10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust

5. Caterpillar Inc. (NYSE:CAT)

Bill & Melinda Gates Foundation Trust’s Stake: $2.66 billion

Number of Hedge Fund Holders: 62

Caterpillar Inc. (NYSE:CAT), often referred to as CAT, is a leading American manufacturer of construction, mining, and engineering equipment. The company is a key player in the industry, having been recognized as the world’s largest maker of construction equipment.

On April 16, Morgan Stanley analyst Angel Castillo raised Caterpillar Inc. (NYSE:CAT) from Underweight to Equalweight, while also lowering the price target to $283 from $300. The upgrade follows a significant loss in Caterpillar’s share price since mid-October, with a drop of over 30% and a performance lag of around 20% behind the S&P 500. Castillo stated that, despite the lower price target, the change in the stock’s rating reflects the market’s assessment of Caterpillar’s near-term risks and long-term prospects. The analyst pointed out that the current share price more effectively reflects the downside risks to earnings, especially considering Morgan Stanley’s projections, which are around 10% lower than the consensus for the company’s 2025 earnings per share.

Caterpillar Inc. (NYSE:CAT) reported $16.2 billion in revenue in the fourth quarter of 2024, a 5% decrease from the same period last year. This dip was primarily caused by a $859 million fall in sales volume, which was driven by reduced dealer inventories and lower demand from end users. That said, Caterpillar Inc. (NYSE:CAT) maintained solid financial health in 2024, earning $12.0 billion in operating cash flow and ending the year with $6.9 billion in cash.