5 Best Infrastructure Stocks to Buy Now

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50      

Caterpillar Inc. (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. On November 8, investment advisory Tigress Financial maintained a Buy rating on Caterpillar Inc. (NYSE:CAT) stock and raised the price target to $295 from $282, noting the firm was well positioned to benefit from global growth in the construction field. 

At the end of the third quarter of 2023, 50 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in Caterpillar Inc. (NYSE:CAT), the same as in the previous quarter worth $2.5 billion.

In its Q3 2023 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:

“Caterpillar Inc. (NYSE:CAT), the world’s leading manufacturer of construction and mining equipment, also performed well this quarter. Caterpillar has managed to leverage increased capital investment from various end markets, contributing to better than expected fiscal results for Q2. The company is poised to be one of the largest beneficiaries of several government funding initiatives, including the IRA (Inflation Reduction Act) bill, CHIPS Act and infrastructure bill. These measures are expected to support construction spending for several years, providing a robust backdrop for Caterpillar’s continued growth.”