Caterpillar Shares Climbing Higher

CAT makes the iconic machines moving materials at construction sites, work areas, and more throughout the world. The company serves infrastructure, construction, mining, oil and gas, and transportation customers around the globe. In fact, CAT’s market capitalization is nearly $180 billion, and it’s often considered a bellwether of the global economy.

CAT’s total second-quarter sales and revenue was $16.7 billion. And it turned the revenue into profits, reporting adjusted profits that increased by 2% to $3.8 billion. For fiscal 2024, analysts expect per-share earnings of $21.91. They also expect year-over-year growth in revenue of 3.2% by the end of fiscal 2025.

It’s no wonder CAT shares are up 32% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves Caterpillar

Institutional volumes reveal plenty. Recently, CAT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in CAT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Caterpillar.

Caterpillar Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CAT has had strong sales and earnings growth:

• 3-year sales growth rate (+17.2%)
• 3-year earnings growth rate (+60.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +3.7%.

Now it makes sense why the stock has been powering to new heights. CAT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Caterpillar has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last two years. The blue bars below show when CAT was a top pick…driving the price up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Caterpillar Price Prediction

The CAT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in CAT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.