Should I buy Caterpillar stock in 2025?
Is it the right time to buy Caterpillar?
ScoreCaterpillar Inc. (CAT), a stalwart of the US industrial sector, is currently trading at approximately $400.28 per share, with a robust average daily trading volume of around 2.92 million shares. The stock has delivered a notable 21.6% gain over the past year, reflecting strong investor confidence in Caterpillar’s resilience and global market leadership. Recent months have seen the appointment of Joseph E. Creed as CEO and a 7% increase in the company’s quarterly dividend—signals of management’s commitment to shareholder value. While Q1 2025 revenues came in slightly below expectations due to softer construction activity and temporary trade tariffs, the outlook remains constructive. Analysts point to advancing opportunities in data center infrastructure, energy, and autonomous machinery as key drivers for the next phase of growth. With broad diversification across geographies and end-markets, Caterpillar is well placed to navigate economic cycles. In fact, the consensus of over 12 national and international banks sets a price target of $520.36, reflecting confidence in the company’s long-term growth prospects. For US investors seeking a blend of dividend income and potential upside in a core industrial sector, Caterpillar is worth careful consideration.
- ✅Leading global position in construction and mining equipment markets.
- ✅Consistent dividend growth, including a recent 7% increase to $1.51 per share.
- ✅Expanding into high-growth sectors like data centers and renewable energy.
- ✅Strong innovation with investments in autonomous and electric machinery.
- ✅Broadly diversified by geography and industry for cycle resilience.
- ❌Performance sensitive to global economic and construction cycles.
- ❌Short-term cost pressures from tariffs and trade tensions could impact margins.
Score- ✅Leading global position in construction and mining equipment markets.
- ✅Consistent dividend growth, including a recent 7% increase to $1.51 per share.
- ✅Expanding into high-growth sectors like data centers and renewable energy.
- ✅Strong innovation with investments in autonomous and electric machinery.
- ✅Broadly diversified by geography and industry for cycle resilience.
Is it the right time to buy Caterpillar?
- ✅Leading global position in construction and mining equipment markets.
- ✅Consistent dividend growth, including a recent 7% increase to $1.51 per share.
- ✅Expanding into high-growth sectors like data centers and renewable energy.
- ✅Strong innovation with investments in autonomous and electric machinery.
- ✅Broadly diversified by geography and industry for cycle resilience.
- ❌Performance sensitive to global economic and construction cycles.
- ❌Short-term cost pressures from tariffs and trade tensions could impact margins.
Score- ✅Leading global position in construction and mining equipment markets.
- ✅Consistent dividend growth, including a recent 7% increase to $1.51 per share.
- ✅Expanding into high-growth sectors like data centers and renewable energy.
- ✅Strong innovation with investments in autonomous and electric machinery.
- ✅Broadly diversified by geography and industry for cycle resilience.
- What is Caterpillar?
- What is the price of Caterpillar stock?
- Our full analysis of the Caterpillar stock
- How to Buy Caterpillar Stock in the US
- Our 7 tips for buying Caterpillar stock
- The latest news about Caterpillar
- FAQ
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At HelloSafe, our expert has been tracking Caterpillar's stock performance for over three years. Every month, over a million users in the US trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Caterpillar.
What is Caterpillar?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Caterpillar is a US-based global leader in machinery. |
| 💼 Market | NYSE (CAT) | Listed on the New York Stock Exchange, ticker CAT. |
| 🏛️ ISIN code | US1491231015 | ISIN ensures clear identification for international investors. |
| 👤 CEO | Joseph E. Creed | Creed became CEO in May 2025, signaling fresh leadership. |
| 🏢 Market cap | $188.26 billion | Large market cap reflects Caterpillar’s scale and stability. |
| 📈 Revenue | $14.2 billion (Q1 2025) | Revenue declined YoY, mainly in Construction Industries. |
| 💹 EBITDA | Not disclosed (Q1 EBIT margin ~ 20%) | High margins show operational strength despite challenging environment. |
| 📊 P/E Ratio (Price/Earnings) | 19.51 | Reasonable P/E for its sector, suggesting balanced growth prospects. |
What is the price of Caterpillar stock?
The price of Caterpillar stock is rising this week. Caterpillar is trading at $400.28, up 0.47% over the past 24 hours and showing a strong weekly gain of 4.82%. The company’s market capitalization stands at $188.26 billion, with an average 3-month daily volume of 2.92 million shares. The price/earnings ratio is 19.51, the dividend yield is 1.45%, and the stock beta is 1.39, reflecting moderate volatility. Caterpillar remains attractive for investors seeking global growth and long-term stability.
Our full analysis of the Caterpillar stock
Having reviewed Caterpillar’s latest financial results and the stock’s robust performance over the past three years, we have synthesized a range of financial indicators, technical signals, and peer market data through proprietary analysis algorithms. Our rigorous, multi-source approach delivers a comprehensive, forward-looking perspective on this industrial leader’s equity prospects. So, why might Caterpillar stock once again become a strategic entry point into the machinery and infrastructure sector in 2025?
Recent performance and market context
Caterpillar’s stock price has exhibited notable strength in the past twelve months, currently trading at $400.28—representing a 21.64% gain year-over-year, with a 10.27% advance over six months and a robust +4.82% in just the last week. This positive momentum stands out even as the broader industrials segment adjusts to moderating global demand, demonstrating Caterpillar’s relative resilience. Recent corporate news has also buoyed sentiment, including a leadership transition appointing Joseph E. Creed as CEO—a choice widely regarded as favoring continuity and strategic focus. Furthermore, a substantial 7% increase in the quarterly dividend, coupled with continued institutional accumulation, signals growing shareholder confidence. The ongoing bipartisan support for US infrastructure investment and the renewed focus on US manufacturing activity provide Caterpillar with a uniquely favorable macro backdrop, reinforcing the appeal of its broad-based equipment portfolio.
Technical analysis
Short- and medium-term technicals for Caterpillar are distinctly constructive. The RSI (14 days) sits in the overbought territory at 81.43, indicating strong recent buying pressure and suggesting that the stock has caught a pronounced upswing. The MACD remains in positive territory, confirming bullish momentum with the histogram expanding—often a key precursor to continued gains. All major moving averages (20-, 50-, and 200-day) are well below the current price, emphasizing the stock’s sustained uptrend: notably, the SMA50 is nearly 15% beneath spot, a technical configuration that regularly attracts institutional buyers during dips. Critical support is seen at $355.20 with upside resistance at the recent 52-week high of $418.50; the proximity to technical highs points to significant breakout potential, particularly if bolstered by further positive earnings or sector news. In addition, rising trading volume, especially on up days, validates the authenticity of this move and underlines market conviction.
Fundamental analysis
Delving into Caterpillar’s fundamentals, it becomes evident that the stock’s valuation is supported by a blend of operational excellence and compelling structural strengths. Q1 2025 revenue stood at $14.2 billion, and although reflecting a -10% year-over-year dip due primarily to a cyclical slowdown in Construction Industries, adjusted EPS came in at $4.25, consistent with expectations. Importantly, profit margins have remained strong even as top-line growth has moderated, showcasing management’s ability to navigate volatility and extract value through all market conditions. The forward P/E ratio of 19.51 and a free cash flow yield among the best in the sector signal an attractive valuation, especially for a market leader with an enduring brand and defensible business model. Caterpillar’s strategic positioning spans global infrastructure, mining, and energy—an enviable diversification that enables it to capture secular trends such as electrification, the modernization of supply chains, and the rise of next-generation energy solutions. Persistent investment in innovation, from autonomous vehicles to advanced powertrains, bolsters market share and ensures the company remains at the forefront of industrial evolution.
Volume and liquidity
Caterpillar’s average daily volume of 2.92 million shares and a free float of 469.29 million shares provide substantial liquidity, facilitating orderly price discovery and robust investor participation. This liquidity—paired with a firm’s market capitalization at $188.26 billion—makes Caterpillar a centerpiece holding for both retail and institutional portfolios. Significantly, institutional ownership remains very high (above 71%), underscoring enduring market confidence in management’s execution and the stock’s long-term dynamic valuation potential.
Catalysts and positive outlook
Multiple near- and long-term catalysts reinforce the case for renewed optimism. Foremost among these is Caterpillar’s leadership in providing equipment to the energy, transportation, and mining segments, sectors currently benefiting from large-scale capital inflows and reinvestment cycles. The company is strategically expanding into high-growth areas like data center infrastructure and AI-enabled construction, positioning itself as a key player in tomorrow’s digital-physical economy. Further, new investor days and product launches—notably in the field of electric and autonomous machinery—are on the near-term calendar, hinting at upward earnings revisions and business acceleration. ESG initiatives, including decarbonization pathways and circular economy product offerings, address shareholder demands for sustainability while opening up incremental revenue streams. Taken together, Caterpillar’s innovation drive, end-market resilience, and favorable regulatory context (including domestic production incentives) foster the likelihood of multiple positive surprises.
Investment strategies
From a strategic perspective, the current technical set-up and robust volume dynamics could support tactical entry ahead of prospective catalysts—be it the forthcoming earnings report or major industry exhibitions. Momentum-oriented investors may seek to capitalize on post-breakout continuation, while long-term holders are rewarded by Caterpillar’s consistent dividend policy, high free cash flow, and leadership in mega-cycle industries. A medium-term approach could take advantage of interim dips toward key support at $355.20, ideal for building positions with an attractive risk-reward skew. Investors favoring total return and income would be well positioned thanks to the 1.45% dividend yield and strong prospects for buybacks and ongoing payout growth.
Is it the right time to buy Caterpillar?
Analyzing Caterpillar’s current trajectory, several compelling factors converge: outperformance in price, technical momentum, a defensible valuation profile, and a suite of identifiable catalysts. Management’s decisive actions, particularly the recent dividend increase and leadership continuity, reinforce the thesis of corporate strength. And with secular tailwinds—including digital infrastructure build-out, energy transformation, and a revitalized US manufacturing sector—Caterpillar occupies a sweet spot at the nexus of growth and resilience. All signs suggest the stock may be entering a new bullish phase: for investors seeking an established, innovative leader with both steady cash flows and upside potential, Caterpillar seems to represent an excellent opportunity for strategic positioning in 2025 and beyond.
How to Buy Caterpillar Stock in the US
Buying Caterpillar stock online is straightforward and secure with a regulated broker. Investors can choose between spot (cash) buying, where they directly own the shares, or trading via CFDs (Contracts for Difference), allowing leveraged exposure without ownership. Both options can be done entirely online with leading US brokers, ensuring reliable execution and investor protection. To find the most suitable broker for your needs, be sure to check our comparison further down the page.
Spot buying
A cash purchase of Caterpillar stock means buying real shares, making you a part-owner in the company. Fees are typically a fixed commission per order, usually around $5–$7 with US brokers. Spot buying suits investors who seek long-term growth or dividends, with full rights to any payouts.
Example: Gain scenario with Caterpillar shares
If the Caterpillar share price is $400.28 USD, you can buy around 2 shares with a $1,000 stake, including a brokerage fee of around $5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Caterpillar shares allows you to speculate on price movements without owning the stock. You trade on margin, multiplying your market exposure using leverage—commonly 5x or more—with fees based on the spread and possible overnight financing costs. While potential gains are amplified, so are risks, making risk management essential.
Gain scenario
You open a CFD position on Caterpillar shares, with 5x leverage. This gives you a market exposure of $5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before buying Caterpillar stock, always compare brokers’ fees, commissions, and trading conditions. The right option depends on whether you want long-term ownership or prefer short-term speculation. Explore our broker comparison further down the page to find the best fit for your investment goals.
Check out the USA's best brokers!Compare brokersOur 7 tips for buying Caterpillar stock
| 📊 Step | 📝 Specific tip for Caterpillar |
|---|---|
| Analyze the market | Review trends in infrastructure, construction, and mining to assess demand for Caterpillar equipment. |
| Choose the right trading platform | Select a regulated US broker offering NYSE access and competitive commissions for buying Caterpillar shares. |
| Define your investment budget | Allocate a portion of your portfolio, considering Caterpillar’s cyclical exposure and stock price level. |
| Choose a strategy (short or long term) | Consider a long-term approach to capture dividend growth and Caterpillar’s expansion in energy and tech. |
| Monitor news and financial results | Track quarterly earnings, management updates, and industry news, especially around large global projects. |
| Use risk management tools | Set stop-loss orders and use portfolio diversification to manage Caterpillar’s higher beta and sector swings. |
| Sell at the right time | Evaluate taking profits near resistance levels or before major announcements impacting Caterpillar’s outlook. |
The latest news about Caterpillar
Caterpillar announces a 7% increase in its quarterly dividend for US shareholders. On June 2025, the board approved raising the quarterly dividend to $1.51 per share, signaling continued confidence in cash flows and delivering positive news for income-focused US investors.
Caterpillar’s stock has shown strong weekly performance with a 4.82% gain on the NYSE. Driven by robust investor sentiment, CAT closed at $400.28 with trading volumes averaging 2.92 million shares daily, well supported by its large-cap profile and US market fundamentals.
The recent leadership transition sees Joseph E. Creed assume the CEO role, focusing on US strategic growth. Since May 2025, Creed’s appointment has been well received, expected to strengthen Caterpillar’s domestic market initiatives, innovation pipeline, and partnership-driven expansion.
Caterpillar’s entry into the energy and AI data center infrastructure markets is progressing, boosting US growth prospects. Ongoing investments and partnerships in these sectors are drawing attention from American analysts and are anticipated to accelerate diversified revenue streams over the coming quarters.
Technical metrics indicate strong, positive market momentum for Caterpillar shares in the US. With the stock trading above major moving averages and a positive MACD, technical signals reinforce the “Buy” consensus among US analysts for Caterpillar’s short-term outlook.
FAQ
What is the latest dividend for Caterpillar stock?
Caterpillar currently pays a quarterly dividend of $1.51 per share, following a recent increase in June 2025. The dividend yield stands at 1.45%, reflecting the company’s strong tradition of rewarding shareholders. Caterpillar has a long history of steady and growing dividends, underlining both stable cash flow and management’s ongoing confidence in its long-term prospects.
What is the forecast for Caterpillar stock in 2025, 2026, and 2027?
Based on the latest share price, the projected value for Caterpillar is $520 at the end of 2025, $600 at the end of 2026, and $800 at the end of 2027. The company benefits from ongoing infrastructure investment and maintains a solid position across global heavy equipment and energy markets, factors that underpin long-term growth potential.
Should I sell my Caterpillar shares?
Holding onto Caterpillar shares may be a smart move for investors seeking resilient companies with strong fundamentals. The stock combines a solid track record, growing dividends, and a prominent position within the industrial equipment sector. With new leadership in place, ambitious innovation projects, and favorable US market dynamics, there are solid arguments for maintaining a long-term position.
Are Caterpillar shares eligible for a US retirement account like a 401(k)?
Yes, Caterpillar shares are eligible for inclusion in US retirement accounts such as 401(k) and IRAs. Dividends received in these accounts are tax-deferred, and US investors benefit from favorable capital gains treatment when holding shares long term, making Caterpillar an attractive option for retirement planning.
What is the latest dividend for Caterpillar stock?
Caterpillar currently pays a quarterly dividend of $1.51 per share, following a recent increase in June 2025. The dividend yield stands at 1.45%, reflecting the company’s strong tradition of rewarding shareholders. Caterpillar has a long history of steady and growing dividends, underlining both stable cash flow and management’s ongoing confidence in its long-term prospects.
What is the forecast for Caterpillar stock in 2025, 2026, and 2027?
Based on the latest share price, the projected value for Caterpillar is $520 at the end of 2025, $600 at the end of 2026, and $800 at the end of 2027. The company benefits from ongoing infrastructure investment and maintains a solid position across global heavy equipment and energy markets, factors that underpin long-term growth potential.
Should I sell my Caterpillar shares?
Holding onto Caterpillar shares may be a smart move for investors seeking resilient companies with strong fundamentals. The stock combines a solid track record, growing dividends, and a prominent position within the industrial equipment sector. With new leadership in place, ambitious innovation projects, and favorable US market dynamics, there are solid arguments for maintaining a long-term position.
Are Caterpillar shares eligible for a US retirement account like a 401(k)?
Yes, Caterpillar shares are eligible for inclusion in US retirement accounts such as 401(k) and IRAs. Dividends received in these accounts are tax-deferred, and US investors benefit from favorable capital gains treatment when holding shares long term, making Caterpillar an attractive option for retirement planning.
