Caterpillar Inc. (NYSE:CAT) is included among the 13 Best Long-Term Dividend Stocks to Invest in Right Now. Wells Fargo Turns More Bullish on Caterpillar (CAT) Amid Improving Industrial and Data Center Trends On February 25, Wells Fargo raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $870 from $756. It reiterated an Overweight rating on the shares. The firm increased its private non-residential construction forecasts by about 3% for 2026 and 2027. Its analysis points to improving condit ...

In this article, we will take a look at the 13 Best Long-Term Dividend Stocks to Invest in Right Now.According to a recent report by WisdomTree, dividend growth is not a one-size-fits-all concept. Differences in sector exposure, profitability, and earnings growth expectations play a major role in shaping long-term results. In stable markets, these differences may seem less noticeable. During periods of volatility, their impact becomes much more visible.Investors who worry about valuation risk often focus on ...

Fourth Quarter 2025 Earnings Teleconference February 5th, 2026 CONTENTS 2025 Summary Q4 2025 Summary 2026 Guidance Q4 2025 Supplemental Information Appendix 2 Disclosure Regarding Forward-Looking Statements Information provided in this presentation that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on st ...

Core Insights - Caterpillar reported record fourth-quarter sales of $19.1 billion, an 18% increase year-over-year, driven by higher-than-expected volume in Power and Energy [1][4] - The company's backlog reached a record $51 billion, up $21 billion or 71% from the previous year, attributed to robust ordering across all primary segments [2][6] - Full-year sales and revenues for 2025 were $67.6 billion, the highest in company history, with an adjusted operating profit margin of 17.2% and adjusted profit per share of $19.06 [3][6] Financial Performance - Fourth-quarter sales in Power and Energy surged 23% to $9.4 billion, with segment profit increasing by 25% [4][20] - Construction Industries saw a 15% rise in sales to $6.9 billion, but segment profit decreased by 12% to $1.0 billion due to tariff impacts [9][20] - Resource Industries reported a 13% increase in sales to $3.4 billion, while segment profit fell 24% to $360 million, impacted by tariffs [20] Tariff Impact - The company faced $1.7 billion in net tariff headwinds in 2025, with expectations of $2.6 billion in incremental tariff costs for 2026 [5][13] - Tariffs significantly affected margins, with the construction segment's margin declining by 470 basis points due to tariff-driven manufacturing costs [8][9] - Management anticipates that excluding tariffs, adjusted operating margins could be in the top half of the target range, but will remain near the bottom including tariff impacts [15] Future Outlook - For 2026, Caterpillar expects sales growth to align with its long-term target of 5%-7%, supported by a strong backlog and healthy end markets [12] - The company plans capital expenditures of around $3.5 billion, primarily for capacity expansion, and anticipates slightly lower free cash flow compared to 2025 [16] - A significant new order for 2 GW of generator sets for a data center is expected to contribute to future growth, with deliveries starting in late 2026 [18][19]

Core Insights - Caterpillar Inc. reported strong financial results for the fourth quarter and full year, with earnings per share of $5.16, surpassing estimates of $4.67, and full-year revenues reaching a record $67.6 billion [1][2][6] Financial Performance - The company achieved fourth-quarter sales of $19.13 billion, an 18% increase from $16.2 billion in the same quarter of 2024 [2] - For the entire year, the profit per share was $18.81, with an adjusted profit per share of $19.06 [3] Market Demand - Increased sales were driven by strong demand for power and energy solutions, particularly for data centers [2][3][6] Financial Metrics - Caterpillar's price-to-earnings (P/E) ratio is approximately 32.54, and the price-to-sales ratio stands at about 4.66 [4] - The enterprise value to sales ratio is around 5.19, indicating the company's total valuation relative to its sales [4] Cash Flow and Capital Management - The company ended 2025 with an enterprise operating cash flow of $11.7 billion and $10 billion in enterprise cash [5] - Caterpillar deployed $7.9 billion for share repurchases and dividends throughout the year [5] Financial Health - The debt-to-equity ratio is approximately 2.01, indicating financial leverage, while the current ratio is around 1.38, suggesting the ability to cover short-term liabilities with short-term assets [5]

Group 1: Stocks Added to Zacks Rank 1 (Strong Buy) List - Baytex Energy (BTE) has seen a 33.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - BHP Group Limited (BHP) has experienced a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Samsara Inc. (IOT) has had an 8.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Gitlab (GTLB) has seen a 7.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Cummins (CMI) has experienced a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Company Overview - Cummins Inc. is based in Columbus, Indiana, and specializes in designing, manufacturing, distributing, and servicing diesel and natural gas engines, electric and hybrid powertrains, and related components globally [1] - The company has a market capitalization of $69.2 billion, positioning it as a large-cap stock within the specialty industrial machinery industry [2] Market Position and Performance - CMI is recognized for its quality and reliability, supported by a service network of over 19,000 dealers across 190 countries, enhancing its reputation among original equipment manufacturers (OEMs) [2] - CMI shares reached a 52-week high of $508.37 recently, with a stock price increase of 29.5% over the past three months, significantly outperforming the Industrial Select Sector SPDR Fund (XLI), which gained only 2.9% in the same period [3] Long-term Stock Trends - Over a six-month period, CMI shares rose by 56.5%, and over the past 52 weeks, they increased by 35.2%, again outperforming XLI's six-month gains of 7.3% and 8.6% over the last year [4] - The stock has consistently traded above its 50-day moving average since mid-May and above its 200-day moving average since early July, indicating a bullish trend [4] Recent Financial Results - In Q3, CMI reported earnings per share (EPS) of $3.86, which is a 34.1% decrease year over year, while revenue reached $8.3 billion, exceeding Wall Street's forecast of $8.1 billion [6] - The company's strong performance is attributed to high demand for Power Systems and Distribution, particularly in data centers and generators, along with effective cost management strategies [5]

Core Insights - Caterpillar Inc. is a leading manufacturer in the construction and mining equipment sector, with a market capitalization of $265.2 billion, indicating its significant influence in infrastructure, mining, energy, and transportation projects globally [1][2] Company Performance - Caterpillar's stock is currently trading 4.8% below its 52-week high of $596.21, reached on October 29, and has seen a rally of 31.9% over the past three months, outperforming the Industrial Select Sector SPDR Fund (XLI) [3] - Year-to-date, Caterpillar shares have increased by 57.3%, significantly higher than XLI's 15.5% rise, and over the past 52 weeks, the stock has soared 39.9%, compared to XLI's 5.9% increase [4] - Following the release of impressive Q3 earnings, Caterpillar's shares rose by 11.6%. The company reported a 9.5% year-over-year revenue increase to $17.6 billion, exceeding consensus estimates by 5.3% [5] Competitive Position - Caterpillar has outperformed its main competitor, Deere & Company, which gained 4% over the past 52 weeks and 13.2% year-to-date. Analysts maintain a moderately optimistic outlook for Caterpillar, with a consensus rating of "Moderate Buy" from 23 analysts [6]

Core Viewpoint - Caterpillar Inc. is considered one of the most profitable manufacturing stocks currently available for investment, with RBC Capital Markets initiating coverage and setting a price target of $560, indicating a balanced outlook amid mid-cycle momentum [1][3]. Company Overview - Caterpillar Inc. is a global leader in heavy equipment manufacturing, producing machinery for construction and mining, as well as diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives [3]. - The company's core revenue streams are closely linked to infrastructure, energy, and commodity cycles, positioning it centrally within global industrial capital expenditure trends [3]. Market Sentiment - RBC Capital Markets notes that while Caterpillar's business remains healthy, current market expectations reflect the company's fundamentals, suggesting limited potential for outperformance unless new catalysts emerge [2]. - The broader market consensus indicates solid demand in construction and mining sectors, but growth expectations are already factored into the company's valuation, implying that investors may need to wait for new growth drivers [2].

Company Overview - Cummins Inc. designs and manufactures diesel and natural gas engines, electric power systems, and related parts and services [1] - The company operates in approximately 200 countries and has five reportable segments [1] Educational Background of Analyst - The analyst holds a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting [1] - The analyst has over 10 years of experience in the investment arena, starting as an analyst and advancing to a management role [1] Investment Focus - Dividend investing is highlighted as a personal hobby of the analyst, indicating a focus on income-generating investments [1]