Caterpillar (NYSE:CAT) Raised to Strong-Buy at Zacks Research

Caterpillar (NYSE:CAT) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other analysts also recently weighed in on the stock. UBS Group boosted their target price on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Wells Fargo & Company raised their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a report on Tuesday, June 23rd. Barclays lifted their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. Evercore reissued an “outperform” rating and issued a $1,103.00 target price on shares of Caterpillar in a research report on Monday, May 11th. Finally, Citigroup raised their target price on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar Trading Up 0.0%

Caterpillar stock opened at $855.97 on Wednesday. The stock has a 50-day moving average of $916.05 and a two-hundred day moving average of $826.31. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar has a one year low of $405.46 and a one year high of $1,073.46. The stock has a market cap of $393.46 billion, a PE ratio of 36.83, a price-to-earnings-growth ratio of 1.53 and a beta of 1.60.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the firm earned $4.72 earnings per share. The company’s revenue was up 23.7% on a year-over-year basis. On average, research analysts anticipate that Caterpillar will post 26.56 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CAT. Lam Group Inc. acquired a new stake in Caterpillar during the 1st quarter worth about $26,000. Torren Management LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at about $27,000. Frazier Financial Advisors LLC boosted its stake in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after buying an additional 33 shares during the last quarter. Decker Retirement Planning Inc. grew its holdings in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 22 shares during the period. Finally, Cornerstone Financial Management LLC acquired a new stake in Caterpillar during the fourth quarter worth about $32,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar ended the second quarter with a record $72 billion backlog, signaling sustained demand for heavy equipment and supporting management’s upgraded 2026 sales outlook. Strength across construction, mining and energy-related businesses reinforces the company’s growth prospects. CAT Ends Q2 With Record Backlog: Is Demand Momentum Here to Stay?
• Positive Sentiment: Recent coverage highlighted Caterpillar’s record quarterly sales of approximately $20.5 billion, stronger operating profit and improved margins. These results add to the bullish case following the company’s recent earnings beat and year-over-year revenue growth. Caterpillar Marks Record Quarter with $20.5B in Sales and Revenues
• Positive Sentiment: Zacks included CAT among momentum stocks that could outperform in 2026, reflecting strong recent business performance and investor interest. Western Digital & 2 Momentum Stocks That Could Soar in 2026
• Neutral Sentiment: Analyst coverage continues to assess whether Wall Street favors Caterpillar, while Erste Group issued a fiscal 2026 earnings forecast. These reports may influence expectations, but the provided articles do not specify a broad consensus change or price-target revision. Do Wall Street analysts like Caterpillar stock?
• Negative Sentiment: Analysts noted that Caterpillar’s strong backlog, sales growth and raised outlook are already reflected in a premium valuation. That raises the risk of volatility if orders slow, margins disappoint or future results fail to exceed elevated expectations. The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and Astec Industries

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.