Caterpillar's Power Generation Unit Surpasses Expectations

Caterpillar's Power Generation Business Is Gaining Momentum.

Investors commonly associate Caterpillar (NYSE: CAT) with construction equipment, but a significant shift is underway. The company's power generation unit has grown to become nearly as large as its construction segment.

This change in focus is affecting the stock's valuation and market expectations. Investors are taking note of this development, which may support the stock's multiple for the foreseeable future.