CAT Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Caterpillar Inc (CAT) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock demonstrates strong industry recovery, positive congressional sentiment, and robust analyst ratings, despite some short-term financial pressures. Given the investor's preference for long-term growth, the current price level and positive catalysts make this a solid entry point.
The technical indicators show a bullish trend. The MACD is above 0 and positively contracting, indicating upward momentum. The RSI is neutral at 72.204, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key resistance levels are at 772.171 and 805.093, while support levels are at 665.593 and 632.671.
Strong industry recovery with Caterpillar outperforming the S&P 500 in
Power Generation segment grew 44% in Q4, driving market confidence.
Congress members made 4 purchase transactions in the last 90 days, indicating positive sentiment.
Analysts have raised price targets significantly, with several maintaining Buy or Outperform ratings.
Insider selling has increased by 570.12% over the last month.
Financial performance in Q4 2025 showed a decline in net income (-13.94% YoY), EPS (-11.42% YoY), and gross margin (-16.55% YoY), despite revenue growth.
In Q4 2025, revenue increased by 18.00% YoY to $19.13 billion, but net income dropped by 13.94% YoY to $2.40 billion. EPS fell by 11.42% YoY to $5.12, and gross margin declined by 16.55% YoY to 30.45%. While revenue growth is strong, profitability metrics are under pressure.
Analysts are generally bullish on Caterpillar, with multiple firms raising price targets significantly. The highest price target is $825 (BofA), and the lowest is $425 (Morgan Stanley). Most analysts maintain Buy or Outperform ratings, citing strong demand, a massive backlog, and growth in key segments like Power Generation.
