5 Best Industrial Stocks To Buy Right Now

3. Caterpillar Inc. (NYSE:CAT) 

Number of Hedge Fund Holders: 62

Caterpillar Inc. (NYSE:CAT) is an American Fortune 100 company, manufacturing machinery, engines, financial products, and insurance to companies through an organized dealer network worldwide. It is the largest manufacturer of construction equipment in the world. Caterpillar Inc. (NYSE:CAT) is a Dow Jones Industrial Average Index Component, and it is one of the best industrial stocks to buy now. 

At the end of June, 62 hedge funds traced by Insider Monkey were long Caterpillar Inc. (NYSE:CAT), with stakes roughly worth $5.26 billion, up from 53 in Q1, with a total stake value of almost $4.95 million. 

On October 14, David Raso from Evercore ISI kept an Outperform rating on Caterpillar Inc. (NYSE:CAT).

Here is what Oakmark Funds has to say about Caterpillar Inc. (NYSE:CAT) in its Q2 2021 investor letter:

“Having followed the company closely for north of a decade, Caterpillar is a name we know well. For much of its history, the operating efficiency of the company left much to be desired, but its underlying competitive position was rarely in doubt. A series of actions over the past decade (e.g., LEAN implementation, improved service mix, optimized manufacturing footprint) helped to narrow the gap between Caterpillar’s potential and its realized results, driving material margin expansion and strong share price performance. In our view, the company remains among the highest quality industrials in the market, but its underlying business is cyclical, which can translate to large swings in both performance and investor sentiment over short time periods. Our ability to focus on the long-term, sustainable earnings power of a business (rather than getting distracted by near-term fluctuations) is our most significant edge when investing in cyclical businesses. Due to the inherent volatility in Caterpillar’s end markets and operating performance, we suspect we’ll have a future opportunity to own this high-quality business at a more attractive price once the cycle turns and today’s enthusiasm wears off.”