Caterpillar Inc's stock price fell by 5.01% today, hitting a 5-day low. This decline comes as the broader market also experienced downturns, with the Nasdaq-100 down 1.15% and the S&P 500 down 0.53%.
The drop in Caterpillar's stock is attributed to sector rotation, as investors are reacting to the overall market weakness. Despite the company's strong history of dividend increases and solid cash flow expectations, the current market conditions have led to a negative sentiment surrounding industrial stocks.
This movement may indicate a cautious approach from investors, as they reassess their positions in light of the recent market trends. The upcoming earnings report and the overall economic outlook will be critical in determining the stock's future performance.
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 648.410
Low
395.00
Averages
620.54
High
730.00
Current: 648.410
Low
395.00
Averages
620.54
High
730.00
Barclays
Equal Weight
maintain
$555 -> $610
2026-01-23
New
Reason
Barclays
Price Target
$555 -> $610
AI Analysis
2026-01-23
New
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Caterpillar to $610 from $555 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the machinery and construction group as part of a Q4 preview. Companies benefiting from interest rate cuts "still reign supreme," the analyst tells investors in a research note. Barclays anticipates "conservative" initial outlooks for 2026.
Wells Fargo
Overweight
maintain
$675 -> $702
2026-01-23
New
Reason
Wells Fargo
Price Target
$675 -> $702
2026-01-23
New
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Caterpillar to $702 from $675 and keeps an Overweight rating on the shares. The firm reiterates its positive outlook for the Machinery, Industrials & Environmental Services space heading into earnings. Wells argues the Machinery supply-driven recovery is broadening to new equipment, non-residential lead indicators are accelerating, and cash conversion is improving.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CAT
Unlock Now
Oppenheimer
Oppenheimer
Outperform
maintain
$645 -> $700
2026-01-20
New
Reason
Oppenheimer
Oppenheimer
Price Target
$645 -> $700
2026-01-20
New
maintain
Outperform
Reason
Oppenheimer raised the firm's price target on Caterpillar to $700 from $645 (CAT) and keeps an Outperform rating on the shares. The firm notes that the run-up to Q4 2025 earnings season has seen a flurry of macro factors impacting stocks in its Industrial Efficiency coverage, including rate cut dynamics, the Venezuela-U.S. military confrontation, and the Nvidia (NVDA) Vera Rubin platform launch. Investor sentiment has improved materially for short-cycle and equipment-focused names, while cooling on data center-exposed stocks. Many industrial verticals have stabilized, and rate cuts, lapping tariff headwinds, OBBBA benefits, and additional prospective measures ahead of midterms could lend to broader recovery; some of this optimism arguably reflects in recent market moves, Oppenheimer adds.
Bernstein
Market Perform
maintain
$557 -> $630
2025-12-19
Reason
Bernstein
Price Target
$557 -> $630
2025-12-19
maintain
Market Perform
Reason
Bernstein raised the firm's price target on Caterpillar to $630 from $557 and keeps a Market Perform rating on the shares. Discussing the sector, the firm notes that fundamentally speaking, 2025 was challenging with street estimates falling 5%-10% and core end markets going through a classic cyclical downturn. 2026 should be a recovery year driven by monetary and fiscal policy alignment, which restart positive estimate revisions - low-/mid-single digit upside, Bernstein argues.
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.
