Quick Read – CAT has surged roughly 167% over one year but trades at 36x forward earnings with consensus implying just 1% upside, making it a Hold. – CEO Joe Creed plans to triple engine capacity to 15 gigawatts as a record $63B backlog, up 79% year over year, fuels the AI data…
nter bull case. – Tariff costs guided at $2.4B and a 39% Resource Industries profit drop squeeze margins while three Group Presidents sold large share blocks near $927 in May. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Caterpillar didn’t make the cut. Grab the names FREE today
Caterpillar (NYSE:CAT) at $909.81 is a hold. The stock sits within striking distance of its $931.35 52-week high after a historic run, mixing a real AI-driven growth story with stretched valuation and visible insider selling. Caterpillar is the world’s largest maker of construction and mining equipment, with a fast-growing Power & Energy arm that sells large reciprocating engines and turbines powering AI data centers.
Power Generation revenue rose 41% year over year in Q1 2026 to $2.817 billion, and management is racing to expand capacity. CAT is up 59.5% year to date and 166.83% over one year, compressing the margin of safety and putting the entry decision under scrutiny. The Bull Case: Data Center Power With Record Backlog Q1 2026 showed clean acceleration.