Caterpillar FY2027 EPS Forecast Lifted by Erste Group Bank

Caterpillar Inc. (NYSE:CAT) – Research analysts at Erste Group Bank increased their FY2027 EPS estimates for Caterpillar in a report issued on Thursday, August 27th. Erste Group Bank analyst H. Engel now anticipates that the industrial products company will earn $32.16 per share for the year, up from their prior estimate of $31.18. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $27.14 per share.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm’s revenue was up 23.7% on a year-over-year basis. During the same period in the previous year, the firm posted $4.72 EPS.

Other research analysts also recently issued reports about the stock. UBS Group upped their price target on shares of Caterpillar from $900.00 to $925.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. DA Davidson upped their target price on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Royal Bank Of Canada increased their target price on Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $1,002.00 price objective on shares of Caterpillar in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $797.72 on Monday. The company’s 50 day moving average price is $889.47 and its two-hundred day moving average price is $838.20. The firm has a market capitalization of $366.69 billion, a P/E ratio of 34.33, a P/E/G ratio of 1.40 and a beta of 1.60. Caterpillar has a fifty-two week low of $410.52 and a fifty-two week high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were issued a dividend of $1.63 per share. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Monday, July 20th. Caterpillar’s dividend payout ratio is presently 28.06%.

Institutional Trading of Caterpillar

Several hedge funds have recently bought and sold shares of CAT. Axxcess Wealth Management LLC boosted its holdings in shares of Caterpillar by 2.8% in the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after buying an additional 604 shares during the last quarter. DSG Capital Advisors LLC bought a new stake in Caterpillar in the first quarter worth about $1,226,000. Cornerstone Planning LLC bought a new stake in Caterpillar in the fourth quarter worth about $4,517,000. RiverFront Investment Group LLC boosted its stake in Caterpillar by 21.1% in the fourth quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company’s stock valued at $5,107,000 after acquiring an additional 1,552 shares during the last quarter. Finally, Larson Financial Group LLC grew its position in shares of Caterpillar by 73.6% during the 4th quarter. Larson Financial Group LLC now owns 12,915 shares of the industrial products company’s stock valued at $7,399,000 after acquiring an additional 5,476 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off?highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.