Caterpillar (NYSE:CAT) Upgraded by Zacks Research to Strong-Buy Rating

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

CAT has been the topic of several other research reports. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. upped their price objective on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Daiwa Securities Group raised their target price on Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Oppenheimer reiterated an “outperform” rating and issued a $1,118.00 price target on shares of Caterpillar in a research report on Tuesday, August 4th. Finally, Royal Bank Of Canada upped their price target on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar Stock Performance

Shares of CAT opened at $855.97 on Wednesday. The firm has a market capitalization of $393.46 billion, a PE ratio of 36.83, a P/E/G ratio of 1.53 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a 50-day moving average price of $916.05 and a 200 day moving average price of $826.31. Caterpillar has a 52-week low of $405.46 and a 52-week high of $1,073.46.

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

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently bought and sold shares of the stock. L2 Asset Management LLC acquired a new stake in shares of Caterpillar during the second quarter valued at approximately $3,398,000. Vega Investment Solutions acquired a new position in Caterpillar in the 2nd quarter worth approximately $2,759,000. McDonough Capital Management Inc purchased a new position in Caterpillar during the 2nd quarter worth approximately $330,000. Cetera Trust Company N.A acquired a new stake in Caterpillar during the 2nd quarter valued at $382,000. Finally, Aberdeen Wealth Management LLC purchased a new stake in shares of Caterpillar in the second quarter valued at $1,566,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

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.