Caterpillar (NYSE:CAT) is one of the leading mobile machinery manufacturers in the world. With a strong rebound in commodities and growth in CAPEX, CAT should be one of the top stocks over the next few years. Read on to find out why it remains a buy after its stellar Q3 report.Caterpillar (CAT) is one of the leading mobile machinery manufacturers in the world. The company’s stock price is often considered a proxy for global growth.
The post-pandemic economy has been positive for CAT due to higher levels of infrastructure spending, a strong housing market, a recovery in the industrial sector, and high levels of CAPEX that are expected to persist over the next decade. As a result, CAT’s stock is up more than 130% from its lows in March 2020.
Despite these gains, the stock remains attractively priced with a price-to-earnings ratio (P/E) that is below the S&P 500. Longer-term fundamentals remain bullish, and the 20% dip in the stock price is providing a good entry point from a risk/reward perspective.