Do Wall Street Analysts Like Caterpillar Stock?

With a market cap of $393.3 billion, Caterpillar Inc. (CAT) is a global manufacturer of construction and mining equipment, engines, turbines, and diesel-electric locomotives, serving customers in the United States and around the world. It also supports customers through financing, insurance, parts distribution, and digital services.

Shares of the heavy equipment manufacturer have surpassed the broader market over the past 52 weeks. CAT stock has jumped 107.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.5%. Moreover, the stock is up 49.8% on a YTD basis, compared to SPX’s 13.8% return.

Zooming in further, shares of the Irving, Texas-based company also outpaced the State Street Industrial Select Sector SPDR ETF’s (XLI) 21.7% rise over the past 52 weeks. 

Caterpillar’s shares rose 5.6% on Aug. 4 after the company raised its 2026 revenue growth forecast and reported Q2 2026 adjusted EPS of $8.17, far above analysts’ estimate and up from $4.72 a year earlier. Growth was driven by the AI data-center buildout, with Q2 revenue up 24% to $20.54 billion, construction revenue up 35%, and Power & Energy revenue up 17%, while orders reached $9.4 billion and backlog climbed to $72.1 billion. 

Investor sentiment was further supported by Caterpillar cutting its expected full-year tariff costs to about $2.2 billion from the previous $2.2 billion - $2.6 billion range, reinforcing confidence in sustained AI-related construction and power-equipment demand.

For the fiscal year ending in December 2026, analysts expect Caterpillar’s EPS to grow 39.4% year-over-year to $26.56. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters. 

Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings and 13 “Holds.” 

This configuration is less bullish than three months ago, with a 13 “Strong Buy” rating on the stock.

On Aug. 5, JPMorgan lowered Caterpillar’s price target to $1,100 while maintaining an “Overweight rating.

The mean price target of $1,008.36 represents a nearly 17% premium to CAT’s current price levels. The Street-high price target of $1,225 suggests a 42.1% potential upside. 

On the date of publication, Sohini Mondal 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.