NYSE:CAT

Caterpillar (CAT)

1,057.01
+62.56 (6.29%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 31 opinions in the last 12 months.

Caterpillar (CAT) has been a popular choice among experts, primarily due to its robust earnings growth and significant backlog of orders, reportedly exceeding $60 billion. While many express optimism regarding its potential in the infrastructure and data center segments driven by trends like AI and energy demand, concerns about its current P/E ratio, which has risen considerably to 32-36x, have led some to take profits or warn against buying at this level. The stock has seen hefty appreciation in 2023, with reports of increases around 140% for some investors, indicating both excitement and caution about its overheated status. Overall, CAT is viewed as a strong play on global infrastructure but analysts suggest caution regarding its valuation and the cyclical nature of the industrial sector.

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Consensus
Positive
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Valuation
Overvalued
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Similar
Deere,DE
BUY
Take a 3-5 year view of this, because it will be great, led by a smart CEO.
HOLD
Held up exceptionally well this year. Riding the wave of mining and energy. Well run. A bit more cyclical. Don't buy today, but stick with it if you hold it.
PAST TOP PICK
(A Top Pick May 21/21, Down 7%) Still happy with the execution of the company. Expecting an increase in the dividend and continued stock buybacks. Current share price presenting good buying opportunity with recent selloff. Inflation will be good for heavy equipment manufactures (able to raise prices).
COMMENT
They report Friday. Their orders may or may not overcome their higher costs.
BUY
Great management and the company thrives when there's a lot of economic activity. This is really linked to oil and gas though it's infrastructure. He prefers Nicor, but CAT is a good story.
DON'T BUY
They reported earnings recently and inflation is coming but they are largely positive. He has TIH-T instead so there is not the worry of FX.
BUY
An infrastructure play in the wake of the $1 trillion bill passing last Friday. Surged today on this good news. No, the bill wasn't baked into share already.
COMMENT
Industrials and && trade together.
DON'T BUY
Businesses are in infrastructure--so it will benefit from the $1 trillion infra bill--and mining, but their last quarter wasn't up to snuff.
BUY
Looks interesting, especially with global reopening. Right at 200-day moving average, so it's attractive. Stock fell mainly because of shift from cyclicals back to growth. Base case scenario is that interest rates will rise and kick-start cyclicals again. A leadership name in this space.
PARTIAL BUY
They report Friday. Shares have declined given the delay in infrastructure spending, but he would nibble away at it now.
BUY ON WEAKNESS
It fell for the fourth-straight day. Some blame Biden's infrastructure bill stalling in Washington, but he believe instead that the US Fed will change their inflation posture at Wednesday's meeting. Based on last week's strong inflation numbers, some investors rotated out of the Dow industrials today as the Nasdaq rallied. Buy industrials now as they're beaten down.
DON'T BUY

URI vs. CAT They're both cyclicals. He owns only URI. CAT stock is a little ahead of itself at 25-30x this year's earnings. URI is trading at a lower level. URI will still do well if a US infrastructure bill will be passed. Yes, it's lumpy and volatile, so strategically limit your exposure to this in your portfolio. Diversify away from higher-beta, riskier stocks.

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