Caterpillar Inc. manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools. The company's Resource Industries segment provides electric rope and hydraulic shovels, draglines, rotary drills, hard rock vehicles, tractors, mining trucks, wheel loaders, off-highway and articulated trucks, wheel tractor scrapers and dozers, fleet management products, landfill and soil compactors, machinery components, autonomous ready vehicles and solutions, work tools, and safety services and mining performance solutions, as well as related parts and services. Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines, drivetrain, and integrated systems and solutions; turbines, centrifugal gas compressors, and related services; and diesel-electric locomotives and components, and other rail-related products. The company's Financial Products segment provides operating and finance leases, installment sale contracts, revolving charge accounts, repair/rebuild financing services, working capital loans, and wholesale financing; and insurance and risk management products and services. Its All Other Operating segment offers filters and fluids, undercarriage, ground engaging tools, fluid transfer products, precision seals, and rubber sealing and connecting components; parts distribution; logistics solutions and distribution services; brand management and marketing strategy services; and digital investments services. Caterpillar Inc. was founded in 1925 and is headquartered in Irving, Texas.

У Caterpillar сильная прибыльность сочетается с заметно завышенной оценкой, и именно это задаёт осторожный тон для целевой цены. P/E, P/S, P/B и P/FCF существенно выше медианы отрасли, что означает, что рынок уже закладывает в цену очень высокий уровень качества и ожиданий. При этом по годам мультипликаторы в целом росли, особенно P/B и P/FCF, а это обычно говорит не о недооценке, а о расширении премии к фундаменталу. С другой стороны, рентабельность остаётся высокой: ROE, ROA, ROI и маржа прибыли значительно выше отраслевых ориентиров, что подтверждает сильную операционную модель и способность генерировать прибыль на капитал. Однако динамика эффективности за последние годы ухудшается: ROE, ROA, ROI, операционная и чистая маржа постепенно снижаются, то есть текущая прибыльность всё ещё сильна, но тренд уже не улучшается. Выручка и абсолютная прибыль остаются крупными и в целом растут по сравнению с более ранними периодами, что поддерживает инвестиционный кейс, но не снимает вопроса о цене. Ликвидность выглядит приемлемой, но не идеальной: current ratio и quick ratio ниже отраслевых ориентиров, поэтому запас прочности по оборотному капиталу ограничен. Долговая нагрузка повышенная, debt/equity и долгосрочный долг выше медианы, а это добавляет чувствительности к циклу и стоимости финансирования. Балансовая стоимость и собственный капитал растут, что позитивно, но на фоне очень высокого P/B это не выглядит достаточным аргументом для агрессивной переоценки вверх. Дивидендная доходность снижается, что убирает часть поддержки для акционера, ориентированного на доход. В сумме фундаментал у компании качественный, но уже дорогой, поэтому более реалистичным выглядит умеренно более осторожный взгляд на годовую цель, чем на текущий оперативный прогноз. Для инвестора это история не про глубокую недооценку, а про сильный бизнес с ограниченным апсайдом из-за высокой базы оценки и признаков замедления качества тренда.

Caterpillar, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, значительно упал. Рынок на стороне медведей.

Weak index, significantly down. The market is on the bears' side.

Слабый индекс, незначительно упал

Слабый индекс, незначительно вырос. Приток средств в шорты остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into shorts remains at a low level.

CAT остаётся прибыльной и качественной компанией, но высокая оценка, рост мультипликаторов и ослабление маржинальности ограничивают потенциал переоценки.

The Board of Directors of Caterpillar voted today to raise the quarterly dividend by 12 cents, an eight percent increase, to one dollar and sixty-three cents per share of common stock payable Aug. 19, 2026, to shareholders of record at the close of business July 20, 2026. Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933. Caterpillar has paid higher annual dividends to shareholders for 32 consecutive years and is recognized as a member of the S&P 500 Dividend Aristocrats Index.
Microsoft on Wednesday announced that its board of directors declared a quarterly dividend of $0.91 per share. The dividend is payable Sept. 10, 2026, to shareholders of record on Aug. 20, 2026. The ex-dividend date will be Aug. 20, 2026.
Flexsteel Industries announced its Board of Directors declared a quarterly dividend of $0.25 per share, payable July 6, 2026, to shareholders of record as of June 24, 2026. The $0.25 per share quarterly dividend is an increase of 25% from the previous quarterly dividend. Flexsteel has paid cash dividends on its common stock each year since 1938. This is the 338th consecutive quarterly cash dividend.
The Board of Directors of Philip Morris International today declared a regular quarterly dividend of $1.47 per common share, payable on July 20, 2026, to shareholders of record as of June 25, 2026. The ex-dividend date is June 25, 2026.
The board of directors of Target has declared a quarterly dividend of $1.16 per common share, a 1.8% increase from the prior quarterly dividend of $1.14. The dividend is payable September 1, 2026 to shareholders of record at the close of business August 12, 2026. The 3rd quarter dividend will be the company's 236th consecutive dividend paid since October 1967 when the company became publicly held. With the increase announced today, 2026 is on track to be the 55th consecutive year in which Target has increased its annual dividend.
VIDEO: Daily Dividend Report: CAT,MSFT,FLXS,PM,TGT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: CAT,MSFT,FLXS,PM,TGT

Caterpillar CAT continues to reinforce its reputation as a reliable income-generating industrial stock with the announcement of an 8% increase in its quarterly dividend to $1.63 per share. The latest hike reflects management’s confidence in its cash-generating capabilities and long-term growth prospects, while strengthening Caterpillar’s track record of rewarding shareholders through economic cycles.
The increase marks Caterpillar’s 32nd consecutive year of dividend growth. The company has paid a cash dividend every year since its formation and has distributed quarterly dividends since 1933. CAT has been a member of the S&P 500 Dividend Aristocrats Index since 2019.
The revised annualized dividend of $6.52 implies a yield of 0.76%, higher than the manufacturing - construction and mining industry average of 0.67%. CAT’s current payout ratio of 29.16% is also higher than the industry’s 28.92%. Its current dividend-to-free-cash-flow ratio stands at 0.32, reflecting a healthy and sustainable dividend profile.
Over the past five years, Caterpillar has increased its dividend at an annualized rate of 8.2%, supported by robust free cash flow generation. During the first quarter of 2026 alone, Caterpillar deployed $5 billion toward share repurchases and $700 million toward dividends. Enterprise operating cash flow was $1.9 billion in the first quarter, and the company ended the quarter with $4.1 billion of cash.
The company remains committed to returning substantially all Machinery, Power & Energy (MP&E) free cash flow to shareholders over time through a combination of dividends and share repurchases.
Operationally, Caterpillar's business momentum has improved significantly in recent quarters. First-quarter 2026 revenues of $17.4 billion represented a 22% year-over-year increase, with growth largely fueled by a $2.3 billion rise in volumes. Higher dealer inventory levels and stronger end-user demand contributed to volume gains across all three operating segments. CAT ended the quarter with a record backlog of $62.7 billion.
For 2026, Caterpillar expects low double-digit year-over-year revenue growth. CAT’s previous expectation was growth near the upper end of its long-term 5-7% revenue CAGR target. Management also raised its full-year 2026 expectation for MP&E free cash flow to be higher than 2025. Its latest dividend increase reinforces confidence in its long-term earnings and cash-flow outlook.
Favorable trends in construction activity, commodity demand, data center investments and energy-transition projects continue to support growth opportunities. Caterpillar’s expanding aftermarket services business, known for its high margins, further strengthens its earnings profile. While tariffs and broader macroeconomic uncertainties remain potential headwinds, Caterpillar appears well-positioned to sustain shareholder returns and deliver long-term value creation.
A Look at Some Other Dividend-Paying Industrial Stocks
Illinois Tool Works Inc. ITW, a multi-industrial manufacturing leader, is also a member of the S&P 500 Dividend Aristocrats Index. The company has raised its dividend for 62 years. In August 2025, Illinois Tool Works raised its dividend by 7% to the current quarterly payout of $1.61. The company generally raises the dividend in August.
Illinois Tool Works has a five-year dividend growth of 7.2% and a current yield of 2.6%. Illinois Tool Works has a payout ratio of 59.8%. ITW has a dividend/free cash flow ratio of 0.68.
Pentair plc PNR , a provider of various water solutions, has a current dividend yield of 1.45%. Pentair announced an 8% dividend hike on Dec. 15, 2025, and the raised dividend of 27 cents per share was paid in February 2026. This marked the 50th consecutive year that Pentair has increased its dividend. Pentair has a payout ratio of 21% and a five-year dividend growth of 5.8%. Pentair’s dividend/free cash flow ratio stands at 0.25.
CAT’s Price Performance, Valuation & Estimates
CAT shares have gained 137.1% over the past year compared with the industry’s 131.4% growth. In comparison, the Zacks Industrial Products sector has gained 25%. The S&P 500 has moved up 25.9% in the same time frame.
Image Source: Zacks Investment Research
Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 31.38X compared with the industry average of 31.57X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.5%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 23.8% growth, with revenues rising 10.2%.
Image Source: Zacks Investment Research
Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Does Caterpillar's 8% Dividend Hike Signal More Growth Ahead?

Key Points
Surging demand for AI data center infrastructure has opened opportunities for companies you might not expect.
Caterpillar has developed autonomous fleets of machinery and is now targeting AI power generation.
Storing energy is becoming necessary for data centers, and Ford has unique abilities to meet this demand.
The accelerating hype behind artificial intelligence (AI) is perhaps matched only by the rapid growth in demand for the computing power and electricity required to run it all. The need for energy storage and electricity for AI data centers is expanding so rapidly that local power grids are having difficulties keeping pace.
That creates opportunity. Two companies that investors might not expect are capitalizing -- and they offset some risk by having significant dividends: Caterpillar (NYSE: CAT) and Ford Motor Company (NYSE: F).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
An AI play overlooked for decades
While most investors associate Caterpillar with construction and mining machinery, management sees a lucrative technology opportunity developing with AI: its potential to generate a new revenue stream at higher margins than its traditional business.
The company sells enormous engines, turbines, and generator sets that AI data centers use for both primary and continuous backup power, giving it a faster-growing revenue stream. As you can see in the graphic below, Wall Street has taken notice, and the stock has soared over the past year.
If you missed out on the one-year surge in Caterpillar shares, there is still growth to be had. "We think [this] is more of a 2027/2028 story than a 2025/2026 story," Citigroup analyst Kyle Menges says, according to Barron's.
What most investors probably aren't aware of is that the company has an autonomous-mining fleet that's one of the largest and most proven in the world. Management's research on autonomous machines started decades ago, and now the company is taking it a step forward after unveiling multiple intelligent-product lines that will include autonomous excavators, loaders, hauling trucks, bulldozers, and compactors driven by a rise in AI.
Caterpillar is an intriguing mix of potential with its products becoming more powerful for its clients through AI and autonomy, while it also benefits from faster-growing segments due to increasing energy and storage demand.
The icing on the cake is that Caterpillar also offers investors safety: It has paid a cash dividend every year since it was formed, a quarterly dividend since 1933, and a higher annual dividend for 32 consecutive years.
Under the radar
Similar to Caterpillar, Ford's most-hyped business right now has absolutely nothing to do with producing vehicles. Unbeknownst to many, Ford has spent most of the past year building the foundation for Ford Energy. Ford Energy is a wholly owned subsidiary of the company and will provide battery energy storage systems (BESS) for data centers and other large industrial customers in the U.S.
The Detroit automaker's flagship product, named the Ford Energy DC block, is a 20-foot containerized BESS that comes in two configurations designed to provide its customers with predictable lifetime performance, from a company that is stable enough to assure that it will be around for servicing if necessary.
Ford plans to invest roughly $2 billion into its energy business initially, and after working quietly to build out its supply chains and manufacturing sites, it aims to start deliveries in late 2027. Morgan Stanley estimates Ford Energy could generate between $500 million to $600 million of run-rate earnings before interest and taxes at 20 gigawatt hours of production capacity.
Like Caterpillar, Ford offers a measure of safety with a dividend that sits at a 4% yield. And in recent years when cash flow is strong, it's often boosted by a supplemental dividend.
What it all means
Besides rapidly changing the way many businesses operate, AI also offers opportunities for companies that can power its significant demand for energy and its storage. Investors could blindfold themselves and throw a dart and land on any number of projections that suggest the AI data center market and global power demand are expected to surge over the next decade.
And while many will continue to overlook Ford's and Caterpillar's ties to AI and energy, savvy investors understand their potential to generate new revenue streams, higher margins, and potentially better valuations.
Should you buy stock in Ford Motor Company right now?
Before you buy stock in Ford Motor Company, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
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*Stock Advisor returns as of June 11, 2026.
Citigroup is an advertising partner of Motley Fool Money. Daniel Miller has positions in Ford Motor Company. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 AI Stocks You Never Saw Coming -- and They Come With Dividends

Key Points
May's Consumer Price Index rose 4.2% year-over-year, the highest reading since April 2023.
President Trump's threats of expanded military action in Iran triggered a midday selloff.
Bitcoin rose 0.5% while gold fell 3%, an unusual divergence during geopolitical turmoil.
Wednesday started rough, got better, and then worsened again.
The three most popular market indexes started this morning just below breakeven, bounced back slightly in the first couple of hours, and then plunged in unison.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
As of 12:12 p.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) are down 1.2%. The S&P 500 (SNPINDEX: ^GSPC) is doing slightly better at a 0.9% drop. Last week's steady march to new all-time highs feels distant today.
Why stocks sold off after a brief morning rally
'Tis the season for economic reports, and that's not always good news.
May's Consumer Price Index rose 4.2% year over year, the highest annual reading since April 2023. Economists had expected these figures, but the inflation report underscored months of rising consumer concerns. Soaring energy prices accounted for more than 60% of the month's overall inflation surge. The ongoing conflict with Iran is pushing energy prices higher with cascading effects on broader inflation.
Markets took the inflation data in stride at first. Then, President Trump threatened increased military action in Iran in retaliation for a drone that downed an Apache helicopter. His Truth Social posts turned the rising market trends sour again.
Caterpillar (NYSE: CAT) was the largest drag on the Dow, falling 5.9% and subtracting 331 points from the index. The stock had gained more than 50% year-to-date heading into this week, partly on optimism around AI-related data center construction. Hot inflation and rising bond yields triggered a sharp reversal this week.
Semiconductor stocks continued their recent slide, weighing on the cap-weighted S&P 500 and Nasdaq Composite indexes. Nvidia (NASDAQ: NVDA) fell 2.7%, erasing $131 billion in market cap, while Broadcom (NASDAQ: AVGO) dropped 4.8% to shed $86 billion. Neither company had bad news to share, beyond the broader risk-off trend.
From the "things that don't make sense" department: gold fell 3% despite all the geopolitical chaos. Rising yields are apparently a bigger deal than safe-haven demand right now. Bitcoin (CRYPTO: BTC)on the other hand, actually rose, with the iShares Bitcoin Trust ETF (NASDAQ: IBIT) up 0.5%. One day does not make a trend, but it's at least worth noting that Bitcoin acts like a safe haven for once.
Buckle up; SpaceX lands Friday
The Federal Reserve will almost certainly hold rates steady at its June meeting, but a hike later this year remains very much on the table. Tech giant Oracle (NYSE: ORCL) reports earnings tonight, giving investors a rare spot of high-profile business data in the space between two earnings seasons. Thursday's wholesale inflation data (the producer-side version of today's consumer-facing inflation figures) will add another data point. Friday brings the SpaceX (expected ticker: SPCX) IPO, poised to be the largest market launch in history.
For now, investors are stuck navigating sticky inflation, unpredictable geopolitics, and a tech sector that can't find its footing. The fundamentals of the companies leading today's decline haven't changed. The unpredictable macro backdrop is what's driving prices right now. Stop me if you've heard this before.
Should you buy stock in Dow Jones Industrial Average right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dow Jones Industrial Average wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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*Stock Advisor returns as of June 10, 2026.
Anders Bylund has positions in Bitcoin, Nvidia, and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin, Broadcom, Caterpillar, Nvidia, Oracle, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Jones Tumbles Over 1% as Energy-Driven Inflation and Iran Conflict Rattle Markets

Tuesday, June 9, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel Corp. (INTC), CrowdStrike Holdings, Inc. (CRWD) and Honeywell International Inc. (HON), as well as two micro-cap stocks Capstone Energy+, Inc. (CGEH) and Lulu's Fashion Lounge Holdings, Inc. (LVLU). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Plenty of Data Ahead of CPI, SPCX
Today's Featured Research Reports
Intel’s shares have outperformed the Zacks Semiconductor - General industry over the past six months (+171.2% vs. +22%). The company continues to benefit from rising demand for Xeon processors, AI PCs and advanced manufacturing technologies, supported by growing adoption across AI infrastructure, edge computing and networking markets.
Intel is expanding its footprint through new product introductions, including Intel Arc G-Series handheld gaming processors and Ethernet E835 networking solutions, while strengthening its ecosystem through collaborations focused on AI infrastructure and edge deployments.
However, competition remains intense in AI accelerators, servers and commercial PCs, while manufacturing execution risks tied to process technology transitions persist. Geopolitical uncertainty, China-related exposure and a leveraged balance sheet may also limit financial flexibility and temper growth prospects. Forex volatility remains a concern.
(You can read the full research report on Intel here >>>)
Shares of CrowdStrike have outperformed the Zacks Security industry over the past year (+37.8% vs. +23%). The company remains leveraged to sustained cybersecurity demand as customers consolidate tools on the Falcon platform and expand module adoption through subscriptions and Falcon Flex.
AI-led launches, including agent-based workflows, broader data and browser protection, and deeper partnerships across the cloud ecosystem, support cross-sell and renewals over time. Recent acquisitions in identity and browser runtime security extend the platform’s addressable use cases, while the company’s liquidity and cash generation provide the flexibility to keep investing.
At the same time, the thesis is balanced by a maturing growth profile, continued heavy sales and R&D spending, macro-driven deal delays and competitive pricing pressure. Ongoing incident-related and execution risks also warrant a measured stance for a Neutral view.
(You can read the full research report on CrowdStrike here >>>)
Honeywell’s shares have outperformed the Zacks Diversified Operations industry over the past six months (+13.3% vs. -4.2%). The company’s strength in the commercial aviation and building automation businesses augurs well. The Aerospace unit is particularly strong, driven by strength in the defense business and growth in air transport flight hours.
Strong demand across the commercial aviation OEM and aftermarket businesses is aiding the unit. The company also continues to reward shareholders, which adds to the stock’s appeal. While acquisitions have expanded its product range and geographic reach, they have increased the company’s balance sheet debt significantly as well.
However, weakness in the Process Automation and Technology segment, due to lower petrochemical catalyst shipments, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability. Foreign currency translation remains an overhang.
(You can read the full research report on Honeywell here >>>)
Shares of Capstone Energy+ have outperformed the Zacks Alternative Energy - Other industry over the past six months (+121.9% vs. -0.7%). This microcap company with a market capitalization of $375.47 million is showing a clear profitability inflection as revenue growth and margin expansion drive the transition from losses to earnings. In the December 2025 quarter, revenues rose to $26.8 million from $20.1 million a year earlier, while gross margin expanded to ~39%, lifting the company to operating and net profitability.
Growth visibility is supported by a steady pipeline of microturbine installations scheduled for commissioning through 2026 across North and Latin America. At the same time, recurring revenues from services, parts, and rentals is expanding as the installed turbine base grows, improving revenue stability.
However, key risks include potential equity dilution, distributor concentration, inventory commitments, and the stock’s OTC listing, which may limit institutional participation. Capstone shares have surged over the past year and trade at 3.27X EV/sales, below the sub-industry average.
(You can read the full research report on Capstone Energy+ here >>>)
Lulu's Fashion Lounge’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the past six months (+33.2% vs. -5.8%). This microcap company with a market capitalization of $23.77 million has seen Q1 FY26 revenues declined 10%, but gross margin expanded 480 basis points to 45.1%, driven by a more favorable product mix, sourcing efficiencies, freight savings, and inventory optimization.
These improvements helped narrow net losses and significantly improve adjusted EBITDA, with management expecting positive adjusted EBITDA beginning in Q2 FY26. The company is also benefiting from rapid wholesale expansion through partnerships with Nordstrom, Dillard’s, Urban Outfitters, Amazon, and Victoria’s Secret, which broaden distribution and brand visibility.
However, key challenges include continued revenue declines, lower order volumes and active customers, ongoing net losses, execution risks related to assortment repositioning, and sensitivity to consumer spending trends and macroeconomic conditions. Valuation remains well below historical levels and peer averages.
(You can read the full research report on Lulu's Fashion Lounge here >>>)
Other noteworthy reports we are featuring today include Caterpillar Inc. (CAT), Carvana Co. (CVNA) and Cenovus Energy Inc. (CVE).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Cenovus' (CVE) Advancing Key Projects To Drive Production Growth
Per the Zacks analyst, Cenovus targets production growth, driven by key organic growth projects including the West White Rose project within its asset portfolio.
Higher Transaction Fees, Acquisitions Aid Cboe Global (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on higher transaction fees driven by trading volume growth given solid proprietary products. Also, buyouts have diversified its product portfolio.
DICK'S Sporting's (DKS) Strong Brand Aids Market Share Gains
Per the Zacks analyst, DICK'S strong brand, differentiated offerings and loyal customers are driving market share gains. Robust comps, higher spending and growing engagement support sales growth.
Transient Demand, Steady Group Business to Aid Host Hotels (HST)
Per the Zacks analyst, Host Hotels' solid transient-leisure demand and steady group business support growth. However, rising wage costs may compress margins, while competition may limit rate growth.
Amneal (AMRX) Benefits From Rising Generics Demand Amid Competition
Per the Zacks analyst, Amneal's diversified portfolio, expanding pipeline and rising generics demand aid long-term growth. Competition in the generics market amid continued pricing pressure is a woe.
Regulatory Progress Aid Archer Aviation (ACHR) Amid Manufacturing Risk
Per the Zacks analyst, Archer Aviation benefits from UAE regulatory progress and customer demand. However, manufacturing and supply-chain challenges may delay scaling.
GigaCloud Rides on Scaled Marketplace Amid Multi-Quarter Integration
Per the Zacks Analyst, a scaled marketplace, improving margin mix, European infrastructure and disciplined integrations aid GCT. Uneven U.S. demand and multi-quarter integration issues act as concerns
New Upgrades
Strong Backlog & Improving Demand in End Markets Aid Caterpillar (CAT)
Per the Zacks analyst, Caterpillar is expected to benefit from its strong backlog, improving demand across end markets and focus on expanding its higher-margin aftermarket parts and services business.
ADESA U.S. Acquisition & Expected EBITDA Growth to Aid Carvana (CVNA)
Per the Zacks analyst, the ADESA U.S. acquisition continues to deepen Carvana's reconditioning network to support volume growth. The expected increase in adjusted EBITDA also bodes well.
Growing Digital Investments & Business Plans Aid Dycom's (DY) Growth
Per the Zacks analyst, Dycom is gaining from increasing market opportunities for digital infrastructure, alongside geographic expansion efforts and accretive buyouts.
New Downgrades
Construction Risk and Losses Cloud Near-Term Outlook for APLD
Per the Zacks analyst, Applied Digital faces volatile GAAP losses, heavy construction spend and concentration risk as its HPC campus buildout scales.
Emerging Biotech Softness, Fierce Rivalry Ails Bio-Techne (BIO)
The Zacks analyst is concerned with Bio-techne facing continued softness in emerging biotech spending, offsetting the strength from its large pharma customers. Competitive pressures may dent growth.
Hims & Hers (HIMS) Broadens Telehealth Platform Amid Execution Risks
Per the Zacks analyst, Hims & Hers is expanding its telehealth platform and raised its 2026 outlook. However, margin volatility, weight-loss execution risk and regulatory uncertainty remain key woes.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Intel, CrowdStrike & Honeywell

Caterpillar Inc. CAT delivered a strong volume-driven performance in the first quarter of 2026, highlighting the continued recovery in demand across its end markets. The company reported a $2.3 billion contribution from higher sales volumes (up 17.3% year over year), helping drive sales and revenues to $17.4 billion, up 22.2% year over year. Pricing had a favorable impact of 3.2% and currency impact added 2.6%.
The latest results indicate that the broad-based recovery that began in the second half of 2025 is gaining momentum. Caterpillar returned to positive volume growth (with a modest increase of $237 million) in the second quarter of 2025, after six consecutive quarters of declines. At that time, growth was largely concentrated in the Power & Energy segment (then known as Energy & Transportation), which offset continued weakness in Construction Industries and Resource Industries. All three operating segments started reporting positive volume growth in the third quarter of 2025 and have been gaining momentum since then.
In the first quarter of 2026, Construction Industries emerged as the biggest contributor to growth. Segment sales rose 38% year over year in the first quarter, benefiting from a $1.5 billion increase in volume. The improvement was largely driven by dealer inventory replenishment. Construction equipment demand also appears to be stabilizing in key markets, particularly in North America, where infrastructure spending, energy projects and non-residential construction activity continue to support equipment purchases.
Power & Energy remains Caterpillar's most important growth engine. Segment sales increased 22% year over year, driven by an $840 million increase in volume. Demand was particularly strong in Power Generation, where sales surged 41%, supported by large reciprocating engines and turbine-related products serving data center applications. Oil and Gas also delivered healthy growth, benefiting from demand for gas-compression equipment and turbine services.
The growing need for power infrastructure to support Artificial Intelligence workloads and data center expansion continues to create a favorable backdrop for Caterpillar's engine and turbine businesses. These trends are expected to remain important growth drivers over the next several years.
Resource Industries sales increased 4%, supported by higher equipment sales to mining customers. Volume growth was modest compared with the other segments. It is expected to improve as mining customers continue to invest in fleet modernization and capacity expansion as commodity prices rise.
Backed by the strengthening volume environment, Caterpillar recently raised its full-year 2026 sales growth expectation to low double digits compared with its earlier forecast for growth near the upper end of its long-term 5-7% compound annual growth target.
Industry peers like Komatsu KMTUY reported a 3% increase in its revenues to $7.76 billion in the fiscal fourth-quarter 2025 ended March 31, 2026. Komatsu’s Construction, Mining & Utility Equipment sales increased 6.5% in the quarter, while Industrial Machinery & Others sales decreased 1.2%.
For fiscal 2025 (ended March 31, 2026), Komatsu reported a 0.2% increase in Construction, Mining & Utility Equipment sales as higher selling prices were mostly offset by lower volumes. Industrial Machinery & Others sales, however, rose 6.8% due to increased sales of large presses for the automotive industry and higher-margin excimer laser maintenance for the semiconductor industry. Total net sales were up 0.7%.
Komatsu anticipates Construction, Mining & Utility Equipment sales to dip 0.4% in fiscal 2026 as well, reflecting lower sales volumes citing the situation in the Middle East.
Terex TEX reported net sales of $1.73 billion, reflecting a 41% jump year over year. Results include the contribution from the REV Group, which is now operating as the Specialty Vehicles (SV) segment. Proforma sales were up 11%. Terex expects 2026 sales to grow approximately 5% on a pro forma basis to $7.5-$8.1 billion. This will be driven by mid-single-digit growth in sales in Environmental Solutions and high-single-digit growth in Materials Processing and Specialty Vehicles.
CAT’s Price Performance, Valuation & Estimates
CAT shares have gained 59.8% so far this year compared with the industry’s 51.9% growth. In comparison, the Zacks Industrial Products sector has gained 15.6%. The S&P 500 has moved up 8.4% in the same time frame.
Image Source: Zacks Investment Research
Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 33.60X compared with the industry average of 31.64X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.5%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 23.8% growth, with revenues rising 10.2%.
Image Source: Zacks Investment Research
Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAT Volumes Gain Strength Across Segments in Q126: More Upside Ahead?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Value (Symbol: VONV) where we have detected an approximate $450.4 million dollar inflow -- that's a 2.3% increase week over week in outstanding units (from 185,128,299 to 189,453,299). Among the largest underlying components of VONV, in trading today Johnson & Johnson (Symbol: JNJ) is trading flat, Walmart Inc (Symbol: WMT) is off about 0.7%, and Caterpillar Inc. (Symbol: CAT) is higher by about 0.8%. For a complete list of holdings, visit the VONV Holdings page » The chart below shows the one year price performance of VONV, versus its 200 day moving average:
Looking at the chart above, VONV's low point in its 52 week range is $82.73 per share, with $105.885 as the 52 week high point — that compares with a last trade of $104.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further VONV Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Inflow Detected - VONV, JNJ, WMT, CAT

U.S. industrial and manufacturing stocks are seeing a massive price surge from the artificial intelligence (AI) data center boom. U.S. industrial firms are profiting immensely through increased demand for electrical grid equipment, advanced cooling systems, and specialized semiconductor packaging.
Demand for these products is likely to remain buoyant as four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026 from $670 billion estimated earlier. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027.
Here, we recommend five U.S. industrial stocks that have thrived in 2026 with more firepower in their cylinders supported by growing demand for AI-powered data center infrastructure products.
The stocks are: Caterpillar Inc. CAT, Modine Manufacturing Co. MOD, Quanta Services Inc. PWR, Comfort Systems USA Inc. FIX and Vertiv Holdings Co. VRT.
The chart below shows the price performance of the above-mentioned five stocks year to date.
Image Source: Zacks Investment Research
Caterpillar Inc.
Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment. CAT currently carries a Zacks Rank #3 (Hold).
CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.
Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 30 days.
Modine Manufacturing Co.
Modine has emerged as one of the big beneficiaries of the AI infrastructure boom. As hyperscalers race to build AI-ready data centers, the need for advanced cooling solutions has become critical, and Modine is positioned to benefit from that.
For fiscal 2026, AI-powered data center sales grew 73% and exceeded $1.1 billion, highlighting the strength of demand from AI infrastructure customers. Moreover, MOD entered into a landmark agreement to supply more than $4 billion worth of cooling products between 2027 and 2029.
MOD expects AI data center revenues to grow 60-80% in fiscal 2027 and believes growth can remain between 50% and 70% beyond that. To support this demand, MOD is expanding its U.S. manufacturing footprint, with chiller production capacity expected to double by the end of fiscal 2027. MOD currently carries a Zacks Rank #3.
Modine has an expected revenue and earnings growth rate of 26.8% and 54%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% in the last seven days.
Quanta Services Inc.
Quanta Services’ mix across transmission and distribution, grid hardening, renewable integration and generation gives it multiple paths to participate as those plans become multi-year capital programs.
Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. PWR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PWR achieved a record total backlog of $48.5 billion as of March 31, 2026, providing a clear and durable runway for long-term growth. This record includes a 12-month backlog of $28.2 billion and remaining performance obligations of $26.2 billion. The Electric Power Infrastructure Services segment accounted for $40.1 billion of the total backlog.
PWR is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. The company expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.
Quanta Services has an expected revenue and earnings growth rate of 21.5% and 29.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.2% over the last 60 days.
Comfort Systems USA Inc.
Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities. FIX currently sports a Zacks Rank #1.
The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units.
This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.
Comfort Systems USA has an expected revenue and earnings growth rate of 30.5% and 49.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% in the last seven days.
Vertiv Holdings Co.
Vertiv Holdings benefits from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline.
VRT also benefited from the accelerating digital transformation driven by AI and data center demand. Acquisitions have also played a vital role, with Great Lakes enhancing IT systems and white space solutions, and Weeleay boosting service capabilities through real-time machine data analysis and predictive actions.
Vertiv’s partnership with NVIDIA Corp. (NVDA) is a key catalyst. VRT co-develops an 800-volt DC power architecture with NVIDIA, timed to align with the 2027 rollout of NVIDIA's Rubin Ultra platforms.
This keeps VRT one GPU generation ahead of evolving silicon architectures, ensuring that its infrastructure solutions remain relevant as rack power requirements scale toward and beyond the megawatt threshold. VRT currently carries a Zacks Rank #2 (Buy).
Vertiv Holdings has an expected revenue and earnings growth rate of 34.4% and 51.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% in the last 60 days.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 Booming Industrial Stocks Set to Benefit More on AI Data Center Boom

For Immediate Release
Chicago, IL – June 8, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Caterpillar Inc. CAT, The Coca-Cola Co. KO, HSBC Holdings plc HSBC, SandRidge Energy, Inc. SD and NVE Corp. NVEC.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Caterpillar, Coca-Cola and HSBC
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Caterpillar Inc., The Coca-Cola Co. and HSBC Holdings plc, as well as two micro-cap stocks SandRidge Energy, Inc. and NVE Corp.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> What Labor Problem? BLS Jobs Jump to +172K
Today's Featured Research Reports
Caterpillar's shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+58.4% vs. +46.3%). The company posted strong revenue and earnings growth in the first quarter of 2026, supported by higher volumes across all segments. Backlog reached a record $63 billion, and management lifted its full-year outlook to low double-digit sales growth.
Construction demand remains solid, driven by infrastructure activity, rental fleet expansion and nonresidential projects. The Power & Energy segment is gaining from rising data-center-related power demand. Resource Industries stands to benefit from mining investments and aging equipment fleet, though timing and product mix may add volatility.
Recent tariff reductions may help ease cost pressures and support demand as customers have been delaying equipment purchases amid higher costs and trade uncertainty. A continued focus on high-margin aftermarket parts and services should further support growth.
(You can read the full research report on Caterpillar here >>>)
Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past six months (+10.1% vs. +9.4%). The company is benefiting from the strength of its portfolio breadth, consistent share gains and improving margins driven by pricing and productivity efforts. Innovation, marketing and digital initiatives are enhancing consumer engagement and execution, while diversified categories reduce risk.
Coca-Cola projects steady organic revenue and EPS growth, backed by a durable global distribution moat. Our model predicts organic revenue growth of 4.8% and comparable EPS to grow 8.8% for 2026. Robust cash generation supports reinvestments and sustainable shareholder returns, including continued dividend growth.
However, Coca-Cola has underperformed the industry year-to-date. The company faces headwinds from uneven demand and unfavorable mix as consumers shift toward smaller packs and value options, diluting revenue quality and limiting margin.
(You can read the full research report on Coca-Cola here >>>)
HSBC'sshares have outperformed the Zacks Banks - Foreign industry over the past six months (+35% vs. +13.1%). The company's wealth momentum in Asia continues to benefit from higher customer activity, rising balances and net new money, while the completed Hang Seng Bank privatization and ongoing business divestitures, including the agreed Indonesia sale, will simplify the company's operations and support medium-term efficiency.
Also, a robust capital position and global footprint are expected to support its financials. However, the company has guided for higher expected credit losses (ECL) this year because of overlays tied to Middle East events and absorption of an idiosyncratic fraud-related charge.
Operating expenses are expected to remain elevated as the company invests in technology and distribution capabilities. Revenue visibility will depend on volatile rates and activity.
(You can read the full research report on HSBC here >>>)
Shares of SandRidge Energy have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past year (+54.2% vs. +32%). This microcap company with a market capitalization of $577.77 million is driven by its scalable Cherokee development program, which supports production growth through consistent well performance and disciplined execution. A debt-free balance sheet and strong liquidity provide flexibility to fund development, navigate commodity cycles.
Continued development activity is enhancing reserve visibility and extending the company's growth runway. Operational focus on safety, reliability, and emissions management helps support stable cash flows and lower execution risk.
Additionally, a diversified asset base and extensive owned infrastructure improve cost efficiency, strengthen resilience across market conditions, and provide optionality for future growth opportunities. Overall, SandRidge combines financial strength, disciplined capital allocation, and a long-duration development inventory to support long-term value creation.
(You can read the full research report on SandRidge Energy here >>>)
NVE's shares have gained +59.5% over the past year against the Zacks Electronics - Semiconductors industry's gain of +115.4%. This microcap company with a market capitalization of $532.18 million presents a differentiated profile, driven by scalable manufacturing, specialized spintronic technology and strong profitability. Expanded in-house capacity enhances yields and supports growth without significantly increasing fixed costs.
Demand is rising in medical, industrial and automation markets, where miniaturized, low-power sensors enable high-value, repeat design wins. A diversified mix across defense and non-defense markets improves revenue durability, while robust cash generation supports dividends and self-funded growth. Additional upside comes from optionality in spintronic memory and security IP.
However, key risks include margin sensitivity from channel mix, defense revenue volatility, declining contract R&D visibility, scalability limits of a high-touch sales model, exposure to securities portfolio fluctuations and long commercialization cycles for new products.
(You can read the full research report on NVE here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Caterpillar, Coca-Cola, HSBC, SandRidge Energy and NVE

For Immediate Release
Chicago, IL – June 8, 2026 – Today, Zacks Investment Ideas feature highlights Caterpillar CAT, Vertiv VRT and Eaton ETN.
Data Center Demands Push This Dividend Aristocrat to New Highs
Caterpillar shares continue to deliver a stellar performance in 2026, up more than 60% and widely outperforming the S&P 500. The stock represents a clear favorite for gaining exposure to the artificial intelligence (AI) buildout given the performance, with its consistent dividend payouts over time making it attractive to investors with an appetite for income.
In fact, the company is a member of the elite Dividend Aristocrats group, owing to its shareholder-friendly nature.
Data Center Trends Power CAT Shares
Caterpillar posted robust results in its latest release, continuing a streak of impressive numbers over the past year or so on the back of growing demand. Sales of $17.4 billion grew by an impressive 22% YoY, with its backlog also reflecting a company record.
Its Power and Energy segment in the above-mentioned quarter helped drive the strong results, with sales of $7.0 billion climbing more than 20% year-over-year thanks to higher demand for power products used in data center applications, primarily large reciprocating engines.
Specifically in Power Generation applications, sales grew by 41% year-over-year, underscoring its favorable position in data center applications. Below is a chart illustrating the company's YoY quarterly sales growth rates, with clear acceleration evident over recent periods.
The outsized sales growth has helped keep shares near all-time highs, with Caterpillar's shareholder-friendly nature also a major positive, as it deployed $5.7 billion in cash for share repurchases and dividend payouts throughout the period.
The stock has undeniably gotten more expensive, with the current 34.1X forward 12-month earnings multiple well above the 16.4X five-year median. But the accelerating earnings growth helps support the richer multiple, with current Zacks Consensus estimates suggesting 30% EPS growth in its current FY26 and 24% in FY27.
Bottom Line
Caterpillar has emerged as a strong AI infrastructure play, particularly on the power side. Red-hot demand pictures stemming from the buildout have led to record-breaking quarterly results, with shares benefiting in a big way. It's reasonable to expect continued momentum as companies scramble to secure power products for their data centers, a trend that appears set to continue for at least a few years.
Caterpillar isn't the only stock with notable AI exposure that pays investors, with Vertiv and Eaton also on the list. Both Vertiv and Eaton have similarly had strong runs in 2026 thanks to their role in the buildout, seeing immense growth in their backlogs as well.
Analysts have bullishly raised their sales expectations for Vertiv for both its current and next fiscal years, underpinning the favorable demand outlook.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	47.30 25.01
Price/Sales	5.18 1.43
P/B	20.16 2.54
P/FCF	51.41 19.81

Indicator	TTM Median
ROE	45.15 15.54
ROA	9.67 6.17
ROI	18.61 9.42
Net Worth	417.46 1.51
Quick Ratio	0.94 1.15
Current Ratio	1.44 1.59

Indicator	TTM Median
Net Profit Margin	13.14 7.39
Operating Margin	16.50 10.20
Gross Margin	33.79 32.49
Return on tangible equity	68.24 26.43

Indicator	TTM Median
EPS	5.54 0.60
EPS Forecast	4.55 0.58
Revenue	19.13B 194.00M
Gross Profit	5.83B —
EBITDA	3.97B —

Caterpillar, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue