Caterpillar keeps dividend unchanged. A record backlog and renewed earnings growth reinforce confidence in its cash flow strength and an imminent hike.
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Caterpillar (NYSE: CAT | CAT Price Prediction) is the world's largest manufacturer of construction and mining equipment, with growing exposure to data center power generation through its large reciprocating engines.
Caterpillar (CAT) closed at $787.44 in the latest trading session, marking a +2.05% move from the prior day.
Caterpillar (CAT) is rated a buy, supported by strong backlog, secular AI-driven power demand, and cyclical recovery in construction and mining. CAT's revenue growth is underpinned by a $51bn backlog, dealer inventory normalization, robust infrastructure demand, and rising commodity prices. Margins are set to benefit from operating leverage, 2% price realization in 2026, contractual price escalators, and ongoing supply chain optimizations.
Caterpillar is undergoing a structural transformation, driven by surging power and energy demand from AI data centers, not traditional cyclical markets. I rate CAT a Strong Buy with an $880 price target (~14% upside), anchored by a $51B backlog, record earnings, and robust revenue visibility. The Power & Energy division delivered 23% YoY growth in Q4 2025, with power generation sales up 44% and segment margins leading at 19.6%.
CAT breaks above its 50-day SMA as record revenues, rising estimates and strong backlog fuel optimism despite tariff-driven margin pressure.
Here is how Caterpillar (CAT) and Gorman-Rupp (GRC) have performed compared to their sector so far this year.
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 $667.43, signifying a -4.02% move from its prior day's close.
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CAT faces rising tariff costs, squeezing margins as operating margins decline and further pressure looms into 2026.