5 American Manufacturing Stocks to Buy Now

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 45    

Caterpillar Inc. (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The firm is among the best American manufacturing stocks to buy now. In late August, the company announced that it had signed a deal with BHP Group to replace the haul truck fleet of the latter at the Escondida copper mine in Chile. Under the deal, Caterpillar will deliver the first of its 798 AC electric trucks by the second half of next year. On August 3, UBS analyst Steven Fisher maintained a Buy rating on Caterpillar Inc. (NYSE:CAT) stock and lowered the price target to $225 from $250. 

At the end of the second quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Caterpillar Inc. (NYSE:CAT), compared to 54 in the previous quarter worth $4 billion.

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Caterpillar Inc. (NYSE:CAT) was one of them. Here is what the fund said:

“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”