#4 - Caterpillar (NYSE:CAT)
Caterpillar Inc. (NYSE: CAT) is another way that investors can invest in the construction sector. The company’s stock has been on a tear over the past 12 months as infrastructure spending continues to make its way into the economy.
Prior to the U.S. presidential election on November 5, 2024, CAT stock was down more than 3% after a double miss in its third-quarter earnings report. However, with the outcome of the election known, investors are stepping on the gas in expectation that there will be demand for the company’s heavy equipment.
One question is: will analysts follow this price movement by raising their price targets? Trading at around 18.9x forward earnings, CAT stock carries a slight premium to other heavy equipment companies. But the company’s solid financials, including a dividend that has grown for 30 consecutive years, is a good reason to add Caterpillar to your portfolio heading into 2025.
About Caterpillar
Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.
Read More - Current Price
- $397.49
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $365.33 (8.1% Downside)
