AI-Driven Growth Fuels Caterpillar, but Campbell's Slumps
Caterpillar and Campbell's have been highlighted as Zacks Bull and Bear of the Day. Caterpillar, the largest global construction and mining equipment manufacturer in the world, has emerged as an AI dark horse with a strong backlog of orders. The company offers investors a rare combination of industrial value, consistent earnings beats, and direct upside to the generational AI revolution.
Caterpillar's order backlog swelled to a record $72 billion, soaring 92% year-over-year. The company has surpassed Zacks Consensus Estimates for four consecutive quarters, with an average surprise of 18.12%. Caterpillar benefits from the AI boom in several ways, including data center demand, autonomy, mining demand, and Cat AI Assistant.
Campbell's, on the other hand, is facing fundamental and technical headwinds. The company's snack segment saw organic net sales fall 6% while operating earnings plunged 28%. Campbell's management team expects earnings to remain weak, with a similar trajectory expected by Zacks Consensus Estimates.