
Caterpillar (CAT) Stock Forecast & Price Target
Caterpillar (CAT) Analyst Ratings
Bulls say
Caterpillar has demonstrated strong sales momentum, with total sales to users increasing by 7%, driven by a notable 9% year-over-year volume increase, despite a negative price realization of 4.1%. The firm has shown consistent revenue growth, achieving a compound annual growth rate (CAGR) of 3.6% from 2015 to 2024, resulting in projected revenues of $64.8 billion, supported by a robust order backlog that increased by $2.4 billion in conjunction with strong demand in Power Generation and Oil & Gas. Additionally, the company's diversified business segments, with significant growth in energy and transportation sales, underscore Caterpillar's favorable positioning in the global market for construction and mining equipment.
Bears say
Caterpillar's third-quarter results revealed a 4% year-over-year decline in adjusted earnings per share to $4.95, despite exceeding consensus estimates, with operational profit margins negatively impacted by tariffs and unfavorable pricing, which led to a drop in operating margins for both construction and resource segments. Additionally, a significant downturn in construction equipment unit sales is anticipated, with projections indicating an 11% decline in North America for 2025 following a contraction of 5% in 2024, suggesting softening demand amidst a potential macroeconomic slowdown. Furthermore, concerns arise regarding the company's ability to maintain profitability amidst these challenges, as revenue growth may fall short of expectations, exacerbated by increasing operating costs and decreasing ore grades that have stagnated copper production levels.
This aggregate rating is based on analysts' research of Caterpillar and is not a guaranteed prediction by Public.com or investment advice.
Caterpillar (CAT) Analyst Forecast & Price Prediction
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