5 Best Heavy Equipment and Industrial Machinery Stocks to Buy

2. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50

As April 28, Caterpillar Inc. (NYSE:CAT) is trading at a TTM PE ratio of 16.18 and is offering a forward dividend yield of 2.19%.

On April 12, Deutsche Bank revised its price target on Caterpillar Inc. (NYSE:CAT) to $225 from $228 and maintained a Hold rating on the shares.

On April 27, Caterpillar Inc. (NYSE:CAT) posted strong earnings for the first quarter of fiscal 2023. The company generated a revenue of $15.86 billion, up 16.73% year over year and ahead of Wall Street estimates by $587.59 million. The company reported earnings per share of $4.91 and beat EPS expectations by $1.12.

Caterpillar Inc. (NYSE:CAT) was spotted on 50 investors’ portfolios at the end of Q4 2022. These funds disclosed collective positions worth $5.1 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the most prominent shareholder and has disclosed a position worth $1.7 billion.

Diamond Hill Capital made the following comment about Caterpillar Inc. (NYSE:CAT) in its Q4 2022 investor letter:

“In the case of Caterpillar Inc. (NYSE:CAT), the company reported a better-than-expected Q3 as demand in mining, non-residential construction and energy remained healthy through the year even as recession fears grew. Caterpillar showed strong pricing power and operating efficiency in the face of supply chain constraints and labor shortages, which in turn contributed to better-than-expected share price performance.”