Baird Keeps Neutral Rating on Caterpillar Amid Peak Growth Metrics

Baird has reaffirmed its Neutral rating for Caterpillar (NYSE:CAT) stock and set a price target of $970.00, pointing to historic high growth metrics in the company's second-quarter performance.

Caterpillar's key metrics reached top quartile levels in Q2 2026, with earnings per share growth at the 85th percentile and backlog growth at 92%, placing it in the 96th percentile. Order growth was at the 88th percentile at 59%.

The company's diluted earnings per share stood at $23.21 over the last twelve months, but its P/E ratio of 37.16 suggests premium valuation levels. The stock has delivered a remarkable 107% total return over the past year and reached a record relative performance against the S&P 500 in June.