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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
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.
BUY

Classic stock for this kind of environment. Leadership in the recovery includes industrials and basic materials, which covers CAT. Would be one of the biggest winners from the infrastructure bill. The work in Texas alone is huge. He'd buy it right here. He also owns DE.

BUY
Management have really turned this around. The last quarter was merely okay, but CAT has a lot of oil exposure and the price of oil keeps surging due to a better world economy and president unfriendly to new oil drilling which in turn limits new supply.
WEAK BUY

CAT vs. TIH A little expensive. If the US dollar continues to fall, commodity prices have started to rise, so that should increase demand. Trades at 25x, starting to break out. Nothing wrong with anybody buying it. His choice is Toromont, which has higher dividend growth and better price performance.

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