Caterpillar Inc. (NYSE:CAT) is included among the 10 High-Quality Stocks to Buy According to Hedge Funds.
On May 11, Evercore ISI analyst David Raso raised his price recommendation on Caterpillar Inc. (NYSE:CAT) to $1,103 from $878. The analyst reiterated an outperform rating on the stock.
During the company’s first-quarter 2026 earnings conference call, President and CEO Creed said Caterpillar now expects full-year 2026 sales and revenue growth in the double digits. It also said the company did not expect any material impact on its 2026 outlook at this stage, even with the current geopolitical uncertainty and higher energy prices.
Senior Vice President Kyle Epley said the company had lowered its full-year 2026 tariff cost estimate to between $2.2 billion and $2.4 billion. That figure was lower than the previous estimate of $2.6 billion shared last quarter. He added that the company planned to increase its efforts to offset tariff-related costs in the second half of the year.
Epley also said Caterpillar still expected restructuring expenses of between $300 million and $350 million in 2026. The company’s capital spending guidance remained at around $3.5 billion. He added that MP&E’s free cash flow was now expected to exceed the $9.5 billion reported last year.
Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.
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