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.

Caterpillar appears to be a high-quality business, but the market has already priced in a very high level of expectations. At the same time, P/E, P/S, P/B, and P/FCF are noticeably above the industry median, indicating an expensive valuation even taking into account strong operational efficiency. On the other hand, the company’s profitability is truly outstanding: ROE, ROA, ROI, ROTE, as well as net and operating margins are significantly above industry benchmarks and have generally remained at a high level over the years. This supports a premium to the sector, but it does not eliminate concerns about overvaluation, because the valuation multiples are rising faster than the fundamental metrics. Earnings and revenue trends are generally positive: net income, EBITDA, and operating profit remain strong, and revenue over recent periods has not shown a sustained deterioration. However, liquidity looks moderately weak: the quick ratio is below the industry median, and the current ratio is also lower, which limits the margin of safety in the event of a cyclical downturn. Leverage is noticeably higher than the industry average, and debt to equity and long-term debt remain significant risks for the valuation. Dividend yield has declined compared with last year, so the dividend factor currently does not add a strong argument for further upside in the valuation. Overall, CAT’s fundamentals are strong, but they are already reflected in the price with room to spare, and the current valuation appears demanding in terms of further profit and margin growth. For an investor, this means upside potential remains, but it is limited by high expectations and expensive multiples. Therefore, it would be appropriate to only moderately reduce the target, while still acknowledging the high quality of the business.

Caterpillar, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Нейтральный рынок.

Weak index, significantly up. Neutral market.

Сильный индекс, без изменений. Нейтральный рынок.

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

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

CAT remains a high-quality but expensive story: strong margins and profitability are offset by elevated multiples and increased debt.

Key Points
Caterpillar has split its stock five times since 1976.
Shares have outperformed the S&P 500 since this time last year.
Caterpillar stock is down about 23% from its 52-week high.
Soaring more than 76% over the past year as of this writing, Caterpillar (NYSE: CAT) stock has given investors a lot to celebrate, especially compared to the 17% rise in the S&P 500 (SNPINDEX: ^GSPC). Couple the strong performance with the fact that shares of the industrials stalwart touched an all-time high in late June, closing over $1,064, and it's clear that Caterpillar stock has gained investors' attention.
Since the stock has performed so well, many investors may now be wondering if management has plans to add Caterpillar to the list of upcoming stock splits. It wouldn't be so novel for the company, considering it has split its stock five times over the past 50 years -- the last time being in 2005.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
What helped to move Caterpillar stock higher?
There were a variety of catalysts for Caterpillar's strong performance over the past year. For one, investors responded positively to the company's financial reporting. Booking 2025 revenue of $67.6 billion -- a company record -- Caterpillar reported year-over-year sales growth of 4%. The company also closed 2025 well-positioned for future growth, reporting a backlog of $51 billion, also a company high-water mark.
Midway through this year, Caterpillar continued to report strong financial results. In the second quarter of 2026, Caterpillar reported $20.5 billion in revenue, a 24% increase over the same period last year, and a 92% year-over-year increase in backlog to $72 billion. In addition, the company's strong cash flow provided further encouragement. Caterpillar reported free cash flow of $5.1 billion, a 118% year-over-year increase.
Stock splits may seem exciting -- but don't be fooled
Believing there's an auspicious opportunity to seize, some investors will look for upcoming stock splits, thinking that if they buy shares before a forward split, they will prosper. In their minds, owning more shares after the stock split is a more advantageous position.
Savvy investors, though, recognize the flaw in this belief. In the same way that breaking a $10 bill into 1,000 pennies doesn't make you any wealthier than holding the lone $10 bill, you wouldn't be in a more fortuitous position owning more shares of a stock after a forward stock split than you would've been before the stock split.
Don't expect a Caterpillar stock split
According to recent research from The Motley Fool, Caterpillar is one of the largest industrial companies by market cap, not just in the United States but worldwide. For this reason -- and many others -- investors like to watch the company closely.
Caterpillar stock has provided early investors with strong returns over the past year. Still, it's highly unlikely that management will choose to split the company's stock in the near future, with shares trading around $820 -- down 23% from their 52-week high. Though some may be disappointed by this likelihood, Caterpillar still commands attention from those seeking a conservative industrial stock to fortify their portfolios.
Should you buy stock in Caterpillar right now?
Before you buy stock in Caterpillar, 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 Caterpillar 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 $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Stock-Split Watch: Is Caterpillar Next?

(RTTNews) - Caterpillar Inc. (CAT) announced Tuesday an agreement to acquire John Fabick Tractor Co., a long-standing Cat dealer. The terms of the transaction were not disclosed.
John Fabick Tractor has more than 100 years of trusted service and customer relationships across portions of Missouri, Illinois, the entire state of Wisconsin and the Upper Peninsula of Michigan.
The agreement reflects a customer-focused decision to support a seamless transition of John Fabick Tractor ownership while maintaining the strong service and local support customers know and value today.
The agreement requires approval by regulatory authorities and is subject to other customary closing conditions. The transaction is expected to close within 30 days.

Caterpillar To Acquire Cat Dealership John Fabick Tractor

Key Points
These cover work related to AI data center power generation.
Atlas has been pivoting into this business in recent years.
Atlas Energy Solutions (NYSE: AESI) stock was the solution for an ailing portfolio on Friday. The company, which provides equipment and materials used to extract oil and gas and has recently branched out into power generation, saw its shares rocket nearly 14% higher on the signing of two advantageous new contracts.
The reimbursement premium
Before market open that morning, Atlas revealed that two wholly owned, indirect subsidiaries had signed cost reimbursement agreements. The counterpart is what the company described as a "leading" frontier artificial intelligence (AI) lab that it did not name. The work involves providing supporting equipment and incremental power-generation assets for data centers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Atlas currently has a global framework agreement (GFA) with heavy equipment company Caterpillar; the two new contracts will involve Caterpillar power generation hardware.
In its press release announcing the twin deals, Atlas quoted CEO John Turner as saying, "This customer's willingness to enter into cost reimbursement agreements is a clear sign of commitment to these projects as we work together toward the execution of long-term power purchase agreements."
New(ish) kid in town
Companies directly involved in the construction and modification of AI data centers have received plenty of investor attention recently, as the great AI arms race continues. Perhaps due to its recent pivot into power generation, Atlas remains something of an under-the-radar player in this game. As such, I'd say it's a potential sleeper stock worth watching.
Should you buy stock in Atlas Energy Solutions right now?
Before you buy stock in Atlas Energy Solutions, 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 Atlas Energy Solutions 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 $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Atlas Energy Solutions Surged Almost 14% Higher on Friday

Key Points
The Dow rose 0.8% while the Nasdaq Composite gained 0.5% and the S&P 500 0.4%.
Microsoft jumped 4.1% and contributed 120 Dow points after repositioning Copilot as a pure enterprise product.
Oil dropped after Iran offered to reopen the Strait of Hormuz within seven days.
Stocks rose Friday, with the Dow Jones Industrial Average (DJINDICES: ^DJI) leading. Microsoft (NASDAQ: MSFT) decided it doesn't want to build your personal AI assistant after all, and investors loved it. Meta (NASDAQ: META) absolutely wants to build your personal AI assistant, and the Muse maker had a worse morning.
The Dow rose 0.8% as of 12:49 p.m. ET. The Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.5%, and the S&P 500 (SNPINDEX: ^GSPC) added 0.4%. Nineteen of the Dow's 30 components traded higher.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Microsoft gave up on consumer AI to investor applause
Microsoft was the leading driver of the major indexes' bullish moves this morning. The software giant jumped 4.1% and added 120 Dow points after merging its consumer and workplace Copilot apps into one enterprise product. Translation: Microsoft is ceding the personal chatbot market to OpenAI, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Meta so it can focus on a more lucrative customer class.
Meta took the other side of that bet and dropped 3.6%, losing most of Thursday's 4.3% gain. The Facebook and Instagram parent laid out plans to put its Muse agent into AI glasses, previewed a pocket-sized gadget called Charm, and promised more than 100 styles of Muse-driven glasses by year-end. Investors were unimpressed.
In the hardware sector, memory-chip giant SK Hynix (NASDAQ: SKHY) rose 3% after the Taiwanese media outlet DigiTimes reported that the company is in the running for significant memory orders as Sony (NYSE: SONY) assembles the next PlayStation console. Sector rival Micron Technology (NASDAQ: MU) held steady with a 0.2% price drop as investors brace for next week's earnings report.
And this mid-day market review can never ignore the oil trade. The United States Oil Fund (NYSEMKT: USO) dropped 3.2% after Iran's foreign minister, Abbas Araghchi, said the Strait of Hormuz could reopen within seven days and that nuclear talks could restart, provided Washington meets his conditions. Brent crude prices slipped 1% lower to $105 per barrel.
Don't celebrate at the pump just yet
Here's the catch in Araghchi's offer. His conditions are the same as those in the June 17 memorandum of understanding, and the Trump administration has already said it won't return to those terms. That deal also fell apart within weeks of being signed. Araghchi said Iran isn't in a hurry, while acknowledging that a deal before the midterms would probably be better for everyone involved.
Don't expect the pump to catch up quickly either. Regular gas averages $4.49 per gallon today, up roughly 10% in a month and 42% in a year, and diesel is $6.50 per gallon after hitting a record $6.53 on Tuesday. Fuel prices follow crude with a lag, so one day of falling oil doesn't necessarily fix anything at your local gas station right away.
Two Dow gainers had no explanation to speak of. Caterpillar (NYSE: CAT) added 73 points on a 1.5% rise and Sherwin-Williams (NYSE: SHW) contributed 49 more on a 2.6% gain, neither with company news attached. Both are cyclical names that tend to move with the economy rather than their own announcements. And their beefy share prices result in heavy Dow weightings, currently totaling about 13% of the total index score.
Seven days is a short deadline for a war in its seventh month. The market seems to be in an optimistic mode about these discussions, though. Next week brings Micron's earnings, followed by the discussion deadline.
Should you buy stock in Dow Jones Industrial Average right now?
Before you buy stock in Dow Jones Industrial Average, 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 Dow Jones Industrial Average 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 $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 25, 2026.
Anders Bylund has positions in Alphabet and Micron Technology. The Motley Fool has positions in and recommends Alphabet, Caterpillar, Meta Platforms, Micron Technology, and Microsoft. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.

The Dow Leads Market Indexes Higher as Microsoft Adds 120 Points

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Gorman-Rupp (GRC) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Gorman-Rupp is a member of our Industrial Products group, which includes 218 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Gorman-Rupp is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GRC's full-year earnings has moved 19.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, GRC has returned 9.9% so far this year. At the same time, Industrial Products stocks have gained an average of 7.7%. As we can see, Gorman-Rupp is performing better than its sector in the calendar year.
One other Industrial Products stock that has outperformed the sector so far this year is Halma (HLMAF). The stock is up 18.1% year-to-date.
For Halma, the consensus EPS estimate for the current year has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Gorman-Rupp is a member of the Manufacturing - General Industrial industry, which includes 44 individual companies and currently sits at #181 in the Zacks Industry Rank. This group has gained an average of 8.1% so far this year, so GRC is performing better in this area.
On the other hand, Halma belongs to the Security and Safety Services industry. This 20-stock industry is currently ranked #83. The industry has moved +19.5% year to date.
Gorman-Rupp and Halma could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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Are Industrial Products Stocks Lagging GormanRupp (GRC) This Year?

Key Points
Caterpillar's stock has risen more than 70% in the past year.
The company's backlog has grown to a record $72 billion.
The construction and heavy machinery company Caterpillar (NYSE: CAT) recently delivered one of its strongest quarters in history. A beneficiary of the artificial intelligence (AI) build-out, Caterpillar could potentially be the best industrials stock in the market right now.
Caterpillar's revenue in the second quarter of 2026 increased 24% to $20.5 billion from the previous year. The company's backlog is what really makes Caterpillar one of the best, if not the best, industrials stocks to buy right now.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
The pipeline is now a record $72 billion. That's a $35 billion increase in just one year. Caterpillar's profit per share reached an astounding $7.77 in this latest quarterly report.
AI-related demand is driving those numbers and reflects a real shift in Caterpillar's core business. The AI industry is providing multiyear revenue visibility and reducing the company's dependence on the traditional construction cycle.
Caterpillar's growth trajectory looks strong, and analysts largely agree that the stock has plenty of room left to run, with an average price target of $975. Caterpillar is currently trading around $800 per share.
All this good news, however, has made Caterpillar stock more expensive. The company's trailing P/E ratio is above 35 now, which is far higher than industry averages and the company's historical average. Ultimately, the valuation is justified by the company's multiyear demand and the shift away from traditional cyclicality.
Caterpillar is going to be difficult to beat in the coming years and is indeed one of the best industrial stocks to buy right now.
Should you buy stock in Caterpillar right now?
Before you buy stock in Caterpillar, 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 Caterpillar 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 $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 24, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Caterpillar the Best Industrials Stock to Buy Right Now?

Key Points
The Nasdaq Composite fell 0.8%, the Dow 0.6%, and the S&P 500 0.5% by late Thursday morning.
The U.S. and China extended their trade truce by only two months past its Nov. 10 expiration.
The 30-year Treasury yield touched 5.446%, its highest since June 2004.
Stocks fell for a second straight session Thursday as Treasury yields pushed to multidecade highs and crude oil climbed again. Meanwhile, a data center setback for Oracle (NYSE: ORCL) weighed on technology shares.
The Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 0.8% as of 11:25 a.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) fell 0.6%, and the S&P 500 (SNPINDEX: ^GSPC) took a 0.5% hit. Eighteen of the Dow's 30 components traded lower.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Yields went up, so stocks went down
The drooping chart lines start in the bond market. The 30-year Treasury yield touched 5.446%, its lowest level since June 2004, while the 10-year hit 5.15%, matching a July 2007 high. The FedWatch odds of an October rate hike are now 71%, against roughly 55% a week ago. Mortgage rates soared to a multi-year high of 7.1%.
That's a lot of economy drama for an ordinary Thursday. But there are real catalysts behind the moves.
An advisor to Iran's supreme leader warned that Iran and its Houthi allies could open a new front against Red Sea energy supplies. Adding another choke point besides the Strait of Hormuz pinch would wreak havoc on the supply and-demand economics of global oil shipments. A commercial ship was hit in the Strait on Wednesday, and one Indian crew member died. Under these circumstances, this morning's 1% jump in oil prices almost feels calm.
Diesel is turning into a political problem. It averaged $6.51 per gallon on Thursday, $2.82 above last year, and President Donald Trump said this week he's been advocating for an export ban within his own administration. The Chamber of Commerce, Business Roundtable, National Association of Manufacturers, and American Petroleum Institute all signed a letter telling him that it would backfire by cutting production and raising prices.
The Dow's drop came down to two names. Goldman Sachs (NYSE: GS) fell 2.2% and took out 119 points, and Caterpillar (NYSE: CAT) dropped 2.1% for another 100. That's 219 points from two stocks, neither of which announced anything. Heavy index weight plus economic pressure equals significant Dow changes.
Then there's Oracle, down more than 5% and leading the Nasdaq lower. The database giant declared "force majeure" on Project Jupiter, a $165 billion data center in New Mexico, due to power supply difficulties. The center requires 2.45 gigawatts of power, and the 17-mile gas pipeline that was supposed to feed it can't get the environmental permits it needs. So the construction schedule slipped, moving the ribbon-cutting from August 2026 to February 2027.
Meta Platforms (NASDAQ: META) had the opposite kind of day, up 3.1% as analysts raced to raise price targets on the stock. Meta's Muse AI agent drove the bullish report rush, as analysts see multi-billion-dollar value in its shopping-assistance functions.
What Trump and Xi actually agreed on
Wall Street has been waiting for today's Xi-Trump summit all week. The results were mixed.
The U.S. and China extended their trade truce by two months past its Nov. 10 expiration. That's shorter than anyone expected, and China wanted it to stretch into 2029. The leaders also discussed establishing a notification system for AI incidents that could affect national security. Trump sees "a truly great friendship" emerging between the world's two largest economies, while Xi Jinping focuses on continued dialogue over many issues of global concern.
That's two consecutive down days, bond yields at generational highs, and a truce extension measured in weeks. October is going to be busy.
Should you buy stock in Dow Jones Industrial Average right now?
Before you buy stock in Dow Jones Industrial Average, 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 Dow Jones Industrial Average 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 $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 24, 2026.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar, Goldman Sachs Group, Meta Platforms, and Oracle. The Motley Fool has a disclosure policy.

Market Indexes Fall Again as the 30-Year Yield Hits a 2004 High

Key Points
Caterpillar remains the global leader in heavy machinery with a massive independent dealer network spanning 190 countries.
Honeywell International is currently refocusing its business through strategic divestitures and a planned spin-off of its aerospace segment.
Which industrial powerhouse is the better fit for your portfolio in 2026?
Investors often look to industrial giants for stability, but choosing between a machinery titan and a diversified technology leader requires looking at the data. Let's compare Caterpillar (NYSE:CAT) and Honeywell International (NASDAQ:HON).
Caterpillar is the world's leading manufacturer of construction and mining equipment, relying on a vast global dealer network. Honeywell operates as a diversified conglomerate currently refocusing its portfolio on high-growth automation and aerospace technologies. Comparing these two involves weighing heavy equipment dominance against a technology-led transition.
The case for Caterpillar
Caterpillar operates as a global powerhouse among industrial stocks, primarily serving the construction, mining, and energy sectors. The company sells its heavy machinery through a massive independent dealer network, consisting of 41 dealers in the United States and 109 international dealers across 190 countries. Recent strategic moves in 2026 include the acquisitions of Skycatch, Monarch Tractor, and RPMGlobal, which are intended to boost the company's capabilities in mining and agricultural technology.
In FY 2025, according to its latest annual report, revenue reached nearly $67.6 billion, representing approximately 4.3% growth over the previous year. Net income for the period was roughly $8.9 billion, yielding a net margin of close to 13.1%. While revenue grew, this net margin was lower than the 16.7% achieved in FY 2024, when net income was approximately $10.8 billion.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 2.0x, calculated as total debt divided by shareholders' equity. The current ratio, which measures the ability to pay short-term obligations by dividing current assets by current liabilities, was approximately 1.4x. Free cash flow for FY 2025 reached nearly $7.5 billion, representing cash generated after paying for operating costs and equipment upgrades.
The case for Honeywell International
According to its latest annual report, filed for FY 2025, Honeywell is transforming into an organization focused on independent aerospace and automation businesses. It provides advanced technology and services to building operators, energy sector partners, and defense customers. Following a strategic review, the company is divesting its Warehouse and Workflow Solutions business and has already spun off its aerospace segment, Honeywell Aerospace (NASDAQ:HONA).
In FY 2025, revenue reached roughly $37.4 billion, which is an increase of approximately 7.8% over the previous year. Net income for the same period was close to $4.7 billion, resulting in a net margin of roughly 12.6%. This reflects a decline in net margin from FY 2024, when the company reported net income of approximately $5.7 billion and a net margin of nearly 16.4%.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 2.2x. The current ratio for the same period was roughly 1.3x, indicating the company's ability to cover its short-term liabilities with its current assets. Free cash flow, which is the cash a company generates after accounting for capital expenditures, reached nearly $5.4 billion in FY 2025.
Risk profile comparison
Caterpillar faces significant cyclicality risk, as demand for its heavy machinery is highly sensitive to commodity price volatility and global economic shifts. Operational risks include potential disruptions in complex global supply chains and a reliance on dealer inventory management. The company also faces intense competition from global rivals such as Komatsu (OTC:KMTUF) and Deere (NYSE:DE), which can lead to pricing and margin pressure.
Honeywell is exposed to risks associated with integrating numerous acquisitions and executing its complex strategic divestitures. The company faces ongoing legal and litigation risks, including substantial settlements related to past commercial agreements. Additionally, it must manage competitive threats from peers such as GE Vernova (NYSE:GEV) in technology-driven markets while navigating the operational impact of its corporate reorganizations.
Valuation comparison
Honeywell appears to be the more affordable option based on its P/S ratio, though Caterpillar carries a higher valuation relative to its Forward P/E and future earnings estimates.
Metric
Caterpillar
Honeywell International
Forward P/E
29.7x
24.8x
P/S ratio
5.5x
1.7x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Caterpillar and Honeywell are both titans of the industrial sector. Therefore, investors will need to dig beneath the surface to determine which stock could be the right choice for them. Here, we'll take a look at what each stock has to offer.
First, there's Caterpillar. The company is an industrial mainstay and provides much of the equipment used to create global infrastructure. In recent years, Caterpillar has benefited from the artificial intelligence (AI) boom. Right now, and going forward, Caterpillar equipment will be hard at work constructing the data centers needed as AI infrastructure comes into being. What's more, Caterpillar's fundamentals are rock solid, with nearly $68 billion in revenue and close to $9 billion in net income.
As for Honeywell, it is also a mainstay in the industrial sector. However, the company is undergoing a restructuring. This has resulted in some short-term turbulence, as the company must pivot operationally. The remaining corporate parent is focused on transforming into an industrial automation company. Here, it hopes to capitalize on the AI data center build-out and automate existing warehouses to improve logistics. At any rate, Honeywell stock remains a turnaround story. Shares currently trade at an affordable price-to-sales (P/S) valuation of only 1.7x. That's far below Honeywell's five-year average P/S of 3.2x.
In summary, different types of investors may favor different stocks here. Caterpillar is a company firing on all cylinders. Its valuation reflects that. Honeywell, on the other hand, may appeal to value-oriented investors willing to wait for its turnaround to bear fruit. At any rate, both stocks have solid fundamentals that will appeal to long-term investors.
Should you buy stock in Caterpillar right now?
Before you buy stock in Caterpillar, 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 Caterpillar 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 $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
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*Stock Advisor returns as of September 24, 2026.
Jake Lerch has positions in Caterpillar. The Motley Fool has positions in and recommends Caterpillar, Deere & Company , GE Vernova, Honeywell Aerospace, and Honeywell Technologies. The Motley Fool has a disclosure policy.

Caterpillar vs. Honeywell International: Which Industrials Stock Is a Better Buy in 2026?

In early trading on Thursday, shares of Honeywell International topped the list of the day's best performing Dow Jones Industrial Average components, trading up 7.5%. Year to date, Honeywell International registers a 42.2% gain.
And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.8%. Caterpillar is showing a gain of 39.1% looking at the year to date performance.
Two other components making moves today are Boeing, trading down 1.8%, and Walt Disney, trading up 1.7% on the day.
VIDEO: Dow Movers: CAT, HONIV

Dow Movers: CAT, HONIV

Key Points
Caterpillar maintains a dominant global position in construction and mining with massive free cash flow generation.
Corning is seeing rapid revenue growth driven by AI-driven demand for optical fiber and specialty glass.
Which of these two established industrial and technology leaders is the better fit for your portfolio in 2026?
As the global economy evolves, investors are weighing the stability of heavy machinery against the high-growth potential of advanced materials. Is Caterpillar (NYSE:CAT) or Corning (NYSE:GLW) the better choice for your portfolio?
Caterpillar is a global leader in construction and mining equipment, while Corning specializes in materials science, particularly glass and optical fiber. While they operate in different sectors, both are essential components of global infrastructure. This comparison evaluates which stock offers the best balance of growth and value in 2026.
The case for Caterpillar
Caterpillar provides essential machinery to the global construction and mining sectors, making it a staple among industrial stocks. The company operates through an extensive independent global dealer network that provides a massive competitive advantage in service and parts. In its latest annual report, filed for FY 2025, the company highlighted recent acquisitions, including Skycatch and Monarch Tractor, to bolster its capabilities in autonomous and electric machinery.
In FY 2025, revenue reached nearly $67.6 billion. This represented growth of roughly 4.3% compared to the previous fiscal year. Net income for the period was approximately $8.9 billion, indicating a healthy net margin of roughly 13.1% even as the company navigated shifting global demand.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 2.0x. This ratio measures total debt relative to shareholders' equity, indicating how a company finances its assets. The current ratio is approximately 1.4x, and free cash flow reached nearly $7.5 billion. Free cash flow is the cash remaining after the business covers its operating expenses and capital investments.
The case for Corning
Corning is a leader in materials science, producing specialized glass and optical fiber used in everything from smartphones to data centers. The company serves a concentrated customer base, including Amazon (NASDAQ:AMZN) and NVIDIA (NASDAQ:NVDA), to support AI-driven infrastructure. In its latest annual report, filed for FY 2025, the company also noted a multi-billion-dollar partnership with Verizon for high-density optical fiber.
In FY 2025, revenue reached nearly $15.6 billion. This represented growth of roughly 19.1% from the previous fiscal year as demand for AI technology surged. Net income was approximately $1.6 billion, resulting in a net margin of roughly 10.2%, which is a significant improvement over the prior year.
Based on its December 2025 balance sheet, the debt-to-equity ratio is about 0.9x. The current ratio reached approximately 1.6x, indicating a healthy ability to cover immediate liabilities with current assets. Free cash flow was nearly $1.4 billion, the cash remaining after the business covers its core activities and necessary equipment.
Risk profile comparison
Caterpillar faces risks primarily from the cyclical nature of the industries it serves, specifically mining and construction. Fluctuations in commodity prices can lead customers to delay large equipment purchases, impacting revenue. Furthermore, the company must manage competition from large rivals such as Deere & Company (NYSE:DE) and Komatsu(OTC:KMTUF).
Corning carries risks related to its high customer concentration, in which a small number of large tech companies account for a significant share of sales. The company is also exposed to the volatility in demand for manufacturing equipment and to the complexities of the global semiconductor supply chain. Additionally, Corning faces competition in the glass and materials space from companies such as Nippon Electric Glass and Sumitomo(OTC:SSUMF).
Valuation comparison
Caterpillar appears more attractively valued than Corning based on its lower Forward P/E and P/S ratio, which compares price to future earnings estimates and sales.
Metric
Caterpillar
Corning
Forward P/E
29.7x
45.7x
P/S ratio
5.1x
7.9x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Caterpillar and Corning are both iconic industrial stocks with long histories and fantastic long-term performance metrics. And while they ultimately serve different markets, there are many similarities between the two companies. This can make the choice between the two difficult, as both are excellent in their own right. Let's take a closer look at both.
To begin, there's Caterpillar. The company should be familiar to anyone who has seen a construction site. It provides the parts and equipment that enable the construction of infrastructure projects, mining developments, and data centers. The company's core fundamentals remain solid, with steady revenue growth, healthy margins, and plenty of free cash flow. Its dividend yield of 0.8% is modest.
Then, there's Corning. The company's key products include consumer electronics, glass, automotive parts, and, crucially, optical fiber cables. These cables are an important component of artificial intelligence (AI) infrastructure, as they are essential to the operation of AI data centers. Similar to CAT, Corning's key metrics reflect steady income and a healthy balance sheet. However, income-oriented investors may be unimpressed by its dividend yield of only 0.7%.
In summary, both stocks are acceptable choices for investors seeking an industrial stock for their portfolio. However, neither one comes cheap. CAT trades at a price-to-sales (P/S) ratio of 5.1x, significantly above its five-year average P/S of 2.9x. Corning stock also has a lofty P/S valuation of 7.9x, well-above its five-year average of 3.4x. In other words, these are two premier industrial stocks, and their current prices reflect that. Investors who are more bullish on AI may select Corning, given its greater correlation to the AI sector; investors seeking a slightly more diversified industrial stock may elect CAT.
Should you buy stock in Caterpillar right now?
Before you buy stock in Caterpillar, 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 Caterpillar 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 $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,657!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 24, 2026.
Jake Lerch has positions in Amazon, Caterpillar, and Nvidia. The Motley Fool has positions in and recommends Amazon, Caterpillar, Corning, Deere & Company , and Nvidia. The Motley Fool has a disclosure policy.