NYSE:CAT

Caterpillar (CAT)

687.00
-17.05 (2.42%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
184 watching
0
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.
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.
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