orders, supporting its potential for earnings growth. However, there are concerns regarding its current valuation, with some expert opinions describing it as overvalued given its high P/E ratio compared to its historical averages and the cyclical nature of its business. While some experts advocate for purchasing during pullbacks, others believe that the stock's performance has already priced in a lot of positivity, making them cautious. Overall, CAT represents a multi-year play benefiting from infrastructure modernization, electrification, and global industrial expansion.

consensus icon
Consensus
Mixed
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Valuation
Overvalued
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Similar
Deere, DE
PAST TOP PICK
(A Top Pick Jan 14/09. Up 65.3%.) Numbers are just starting to turn around. Dealer inventories are still low. Global expansion and the weak US$ play will continue.
COMMENT
Has benefited from the large amount of infrastructure spending in the US. Strong company with a global franchise. A weak US$ will help them tremendously.
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.
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