Caterpillar (NYSE:CAT) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Caterpillar from “hold” to “strong-buy,” and also lifted its earnings forecasts for 2026 through 2028, signaling a more bullish outlook on the stock.
• Wall Street sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $933.27, while several firms recently raised their targets as high as $1,043.
• Caterpillar’s latest quarterly results beat expectations, with earnings of $5.54 per share and revenue of $17.42 billion, both above analyst estimates, and revenue rose 22.2% year over year.

Caterpillar (NYSE:CAT - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released 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 brokerages also recently issued reports on CAT. Argus upped their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Williams Trading set a $825.00 price objective on Caterpillar in a research report on Tuesday, March 10th. Morgan Stanley set a $915.00 target price on Caterpillar and gave the company an "equal weight" rating in a research note on Friday, May 1st. Barclays raised their price target on Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Finally, Truist Financial set a $1,043.00 price objective on Caterpillar in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $933.27.

Caterpillar Stock Down 0.0%

Caterpillar stock opened at $915.29 on Monday. The stock's 50 day moving average price is $840.65 and its 200 day moving average price is $720.71. Caterpillar has a 1-year low of $355.70 and a 1-year high of $946.83. The company has a market cap 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. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The business had revenue of $17.42 billion for the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company's revenue was up 22.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.25 EPS. On average, sell-side analysts predict that Caterpillar will post 24.68 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction dated Wednesday, May 6th. The shares were 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 of the company's stock, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total value of $326,160.00. Following the completion of the transaction, the chief accounting officer owned 530 shares of the company's stock, valued at approximately $480,180. The trade was a 40.45% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 95,773 shares of company stock worth $87,642,635. Insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

A number of institutional investors and hedge funds have recently made changes to their positions in CAT. Vanguard Group Inc. grew its holdings in Caterpillar by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock worth $26,572,681,000 after buying an additional 442,164 shares in the last quarter. State Street Corp boosted its position in Caterpillar by 1.1% during the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after acquiring an additional 385,204 shares during the period. Geode Capital Management LLC grew its stake in shares of Caterpillar by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock worth $6,072,572,000 after purchasing an additional 94,524 shares in the last quarter. Fisher Asset Management LLC increased its holdings in shares of Caterpillar by 0.6% during the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after purchasing an additional 54,069 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after purchasing an additional 928,974 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

More 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

Caterpillar Company Profile

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.

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