Caterpillar is experiencing unprecedented demand driven by data center power needs shifting from backup to primary power generation. The company's backlog now exceeds 2.4 times last year's revenues, with orders extending through 2030, providing strong revenue visibility. Gross margins improved significantly, with Power & Energy margins rising to 24.6% in Q2, supporting potential earnings growth. Despite short-term valuation concerns, robust backlogs, margin expansion, and capital returns make Caterpillar a strong buy recommendation.
Caterpillar's stock has fallen nearly 30% from its recent peak, reaching a price level where the risk-reward ratio appears attractive again. The company is shifting from being viewed mainly as a cyclical industrial to a business with growing Power & ...
Caterpillar has teamed up with FieldAI to enhance jobsite and factory operations through physical AI, robotics, and digital twin technology. This collaboration aims to improve safety, productivity, and decision-making by providing real-time insights ...
