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Opinions Stuart Hinshelwood
CaterpillarCATDON'T BUYNov 01, 2013
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Just bought it after they delivered a blow-out quarter last time (report next week) with top and bottom line beats. Good dividend growth. He believes in infrastructure long term. Bought this before earnings to start building a position.
Kevin SimpsonDoesn't see a major recession, and so sees major upside here. They crushed their last quarter. He just bought it on a pullback, will buy again and hold for the long term.
Kevin SullivanThey were viewed as a play on China. Given China's collapse, CAT stock should have tanked and shorters piled into this. But the CEO countered that CAT is more levered to data centres, which helped to sway the street. Still trades at 13x PE. Was up 11% in Q3. CAT has more room to run.
Prefers Caterpillar over John Deere.
Growth in infrastructure spending good for industrial nature of company.
Company subject to broad economic trends.
Good long term investment.
Gordon Reid
He bought it this week. CAT covers industrials from mining to energy and rails.They delivered one of the best quarterly earnings, then broke to new highs. This plays into the rotation theme in which he favours industrials, healthcare and energy in the second half of this year, though not tech.
Just reported a strong earnings beat and their quarter defied concerns of a global slowdown. Shares rallied to an all-time high. CAT makes machines to non-residential construction, mining, oil/gas and data centre construction--all sectors doing well. Also, Washington is creating tons of jobs in infrastructure. CAT's sell-off was unwarranted in the first place. The CEO is making CAT less cyclical, and he foresaw the weakness in China.
They diversified away from China. CAT will benefit from federal infrastructure spending that will boost their orders. Also, when investors feel that US-China relationships are improving, they buy CAT. He sold some shares today. Has rallied since last May. Is now seeing money from the Infrastructure Bill of late 2021. Trades at 13x PE 2023.
Rallied last Friday. The CEO has diversified the services offered, but shares have slumped. Wall Street views it as an old-fashioned cyclical stock, which is wrong. He expects a lot of orders for infrastructure projects by next year. Shares have bumped because of China's stimulus plans, but China represents only 5% of CAT's business.
Core holding. A play on where the next bull market's going to be, and that's going to be cyclicals. Growth rate is fine, as is valuation. He'd go for cheaper names with the same view, think FTT or WJX.
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Premium contentSince 1925, Caterpillar Inc. has been helping our customers build a better world - making sustainable progress possible and driving positive change on every continent. With 2019 sales and revenues of $53.8 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Services offered throughout the product life cycle, cutting-edge technology and decades of product expertise set Caterpillar apart, providing exceptional value to help our customers succeed. The company principally operates through three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and provides financing and related services through its Financial Products segment. Social media mentions are up 1200% in the past 24h.
Good, maybe great company but in a really tough space. Had a big miss in earnings. Top line is down significantly on a year-over-year basis. He would be more comfortable with this if it got down into the $75 range. Has a big negative overhang from mining but the bigger problem is that they don’t make these machines overnight so there is a longer lead time and they have a lot of inventory built up in the channel. Have to work through that, then work through new sales. Emerging markets are under pressure for them.