Caterpillar Upgraded to 'Strong-Buy' Amid Record Quarter

Caterpillar (NYSE:CAT) has received a significant upgrade to its rating from research analysts at Zacks Research. The company's stock was upgraded from 'hold' to 'strong-buy', which is a strong vote of confidence in Caterpillar's future prospects.

The upgrade comes after Caterpillar reported a record quarter, with sales of approximately $20.5 billion and revenue growth of 23.7% year-over-year. The company also beat analysts' consensus estimates for earnings per share by $1.95, reporting $8.17 EPS for the quarter.

This is not the only recent positive news for Caterpillar. The company has a record backlog of $72 billion, which suggests sustained demand for its heavy equipment and supports management's upgraded 2026 sales outlook. Additionally, analysts at Zacks included CAT among momentum stocks that could outperform in 2026, reflecting strong recent business performance and investor interest.

However, it's worth noting that some analysts have expressed caution about Caterpillar's premium valuation, which raises the risk of volatility if orders slow or margins disappoint.