Caterpillar Stock Rebounds After Valuation Correction

Caterpillar Inc.'s stock has seen a recent correction in its valuation after a strong run, but it's now trading near the upper end of its range.

The company's price/earnings-to-growth (PEG) ratio has decreased to around 1.4 from levels above 2 earlier this year, making it more moderately valued relative to its growth outlook.

Caterpillar has been benefiting from a return to profit growth in its construction and resource industries segments after tariff costs weighed on results last year.