Key Points Caterpillar beat expectations in the third quarter, and its backlog soared to record levels. Strong results overshadowed the high cost of tariffs. After a big gain in 2025, Caterpillar stock looks expensive. 10 stocks we like better than Caterpillar › Heavy equipment manufacturer Caterpillar (NYSE: CAT) reported solid third-quarter results on Oct. 29, beating analyst estimates across the board and triggering a rally for the stock. Image source: Getty Images. Revenue rose 10% year ove ...

Core Insights - Caterpillar's stock surged approximately 12-14% following the release of third-quarter earnings that significantly exceeded Wall Street expectations [1] Financial Performance - The heavy equipment manufacturer reported third-quarter earnings that "crushed" Wall Street expectations, indicating strong financial performance [1]

BREAKING: Futures Rise After Volatile, Mixed Market Session The Dow Jones Industrial Average outperformed the Nasdaq and S&P 500 Tuesday, and that was in no small part because of Caterpillar (CAT). The heavy-equipment maker was the best-performing stock in the Dow following another round of positive comments from analysts. JPMorgan analyst Tami Zakaria on Tuesday raised her price target to 650 from 505 and kept an overweight rating… Related news IBD Videos Get market updates, educational videos, webinars, a ...

Core Insights - Caterpillar Inc. (NYSE:CAT) is recognized as one of the 11 Best Value Dividend Stocks to buy currently [1] - The company is a global leader in manufacturing heavy equipment, including machinery for construction and mining, as well as engines and turbines [2] Business Expansion - Over time, Caterpillar has diversified its business by licensing its brand for apparel and footwear and providing financing solutions through Cat Financial [3] - The company is focusing on expanding its services segment to stabilize its cyclical sales, aiming for more consistent and recurring revenue [3] Dividend Policy - Caterpillar currently offers a quarterly dividend of $1.51 per share, which was increased by 7.1% in June, marking the 31st consecutive year of dividend growth [4] - As of September 26, the stock has a dividend yield of 1.30% [4]

Group 1 - Caterpillar reported a 21% decline in profits for the second quarter due to unfavorable manufacturing costs from higher tariffs [2] - The stock has gained 7.8% over a six-day winning streak, increasing the company's market capitalization by approximately $16 billion to around $212 billion [2] - Year-to-date return for Caterpillar is 25.7%, significantly outperforming the S&P 500's 12.2% return [3] Group 2 - Favorable market conditions, such as the Federal Reserve's interest rate cut, have positively impacted demand for Caterpillar's equipment [4] - Strong company fundamentals are indicated by robust demand and a substantial backlog of orders, suggesting strong business momentum [4] - Positive technical momentum is observed as the stock reaches new all-time highs, encouraging further investment [4] Group 3 - A series of winning days may indicate increasing investor trust or stimulate additional buying, which can be monitored for strategic entry points [5] - There are currently 33 S&P constituents with three or more consecutive days of gains, indicating a broader market trend [6] - The Trefis High Quality Portfolio has consistently outperformed its benchmark, suggesting that a diversified approach may yield superior returns with less risk [6]

Group 1 - Caterpillar Inc. reported Q1 sales and revenue of approximately $14.2 billion, a year-over-year decline of about 10%, falling short of analyst expectations of $14.66 billion [1] - Adjusted earnings per share decreased to $4.25, below the analyst average estimate of $4.35 [1] - The decline in sales was primarily attributed to changes in dealer inventory levels [1] Group 2 - Caterpillar provided a performance outlook consistent with previous expectations, indicating that if tariffs persist and the economy enters a recession in the second half of the year, annual sales are expected to decline slightly but remain in line with prior forecasts [1][4] - The company anticipates an additional cost pressure of $250 million to $350 million related to tariffs in Q2 [4] - Despite a decline in quarterly sales across all business segments, the segment serving oil, gas, and marine customers saw a slight revenue increase due to pricing strategies, becoming the largest business segment for the company [4] Group 3 - The company highlighted the challenges posed by the uncertainty of U.S. trade restrictions under President Trump's tariff policies, complicating market demand predictions for the remainder of the year [3] - Caterpillar's performance is seen as a barometer of global economic health, with its equipment widely used across construction, mining, energy, and transportation sectors [1] - The slowdown in project initiation and cautious private sector investment due to high interest rates and inflation has begun to dampen the growth momentum previously supported by the $1 trillion infrastructure spending plan introduced by President Biden in 2021 [4]