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, Inc.

Caterpillar Inc. CAT and Hunt Energy Company, L.P. have entered into a long-term strategic collaboration to meet the surging power needs of data centers. With the sector demanding uninterrupted or “always on” energy, the partnership aims to deliver scalable, efficient and highly reliable solutions tailored for data center operations. The partnership brings together more than 190 years of combined industry experience, leveraging Hunt’s proven expertise in energy infrastructure and Caterpillar’s leadership in power systems.
Caterpillar’s diverse portfolio in power solutions includes natural gas and diesel generation equipment, gas turbines, switchgear, controls, aftertreatment and engineering design services. CAT will also provide leading edge monitoring and servicing capabilities to ensure uninterrupted power delivery, with or without a connection to the power grid.
Hunt Energy brings its deep know-how in infrastructure development, project financing and operational execution for data center and distributed energy resource projects. The company also has significant capabilities in battery energy storage (BESS) projects, having deployed more than 310 MW of BESS solutions in the last four years.
The first joint project under this collaboration is planned for Texas and is expected to serve as the launchpad for a multi-year program to deliver up to 1 gigawatt of power generation capacity for data centers across North America. The long-term vision includes expanding the platform to other regions as the global demand for resilient data center infrastructure accelerates.
Over the past decade, the world has undergone a profound digital transformation. At the core of this are data centers, which process and store immense amounts of information. With millions of customers relying on data centers for uninterrupted access to information, operators face mounting pressure to ensure continuous operations and to build in redundancies that mitigate downtime and prevent costly outages.
Vertiv VRT has carved a niche as a specialist in critical digital infrastructure. The company provides integrated solutions spanning power management, thermal management and IT management systems. Vertiv’s offerings are widely adopted by hyperscale cloud providers and colocation facilities, thanks to their scalability and high reliability. With a growing emphasis on energy efficiency and sustainability, Vertiv is actively developing liquid cooling and advanced UPS systems that support the increasing power density of AI-driven data centers.
Eaton Corporation plc ETN is a diversified power management company and a global technology leader in electrical components and systems. The new AI training data centers requires both high power and density, which is creating a new opportunity for growth for this power management company. Eaton has invested more than $8 billion in transformative portfolio management and will be able to focus on the remaining businesses that will allow it to further improve earnings in the long run. Eaton completed the acquisition of Fibrebond for $1.4 billion, enhancing its ability to serve data center, industrial, utility and communications customers.
CAT’s Price Performance, Valuation & Estimates
CAT shares have gained 15.3% so far this year compared with the industry’s 15.2% growth. In comparison, the Zacks Industrial Products sector has gained 6.2%. The S&P 500 has moved up 8.5% 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 20.84X compared with the industry average of 19.73X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAT’s 2025 earnings indicates a year-over-year decline of 16.7%. The earnings estimate for 2026 indicates 16.7% growth. While the earnings estimates for Caterpillar for 2025 have moved down over the past 60 days, the same for 2026 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
Caterpillar stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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.

Can CAT & Hunt Energy Transform the Future of Data Center Power Systems?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $340.2 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 151,576,000 to 153,826,000). Among the largest underlying components of XLI, in trading today General Electric Co (Symbol: GE) is up about 1.9%, Caterpillar Inc. (Symbol: CAT) is down about 0.7%, and Boeing Co. (Symbol: BA) is higher by about 0.2%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $112.75 per share, with $155.15 as the 52 week high point — that compares with a last trade of $151.23. 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.
Funds Holding RSSL
Funds Holding SGK
BUSE Price Target
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLI, GE, CAT, BA: Large Inflows Detected at ETF

The S&P 500 Index ($SPX) (SPY) today is down by -0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.03%. September E-mini S&P futures (ESU25) are down -0.34%, and September E-mini Nasdaq futures (NQU25) are down -1.06%.
Stock indexes are mixed today, with the Dow Jones Industrials posting a new all-time high and the Nasdaq 100 falling to a 1-week low. Weaknesses in chip makers and in the Magnificent Seven stocks today are weighing on the overall market.
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On the positive side, Home Depot recovered from early losses and is up more than +4% to lead the Dow Jones industrials to a new record high after it reported a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday.
Lower bond yields today are supportive of stocks, with the 10-year T-note yield down -2 bp to 4.31%. US government debt garnered support today after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will "generally offset weaker fiscal outcomes."
Today's US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million.
Diplomatic talks over the war in Ukraine continue to make headway. Ukrainian President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal, with Ukrainian President Zelenskiy and European leaders continuing their meeting with President Trump in Washington. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 rose to a 4.75-month high and is up +0.92%. China's Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan's Nikkei Stock 225 retreated from a new record high and closed down -0.38%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.308%. Sep T-notes are moving higher today after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US's fiscal health from the president's tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks today is also supporting safe-haven demand for T-notes. Gains in T-notes are limited due to concerns that last week's bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting.
European government bond yields today are moving lower. The 10-year German bund yield is down -1.4 bp to 2.749%. The 10-year UK gilt yield fell from a 2.5-month high of 4.756% and is down by -2.2 bp to 4.716%.
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The weakness in the Magnificent Seven stocks is a drag on the overall market. Nvidia (NVDA) and Meta Platforms (META) are down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) are down more than -1%.
Advanced Micro Devices (AMD) is down more than -4% to lead chipmakers lower after GF Securities downgraded the stock to hold from buy. Also, Marvell Technology (MRVL) is down more than -3%, and Broadcom (AVGO) and ARM Holdings Plc (ARM) are down more than -2%. In addition, Qualcomm (QCOM) is down more than -1%.
Viking Therapeutics (VKTX) is down more than -43% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns.
Fabrinet (FN) is down more than -12% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components.
Amer Sports (AS) is down more than -4% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%.
Medtronic Plc (MDT) is down more than -3% after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%.
Vertiv Holdings (VRT) is down more than -3% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112.
Intel (INTC) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company's stock.
Cybersecurity stocks are climbing today, led by a +4% jump in Palo Alto Networks (PANW) after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion. CyberArk Software Ltd (CYBR) is also up more than +4% on the news.
Trucking companies are climbing today. JB Hunt Transport Services (JBHT) is up more than +4%, and Old Dominion Freight Line (ODFL), Knight-Swift Transportations Holdings (KNX), and Schneider National (SNDR) are up more than +3%. In addition, CSX Corp (CSX) and FedEx (FDX) are up more than +2%.
Home Depot (HD) recovered from an early decline and is up more than +4% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%.
Prologis (PLD) is up more than +4% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118.
Caterpillar (CAT) is up more than +1% after Evercore ISI upgraded the stock to outperform from in line with a price target of $476.
Earnings Reports(8/19/2025)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), James Hardie Industries PLC (JHX), Keysight Technologies Inc (KEYS), Medtronic PLC (MDT), Toll Brothers Inc (TOL), Viking Holdings Ltd (VIK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Pressured by Weakness in Tech

The S&P 500 Index ($SPX) (SPY) today is down by -0.10%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.32%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.52%. September E-mini S&P futures (ESU25) are down -0.13%, and September E-mini Nasdaq futures (NQU25) are down -0.60%.
Stock indexes are slightly lower today as retail stocks begin to report their earnings. The weakness in the Magnificent Seven stocks today is weighing on the overall market.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the positive side, Home Depot recovered from early losses and is up more than +4% to lead the Dow Jones industrials higher after reporting a +3% jump in July comparable same-store sales. Lowes and Target will report their earnings on Wednesday, and Walmart will report on Thursday.
Lower bond yields today are supportive of stocks, with the 10-year T-note yield down -2 bp to 4.31%. US government debt garnered support today after S&P Global Ratings affirmed its AA+ long-term rating and A-1+ short-term rating on US debt and said the US can maintain its credit strength despite the fiscal hit of its recent spending bill because tariff revenues will "generally offset weaker fiscal outcomes."
Today's US housing news was mixed. US Jul housing starts unexpectedly rose +5.2% m/m to a 5-month high of 1.428 million, stronger than expectations of a decline to 1.297 million. However, Jul building permits, a proxy for future construction, fell -2.8% m/m to a 5-year low of 1.354 million, weaker than expectations of -0.5% m/m to 1.386 million.
Diplomatic talks over the war in Ukraine continue to make headway. Ukraine President Zelenskiy said he came away with a commitment from President Trump late Monday to join security guarantees for any peace deal and reserve discussion on territorial swaps with Russia for later. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal, with Ukrainian President Zelenskiy and European leaders continuing their meeting with President Trump in Washington. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000 and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve's annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, "I'll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we'll be setting sometime next week, week after." Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 rose to a 4.75-month high and is up +0.75%. China's Shanghai Composite fell from a 10-year high and closed down -0.02%. Japan's Nikkei Stock 225 retreated from a new record high and closed down -0.38%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.308%. Sep T-notes are moving higher today after S&P Global Ratings said that higher revenues from tariffs will help soften the blow to the US's fiscal health from the president's tax cuts, enabling the country to maintain its AA+ long-term credit rating. The weakness in stocks today is also supporting safe-haven demand for T-notes. Gains in T-notes are limited due to concerns that last week's bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month's FOMC meeting.
European government bond yields today are moving lower. The 10-year German bund yield is down -0.2 bp to 2.761%. The 10-year UK gilt yield fell from a 2.5-month high of 4.756% and is down by -0.3 bp to 4.735%.
Swaps are discounting the chances at 6% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Viking Therapeutics (VKTX) is down more than -39% after a Phase 2 trial of its oral weight loss drug showed 28% of patients discontinued treatment over tolerability concerns.
Fabrinet (FN) is down more than -10% after it said it expects to see a sequential dip in datacom segment revenue in its fiscal Q1, citing supply constraints for some critical components.
Medtronic Plc (MDT) is down more than -5% to lead losers in the S&P 500 after reporting Q1 adjusted operating margin of 23.6%, weaker than the consensus of 23.7%.
Advanced Micro Devices (AMD) is down more than -3% after GF Securities downgraded the stock to hold from buy.
Amer Sports (AS) is down more than -2% after forecasting Q3 adjusted operating margin of 12% to 13%, below the consensus of 13%.
Vertiv Holdings (VRT) is down more than -2% after GLJ Research initiated coverage on the stock with a recommendation of sell and a price target of $112.
Cybersecurity stocks are climbing today, led by a +4% jump in Palo Alto Networks (PANW) after it forecast 2026 revenue of $10.48 billion-$10.53 billion, stronger than the consensus of $10.44 billion. CyberArk Software Ltd (CYBR) is up more than +5%, and Zscaler (ZS) and CrowdStrike Holdings (CRWD) are up more than +0.50%.
Intel (INTC) is up more than +10% to lead gainers in the S&P 500 and Nasdaq 100 after SoftBank Group Corp agreed to buy $2 billion of the company's stock.
Home Depot (HD) recovered from an early decline and is up more than +4% to lead gainers in the Dow Jones Industrials after reporting that July comparable same-store sales rose more than +3%.
Prologis (PLD) is up more than +3% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $118.
Caterpillar (CAT) is up more than +1% after Evercore ISI upgraded the stock to outperform from in line with a price target of $476.
Peabody Energy (BTU) is up more than +1% after deciding to walk away from a $3.8 billion deal to buy the steelmaking coal business from Anglo American Plc following a fire at Anglo's Australian mine.
Earnings Reports(8/19/2025)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), James Hardie Industries PLC (JHX), Keysight Technologies Inc (KEYS), Medtronic PLC (MDT), Toll Brothers Inc (TOL), Viking Holdings Ltd (VIK).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Slightly Lower as Retailer Earnings Arrive

Key Points
Pacer Advisors sold 1,376,018 shares at an estimated average trade value of ~$458.56 million.
Post-trade stake: 38,262 Caterpillar shares, valued at $15.79 million as of Aug. 12, 2025.
The position was previously 1.1% of the fund's AUM, now reduced to less than 0.04%.
What happened
According to a recent SEC filing dated Aug. 12, 2025, Pacer Advisors, Inc. sold 1,376,018 shares of Caterpillar(NYSE:CAT), bringing its holding to 38,262 shares worth $15.79 million. The estimated trade value of the sale was $458.56 million, based on the average share price over the most recent quarter.
The fund reported $40.23 billion in reportable U.S. equity assets as of June 30, 2025.
What else to know
This was a significant reduction; Caterpillar now accounts for just 0.04% of the fund's 13F assets under management.
As of Aug. 12, 2025, Caterpillar shares were priced at $412.71, up 14.7% over the past year, outperforming the S&P 500 by 3.3 percentage points over the past year.
Dividend yield: 1.39% as of Aug. 12, 2025; forward price-to-earnings ratio for fiscal year 2026: 19.17; enterprise value to EBITDA (trailing twelve months, as of June 30, 2025): 15.91; five-year revenue compound annual growth rate: 3.8%.
Company overview
Market capitalization
$193.35 billion
Revenue (TTM)
$63.14 billion
Net income (TTM)
$9.44 billion
Dividend yield
1.39%
Company snapshot
Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and related products and services.
Generates revenue through equipment sales, aftermarket parts, financial services, and solutions for construction, mining, energy, and transportation sectors.
Serves global customers in construction, mining, energy, transportation, and industrial markets, including contractors, mining companies, and infrastructure developers.
Caterpillar is a global leader in industrial equipment, leveraging a diverse product portfolio and integrated solutions to serve customers worldwide. The company's scale and broad presence across construction, mining, and energy markets provide resilience and growth opportunities.
Foolish take
Pacer Advisors offloaded 1,376,018 shares in Caterpillar in the second quarter, according to its SEC filings. Although the exact price is unknown (the $458.6 million estimate is based on the average from April to June), it was less than the current price.
That's not too critical, because I think Pacer made the right decision. Caterpillar has some exciting and topical growth drivers, for example, its power generation business, which grew revenue 28% in the second quarter on a year-over-year basis, driven by data center spending. Moreover, its worldwide machines and energy & transportation retail sales (Caterpillar sells through dealers) grew at a 3% rate in the first and second quarters.
On the other hand, management now expects its full-year services revenue (a key part of its plan to reduce the cyclicality of its earnings) to be flat on 2024. In addition, its operating profit continues to decline (down 18% in the second quarter) with a combination of tariff cost headwinds and unfavorable price realization (difference between list price and actual price) dragging it down.
In addition, there's no guarantee that a commodity supercycle will occur to benefit Caterpillar's infrastructure, resources, and construction machinery sales over the long term. Now trading at more than 24 times estimated free cash flow in 2025, Caterpillar doesn't look like an excellent value stock.
Glossary
Form 13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
13F assets: U.S. equity securities reported in a Form 13F filing, representing a subset of a manager's total AUM.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Forward price-to-earnings ratio: Price-to-earnings ratio using projected earnings for the next fiscal year.
Enterprise value to EBITDA (EV/EBITDA): Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; measures company valuation.
Compound annual growth rate (CAGR): The mean annual growth rate of an investment over a specified period.
TTM:The 12-month period ending with the most recent quarterly report.
Aftermarket parts: Replacement parts sold for equipment after the initial sale, often for maintenance or repair.
Stake: The amount or percentage of ownership an investor holds in a company.
Quarterly average price: The average price of a security over a three-month reporting period.
Outperforming: Achieving a higher return or growth rate than a benchmark or comparable group.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Nvidia. The Motley Fool recommends Johnson & Johnson. 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.

Pacer Advisors Dumps Caterpillar Shares Worth $458.6 Million

Caterpillar Inc. CAT recently reported second-quarter 2025 results, with the mining and construction equipment behemoth witnessing year-over-year declines in its top and bottom lines. While revenues beat the Zacks Consensus Estimate, earnings fell short. The quarter marked CAT’s sixth consecutive quarter of revenue decline and the fourth straight quarter of earnings decline.
Following this performance, CAT shares have dipped 5%. Despite this, CAT stock has notched a 13.7% year-to-date gain compared with the industry’s 11.9% growth. In comparison, the Zacks Industrial Products sector has gained 5%. Meanwhile, the S&P 500 has risen 8.2%.
CAT’s Price Performance vs. Industry & Broader Market
Image Source: Zacks Investment Research
Meanwhile, peer Komatsu KMTUY has fared better with a year-to-date 23.9% rise. Terex Corporation TEX and The Manitowoc Company MTW have lagged CAT stock, gaining 9.6% and 7.5%, respectively.
CAT’s YTD Price Performance vs. Komatsu, Terex & Manitowoc
Image Source: Zacks Investment Research
Before addressing the critical question of how investors should position themselves regarding the stock, let us dig deeper into the second-quarter results and evaluate CAT stock’s fundamentals.
Caterpillar’s Q2 Revenues, Profits & Cash Flow Fall
Caterpillar’s revenues declined 1% year over year to $16.6 billion as unfavorable price realization offset higher volumes.
Adjusted operating profit was around $2.92 billion, down 22% from the year-ago quarter. The adjusted operating margin was 17.6% compared with 22.4% in the second quarter of 2024.
Earnings per share were $4.72, which came in 21% lower than the year-ago quarter owing to lower revenues and the impact of tariffs. For more details, read: CAT Q2 Earnings Miss Estimates, Down Y/Y on Tariff-Driven Cost Surge.
Caterpillar generated an operating cash flow of $4.4 billion in the first half of 2025 compared with $5.07 billion in the prior-year comparable period.
Few Bright Spots Worth Noting in CAT’s Q2 Results
Caterpillar reported a turnaround in volume performance in the second quarter of 2025, with a net volume increase of $237 million. This marks a recovery after six straight quarters of volume declines. The rebound was largely driven by a $326 million boost in the Energy & Transportation (E&T) segment, which offset volume declines of $83 million in Construction Industries and $13 million in Resource Industries.
CAT has been impacted by the downturn in China's real estate sector, particularly for 10-ton and larger excavators, which were once a key market for the company. The company recently pointed out that China has shown positive momentum this year and it expects growth 10-ton and above excavator industry.
Caterpillar ended the quarter with a solid backlog of $37.5 billion.
Caterpillar Updates Outlook for 2025
CAT now expects 2025 revenues to be slightly higher than 2024, an improvement from its prior projection of flat revenues.
The company outlined its expectations for 2025 operating margins, including and excluding net incremental tariffs of around $1.3-$1.5B. Excluding tariffs, adjusted operating margin is expected to be in the top half of its target range, corresponding to the anticipated level of revenues. Considering the impact of tariffs, Caterpillar expects the adjusted operating margin to be in the bottom half of its target range.
The company maintains its revenue projection at $42-$72 billion, and margins are anticipated between 10% and 22%, per the respective revenue levels. This is shown in the chart below.
CAT's Guidance Range
Image Source: Caterpillar
CAT Sees Mixed Estimate Revision Activity
Earnings estimates for CAT have moved down 1.66% for 2025 over the past 60 days. However, the estimate for 2026 has moved up 0.85%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 indicates a year-over-year decline of 16%. The same for 2026 implies 15.7% growth.
Image Source: Zacks Investment Research
Caterpillar Continues to Battle Industry Pressures
The U.S. manufacturing sector underwent a 26-month contraction till December 2024. Even though the Institute for Supply Management’s manufacturing index showed expansion in January and February with readings above 50%, it was short-lived, with the index slipping to 49% in March. It has remained in contraction for five months now, with the last reading at 48% in July.
The New Orders Index has been in contraction for six months, with a July reading of 47.1%. Rising concerns over tariffs led customers to scale back orders.
Caterpillar’s Premium Valuation
CAT is currently trading at a forward 12-month P/E of 20.51X, at a premium compared with the industry’s 19.46X. It’s Value Score of D suggests a stretched valuation at this moment.
Image Source: Zacks Investment Research
Meanwhile, Komatsu, Terex and Manitowoc are cheaper options, trading at a forward 12-month P/E of 12.06X, 9.6X and 12.08X, respectively.
CAT’s Long-Term Growth Drivers Remain Intact
Despite short-term challenges, Caterpillar’s long-term outlook is supported by expected increases in U.S. infrastructure spending and growing demand for mining equipment due to the energy transition. As miners are increasingly relying on autonomy to increase productivity and efficiency and improve safety, CAT has been focusing on enhancing its autonomous fleet.
In Energy and Transportation, the increased focus on sustainability and the establishment of data centers will drive the demand for Caterpillar’s equipment. CAT has been seeing growth in aftermarket parts and service-related revenues, which generate high margins. The company is on track to double its service revenues from $14 billion in 2016 to $28 billion in 2026.
Caterpillar Offers Attractive Dividend Yield & Payout
CAT’s 1.80% dividend yield is higher than the sector’s yield of 1.39% and the S&P 500’s 1.15%. The company has a five-year dividend growth rate of 7.9% and a payout ratio of around 30.3%. Caterpillar has a solid track of paying out higher dividends to shareholders for 30 straight years.
In comparison, Komatsu has a higher dividend yield of 3.85%. Terex has a dividend yield of 1.34% and Manitowoc currently does not pay any dividends.
How Should Investors Approach CAT Stock Now?
Caterpillar’s premium valuation, coupled with ongoing declines in revenues and earnings, industry pressures and downward estimate revision activity for the current year, suggests caution for new investors.
Existing shareholders should stay invested in Caterpillar’s stock to benefit from its solid long-term demand prospects, backed by infrastructure spending and energy-transition trends, as well as its focus on growing service revenues. CAT’s strong financial position enables it to invest in its businesses and return cash to shareholders through share buybacks and consistent dividend payments. The company currently has a Zacks Rank #3 (Hold), which supports our thesis.
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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.

CAT Down 5% Since Q2 Earnings Miss: Buy, Sell or Hold the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $9.9 billion dollar outflow -- that's a 1.5% decrease week over week (from 1,041,432,116 to 1,026,082,116). Among the largest underlying components of SPY, in trading today General Electric Co (Symbol: GE) is off about 3%, Caterpillar Inc. (Symbol: CAT) is up about 0.2%, and Capital One Financial Corp (Symbol: COF) is up by about 0.3%. For a complete list of holdings, visit the SPY Holdings page » The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $481.80 per share, with $646.19 as the 52 week high point — that compares with a last trade of $644.37. 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.
SSP Options Chain
Top Ten Hedge Funds Holding SMIH
IMMX Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SPY, GE, CAT, COF: Large Outflows Detected at ETF

Capital Compounders for Investors

(RTTNews) - Caterpillar Inc. (CAT) announced earnings for second quarter that Decreased from last year and missed the Street estimates.
The company's earnings came in at $2.179 billion, or $4.62 per share. This compares with $2.681 billion, or $5.48 per share, last year.
Excluding items, Caterpillar Inc. reported adjusted earnings of $2.226 billion or $4.72 per share for the period.
Analysts on average had expected the company to earn $4.90 per share. Analysts' estimates typically exclude special items.
The company's revenue for the period fell 0.7% to $16.569 billion from $16.689 billion last year.
Caterpillar Inc. earnings at a glance (GAAP) :
-Earnings: $2.179 Bln. vs. $2.681 Bln. last year. -EPS: $4.62 vs. $5.48 last year. -Revenue: $16.569 Bln vs. $16.689 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Caterpillar Inc. Q2 Profit Decreases, Misses Estimates

(RTTNews) - Caterpillar Inc. (CAT) will host a conference call at 8:30 AM ET on August 5, 2025, to discuss Q2 25 earnings results.
To access the live webcast, log on to https://events.q4inc.com/attendee/962428411
To listen to the call, dial (800) 715-9871 or +1 (646) 307-1963, Conference ID 8390933.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.