5 Best Hardware Stocks To Buy Now

4. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 43

On October 27, Caterpillar Inc. (NYSE:CAT) posted market-beating earnings for the third quarter of fiscal 2022. The company reported an EPS of 3.95 and outperformed Wall Street consensus by $0.78. The company’s revenue for the quarter grew by 20.95% year over year and amounted to $14.99 billion, ahead of revenue estimates by $619.93 million. As of December 6, Caterpillar Inc. (NYSE:CAT) has gained 10.29% year to date and is offering a forward dividend yield of 2.10%.

Wall Street sees material upside to Caterpillar Inc. (NYSE:CAT). On October 31, Citi analyst Timothy Thein raised his price target on Caterpillar Inc. (NYSE:CAT) to $235 from $180 and maintained a Neutral rating on the shares.

At the end of Q3 2022, 43 hedge funds held stakes in Caterpillar Inc. (NYSE:CAT). The total value of these stakes amounted to $2.84 billion. As of September 30, Bill & Melinda Gates Foundation Trust is the top shareholder in the company and has a stake worth $1.20 billion.

Here is what Diamond Hill Capital had to say about Caterpillar Inc. (NYSE:CAT) in its first-quarter 2022 investor letter:

“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.”