Caterpillar (NYSE:CAT) Stock Rating Cut to “Hold” at Zacks Research

Zacks Research cut shares of Caterpillar (NYSE:CAT) from a strong-buy rating to a hold rating in a report issued on Monday morning,Zacks reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.78 EPS, Q4 2026 earnings at $6.88 EPS, FY2026 earnings at $27.36 EPS, Q1 2027 earnings at $6.48 EPS, Q2 2027 earnings at $8.52 EPS, Q3 2027 earnings at $8.40 EPS, Q4 2027 earnings at $9.04 EPS, FY2027 earnings at $32.44 EPS and Q3 2028 earnings at $10.16 EPS.

Other equities analysts also recently issued research reports about the stock. President Capital assumed coverage on shares of Caterpillar in a research note on Friday, September 18th. They issued a “buy” rating and a $999.00 price target for the company. Robert W. Baird set a $970.00 price objective on shares of Caterpillar in a research report on Wednesday, August 5th. DA Davidson lifted their price objective on shares of Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Wells Fargo & Company boosted their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings lowered Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, September 29th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and an average target price of $989.17.

Caterpillar Stock Performance

NYSE CAT opened at $864.04 on Monday. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The company has a market cap of $397.18 billion, a P/E ratio of 37.18, a P/E/G ratio of 1.47 and a beta of 1.58. The stock has a 50-day moving average of $822.22 and a two-hundred day moving average of $852.27. Caterpillar has a 1-year low of $483.55 and a 1-year high of $1,073.46.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter last year, the firm posted $4.72 earnings per share. As a group, analysts anticipate that Caterpillar will post 27.42 EPS for the current year.

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CAT. Lam Group Inc. purchased a new position in shares of Caterpillar during the first quarter worth approximately $26,000. Decker Retirement Planning Inc. boosted its stake in shares of 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 buying an additional 22 shares during the period. Cornerstone Financial Management LLC purchased a new position in shares of Caterpillar during the fourth quarter worth about $32,000. Matrix Trust Co raised its stake in Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after acquiring an additional 15 shares during the last quarter. Finally, Monetary Solutions Ltd acquired a new position in shares of Caterpillar in the fourth quarter valued at approximately $35,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised EPS estimates across multiple periods, including Q3 2026 to $6.78 from $6.57, FY2026 to $27.36 from $27.01, FY2027 to $32.44 from $31.43, and Q3 2028 to $10.16 from $9.48. The firm maintains a “Strong-Buy” rating, signaling improving expectations for Caterpillar’s earnings trajectory.
• Positive Sentiment: Several market commentaries identify data-center power and infrastructure demand as a growth catalyst for Caterpillar. AI-related construction and electricity requirements could increase demand for the company’s power-generation equipment and support a potential rebound after its recent underperformance. Buy Q3 AI Data Center Laggards CAT, GLW, JBL for a Rebound in Q4
• Positive Sentiment: Jim Cramer described Caterpillar’s pullback as a possible buying opportunity and highlighted the company’s expanding role in supplying power for data centers. His comments may improve retail-investor sentiment, although they are opinion-based rather than a fundamental forecast. Jim Cramer Sees a Possible Buying Opportunity in Caterpillar
• Positive Sentiment: A Seeking Alpha contributor upgraded Caterpillar to “Buy” ahead of earnings, adding another constructive analyst view before the next major catalyst. Caterpillar: Upgrading To Buy Ahead Of Earnings
• Negative Sentiment: Other analysis cautions that the data-center opportunity may already be priced into Caterpillar shares. With the stock trading at a premium valuation, execution risks or weaker-than-expected guidance could limit further gains. Caterpillar: Data Center Tailwinds Are Real, But The Valuation Is Too Steep For Me

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.