Caterpillar Stock Hits Record Highs After Earnings

Group 1 - Caterpillar Inc (CAT) shares increased by 2.7% to $660.78 following the company's fourth-quarter earnings report, which showed earnings of $5.16 per share and revenue of $19.13 billion, both exceeding estimates [1][2] - The growth in demand for AI data centers is contributing to the increase in power-equipment sales for Caterpillar, although the company has projected a $2.6 billion tariff headwind in 2026 [1][2] - Caterpillar's stock has surged to record highs, trading as high as $679.35, and has shown a year-over-year increase of 66.4% [3] Group 2 - Options traders are anticipating a short-term dip in Caterpillar's stock after the recent surge, with put options being traded at double the average pace [4] - The most popular options contracts include the weekly 1/30 700-strike call and the 615-strike put, with new positions opening at the former [4] - Caterpillar's 10-day put/call volume ratio stands at 1.36, indicating higher put activity compared to 94% of readings from the past year, and the Schaeffer's Volatility Scorecard (SVS) is at a high of 89, suggesting the stock has often exceeded volatility expectations [5]