Are Wall Street Analysts Predicting Caterpillar Stock Will Climb or Sink?

Core Viewpoint - Caterpillar Inc. has shown significant stock performance, outperforming the broader market and demonstrating strong demand in key segments, particularly driven by AI-related spending [2][6]. Group 1: Company Overview - Caterpillar Inc. has a market capitalization of $347.3 billion and is involved in manufacturing and selling construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives both domestically and internationally [1]. Group 2: Stock Performance - Over the past year, CAT stock has surged 105%, significantly outperforming the S&P 500 Index, which returned 14.9% during the same period [2]. - Year-to-date, CAT shares are up 30%, compared to a mere 1.9% gain for the S&P 500 [2]. - CAT has also outperformed the State Street Industrial Select Sector SPDR ETF (XLI), which returned 26% over the past 52 weeks [3]. Group 3: Financial Performance - In Q4 2025, Caterpillar reported an adjusted EPS of $5.16 and revenue of $19.13 billion, both exceeding expectations, with strong demand in the power and energy segment driving over 20% sales growth [6]. - For the fiscal year ending December 2026, analysts project CAT's adjusted EPS to rise 18.6% year-over-year to $22.60 [7]. Group 4: Analyst Ratings and Price Targets - Among 24 analysts covering CAT stock, the consensus rating is a "Moderate Buy," consisting of 13 "Strong Buy" ratings, 10 "Holds," and one "Moderate Sell" [7]. - B of A Securities analyst Michael Feniger maintained a "Buy" rating on CAT and raised the price target from $708 to $735, with the stock currently trading above the mean price target of $688.59 [8]. - The highest price target of $850 suggests a potential upside of 14.5% from current levels [8].