CAT Dominates Heavy Machinery Stocks in 2026

Caterpillar (CAT) is leading heavy machinery stocks in 2026, with its shares up 40% year-to-date. The company's diversified end markets - construction, mining, and power generation - are all performing well, driving revenue growth. In the second quarter of 2026, Caterpillar reported adjusted earnings per share of $8.17 on revenue of $20.54 billion, a 24% increase from the same period last year.

Deere (DE), on the other hand, has beaten Wall Street estimates in its latest quarterly report, but the company's industry is contracting hard. Deere's agricultural equipment sales are down 13.1% year-to-date, and the company expects large-equipment industry sales to fall 15-20% in both North America and South America.

PACCAR (PCAR) has trailed behind Caterpillar and Deere due to a slower freight cycle. The company's Q2 2026 report showed earnings per share of $1.43 on revenue of $7.55 billion, up just 0.5% from the same period last year.