Review Draft - BUZZ - Preview: Caterpillar Earnings Report Coming Soon, AI Construction in the Spotlight

Reposted Wednesday’s BUZZ report with no changes to the content

October 29 - ** Caterpillar CAT.N shares rose 0.4% on Wednesday to $716.37. The company is set to release its third-quarter earnings before the open on Thursday, and investors are currently focusing on demand related to artificial intelligence.

** According to LSEG data, this construction and power equipment manufacturer’s revenue for the quarter is expected to increase 16.5% year-on-year to $20.54 billion, with adjusted earnings per share forecast at $7.08, higher than the $4.95 recorded a year ago.

** In the previous quarter, the company (link) reported a substantial profit increase, benefiting from the expansion of AI data centers. Investors will be watching to see if this trend continues.

** Last month, Caterpillar (CAT) announced (link) a $1 billion investment to expand its manufacturing capacity in North Carolina, citing growing demand for compact equipment used in data center construction.

** So far this year, Caterpillar shares have risen 25%, outperforming the S&P 500 index’s .SPX 13% gain and the S&P 500 industrial sector .SPLRCI’s nearly 9% gain.

** The stock’s recent forward price-to-earnings ratio stands at 22 times, above its five-year average of 18 times, indicating a relatively high valuation; the current share price is about 33% below its record intraday high of $1,073.46 set on June 30, 2026.

** Among the 30 analysts covering Caterpillar, the breakdown of recommendations is as follows: 17 recommend “strong buy” or “buy,” 12 recommend “hold,” and 1 recommends “sell.” The median price target is $908, down from $967.50 a month ago.

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