Caterpillar Inc. (NYSE:CAT) is among the Stocks to invest in before it splits next time.. In particular, Caterpillar Inc. (NYSE:CAT) has a history of rewarding shareholders through stock splits, having split its stock several times over the decades, most recently in 2005.
On April 24, BofA Securities raised its price target on Caterpillar Inc. (NYSE:CAT) to $930 from $825, maintaining a Buy rating on the company’s stock. According to analyst Michael Feniger, Caterpillar’s Power & Energy division, which accounts for about 40% of revenue, is attracting significant investor attention given its growth potential in the energy sector, which includes motors and generators for data centers.
According to BofA Securities, there are signs that Caterpillar’s energy division could see growth in 2027. The company said Caterpillar’s oil and gas portfolio could see a recovery that year, although it acknowledges some near-term risks to mining and drilling sales.
Meanwhile, on April 8, Freedom Broker raised Caterpillar Inc.’s (NYSE:CAT) price target to $710 from $700, maintaining a Hold rating on the stock. Analyst Sergey Glinyanov said the company remains favorable to Caterpillar Inc. (NYSE:CAT) heading into 2026, adding that a recent conversation with management confirms the belief that the near-term environment may be more favorable than the market thinks.
Caterpillar Inc. (NYSE:CAT) is a leading global producer of heavy machinery and manufacturing equipment used in construction and mining, along with diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
While we recognize CAT’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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