Analyst Praises Caterpillar Stock's Recent 'Resilience'

Core Viewpoint - Caterpillar Inc's stock is experiencing a rebound after a significant pullback, supported by an upgrade from Evercore ISI and positive trends in construction equipment margins [1][2]. Group 1: Stock Performance - Caterpillar's stock is currently trading at $419.04, reflecting a 1.6% increase [1]. - The stock reached a record high of $441.15 on July 31 and has seen a 21% increase over the past 12 months [2]. - Recent support for the stock has emerged at the 40-day moving average [2]. Group 2: Analyst Recommendations - Evercore ISI upgraded Caterpillar's rating from "in-line" to "outperform," with a price target set at $476, indicating a 15.3% upside from the previous close [1]. - Among 22 brokerages covering Caterpillar, 50% have rated the stock as a "hold" or worse, suggesting potential for upward movement if this sentiment shifts [2]. Group 3: Options Trading Activity - Over the past 10 weeks, call traders have shown increased activity, with a 50-day call/put volume ratio of 1.64, ranking in the 88th percentile of the past year [3]. - Options traders are currently pricing in low volatility expectations, as indicated by a Schaeffer's Volatility Index (SVI) of 23%, which is in the 6th percentile of the past year [3]. Group 4: Volatility Performance - Caterpillar's stock has historically outperformed volatility expectations, as reflected in its Schaeffer's Volatility Scorecard (SVS) score of 88 out of 100 [4].