Hedge Funds Are Buying Power From Caterpillar, (CAT) Says Jim Cramer

Company Overview - Caterpillar Inc. (NYSE:CAT) is a manufacturer of agricultural and construction machinery [2] - The company has seen its shares increase by 123% over the past year and by 26% year-to-date [2] Financial Performance - Caterpillar reported $67.6 billion in revenue for 2025, marking a 4% growth and setting a new record [2] - The Power & Energy unit generated $9.4 billion in revenue, achieving a 23% annual growth [2] Market Sentiment and Analyst Ratings - Following the earnings report, Bank of America raised the price target for Caterpillar shares to $825 from $735, maintaining a Buy rating [2] - Demand for Caterpillar's turbines is extending beyond traditional data center sectors, indicating strong market interest [2] Hedge Fund Activity - Hedge funds are actively purchasing power products from Caterpillar, contributing to the company's strong quarterly performance [3] - The demand for power generation products is noted to be surprisingly robust, which is seen as a key driver for the company's growth [2][3]