Caterpillar Stock: Analyst Estimates & Ratings

Caterpillar Inc. (CAT), based in Irving, Texas, is a leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Worth a market capitalization of $185.4 billion, Caterpillar is the global leader in construction and mining machinery, producing engines and components for its equipment, and offering financing and insurance services.

Shares of this machinery giant have outperformed the broader market slightly over the past year. CAT has gained 53% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.4%. In 2024 alone, CAT stock rose 29.9%, compared to the SPX’s 23.1% rise on a YTD basis.

Narrowing the focus, CAT has surpassed the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 32.6% over the past year. Moreover, CAT’s gains on a YTD basis outshine the ETF’s 22% returns over the same time frame.

On Oct. 30, CAT shares plunged 2.1% after it announced its Q3 earnings. The company missed both its EPS and revenue estimates due to lower sales volume, leading to the drop in its shares.

For the current fiscal year, ending in December, analysts expect CAT’s EPS to grow 2.2% to $21.68 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters, while missing on another occasion.

Among the 18 analysts covering CAT stock, the consensus is a “Hold,” a step down from “Moderate Buy” a month ago. That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and four “Strong Sells.”

The configuration has been stable over the past months.

On November 13, Evercore Inc. (EVR) downgraded Caterpillar from 'In Line' to 'Underperform' while raising its price target from $321 to $365. The change reflects concerns about potential earnings risks and competitive pressures. Evercore cited Caterpillar's Q3 sales and EPS as signs of possible downward EPS risks in 2025, linked to high construction equipment inventory levels. The firm also highlighted that increased global competition, exacerbated by the strong U.S. dollar, could impact both construction and mining equipment sales.

While CAT currently trades above the mean price target of $381.83, the Street-high price target of $500 suggests an upside potential of 30.2% from the current market prices.

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On the date of publication, Kritika Sarmah 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.

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