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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
They report next week. The stock will rise even if they report weak numbers, because expectations for infrastructure spending and better relations with China are so high. He admits he missed this rally.
BUY
There are few industrial stocks. CAT can go to $200. He prefers John Deere though.
HOLD
It had a rough day today, but CAT will do well under Biden because Biden will ease off on the US-China trade war. This will allow China to buy CAT equipment as a sign of good faith. CAT also has good managers.
BUY
Some feel the stock has run too much, but he feels it's a teflon stock. CAT will benefit from better relations with China, if Biden wins. You can hedge your bets by buying before and after they report Tuesday.
BUY

If there's a Blue Sweep on Nov. 3, the Dems will produce an infrastructure package and industrial names like this benefit. This, plus 3M, Otis and Emerson, will benefit from the end of the US-China trade. However, Caterpillar will thrive under either Biden or Trump.

DON'T BUY
It is not a long term hold. He does not think of it as infrastructure. There is no long term asset at the end of a project.
HOLD
A bell weather cyclical stock. He doesn't expect to see strong global economic growth, but steady and plodding. Consumer spending is driving the global economy, so this may not have enough to propel it much higher.
BUY

A uber-cyclical stock into mining, roads, forestry, etc. The price of copper has broken out to the upside, which may be a signal for higher commodity prices and for this stock. He would consider buying here.

DON'T BUY
It's too early to buy this. The trade war needs to be resolved, since China is so important to CAT. He doesn't own CAT because of its cyclical nature.
DON'T BUY
Make heavy equipment. Decelerating demand. Too cyclical to buy for where we are in the cycle. Very well managed.
BUY

Pays a good 3.5% yield with a 10x PE, which are likely depressed by the global slowdown and the trade war, but the slowdown will turn. Buy this if you have a 3-5-year horizon. Governments need to start spending on infrastructure to get economies going. Also look at CMI-N.

DON'T BUY
A cyclical stock whose customers are into mining and forestry. Not the best time to be entering into this space.
DON'T BUY
It's under heavy pressure from an overhang from the resources slump and, before, the steel tarffis. There are better opportunities elsewhere.
PAST TOP PICK
(A Top Pick May 24/18, Down 20%) This is a highly cyclical name. Looking at slowing global growth and he prefers more defensive names. This is an industrial name and prefers Waste Management in this space. He expects CAT just to move sideways.
BUY
Call option? CAT should rally if the China-US trade deal is signed. If you sell a call option on CAT, go 5-8% out. A deal is only partially priced in now.
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