NYSE:CAT

Caterpillar (CAT)

904.28
-36.20 (3.85%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

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

Caterpillar Inc. (CAT) is currently viewed as a strong player in the infrastructure and data center sectors, driven by significant tailwinds in oil, gas, and construction. While some analysts express concerns about its high valuation with a forward PE ratio ranging from 28x to 36x, others believe it has the potential to grow into its valuation. The company's robust backlog of $60 billion and substantial revenue growth of over 20% demonstrate its operational strength. However, investors are advised to take some profits due to the stock's rapid ascent of 140% since May and the increasing uncertainty surrounding valuations in the industrial space. Overall, CAT maintains a steady appeal for those anticipating ongoing infrastructure buildout and data center expansions, while significant caution surrounding its current price level is evident among experts.

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Consensus
Cautious
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Valuation
Overvalued
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Similar
Deere,DE
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.

TOP PICK
Even though they beat last quarter, they did not give guidance for 2021. Beneficiary of some inflation and stronger margins for customers. Setting up to under promise and over deliver. Pricing power is growing. Leverage is being underestimated by investors. The valuation makes sense with 20% EPS growth but trades at 21x 2022. (Analysts’ price target is $243.52)
BUY
Scarcity value is working for these stocks. On top of that, industrial stocks like this they belong in the S&P, so they benefit from automatic buying from ETFs. Conversely, there a lot of shares and stocks in the high-flying tech sector which are being sold off these days. CAT has been buying back a lot of its shares, adding to more share scarcity.
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