Caterpillar Inc.'s share price was $636.53 on January 13. According to Yahoo Finance, its trailing P/E ratio was 32.35 and its forward P/E was 28.49.
The company, known for construction and mining equipment, is becoming a significant player in the energy sector. Its energy and transportation segment has become the main source of revenue and growth, fueled by demand for onsite power solutions.
Caterpillar's order backlog grew by nearly $10 billion this year. Data center operators are ordering diesel and natural gas generators as traditional energy grids cannot meet rising electricity needs. The company also provides lithium-ion battery storage, analytics, and connected technology. It partners with firms like Nvidia, Microsoft, and Snowflake to optimize performance.
Revenue has been relatively flat, but profitability has been strong. Earnings per share grew at a compound annual rate of 17% over the past decade. Free cash flow increased by 11%. The company expects revenue to grow at least 5% annually through 2030, targeting $100 billion in revenue and a 25% operating margin.
Compared to peers like GE Vernova, Caterpillar's vertically integrated approach gives it a unique position in the specialty energy market. A strong backlog and cash generation present an investment opportunity tied to energy infrastructure for the digital economy.
In April 2025, LongTermValue Research published a bullish report on Vulcan Materials Company, highlighting its dominance in construction materials. Vulcan Materials' stock has risen approximately 29.54% since that coverage. Caterpillar shares a similar industry focus but emphasizes growth from energy and transportation driven by onsite power and AI data center demand.
Seventy hedge fund portfolios held Caterpillar stock at the end of the third quarter, down from 76 in the previous quarter. The company is not among the 30 most popular stocks held by hedge funds.