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

Caterpillar (NYSE:CAT) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday,Zacks.com reports. Zacks Research also issued estimates for Caterpillar’s Q4 2026 earnings at $6.35 EPS, FY2026 earnings at $24.18 EPS, Q1 2027 earnings at $6.06 EPS, Q2 2027 earnings at $7.06 EPS, Q3 2027 earnings at $7.24 EPS, Q4 2027 earnings at $7.93 EPS, FY2027 earnings at $28.28 EPS, Q1 2028 earnings at $7.42 EPS and FY2028 earnings at $33.25 EPS.

Several other research analysts have also recently weighed in on the stock. DA Davidson upped their price target on shares of Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Morgan Stanley set a $915.00 price target on shares of Caterpillar and gave the company an “equal weight” rating in a report on Friday, May 1st. Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a report on Friday, May 1st. Barclays lifted their price objective on shares of Caterpillar from $700.00 to $800.00 and gave the company an “equal weight” rating in a report on Friday, May 1st. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Caterpillar has an average rating of “Moderate Buy” and an average price target of $933.27.

Caterpillar Stock Down 0.0%

Caterpillar stock opened at $915.29 on Monday. The stock has a market capitalization of $421.57 billion, a PE ratio of 45.56, a price-to-earnings-growth ratio of 1.81 and a beta of 1.59. Caterpillar has a twelve month low of $355.70 and a twelve month high of $946.83. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The company has a 50 day moving average of $840.65 and a 200-day moving average of $720.71.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating the consensus estimate of $4.65 by $0.89. The company had revenue of $17.42 billion during the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $4.25 earnings per share. On average, equities research analysts anticipate that Caterpillar will post 24.68 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the business’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares in the company, valued at approximately $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the transaction, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,773 shares of company stock valued at $87,642,635 in the last 90 days. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently added to or reduced their stakes in CAT. Lam Group Inc. acquired a new position in shares of Caterpillar in the first quarter valued at $26,000. Torren Management LLC acquired a new position in shares of Caterpillar in the fourth quarter valued at $27,000. Frazier Financial Advisors LLC increased its holdings 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 valued at $28,000 after purchasing an additional 33 shares during the last quarter. IFS Advisors LLC acquired a new position in shares of Caterpillar in the fourth quarter valued at $31,000. Finally, Rialto Wealth Management LLC increased its holdings in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock valued at $32,000 after purchasing an additional 18 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s Q1 2026 results showed sales up 22% on volume-driven recovery, with Construction and Power & Energy leading gains and signaling continued demand strength. CAT Volumes Gain Strength Across Segments in Q126: More Upside Ahead?
• Positive Sentiment: CAT was named to Zacks’ “Strong Buy” momentum list, reinforcing bullish sentiment around near-term trading momentum. Best Momentum Stocks to Buy for June 9th
• Positive Sentiment: Multiple pieces pointed to Caterpillar as a beneficiary of the AI data center buildout, where demand for power, cooling, and grid equipment could support additional growth. 5 Booming Industrial Stocks Set to Benefit More on AI Data Center Boom
• Positive Sentiment: Broker coverage remained favorable, with articles noting an above-average recommendation for Caterpillar that may help reinforce investor confidence. Brokers Suggest Investing in Caterpillar (CAT): Read This Before Placing a Bet
• Neutral Sentiment: Other coverage compared CAT’s year-to-date performance with peers and broader industrial stocks, but these pieces were mostly performance check-ins rather than new catalysts. Are Industrial Products Stocks Lagging Fanuc (FANUY) This Year?
• Negative Sentiment: The “government issues ‘do not touch’ warning over common caterpillar” article appears unrelated to Caterpillar Inc. and is unlikely to affect the stock directly. Government issues ‘do not touch’ warning over common caterpillar

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.