Stocks
Caterpillar Stock Pulls Back on Downgrade and Valuation Concerns
Caterpillar Inc.'s stock has pulled back from its recent highs after a downgrade and valuation concerns tied to its AI-fueled power push.
The company's share price has declined 2.07% on August 28, 2026, trading around $800, as investors digest the downgrade and reevaluate the stock's valuation.
Caterpillar's forward price-to-earnings ratio has risen above 30, a level more typical for high-growth technology names than traditional capital-goods manufacturers.
The company's AI-focused expansion in its power and energy solutions unit has been a key driver of the share price nearly doubling in total return over the past year.