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Valued at a market cap of $140.2 billion, Caterpillar Inc. (CAT) is a leading global manufacturer of heavy equipment, engines, and other related products, primarily serving industries like construction, mining, energy, and transportation. With its headquarters in Peoria, Illinois, Caterpillar is known for its iconic yellow machinery, such as bulldozers, excavators, and wheel loaders.
The heavy-equipment titan is expected to announce its Q1 earnings on Thursday, Apr. 24. Ahead of the event, analysts expect CAT’s EPS to decline 22.9% to $4.32 per share from the year-ago quarter. The company has surpassed the consensus estimates in three of the past four quarters, while missing on another occasion.
In the recent quarter, it surpassed the consensus estimate by 3.4%, thanks to strong demand across its construction and energy segments, effective cost management, and continued momentum in its aftermarket services.
For the current year, analysts expect Caterpillar to report an EPS of $19.41, down 11.4% from $21.90 in fiscal 2024. However, looking forward to 2026, its EPS is likely to jump 11.8% annually to $21.69.
CAT stock has plunged 21.1% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 3.2% gains and the Industrial Select Sector SPDR Fund’s (XLI) 1.2% returns over the same time frame.
From Apr. 2 to Apr. 8, Caterpillar shares fell 4.3%, mirroring broad market volatility driven by tariff uncertainties. Despite a brief market rally following President Trump's 90-day tariff delay (excluding China), investor sentiment remained cautious. Caterpillar was also impacted after Citigroup Inc. (C) downgraded the stock, citing concerns that rising tariffs could hurt U.S. agricultural exports and extend the sector's downcycle.
The consensus opinion on Caterpillar stock is cautiously upbeat, with a “Moderate Buy” rating overall. Out of the 21 analysts covering the stock, eight recommend a “Strong Buy,” one advises a “Moderate Buy,” nine suggest a “Hold” rating, one “Moderate Sell,” and the remaining two analysts give a “Strong Sell” rating.
Further, CAT’s average target price of $371.74 indicates a potential upswing of 26.7% from current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
