Is CAT a good stock to buy right now?

Based on our 6-factor quantitative model, CATERPILLAR INC (CAT) receives a "Hold" rating with a composite score of 52.8/100. It is ranked #393 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 53/100, Momentum 71/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for CAT?

CATERPILLAR INC (CAT) has a "Hold" rating and 3-star score. The composite score of 52.8 ranks it #393 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is CAT in?

CATERPILLAR INC operates in the Industrials sector (Machinery industry) with a market cap of $339.81 billion. It is classified as a mega-cap stock.

Does CAT pay a dividend?

Yes, CAT pays a dividend with a current yield of 1.21%. For every $1,000 invested, you would receive approximately $12.10 in annual dividend income.

What is CAT's P/E ratio?

CAT has a trailing P/E ratio of 40.14x. The Industrials sector average is 28.3x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is CAT?

CAT's quality factor score is 50/100. Gross margin: 35.8%. ROE: 42.0% vs sector average 8.9%. Margins are moderate to low, reflecting competitive market dynamics.

How is CAT valued compared to peers?

CAT's value factor score is 53/100 (higher = cheaper). Key multiples: P/E 40.1x, EV/EBITDA 30.9x. Valuation is roughly in line with peers.

What is CAT's debt level?

CAT's debt-to-equity ratio is 362%. Sector average: 70%. Elevated leverage increases credit risk.

CAT has a beta of 1.11, meaning it tracks the market. Stability score: 64/100.

Does CAT have high short interest?

CAT's short interest factor score is 25/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

CAT Stock Analysis: Hold (Score 52.8/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
CAT	+0.46%	+10.24%	+10.32%	+38.02%	+173.43%	-	-	-
Industry Proxy XLI	-0.39%	+4.73%	+0.88%	+10.57%	+38.89%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+0.52%	+6.64%	+9.99%	+38.38%	+143.91%	-	-	-
Alpha vs Sector	+0.85%	+5.51%	+9.44%	+27.44%	+134.54%	-	-	-

Metric	CAT	Benchmark
P/E Ratio	40.1x	+42%
EV/EBITDA	30.9x	+442%
Price / Book	16.8x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
STNG Scorpio Tankers Inc.	64	43	96	73	-	93.3%	63.1%	53.8%	-	30.0x	$3.8B	VS
TNK TEEKAY TANKERS LTD.	62	50	97	71	6.3x	91.9%	67.0%	32.8%	-	0.0x	$2.5B	VS
TEN TSAKOS ENERGY NAVIGATION LTD	61	50	86	75	7.8x	42.1%	97.8%	22.6%	-	103.0x	$1.2B	VS
HAFN Hafnia Ltd	60	42	79	77	-	439.1%	48.5%	27.0%	-	0.0x	$3.8B	VS
TPH Tri Pointe Homes, Inc.	57	50	67	66	13.6x	8.8%	47.5%	7.9%	-26.0%	50.0x	$4.0B	VS
GLDD Great Lakes Dredge & Dock CORP	57	50	69	70	16.3x	13.5%	22.2%	8.1%	14.8%	73.0x	$1.1B	VS
SOBO South Bow Corp	57	39	79	66	21.9x	48.4%	82.3%	14.9%	-	219.0x	$6.8B	VS
IMPP Imperial Petroleum Inc./Marshall Islands	54	44	98	58	2.8x	47.7%	100.0%	34.0%	-19.7%	0.0x	$156M	VS
CAT CATERPILLAR INC	53	50	53	71	40.1x	42.0%	35.8%	13.9%	5.7%	362.0x	$339.8B
CCO Clear Channel Outdoor Holdings, Inc.	52	48	58	69	59.3x	-	53.4%	-0.3%	7.7%	-	$1.2B	VS
IMXI International Money Express, Inc.	52	50	73	52	11.6x	25.5%	0.0%	6.4%	-9.7%	221.0x	$476M	VS

Key Ratio	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Gross Margin %	0.4%	0.3%	0.4%	0.4%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%
Operating Margin %	0.2%	0.2%	0.2%	0.2%	0.1%	0.1%	0.1%	0.2%	0.2%	0.1%	0.0%
EBITDA Margin %	0.2%	0.2%	0.2%	0.2%	0.1%	0.1%	0.2%	0.2%	0.2%	0.2%	0.1%
Net Margin %	0.1%	0.1%	0.2%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%	0.0%	-0.0%
FCF Margin %	7.4%	-	-	-	-	-	10.1%	7.9%	6.7%	7.4%	7.0%
ROE %	0.4%	0.4%	0.6%	0.5%	0.4%	0.4%	0.2%	0.4%	0.4%	0.1%	-0.0%
ROA %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.0%	0.1%	0.1%	0.0%	-0.0%
ROIC %	16.1%	41.3%	53.0%	52.5%	39.3%	32.9%	8.3%	14.9%	18.9%	10.9%	2.7%

Key Ratio

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

Gross Margin %

0.4%

0.3%

0.4%

0.3%

Operating Margin %

0.2%

0.1%

0.2%

0.1%

0.0%

EBITDA Margin %

0.2%

0.1%

0.2%

0.1%

Net Margin %

0.1%

0.2%

0.1%

0.0%

-0.0%

FCF Margin %

7.4%

10.1%

7.9%

6.7%

7.4%

7.0%

ROE %

0.4%

0.6%

0.5%

0.4%

0.2%

0.4%

0.1%

-0.0%

ROA %

0.1%

0.0%

0.1%

0.0%

-0.0%

ROIC %

16.1%

41.3%

53.0%

52.5%

39.3%

32.9%

8.3%

14.9%

18.9%

10.9%

2.7%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$64.6B	$67.6B	$64.8B	$67.1B	$59.4B	$51.0B	$41.7B	$53.8B	$54.7B	$45.5B	$38.5B	$47.0B
	—	$44.8B	$40.2B	$42.8B	$41.4B	$35.5B	—	—	—	—	—	—
	$23.1B	$22.8B	$24.6B	$24.3B	$18.1B	$15.5B	$12.7B	$17.2B	$17.7B	$14.2B	$10.5B	$12.9B
Gross Margin	35.8%	33.8%	38.0%	36.2%	30.4%	30.3%	30.3%	31.9%	32.4%	29.8%	27.2%	27.4%
	—	$7.0B	$6.7B	$6.4B	$5.7B	$5.4B	—	—	—	—	—	—
Research & Development	—	$2.1B	$2.1B	$2.1B	$1.8B	$1.7B	$1.4B	$1.7B	$1.9B	$1.8B	$1.9B	$2.1B
Depreciation	—	—	—	—	—	—	$2.4B	$2.6B	$2.8B	$2.9B	$3.0B	$3.0B
Total Operating Expenses	—	$11.7B	$11.5B	$11.3B	$10.2B	$8.6B	—	—	—	—	—	—
	$11.6B	$11.2B	$13.1B	$13.0B	$7.9B	$6.9B	$4.6B	$8.3B	$8.3B	$4.5B	$1.2B	$3.8B
EBIT	$11.4B	$11.2B	$13.1B	$13.0B	$7.9B	$6.9B	$4.6B	$8.3B	$8.3B	$4.5B	$1.2B	$3.8B
EBITDA	$11.6B	$11.2B	$13.1B	$13.0B	$7.9B	$6.9B	$6.9B	$10.8B	$11.0B	$7.5B	$3.7B	$7.0B
Operating Margin	18.1%	16.5%	20.2%	19.3%	13.3%	13.5%	10.9%	15.4%	15.2%	9.8%	3.0%	8.1%
EBITDA Margin	18.0%	16.5%	20.2%	19.3%	13.3%	13.5%	16.6%	20.1%	20.1%	16.5%	9.5%	14.9%
	—	—	—	—	—	—	$1.1B	$421M	$1.1B	$531M	$505M	$507M
	—	$11.5B	$13.4B	$13.1B	$8.8B	$8.2B	—	—	—	—	—	—
Income Tax Expense	—	$2.8B	$2.6B	$2.8B	$2.1B	$1.7B	$1.0B	$1.7B	$1.7B	$3.3B	$192M	$916M
	$8.9B	$8.9B	$10.8B	$10.3B	$6.7B	$6.5B	$3.0B	$6.1B	$6.1B	$759M	-$59M	$2.5B
Net Margin	13.9%	13.1%	16.7%	15.4%	11.3%	12.7%	7.2%	11.3%	11.2%	1.7%	-0.1%	5.4%
	$18.90	$18.90	$22.17	$20.24	$12.72	$11.93	$5.51	$10.85	$10.39	$1.27	$-0.11	$4.23
Diluted EPS	$18.90	$18.81	$22.05	$20.12	$12.64	$11.83	$5.51	$10.85	$10.39	$1.27	$-0.11	$4.23
Weighted Avg Basic	—	470M	487M	511M	527M	544M	—	—	—	—	—	—
Weighted Avg Diluted	—	472M	489M	514M	530M	549M	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$64.6B

$67.6B

$64.8B

$67.1B

$59.4B

$51.0B

$41.7B

$53.8B

$54.7B

$45.5B

$38.5B

$47.0B

—

$44.8B

$40.2B

$42.8B

$41.4B

$35.5B

—

$23.1B

$22.8B

$24.6B

$24.3B

$18.1B

$15.5B

$12.7B

$17.2B

$17.7B

$14.2B

$10.5B

$12.9B

Gross Margin

35.8%

33.8%

38.0%

36.2%

30.4%

30.3%

31.9%

32.4%

29.8%

27.2%

27.4%

—

$7.0B

$6.7B

$6.4B

$5.7B

$5.4B

—

Research & Development

—

$2.1B

$1.8B

$1.7B

$1.4B

$1.7B

$1.9B

$1.8B

$1.9B

$2.1B

Depreciation

—

$2.4B

$2.6B

$2.8B

$2.9B

$3.0B

Total Operating Expenses

—

$11.7B

$11.5B

$11.3B

$10.2B

$8.6B

—

$11.6B

$11.2B

$13.1B

$13.0B

$7.9B

$6.9B

$4.6B

$8.3B

$4.5B

$1.2B

$3.8B

EBIT

$11.4B

$11.2B

$13.1B

$13.0B

$7.9B

$6.9B

$4.6B

$8.3B

$4.5B

$1.2B

$3.8B

EBITDA

$11.6B

$11.2B

$13.1B

$13.0B

$7.9B

$6.9B

$10.8B

$11.0B

$7.5B

$3.7B

$7.0B

Operating Margin

18.1%

16.5%

20.2%

19.3%

13.3%

13.5%

10.9%

15.4%

15.2%

9.8%

3.0%

8.1%

EBITDA Margin

18.0%

16.5%

20.2%

19.3%

13.3%

13.5%

16.6%

20.1%

16.5%

9.5%

14.9%

—

$1.1B

$421M

$1.1B

$531M

$505M

$507M

—

$11.5B

$13.4B

$13.1B

$8.8B

$8.2B

—

Income Tax Expense

—

$2.8B

$2.6B

$2.8B

$2.1B

$1.7B

$1.0B

$1.7B

$3.3B

$192M

$916M

$8.9B

$10.8B

$10.3B

$6.7B

$6.5B

$3.0B

$6.1B

$759M

-$59M

$2.5B

Net Margin

13.9%

13.1%

16.7%

15.4%

11.3%

12.7%

7.2%

11.3%

11.2%

1.7%

-0.1%

5.4%

$18.90

$22.17

$20.24

$12.72

$11.93

$5.51

$10.85

$10.39

$1.27

$-0.11

$4.23

Diluted EPS

$18.90

$18.81

$22.05

$20.12

$12.64

$11.83

$5.51

$10.85

$10.39

$1.27

$-0.11

$4.23

Weighted Avg Basic

—

470M

487M

511M

527M

544M

—

Weighted Avg Diluted

—

472M

489M

514M

530M

549M

—

CATERPILLAR INC (CAT) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does CATERPILLAR INC Do?

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large excavators; compact, small, and medium wheel loaders; track-type tractors and loaders; and wheel excavators. The Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, fleet management, landfill compactors, soil compactors, machinery components, autonomous ready vehicles and solutions, select work tools, and safety services and mining performance solutions. The Energy & Transportation segment offers reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, remanufactured reciprocating engines and components, centrifugal gas compressors, diesel-electric locomotives and components, and other rail-related products and services for marine, oil and gas, industrial, and electric power generation sectors. The company's Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing plans; and insurance and risk management products for vehicles, power generation facilities, and marine vessels. The All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, etc. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois. CATERPILLAR INC (CAT) is classified as a mega-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Donald J. Umpleby and employs approximately 109,100 people, headquartered in Peoria, Texas. With a market capitalization of $339.8B, CAT is one of the largest companies in the Industrials sector.

CATERPILLAR INC (CAT) Stock Rating — Hold (April 2026)

As of April 2026, CATERPILLAR INC receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CAT ranks #393 out of 4,446 stocks in our coverage universe. Within the Industrials sector, CATERPILLAR INC ranks #68 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

CAT Stock Price and 52-Week Range

CATERPILLAR INC (CAT) currently trades at $790.66. The stock gained $3.59 (0.5%) in the most recent trading session. The 52-week high for CAT is $789.81, which means the stock is currently trading 0.1% from its annual peak. The 52-week low is $267.30, putting the stock 195.8% above its annual trough. Recent trading volume was 1.8M shares, reflecting moderate market activity.

Is CAT Overvalued or Undervalued? — Valuation Analysis

CATERPILLAR INC (CAT) carries a value factor score of 53/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 40.14x, compared to the Industrials sector average of 28.33x — a premium of 42%. The price-to-book ratio stands at 16.84x, versus the sector average of 2.23x. The price-to-sales ratio is 5.56x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, CAT trades at 30.85x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 31.47x.

Overall, CAT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

CATERPILLAR INC Profitability — ROE, Margins, and Quality Score

CATERPILLAR INC (CAT) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 42.0%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 9.1% versus the sector average of 3.3%.

On a margin basis, CATERPILLAR INC reports gross margins of 35.8%, compared to 35.8% for the sector. The operating margin is 18.1% (sector: 6.2%). Net profit margin stands at 13.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at 5.7% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

CAT Debt, Balance Sheet, and Financial Health

CATERPILLAR INC has a debt-to-equity ratio of 362.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.44x, suggesting adequate working capital coverage. Total debt on the balance sheet is $43.33B. Cash and equivalents stand at $7.54B.

CAT has a beta of 1.11, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for CATERPILLAR INC is 64/100, reflecting average volatility within the normal range for its sector.

CATERPILLAR INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, CATERPILLAR INC reported revenue of $64.56B and earnings per share (EPS) of $18.90. Net income for the quarter was $8.94B. Gross margin was 35.8%. Operating income came in at $11.64B.

In FY 2025, CATERPILLAR INC reported revenue of $67.59B and earnings per share (EPS) of $18.90. Net income for the quarter was $8.88B. Gross margin was 33.8%. Revenue grew 4.3% year-over-year compared to FY 2024. Operating income came in at $11.15B.

In Q3 2025, CATERPILLAR INC reported revenue of $17.64B and earnings per share (EPS) of $4.91. Net income for the quarter was $2.30B. Gross margin was 33.8%. Revenue grew 9.5% year-over-year compared to Q3 2024. Operating income came in at $3.05B.

In Q2 2025, CATERPILLAR INC reported revenue of $16.57B and earnings per share (EPS) of $4.64. Net income for the quarter was $2.18B. Gross margin was 34.8%. Revenue grew -0.7% year-over-year compared to Q2 2024. Operating income came in at $2.86B.

Over the past 8 quarters, CATERPILLAR INC has demonstrated a growth trajectory, with revenue expanding from $16.69B to $64.56B. Investors analyzing CAT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

CAT Dividend Yield and Income Analysis

CATERPILLAR INC (CAT) currently pays a dividend yield of 1.2%. At this yield, a $10,000 investment in CAT stock would generate approximately $$121.00 in annual dividend income. The net margin of 13.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

CAT Momentum and Technical Analysis Profile

CATERPILLAR INC (CAT) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

CAT vs Competitors — Industrials Sector Ranking and Peer Comparison

Within the Industrials sector, CATERPILLAR INC (CAT) ranks #68 out of 752 stocks based on the Blank Capital composite score. This places CAT in the top decile of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.

Comparing CAT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CAT vs S&P 500 (SPY) comparison to assess how CATERPILLAR INC stacks up against the broader market across all factor dimensions.

CAT Next Earnings Date

No upcoming earnings date has been announced for CATERPILLAR INC (CAT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy CAT? — Investment Thesis Summary

CATERPILLAR INC presents a balanced picture with arguments on both sides. Price momentum is positive at 71/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.

In summary, CATERPILLAR INC (CAT) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CAT stock.

Related Resources for CAT Investors

Explore more research and tools: CAT vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CAT head-to-head with peers: CAT vs SOBO, CAT vs TEN, CAT vs GLDD.

Business quality

Valuation edge

Market alpha

Unlock Investment Thesis

Unlock Performance & Technicals

Unlock Valuation Tools

Institutional peer matrix

Dispersion: efficiency vs. valuation

Lateral intelligence network

Unlock Financial Statements

Unlock Ownership & Management

Intelligence Feed

Why Caterpillar (CAT) is a Top Stock for the Long-Term

Don't Panic Over UPS: These 2 Mega-Cap Stocks Are the Real Opportunity

Dividend Champion, Contender, And Challenger Highlights: Week Of April 12

Jim Cramer Reviewed 22 Stocks, Including Home Depot and Caterpillar, After the Relief Rally

Jim Cramer Reviewed 5 Stocks, Including IBM and Caterpillar, After the Relief Rally

Unlock Earnings Transcripts

Institutional Intelligence FAQ

Related Research & Tools

Related Industrials Stocks

CATERPILLAR INC (CAT) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does CATERPILLAR INC Do?

CATERPILLAR INC (CAT) Stock Rating — Hold (April 2026)

CAT Stock Price and 52-Week Range

Is CAT Overvalued or Undervalued? — Valuation Analysis

CATERPILLAR INC Profitability — ROE, Margins, and Quality Score

CAT Debt, Balance Sheet, and Financial Health

CATERPILLAR INC Revenue and Earnings History — Quarterly Trend

CAT Dividend Yield and Income Analysis

CAT Momentum and Technical Analysis Profile

CAT vs Competitors — Industrials Sector Ranking and Peer Comparison

CAT Next Earnings Date

Should You Buy CAT? — Investment Thesis Summary

Related Resources for CAT Investors

Comments

Institutional Benchmarks

Related research

Get alerted on rating changes

Intelligence Feed

Why Caterpillar (CAT) is a Top Stock for the Long-Term

Don't Panic Over UPS: These 2 Mega-Cap Stocks Are the Real Opportunity

Dividend Champion, Contender, And Challenger Highlights: Week Of April 12

Jim Cramer Reviewed 22 Stocks, Including Home Depot and Caterpillar, After the Relief Rally

Jim Cramer Reviewed 5 Stocks, Including IBM and Caterpillar, After the Relief Rally