Caterpillar Inc.
NASDAQ: CATKey stats
Price chart
About Caterpillar Inc.
Machinery
Company profile
- IPO date
- Dec 2, 1929
- Website
- www.caterpillar.com
Industrials peers
How CAT compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
 BA Boeing Company | $220.49 | -3.80% | $173.81B | 76.64 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
Caterpillar has a strong competitive moat as a leader in heavy machinery, driven by its extensive product line and innovative machinery technology. The company's global presence and robust dealer network provide a broad reach and dependable revenue stream. With the world shifting towards sustainable practices, Caterpillar's investments in electric and autonomous machinery are significant growth drivers. Additionally, the construction boom in developing countries and infrastructure upgrades in developed nations underscore demand for Caterpillar's products. Despite a high P/E ratio, analyst recommendations suggest confidence in Caterpillar's continued growth trajectory and market leadership.
Bear case
Caterpillar's valuation is a point of concern with a P/E ratio of 41.41, significantly higher than many of its peers in the industrials sector, potentially suggesting the stock is overvalued. The low dividend yield of 0.7472% may also deter income-focused investors. The firm's exposure to economic cycles and commodity price fluctuations poses risks, as these can impact the demand for heavy machinery. Competition is fierce, with companies like Komatsu and Deere & Company vying for market share. Additionally, Caterpillar's beta of 1.5753 indicates higher volatility than the market, posing a risk for risk-averse investors.
Who should buy CAT
Caterpillar is best suited for growth-oriented investors willing to accept volatility and patient enough to hold long-term to realize potential growth in infrastructure and machinery demand. It's also suitable for those confident in the company's leadership in sustainability initiatives.
Key risks
- High P/E ratio may limit future stock price appreciation. - Economic downturns can heavily impact demand for industrial machinery. - Intense competition from global machinery manufacturers. - Volatility due to beta being significantly higher than the market average.
Where to buy CAT
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Recent CAT news
Caterpillar (NYSE:CAT) has released its 2025 Annual and Sustainability Reports, coinciding with the company’s centennial year. The reports highlight record full year sales, refreshed plans for profitable growth, and progress toward 2030 sustainability goals. Caterpillar outlined advances in remanufacturing, reaffirmed its focus on employee safety, and announced a $100 million commitment to workforce skills development. Caterpillar enters its 100th year with record full year sales and a...
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