Caterpillar outpaces peers with a dividend hike, strong ROE and rising demand from AI, data centers and clean energy.
Two leaders in the industrials sector just significantly increased their dividends, while another behemoth is very likely gearing up to do the same. The industrial sector has been resilient so far in 2025, even as the returns of the general market have been disappointing.
The latest trading day saw Caterpillar (CAT) settling at $366.23, representing a +1.58% change from its previous close.
CAT leans on its Energy & Transportation segment, now 47% of sales, to offset pressure in the construction and mining units.
I reiterate my buy rating on Caterpillar, citing its recent dividend hike and resilient shareholder-friendly actions amid macro uncertainty. Despite weak Q1 results and EPS downgrades, CAT's robust profitability, strong free cash flow, and reasonable valuation support a positive long-term outlook. Key risks include tariff headwinds, global macroeconomic weakness, and China exposure, but CAT's balance sheet and GARP profile remain attractive.
Recently, Zacks.com users have been paying close attention to Caterpillar (CAT). This makes it worthwhile to examine what the stock has in store.
Caterpillar (CAT) concluded the recent trading session at $357.68, signifying a -1.31% move from its prior day's close.
Caterpillar lifts its quarterly dividend by 7% to $1.51, marking 31 straight years of hikes despite recent revenue softness.
CAT and VLVLY face near-term headwinds, but Caterpillar's stronger ROE and U.S. tailwinds may give it an edge.
In the latest trading session, Caterpillar (CAT) closed at $363.14, marking a +1.27% move from the previous day.
Steve Weiss, founder and managing partner of Short Hills Capital Partners, joins CNBC's “Halftime Report” to detail his latest buys.
There are times in the economic cycle when a particular group of stocks makes more sense than others, and today's market presents investors with one extreme in the economic cycle and the capital and sentiment cycle. Every player in the stock market's game seems crowded in one area, and that is the exciting technology sector, leaving behind some of the better (if not best) risk-to-reward ratios in other industries.