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. демонстрирует сильные финансовые показатели, при этом многие мультипликаторы, такие как P/E и P/S, значительно превышают отраслевые медианы, что указывает на возможную переоцененность акций. Тем не менее, компания показывает высокие значения ROE и ROA, что свидетельствует о высокой эффективности использования капитала. Долговая нагрузка также вызывает некоторые опасения, так как коэффициент долга к капиталу находится выше медианы отрасли, что может увеличивать финансовые риски. Дивидендная доходность снизилась, что негативно сказывается на привлекательности для инвесторов. При этом рост выручки и чистой прибыли по годам, а также положительная динамика операционной и валовой маржи позволяют считать компанию финансово устойчивой. В целом, несмотря на некоторые негативные аспекты, такие как высокая финансовая нагрузка и переоцененные мультипликаторы, сильные фундаментальные показатели и потенциал роста делают Caterpillar интересной для долгосрочных инвестиций.

Caterpillar, Inc.

In early trading on Wednesday, shares of Nike topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.0%. Year to date, Nike has lost about 10.2% of its value.
And the worst performing Dow component thus far on the day is Procter & Gamble, trading down 1.7%. Procter & Gamble is showing a gain of 7.0% looking at the year to date performance.
Two other components making moves today are Caterpillar, trading down 1.1%, and Salesforce, trading up 1.7% on the day.
VIDEO: Dow Movers: PG, NKE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: PG, NKE

For Immediate Release
Chicago, IL – March 10, 2026 – Today, Zacks Investment Ideas feature highlights Caterpillar CAT and Walmart WMT.
2 Long-Term Favorite Stocks Trading Near 52-Week Highs
When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present.
That’s been precisely the case for Caterpillar and Walmart, both of which have seen new growth runways open up and are trading near 52-week/all-time highs. Let’s take a closer look at what’s been driving the bullish behavior.
Walmart Earnings Impress
Walmart shares have benefited nicely from recent quarterly results, with its digital business regularly showing strong growth and enabling it to pursue additional growth avenues through advertising.
In addition to the digital efforts, Walmart also sits in a pretty spot concerning its consumer base, with higher-income households able to trade down in periods of distress, while lower and middle-income households find its lower-priced products attractive nearly year-round.
Up more than 40% over the last year, the stock has been a rockstar performer, outperforming the S&P 500 by a wide margin. The stock has also become a solid dividend play over recent years, with the payout increasing by a fair amount over the period. WMT has increased its dividend payout five times over as many years, translating to a 5.5% five-year annualized dividend growth rate.
Caterpillar Benefits from AI Buildout
Caterpillar posted robust results in its latest release, continuing a streak of impressive investors over the past year or so. Sales of $18 billion marked a quarterly record, and the company also exited the period with a record-high backlog.
Notably, the company has benefited from the broader AI buildout as well. Its Power & Energy segment YoY sales growth rate of 23% in the above-mentioned quarter was partly driven by higher demand for large reciprocating engines, primarily for data center applications.
The strong top line performance is better seen below in the chart that illustrates Caterpillar’s sales on a quarterly basis. The company’s current fiscal year outlook has also shifted bullishly since roughly the beginning of October 2025, also shown below.
Keep in mind that the company is also a Dividend Aristocrat, a title given to S&P 500 companies with at least 25 consecutive years of higher, uninterrupted dividend payouts. Specifically, the company has 30+ years of uninterrupted, higher payouts under its belt.
Bottom Line
Stocks near 52-week highs reflect considerable bullish momentum, with stocks that make new highs tending to make even higher highs on the back of bullish sentiment that got them there to begin with.
Both Walmart and Caterpillar have been excellent long-term holdings, crushing the S&P 500 over the last decade. The momentum looks set to continue thanks to the favorable growth avenues that have opened up for each in the technology era.
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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. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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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.

Zacks Investment Ideas feature highlights Caterpillar and Walmart

When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present.
That’s been precisely the case for Caterpillar CAT and Walmart WMT, both of which have seen new growth runways open up and are trading near 52-week/all-time highs. Let’s take a closer look at what’s been driving the bullish behavior.
Walmart Earnings Impress
Walmart shares have benefited nicely from recent quarterly results, with its digital business regularly showing strong growth and enabling it to pursue additional growth avenues through advertising.
In addition to the digital efforts, Walmart also sits in a pretty spot concerning its consumer base, with higher-income households able to trade down in periods of distress, while lower and middle-income households find its lower-priced products attractive nearly year-round.
Up more than 40% over the last year, the stock has been a rockstar performer, outperforming the S&P 500 by a wide margin. The stock has also become a solid dividend play over recent years, with the payout increasing by a fair amount over the period. WMT has increased its dividend payout five times over as many years, translating to a 5.5% five-year annualized dividend growth rate.
One-Year Share Performance & Dividend Growth
Image Source: Zacks Investment Research
Caterpillar Benefits From AI Buildout
Caterpillar posted robust results in its latest release, continuing a streak of impressive investors over the past year or so. Sales of $18 billion marked a quarterly record, and the company also exited the period with a record-high backlog.
Notably, the company has benefited from the broader AI buildout as well. Its Power & Energy segment YoY sales growth rate of 23% in the above-mentioned quarter was partly driven by higher demand for large reciprocating engines, primarily for data center applications.
The strong top line performance is better seen below in the chart that illustrates Caterpillar’s sales on a quarterly basis. The company’s current fiscal year outlook has also shifted bullishly since roughly the beginning of October 2025, also shown below.
Quarterly Revenue Growth & Current Fiscal Year EPS Revisions
Image Source: Zacks Investment Research
Keep in mind that the company is also a Dividend Aristocrat, a title given to S&P 500 companies with at least 25 consecutive years of higher, uninterrupted dividend payouts. Specifically, the company has 30+ years of uninterrupted, higher payouts under its belt.
Bottom Line
Stocks near 52-week highs reflect considerable bullish momentum, with stocks that make new highs tending to make even higher highs on the back of bullish sentiment that got them there to begin with.
Both Walmart WMT and Caterpillar CAT have been excellent long-term holdings, crushing the S&P 500 over the last decade. The momentum looks set to continue thanks to the favorable growth avenues that have opened up for each in the technology era.
Image Source: Zacks Investment Research
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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.

2 Long Term Favorite Stocks Trading Near 52-Week Highs

For Immediate Release
Chicago, IL – March 9, 2026 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2880442/3-stocks-for-your-wish-list
3 Stocks for Your Wish List
Welcome to Episode #477 of the Zacks Market Edge Podcast.
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(0:30) - Is The Current Pullback A Good Investment Opportunity
(5:15) - Tracey's Top Picks For Your Watchlist
(16:30) - Episode Roundup: CAT, FIX, LLY
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
Stock market volatility has risen again on the uncertainty of the conflict in the Middle East. But investors should use this to their advantage.
Surely there have been stocks that investors have thought had galloped away from them in the last year. These stocks were hitting new all-time highs. Unfortunately, they had missed out.
A Wish List for Second Chances
That’s why every investor should have a “wish list.” These are stocks that you hope you can buy if there is ever a major sell-off.
What’s a major sell-off? A 10% or more pullback.
There are plenty of hot stocks to choose from in 2026, but these are three that should be on anyone’s wish list.
3 Stocks for Your Wish List
1. Caterpillar Inc. CAT
Caterpillar makes construction and mining equipment. Shares recently hit new 5-year highs, up 220% over that period.
But in the last week, Caterpillar shares have pulled back 5.7% off those highs. It’s not cheap, with a forward price-to-earnings (P/E) ratio of 32. A P/E under 15 usually indicates a value. A P/E over 30 is considered expensive.
Earnings are expected to jump 18.9% this year and another 21.6% next year.
Should a manufacturer like Caterpillar be on your wish list?
2. Eli Lilly and Co. LLY
Eli Lilly keeps making Tracey’s short lists. She owns it in Zacks’ Insider Trader portfolio. Shares have soared to new all-time highs on the strength of its GLP-1 drug portfolio. Eli Lilly is up 375% over the last 5 years.
But shares are down 4.1% over the prior 5 days and are also down 9% year-to-date.
Earnings of Eli Lilly are expected to rise 41.1% in 2026 and another 22.8% in 2027. It trades with a forward P/E of 29.4.
Is this a buying opportunity in Eli Lilly?
3. Comfort Systems USA, Inc. FIX
Comfort Systems is a building and service provider for mechanical, electrical, modular, and plumbing building systems. It has a market cap of $50 billion.
Comfort Systems has been a tremendous performer over the last 5 years. Shares are up 1,829%. But in the last 5 days, FIX has fallen 5.8%.
Earnings are expected to jump 26.1% in 2026 and another 16.2% in 2027. It’s not cheap anymore. Comfort Systems trades at a forward P/E of 38.7.
Is Comfort Systems a buy if it falls more than 10%?
What Else Should You Know About a Wish List?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns LLY in the Zacks Insider Portfolio.]
Why Haven't You Looked at Zacks' Top Stocks?
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com/performance
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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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.

Zacks Market Edge Highlights: Caterpillar, Eli Lilly and Comfort Systems

Key Points
Caterpillar is largely known for its giant earth-moving equipment.
The company's equipment is likely to be in high demand in 2026.
Caterpillar (NYSE: CAT) is an iconic company with a huge portfolio of earth-moving products. In 2025, the company generated $67.6 billion in sales and $19.06 in adjusted earnings per share. The future is likely to be bright, as well, with the company's $51 billion backlog sitting at record levels. Here are three reasons to buy Caterpillar stock in 2026.
1. Caterpillar is benefiting from reshoring efforts
Caterpillar's equipment gets used to build everything from roads to buildings, and a lot in between. Over the past several years, companies have made a material effort to build in their home markets rather than manufacturing abroad and importing finished products. This so-called reshoring move generally requires the construction of new factories and other assets.
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 »
Notably, spending on manufacturing plants in the United States has increased by more than 40% since 2020. While this spending isn't quite as "hot" as it was a couple of years ago, it is still running at an elevated pace, and that should translate into strong demand for Caterpillar's products. For example, Caterpillar's sales to construction industries were up 11% worldwide in the fourth quarter of 2025.
2. Data centers are a new and growing category
The hot construction topic of the day, however, is data centers. The emergence of artificial intelligence as a major new technology has dramatically increased the need for data centers. Spending on data centers has increased by nearly 350% since 2020. To be fair, construction spending on data centers is just a fraction of the spending on manufacturing. Still, data centers are an additional catalyst for demand.
3. Caterpillar also provides power
One lesser-known product category for Caterpillar is power. It makes engines that can provide power in remote locations or serve as backups in case of problems with the power grid. The company's power products are particularly useful for energy-related businesses that operate in remote areas, such as oil drilling. However, Caterpillar's power products can also help get a data center up and running before it has access to grid power. And those same products can keep a data center running even when the grid is down. Given the increasing importance of technology to modern life, Caterpillar's power business could be a hidden gem.
There's one problem with Caterpillar
There are clearly reasons to like Caterpillar stock in 2026. However, there is one sticking point that will stop many investors. The stock's 37x price-to-earnings ratio is far above its five-year average of roughly 19x. That said, Caterpillar's business tends to be cyclical, which can lead to material drawdowns. If you like the long-term opportunity Cat offers but not its current valuation, you should probably keep it on your wish list just in case there's a sell-off in 2026.
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 $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 192% 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 March 7, 2026.
Reuben Gregg Brewer 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons to Buy Caterpillar Stock in 2026

Key Points
The world has an increasing need for power, with AI as a near-term growth driver.
Caterpillar is set to support growing power needs in more ways than you might think.
Caterpillar (NYSE: CAT) is an iconic industrial company known for its yellow construction equipment. But as artificial intelligence (AI) spreads rapidly, you need to think about Caterpillar in a broader way. Here's how this industrial giant is adapting and evolving to support the AI revolution.
The old Caterpillar is well-positioned
Caterpillar is historically known for making construction equipment, like backhoes and dump trucks. The industrial company's giant earth-moving machinery is used to build the world around us, from roads to buildings. The business is somewhat cyclical, as construction tends to ebb and flow with economic activity. However, some positive, big-picture trends are taking shape.
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 »
For example, companies are increasingly reshoring production. That means new buildings and factories are needed. And artificial intelligence has led to a data center construction boom among companies that are trying to establish themselves as AI technology leaders. If there's a lot of building going on, there's likely to be a huge need for the earth-moving machines for which Caterpillar is best known.
There's more to Caterpillar than backhoes
In addition to earth-moving equipment, Caterpillar also makes power equipment. It produces engines that can provide power in remote locations or act as backups when grid power goes down. One of the most important industries for Caterpillar's power products is energy. Extracting oil and natural gas, the latter fuel being integral to the proper functioning of the electric energy grid, will be a material market for years to come.
But don't stop with oil and gas producers. The utility industry will need to spend heavily to keep up with rising electricity demand. Between 2023 and 2030, electricity demand worldwide is expected to increase by 43%. Demand from data centers is expected to jump 200%.
The grid investment needed will be another key support for Caterpillar's business. And Caterpillar's ability to provide dedicated power options before grid access is available could specifically help support faster data center buildouts. Meanwhile, its ability to provide backup power can help to keep data centers up and running during blackouts.
A lot of opportunities ahead for Caterpillar
When you step back and look at the big picture, AI is a huge opportunity for Caterpillar, well beyond its historical construction focus. However, investors aren't exactly ignoring the opportunity, noting that the stock's price-to-sales and price-to-earnings ratios are well above their five-year averages. Still, Caterpillar probably deserves a spot on your AI wish list just the same, given the tendency for sizable drawdowns among cyclical stocks.
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 $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 192% 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 March 7, 2026.
Reuben Gregg Brewer 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is This Industrial Giant Actually an AI Play?

(0:30) - Is The Current Pullback A Good Investment Opportunity
(5:15) - Tracey's Top Picks For Your Watchlist
(16:30) - Episode Roundup: CAT, FIX, LLY
Welcome to Episode #477 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
Stock market volatility has risen again on the uncertainty of the conflict in the Middle East. But investors should use this to their advantage.
Surely there have been stocks that investors have thought had galloped away from them in the last year. These stocks were hitting new all-time highs. Unfortunately, they had missed out.
A Wish List for Second Chances
That’s why every investor should have a “wish list.” These are stocks that you hope you can buy if there is ever a major sell-off.
What’s a major sell-off? A 10% or more pullback.
There are plenty of hot stocks to choose from in 2026, but these are three that should be on anyone’s wish list.
3 Stocks for Your Wish List
1. Caterpillar Inc. (CAT)
Caterpillar makes construction and mining equipment. Shares recently hit new 5-year highs, up 220% over that period.
But in the last week, Caterpillar shares have pulled back 5.7% off those highs. It’s not cheap, with a forward price-to-earnings (P/E) ratio of 32. A P/E under 15 usually indicates a value. A P/E over 30 is considered expensive.
Earnings are expected to jump 18.9% this year and another 21.6% next year.
Should a manufacturer like Caterpillar be on your wish list?
2. Eli Lilly and Co. (LLY)
Eli Lilly keeps making Tracey’s short lists. She owns it in Zacks’ Insider Trader portfolio. Shares have soared to new all-time highs on the strength of its GLP-1 drug portfolio. Eli Lilly is up 375% over the last 5 years.
But shares are down 4.1% over the prior 5 days and are also down 9% year-to-date.
Earnings of Eli Lilly are expected to rise 41.1% in 2026 and another 22.8% in 2027. It trades with a forward P/E of 29.4.
Is this a buying opportunity in Eli Lilly?
3. Comfort Systems USA, Inc. (FIX)
Comfort Systems is a building and service provider for mechanical, electrical, modular, and plumbing building systems. It has a market cap of $50 billion.
Comfort Systems has been a tremendous performer over the last 5 years. Shares are up 1,829%. But in the last 5 days, FIX has fallen 5.8%.
Earnings are expected to jump 26.1% in 2026 and another 16.2% in 2027. It’s not cheap anymore. Comfort Systems trades at a forward P/E of 38.7.
Is Comfort Systems a buy if it falls more than 10%?
What Else Should You Know About a Wish List?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns LLY in the Zacks Insider Portfolio.]
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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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
Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Stocks for Your Wish List

Caterpillar Inc. CAT stock is currently trading at a forward price-to-sales ratio of 4.50, above the manufacturing - construction and mining industry’s 3.47.
With a Value Score of D, CAT stock does not appear to be a compelling value proposition at these levels.
Image Source: Zacks Investment Research
CAT appears notably expensive compared with peers Komatsu KMTUY and Terex Corporation TEX, which are trading at 1.50 and 1.02, respectively, well below the industry average.
CAT shares have gained 19.7% in the past three months compared with the industry’s 21.2% growth. The Zacks Industrial Products sector gained 15.8% while the S&P500 declined 0.3%, in the same period. Notably, Komatsu and Terex have outperformed CAT during this period, as shown in the chart below.
Image Source: Zacks Investment Research
Let’s take a look at CAT’s fundamentals to better analyze how to play the stock.
CAT Returns to Earnings Growth in Q4
Caterpillar reported revenues of around $19.1 billion in the fourth quarter of 2025, an all-time quarterly record. Revenues rose 18% year over year, mainly led by higher volumes with growth reported across all segments.
Backlog increased sequentially by $11.3 billion during the quarter, reaching a record $51.2 billion.
However, the cost of sales climbed 29% year over year due to higher manufacturing expenses, mainly due to tariffs. As a result, adjusted operating profit declined 9% to $2.66 billion, while adjusted operating margin narrowed to 15.6% from 18.3% in the fourth quarter of 2024.
Despite tariff pressures, earnings per share inched up 0.4% year over year to $5.16. Even though modest, this marked a return to positive earnings growth for Caterpillar following five quarters of declines.
CAT FY26 View: Revenues to Grow, Tariffs to Pressure Margins
For 2026, the company expects year-over-year revenue growth near the upper end of its long-term 5-7% CAGR target. Adjusted operating margin is, however, expected near the bottom of the targeted range, considering continued tariff pressures. CAT expects a tariff headwind of around $2.6 billion for 2026.
The company projects adjusted operating margins of 15–19% at revenue levels of around $60 billion. If revenues reach $72 billion, operating margins are expected to be 18–22%, while revenues of $100 billion could support margins in the range of 21–25%. This is shown in the chart below.
Image Source: Caterpillar Inc.
Pickup in Manufacturing Offers Hope, But Durability Remains Key for CAT
The Institute for Supply Management’s manufacturing index had been in contraction for 26 consecutive months (below 50) through December 2024. Although it briefly moved into expansion in January and February 2025, the index remained in contraction again from March through December 2025.
In 2026, the index returned to expansion with a reading of 52.6% in January, followed by 52.4% in February, indicating growth in manufacturing activity. While these readings are encouraging, last year’s uneven trend suggests that the sustainability of this recovery will be important to monitor.
The New Orders Index expanded in February with a reading of 55.8%, a decrease compared with January’s 57.1%. The index has struggled to maintain consistent momentum since the conclusion of its 24-month expansion streak in May 2022, underscoring the need for sustained demand strength to support a durable upcycle.
CAT’s Earnings Estimates Trend Upward
The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of around 19%. The consensus mark for 2026 revenues suggests growth of 8.9%. Earnings estimates for 2027 suggest 21.6% growth, with revenues rising 8.8%.
Image Source: Zacks Investment Research
Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days.
Image Source: Zacks Investment Research
Caterpillar Delivers Attractive Returns
Caterpillar’s return on equity (ROE) is 45.76%, higher than the industry’s average of 45.12% and the S&P 500’s 32.95%.
Image Source: Zacks Investment Research
Caterpillar Sets Long-Term Growth Targets
Caterpillar is targeting revenue growth at a CAGR of 5–7% through 2030, with MP&E free cash flow projected in the $6-$15 billion range. The company plans to return substantially all MP&E free cash flow to shareholders over time and aims to grow its dividend at a high-single-digit rate, following a 7% increase in 2025.
Operational targets include increasing Construction Industries’ sales to users by 1.25 times by 2030 (from 2024 levels), tripling autonomous trucks in Resource Industries and doubling Power Generation sales. Connected assets are expected to rise from more than 1.6 million to 2 million, while e-commerce sales per business day are projected to jump from 4% to more than 50% by 2030.
The company’s long-term outlook is supported by rising U.S. infrastructure spending, growing demand for mining equipment tied to the energy transition and increased adoption of autonomous solutions to improve productivity and safety. In Power & Energy, sustainability initiatives and data-center investments are driving demand. Caterpillar is also expanding its high-margin aftermarket business, with service revenues targeted to increase from $24 billion in 2025 to $30 billion by 2030.
Our Final Take on Caterpillar Stock
Existing shareholders should continue to hold Caterpillar stock, supported by strong long-term demand drivers, improving earnings visibility and a growing, high-margin services business. Upward earnings estimate revisions further reinforce the company’s positive outlook. However, CAT’s premium valuation suggests that new investors may want to wait for a more attractive entry point. 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.

Caterpillar Trades at Premium Valuation: How to Play the Stock?

In early trading on Wednesday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.1%. Year to date, Caterpillar registers a 28.7% gain.
And the worst performing Dow component thus far on the day is Sherwin-Williams, trading down 1.3%. Sherwin-Williams is showing a gain of 6.3% looking at the year to date performance.
Two other components making moves today are Home Depot, trading down 1.2%, and Amazon.com, trading up 1.0% on the day.
VIDEO: Dow Movers: SHW, CAT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: SHW, CAT

Key Points
Nvidia’s data-center segment is driving virtually all of the company’s results.
Nvidia’s Rubin product line is designed to capitalize on agentic artificial intelligence (AI).
Compute demand for physical AI is one of Nvidia’s most exciting long-term opportunities.
If you tuned into Nvidia's (NASDAQ: NVDA) Feb. 25earnings call you probably caught record numbers such as $215.9 billion in fiscal 2026 revenue, $120.1 billion in net income, or $96.6 billion in free cash flow.
Those are incredibly impressive results. But data centers comprised 89.7% of Nvidia's fiscal 2026 revenue, while other segments like gaming, artificial intelligence (AI) personal computing, professional visualization, and automotive and robotics are having a relatively small effect.
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Here's why Nvidia has an incredible opportunity beyond data centers that could power the growth stock higher over the next decade.
From generative to agentic AI
In 2024 and 2025, Blackwell pole-vaulted Nvidia to be the top compute power behind generative AI. Earlier this year, Nvidia unveiled its Rubin architecture, which features six new chips -- including a graphics processing unit (GPU), central processing unit (CPU), and various networking products. These products are sold separately, and can also be integrated into a well-oiled machine. For example, the Nvidia Vera Rubin NVL72 includes 72 Rubin GPUs, 36 Vera CPUs, and networking and infrastructure platforms. The integrated system functions as a plug-and-play supercomputer for large-scale AI factories.
Rubin's improvements over Blackwell are meant to capitalize on what Nvidia founder and CEO Jensen Huang called the "agentic AI inflection point" in Nvidia's Feb. 25 earnings release. This means enterprise adoption of AI agents.
In his 2025 keynote speech at Nvidia's GPU Technology Conference (GTC), Huang discussed Nvidia's AI roadmap, with generative AI focusing on digital marketing and content creation, agentic AI including applications like coding assistants, customer service, and patient care, and physical AI for autonomous vehicles and general robotics.
Nvidia's product development is following this roadmap, with Blackwell custom-built for generative AI, Rubin for agentic AI, and the next architecture likely to focus on improvements for physical AI. Of course, Nvidia's existing chips are already used in physical AI applications, from Boston Dynamics robots to Caterpillar earth-moving equipment to Tesla's Full Self Driving technology.
Nvidia CFO Colette Kress said the following on the Feb. 25 earnings call:
Physical AI is here, having already contributed north of $6 billion in Nvidia Corporation revenue in fiscal year 2026. Robotaxi rides are growing exponentially, with commercial fleets from [Alphabet's] Waymo, Tesla, Uber, WeRide, and [Amazon's] Zoox, and many others are expected to scale from thousands of vehicles in 2025 to millions over the next decade, creating a market poised to generate hundreds of billions of dollars of revenue. This expansion will demand orders of magnitude more compute, with every major OEM and service provider developing on Nvidia Corporation's platform.
$6 billion in revenue is less than 3% of Nvidia's fiscal 2026 total. But self-driving robotaxis remain in niche geographies, and general robotics is still a long way from everyday use in residential settings. That's why the hundreds of billions in revenue potential Kress outlined doesn't seem that far-fetched.
Nvidia has plenty of room to run
Generative AI and agentic AI give Nvidia a long runway for future growth within the data center. But the more it can expand beyond the data center into physical AI applications, the more diversified its revenue will become, and the greater its overall growth potential will be.
The beauty of Nvidia's investment thesis is that it doesn't depend on physical AI taking off anytime soon. It's already a high-margin cash cow on generative AI alone, and widespread agentic AI adoption would be transformative in its own right.
Add it all up, and Nvidia has the makings of the perfect growth stock to buy and hold for decades to come.
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Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Caterpillar, Nvidia, Tesla, and Uber Technologies. 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.

Caterpillar, Inc.

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