Caterpillar Inc. (NYSE:CAT) ranks among the stocks to invest in before they split next. Notably, Caterpillar Inc. (NYSE:CAT) has a history of rewarding shareholders through stock splits, having split its stock several times throughout the decades, the most recent in 2005.
On April 24, BofA Securities boosted Caterpillar Inc. (NYSE:CAT)’s price target to $930 from $825, maintaining a Buy rating on the company’s shares. According to analyst Michael Feniger, Caterpillar’s Power & Energy arm, which accounts for roughly 40% of revenues, is attracting substantial investor focus given its growth potential in the power sector, which includes engines and generators for data centers.
According to BofA Securities, there are indications that Caterpillar’s energy division may see growth in 2027. The firm stated that Caterpillar’s oil and gas portfolio might experience a comeback that year, albeit acknowledging some short-term risk to mining and excavation sales.
Meanwhile, on April 8, Freedom Broker boosted Caterpillar Inc. (NYSE:CAT)’s price objective to $710 from $700, retaining a Hold rating on the stock. Analyst Sergey Glinyanov stated that the firm remains favorable on Caterpillar Inc. (NYSE:CAT) going into 2026, adding that a recent conversation with management confirms the belief that the near-term environment may be more supportive than the market thinks.
Caterpillar Inc. (NYSE:CAT) is a leading global producer of heavy machinery, manufacturing equipment used in construction and mining, along with diesel and natural gas engines, industrial gas turbines, and diesel- electric locomotives.
While we acknowledge the potential of CAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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