Caterpillar (NYSE:CAT) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a strong-buy rating in a research report report published on Wednesday,Zacks.com reports.

Several other research firms have also commented on CAT. Argus increased their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. UBS Group upped their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Royal Bank Of Canada lifted their price target on Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Evercore reaffirmed an “outperform” rating and set a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Finally, Erste Group Bank lowered Caterpillar from a “buy” rating to a “hold” rating in a research note on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar Stock Performance

Shares of CAT stock opened at $855.97 on Wednesday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. Caterpillar has a 12 month low of $405.46 and a 12 month high of $1,073.46. The firm has a market capitalization of $393.46 billion, a PE ratio of 36.83, a price-to-earnings-growth ratio of 1.53 and a beta of 1.60. The firm has a fifty day simple moving average of $916.05 and a two-hundred day simple moving average of $826.31.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter last year, the firm earned $4.72 EPS. Analysts forecast that Caterpillar will post 26.56 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a dividend of $1.63 per share. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is currently 28.06%.

Institutional Investors Weigh In On Caterpillar

Several institutional investors and hedge funds have recently bought and sold shares of CAT. L2 Asset Management LLC purchased a new stake in Caterpillar in the second quarter worth $3,398,000. Vega Investment Solutions bought a new stake in Caterpillar during the second quarter worth about $2,759,000. McDonough Capital Management Inc bought a new position in Caterpillar during the 2nd quarter valued at approximately $330,000. Cetera Trust Company N.A bought a new position in Caterpillar in the 2nd quarter worth about $382,000. Finally, Aberdeen Wealth Management LLC purchased a new position in Caterpillar in the second quarter worth about $1,566,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar ended the second quarter with a record $72 billion backlog, signaling sustained demand for heavy equipment and supporting management’s upgraded 2026 sales outlook. Strength across construction, mining and energy-related businesses reinforces the company’s growth prospects. CAT Ends Q2 With Record Backlog: Is Demand Momentum Here to Stay?
• Positive Sentiment: Recent coverage highlighted Caterpillar’s record quarterly sales of approximately $20.5 billion, stronger operating profit and improved margins. These results add to the bullish case following the company’s recent earnings beat and year-over-year revenue growth. Caterpillar Marks Record Quarter with $20.5B in Sales and Revenues
• Positive Sentiment: Zacks included CAT among momentum stocks that could outperform in 2026, reflecting strong recent business performance and investor interest. Western Digital & 2 Momentum Stocks That Could Soar in 2026
• Neutral Sentiment: Analyst coverage continues to assess whether Wall Street favors Caterpillar, while Erste Group issued a fiscal 2026 earnings forecast. These reports may influence expectations, but the provided articles do not specify a broad consensus change or price-target revision. Do Wall Street analysts like Caterpillar stock?
• Negative Sentiment: Analysts noted that Caterpillar’s strong backlog, sales growth and raised outlook are already reflected in a premium valuation. That raises the risk of volatility if orders slow, margins disappoint or future results fail to exceed elevated expectations. The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and Astec Industries

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.