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Investor Insights

This summary was created by AI, based on 13 opinions in the last 12 months.

Caterpillar (CAT) is viewed by experts as a solid company facing near-term challenges due to a potential global economic downturn. While it has shown impressive growth in areas like automation and AI, the overall sentiment remains cautious. Market analysts have noted CAT's strong fundamentals, including a decent dividend yield and an expanding market cap, although some concern exists regarding its valuation, especially given the global economic climate. Experts suggest that while CAT is no longer purely cyclical, its performance may be influenced by broader economic conditions, particularly in key regions such as China and North America. As the company prepares for its upcoming earnings report, the general advice is to monitor market conditions closely before making investment decisions.

Consensus
Hold
Valuation
Fair Value
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

CAT is $165B market cap, 17X earnings, 1.62% yield, 6.96% five year dividend growth, down 4% YTD, debt/cash flow about 3X, forward growth about 10%. DE is $135B, 25X earnings, 1.30% yield, 14.68% dividend growth, 5X debt/cash flow, forward growth 15%. We would consider both HOLDS today. While good companies, they will be vulnerable in a global economic decline, as both have been in prior cycles. Automation/AI will help margins, but this will take some time to show up in the numbers. Mining expansions (CAT) and weak spending (DE) will likely mean less-than-robust growth and/or weak sentiment for a period of time. 
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WATCH

It reports Thursday, but decide after you hear the conference call so you can learn their future. CAT is no longer cyclical, but a secular grower due to a CEO pushing CAT into consistent end markets.

TOP PICK
All-time high late September.

Higher highs so far, and we're testing the last low. Overall trend is good. He's still buying, has done 2 legs of 2% each so far. Yield is 1.5%.

Note that if the market turns down in a big way this will be one of its victims, as industrials will be one of the first to fall. 

(Analysts’ price target is $397.81)
TOP PICK

Active in over 190 countries. Infrastructure spending should increase due to new US administration. Tax cuts, deregulation, and trade policies should also help. Stimulus in China might be of benefit, as might Trump's threats to DE. Yield is 1.4%.

Now has broken above previous resistance. Pretty good trend of higher highs and higher lows since late 2022.

(Analysts’ price target is $373.45)
DON'T BUY

They report Wednesday. People want to know about their inventory. They will talk about the data centre. The company is doing well. Is up $60 from September lows. It's run too much. He likes it though.

DON'T BUY

He sold this before. This is expensive and is overvalued.

BUY

Likes it. Trading right at 200-day MA, so it's corrected down to an interesting level. 15x forward PE, growth rate is high single digits to low doubles.

China's always in the back of his mind, as it's such a big economy and affects so many different companies. Revenue from China is 18%, North America 52%, and Europe 20%. His base case for NA remains a soft landing, no recession.

SELL

CAT was a core holding until today's economic data showing a weaker than expected job market, adding to other weak data. So, he sold CAT. The economy is slowing. Also, he expects tech to lead the market for the coming 2-3 years.

PARTIAL SELL

He made a killing off this, but sold it too soon. Don't gamble with their quarter, but it's still a cheap stock that pays a decent dividend. Sell a bit and let the rest run.

BUY

It's beaten its estimates by 15% in each of the last 3 quarters. Earnings and revenue were up 20%. Pays a 2% dividend that grows 6-7% yearly.

WATCH

She's been looking at it. Global. Benefiting from US onshoring, buildout of semiconductor plants, and mining. Question of whether it's near peak earnings. Inventories seem pretty clean. She's waiting for stock to pull back more before deciding.

WAIT

It reports Thursday. Wait till the conference call before pulling the trigger. Also, shares have been on a scorching run leading up to earnings and may need a breather.

BUY

The structural backdrop includes a lot of spending on construction and on US manufacturing facilities. Much better supply/demand for energy and materials than we've had in a decade. These are all customers of FTT.

If you look at the performance of CAT, FTT and TIH over the last year, all look very attractive. TIH does more construction, whereas FTT does more materials and so he'd lean more toward that one.

DON'T BUY

Reasonably priced. Decent earnings and growth, but not exceptional. Do peer group analysis. Often companies in a sector go up and down together, being driven by the same things. Ask if CAT has a tailwind, and is it the best in the industry? He wouldn't buy CAT, but does own URI.

BUY

Margins are improving drastically.

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Caterpillar(CAT-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 11

Stockchase rating for Caterpillar is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Caterpillar(CAT-N) Frequently Asked Questions

What is Caterpillar stock symbol?

Caterpillar is a American stock, trading under the symbol CAT-N on the New York Stock Exchange (CAT). It is usually referred to as NYSE:CAT or CAT-N

Is Caterpillar a buy or a sell?

In the last year, 11 stock analysts published opinions about CAT-N. 3 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Caterpillar.

Is Caterpillar a good investment or a top pick?

Caterpillar was recommended as a Top Pick by on . Read the latest stock experts ratings for Caterpillar.

Why is Caterpillar stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Caterpillar worth watching?

11 stock analysts on Stockchase covered Caterpillar In the last year. It is a trending stock that is worth watching.

What is Caterpillar stock price?

On 2025-04-01, Caterpillar (CAT-N) stock closed at a price of $330.57.