Caterpillar Hits 20-Day High on Strong Demand and Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy CAT?
Source: Fool
Caterpillar Inc's stock rose by 3.00%, reaching a 20-day high as strong demand and positive earnings results were reported.
Bank of America Securities analyst Michael Feniger maintained a Buy rating on Caterpillar, citing robust demand and earnings that surpassed expectations. Caterpillar's third-quarter results showed a 10% year-over-year sales increase to $17.64 billion, with adjusted earnings per share of $4.95.
This positive performance reflects Caterpillar's strong market position and potential for recovery in the machinery sector, especially as analysts favor it over competitors like Deere.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 774.200
Low
395.00
Averages
620.54
High
730.00
Current: 774.200
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Security Solution Innovation: Okta is leveraging AI to enhance its Identity Threat Protection capabilities, detecting behavioral shifts to prevent bot-driven fraud, and despite competition from Microsoft and CrowdStrike, its leadership in AI security continues to strengthen.
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- Caterpillar Market Position: As a leader in the construction industry with over 100 years of experience, Caterpillar is positioned in a multi-year megatrend, particularly benefiting from soaring demand in AI infrastructure, leading to a 35% stock increase year-to-date.
- Performance Growth and Returns: Caterpillar achieved an 18% year-over-year revenue growth in Q4 FY25, ending with a record backlog of $51 billion, while returning $7.9 billion to shareholders through buybacks and dividends, alongside a 7% dividend increase last year.
See More
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- Impact of Lack of Answers: The absence of clear answers contributed to volatility and uncertainty in market performance.
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- Impact of Tariff Protection: Tariffs have provided a cushion for U.S. producers, supporting margins and limiting cheaper imports; if rolled back, this cushion thins, potentially compressing profit margins.
- Potential Cost Relief Opportunity: While metal producers' stocks declined, this shift hints at potential benefits for automakers, machinery manufacturers, and construction firms, as lower steel and aluminum input costs could improve downstream margins.
- Significance of Policy Changes: Policy shifts can reshape entire sectors overnight, with tariffs having defined the earnings power of U.S. steel and aluminum companies in recent years, and any hint of reversal could introduce significant market volatility.
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