Here is how Caterpillar (CAT) and Gorman-Rupp (GRC) have performed compared to their sector so far this year.
Caterpillar, Mercury General, and Zebra Technologies each posted impressive Q2 results that could warrant a closer look from investors seeking quality additions to their portfolios.
Caterpillar (NYSE:CAT | CAT Price Prediction) just did something it has never done in its 100-year history.
Caterpillar raises its 2026 sales outlook as record backlog, stronger segment demand and added power capacity support higher second-half growth.
Caterpillar (CAT) has surged 49% since my previous coverage, dramatically outperforming the benchmark. CAT's top and bottom-line growth acceleration is impressive and supported by multi-year tailwinds, especially in power generation and data center markets. Despite trading at a 34x forward P/E, a 58% premium to sector median, I believe CAT's quality and growth justify the valuation.
On Tuesday, August 4, 2026, the S&P 500 rose 1.79% to close at 7,737, its first record high in two months, while the Nasdaq surged 2.6% and the Dow crossed 54,000.
Caterpillar's second-quarter sales and revenues rose 24% year over year to $20.5 billion, its first quarter ever above $20 billion. The power and energy segment produced $8.2 billion of sales -- and more segment profit than construction equipment did.
Caterpillar is riding AI infrastructure momentum with record backlog and raised guidance, but valuation risk is acute. CAT trades at over 30x forward earnings and a 3.2% FCF yield, both unattractive versus risk-free assets and sector medians. Despite strong fundamentals, CAT's valuation leaves no margin of safety; mean reversion could drive negative medium-term returns.
Caterpillar Inc. (CAT) Q2 2026 Earnings Call Transcript
Caterpillar NYSE: CAT reported record second-quarter sales and revenues of $20.5 billion, up 24% from a year earlier, as demand increased across its Construction Industries, Resource Industries and Power & Energy segments. The company said it was the first quarter in its history with more than $20 billion in sales and revenues.