AlphaStocks
6.7
Consider Buy

CATERPILLAR INC (CAT)

Industrials / Construction Machinery & Heavy Transportation Equipment

S&P 500

$904.20

Middle of the pack. No strong signal either way.

Consider Buy

Score based on 5 of 5 models — high confidence

#112out of 1126 in Industrials

Is CATERPILLAR INC a Good Investment in 2026?

CATERPILLAR INC (CAT) scores 6.7 out of 10 on AlphaStocks' composite model, earning a Consider Buy rating. The Piotroski model rates CATERPILLAR INC as Attractive (6/9). However, the Greenblatt Magic Formula model rates it Caution — Top half (rank 35%). CATERPILLAR INC currently trades above its estimated fair value of $481, suggesting limited upside at current prices. CATERPILLAR INC ranks #112 out of 1126 stocks in the Industrials sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E48.1ROE13.7Market Cap421BDiv Yield0.6

Estimated Fair Value

$480.6788% above

Trading above estimated fair value. P/e of 48x implies high growth expectations. eps growth of -15% may not justify the premium.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Attractive

6/9

Buffett

Attractive

Business quality & competitive moat

Graham

Caution

Significantly above fair value

Lynch

Neutral

High PEG — growth premium · Stalwart

Greenblatt

Caution

Top half (rank 35%)

Frequently Asked Questions

Is CATERPILLAR INC (CAT) a good investment?
Based on AlphaStocks' composite analysis, CATERPILLAR INC (CAT) scores 6.7 out of 10, earning a Consider Buy rating. This is a middle-of-the-pack score with no strong signal either way. Trading above estimated fair value. P/e of 48x implies high growth expectations. eps growth of -15% may not justify the premium.
What is CATERPILLAR INC's Piotroski F-Score?
CATERPILLAR INC's Piotroski F-Score status is Attractive. The raw score is 6/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is CAT overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $481, CAT appears overvalued. The stock currently trades 88% above its estimated fair value. Trading above estimated fair value. P/e of 48x implies high growth expectations. eps growth of -15% may not justify the premium.
How does CAT compare to other Industrials stocks?
CATERPILLAR INC ranks #112 out of 1126 stocks in the Industrials sector, placing it in the top 10% of its sector by composite score. This is a strong position relative to sector peers.
What do investment models say about CAT?
AlphaStocks evaluates CAT using five proven investment models. Piotroski: Attractive; Buffett: Attractive; Graham: Caution; Lynch: Neutral; Greenblatt Magic Formula: Caution. These models are combined into a single composite score of 6.7/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer