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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.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
Deere, DE
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.
TOP PICK
Beneficiary of global infrastructure spending initiatives. Trades at a little less than 10X earnings. Yield of about 4%.
COMMENT
This is a cyclical blue chip. When the cycle is good and the economy is strong and its demands will rise along with the stock price and earnings. It will have staying power in this environment.
TOP PICK
Premier construction company in the world. Will be stimulated as it generates a lot of jobs. It is well positioned. There is a risk if there is a delay in the introduction of the infrastructure program.
BUY
Longer-term, if there is going to be a good/healthy recovery in the US, there has to be infrastructure spending. Companies like this will be the beneficiaries. Very attractive, but it could drop further in a bearish market. In the meantime, you get 4.6% yield. As long as you don't look at it every month, you might be quite happy.
SELL
(Market Call Minute.) Very commodity oriented.
TOP PICK
(His 3 Top Picks tonight are a package.) Heavy equipment provider. Whoever gets elected, there will be another stimulus package coming out of Congress in the very short-term and into infrastructure.
DON'T BUY
Two trends. Infrastructure and mining. No one is building real estate right now and with current metal prices, they are not being used in mines either. Wait for some further signs of an economic recovery.
BUY
End of agriculture mania ended when agriculture specialty mutual funds came out. Stock peaked about 2 or 3 months ago. They will make a lot of money and sell a lot of equipment. Acres under cultivation in the US continue to be at record levels. Inventories going into this crop year are at post second world war lows. Selloff of this stock has been overdone.
BUY
His fair market value price is $134 so it has about 100% upside. It is also trading close to very solid technical support. Has a nice balance sheet. Would Buy this one for a trade. Could see it get up to $85-$87 on a bounce.
BUY
(Market Call Minute.) You could own both Caterpillar (CAT-N), the manufacturer and Finning (FTT-T), the distributor.
TOP PICK
Growth will continue in demands for their kind of products globally for agriculture, mining and infrastructure. Looking for US infrastructure boom with a new president.
COMMENT
If you are a long-term investor, it is probably a decent entry point. Infrastructure is a theme that will continue over the next decade or so.
DON'T BUY
Model price negative 20% differential. Not recommend buying at this point. Overpriced.
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