Caterpillar Stock Sees 17% Undervaluation as Autonomous Hauling Tech Gains Traction

Caterpillar's share price has eased over the past three months, but its long-term momentum remains strong. The company's partnership with Luck Stone to develop autonomous hauling technology has shown promising results, with over 3.5 million tons moved at the initial Bull Run site in Virginia.

The recent pullback in Caterpillar's share price may be a buying opportunity for investors. According to Simply Wall St, the stock appears to be undervalued by around 17%, with a fair value of $970.37 per share, compared to its recent close of $808.01.

Caterpillar's backlog growth across all three primary segments is driven by strong global infrastructure demand, particularly in North America, Africa, and the Middle East. This positions the company for above-trend sales growth in late 2025 and into 2026, supporting top-line revenue expansion.